September 4, 2024: In today’s age of inflation, almost everyone needs a home loan to fulfill the dream of owning a house. As real estate sales continue to rise across the country, home loan rates are also increasing proportionally. On the other hand, the Reserve Bank of India (RBI) has kept the repo rate unchanged for the 9th consecutive meeting, maintaining the 2.5% hike introduced post-COVID. If you’re looking for a home loan, we’ve compiled a list of banks offering the lowest interest rates.
While it’s important to carefully consider and research before taking a home loan, as even a small difference can result in significant savings over time, if you’re in search of cheaper loans, government banks are a good option. Two government banks offer the lowest home loan rates. According to data from Paisabazaar.com, you can choose a bank that suits your needs and apply for a home loan.
Union Bank of India and Bank of Maharashtra offer the cheapest loans at just 8.35% interest. By taking a loan from these banks, you could save lakhs of rupees over time. Currently, the RBI’s repo rate stands at 6.5%, and if there is a reduction in the repo rate in the future, these banks’ interest rates will likely decrease further.
What will the EMI be?
Assuming you take a 20-year home loan of ₹50 lakh from Bank of Maharashtra or Union Bank of India, the EMI will be ₹42,918 per month at the current 8.35% interest rate. You will pay a total interest of ₹53,00,236 over the tenure. Thus, the total amount for the home loan will be ₹1,03,00,236.
Other Government Banks:
Six other government banks offer home loans at 8.40% interest. These include SBI, Bank of Baroda, PNB, Indian Bank, Bank of India, Canara Bank, and Indian Overseas Bank. If you take a ₹50 lakh loan from these banks and repay it over 20 years, your monthly EMI will be ₹43,075. Over the entire tenure, you will pay a total interest of ₹53,38,054.
