Which lender is offering the lowest home loan interest rate

Recently, many lenders have changed their MCLR which has resulted in increase in home loan rates. At present, the lowest starting interest rate is 8.55% per annum which is offered by Bank of Baroda. However, now that even SBI and HDFC Ltd, two leading housing finance companies, have increased their home loan rates, others are expected to follow the league.

As of now, the interest rate offered by top 5 housing loan providers in India is given below. You can check out the lowest home loan interest rate and the eligibility criteria to see whether or not you can apply for the loan. Only then you can expect approval for it.

Home Loan Interest Rates in Top 5 Banks

Below are the some of the lowest home loan interest rates by top banks:

  1. State Bank of India- 8.65% p.a. onwards
  2. ICICI Bank- 8.85% p.a. onwards
  3. Axis Bank- 8.50% p.a. onwards
  4. HDFC – 8.80% p.a. onwards
  5. Bank of Baroda- 8.55% p.a. onwards

Compare Home Loan EMIs

A home loan EMI calculator is an online facility that is accessible anytime anywhere. You just need to mention the basic details on your home loan which are as follows:

  • Loan amount
  • Tenure
  • Interest rate

Here is an example with the loan amount ₹40 lakhs with the tenure of 25 years and interest rate of 8.70% p.a.

EMI: ₹35,221

Total interest outgo: ₹44,53,020

Total amount: ₹ 84,53,020

What is the procedure to apply for lowest home loan interest rate? 

As you have read above, you can only get approval for the lowest interest rate if you match the criteria for it. Banks would ask you to have a credit history and then there is a requirement of good income. Other than this, your property should be in a very good location. The general eligibility criteria for home loans and documents (which is the most important thing to get approval) is given below:

Eligibility criteria

For Salaried:

  • Your age must be between 18-70 years
  • Your net annual income should be at least ₹1,20,000
  • You can get loan amount up to ₹5 lakhs to ₹1 crore
  • The minimum work experience required is 2 years

For Self-employed:

  • Your age must be between 21-70 years
  • Your net annual income should be at least ₹2,00,000
  • You can get loan amount up to ₹5 lakhs to ₹2 crores
  • The minimum work experience required is 3 years

Documents required

  • Duly filled Application Form with Photograph
  • KYC Documents including Aadhaar or PAN card of applicants
  • Education qualifications – Latest
  • Latest Salary-slips for 3 months for Salaried Employees or Certificate & Proof of business existence along with Business Profile for Self Employed professional
  • Form 16 for last 2 years for Salaried employees or Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant for self-employed professional
  • Last 6 months Bank Statements (salary account) for salaried employees or Last 12 months Bank Account Statements (self & business) for self employed professional
  • Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’
  • Self-declaration from the customer for family income
  • Affidavit on requisite stamp paper on Ownership of property in case of construction or extension loan.
  • Photocopy of Title Documents of the Property, Approved Plan.

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