Home loan interest rates are increasing after the Reserve Bank of India’s decision to increase the repo rate by 40 basis points (bps) and 50 basis points (bps) in May and June, respectively. Most banks have benchmarked their home loan rates to the RBI’s repo rate after the central bank directed all the banks to link their home loans to an external benchmark in October 2019. So loans linked to the repo rate are set to become expensive. Loans linked to other benchmarks are also rising, with many banks increasing their marginal cost of funds-based lending (MCLR) rates. If you are looking to take a home loan, here is a list of 10 banks offering the lowest home loan interest rates. Experts believe the RBI will further hike the key rates to tame inflation. So if you are planning to take a home loan shortly, this is still a great time to realise your home-buying dream.
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| Bank Name | Interest Rate Range For Home Loans Under Rs. 30 lakh (% p.a.) |
| Central Bank Of India | 6.85-7.30 |
| UCO Bank | 6.90-7.10 |
| Indian Overseas Bank | 7.05 |
| Canara Bank | 7.05-9.30 |
| Karur Vysya Bank | 7.15-9.35 |
| Bank of Maharashtra | 7.30-8.85 |
| Indian Bank | 7.40-7.90 |
| Punjab & Sind Bank | 7.40-8.50 |
| Union Bank of India | 7.40-8.90 |
| Bank of India | 7.40-9.25 |
Disclaimer: Interest rates that vary with tenures or credit scores within the specified loan amount are indicated as a range. Data taken from respective bank’s websites on June 24, 2022.
