look news india
Building your own dream home is the biggest dream of every working and salaried person. Home loan becomes the most important means to realize this dream. At present, major government and private banks of the country are offering home loans to the working class at very attractive and low interest rates. If your credit score (CIBIL Score) is 750 or more, banks are not only offering you loans at lower interest rates but also providing you with a lot of additional benefits like waiver of processing fees and easy repayment period. In such a situation, if you are also planning to buy a new house or book a flat, then it is very important for you to know which bank is offering the cheapest home loan at what rate so that you can save EMI of thousands of rupees every month.
The public sector banks of the country have always been the first choice for reliable and affordable home loan rates. State Bank of India (SBI) is offering home loans at the most competitive rates for the salaried class, with interest rates starting around 8.40% to 8.50% per annum. Punjab National Bank (PNB) and Bank of Baroda (BoB) are also offering loans to employed people at rates ranging from 8.40% to 8.60% depending on their CIBIL score and credit profile. Canara Bank and Union Bank of India are also offering special discounts for salaried applicants. The biggest specialty of government banks is that no additional pre-payment charge is taken during repayment and transparency is maintained completely.
Leading private sector banks are also continuously giving tough competition in interest rates to attract salaried class customers. The initial home loan rates for the working class in HDFC Bank and ICICI Bank are running between 8.50% to 8.75% per annum. At the same time, Axis Bank and Kotak Mahindra Bank are also providing home loan facility in the range of 8.70% to 8.90%. Although the interest rates of private banks may be slightly higher than that of government banks, their processing speed, minimal paperwork and the facility of instant loan disbursal make them quite popular.
To get the cheapest and attractive interest rate on home loan, it is very important for salaried employees to keep some important things in mind. The first and foremost condition is your credit or CIBIL score; If your CIBIL score is 750 or more, then banks automatically offer you the lowest rate of interest. Apart from this, your monthly income, job stability and the profile of the company you work for also play a big role in deciding the loan rates. If you are employed in a multinational company (MNC) or a government department, banks also offer you an additional discount of 0.05% to 0.10% under ‘Corporate Salaried Account’.
While choosing a home loan, not only the initial interest rate but also other terms and conditions related to the loan should be carefully examined. First of all, check whether the loan is linked to the Repo Rate Linked Lending Rate (RLLR) or the External Benchmark Lending Rate (EBLR) because whenever the central bank cuts the repo rate, the home loan EMI linked to these rates automatically reduces. Apart from this, definitely compare the loan processing fees, legal charges and pre-closure rules between different banks. By choosing the right bank and affordable interest rate, you can save lakhs of rupees in interest over the course of your 20 or 30 year loan tenure.