After the Reserve Bank of India (RBI) raised repo rates six times since May 2022, the key benchmark rates witnessed an increase of 250 basis points, thus raising the home loan interest rates significantly in the past 16 months across lenders and tenures.
Consequently, the home loan interest rates that hovered around 6.75 to 7 percent per annum in early 2022 have now risen to around 8.75 to 9 percent now.
Let us find out which banks are still offering the interest rates that are lower than 9 percent per annum. Here we give a lowdown on the home loan interest rates charged by most top lenders.
State Bank of India (SBI): The state lender charges a minimum interest rate of 8.6 percent per annum for borrowers with a credit score of higher than 750. The maximum interest rate can be up to 9.45 percent for the borrowers with a poor credit score.
These interest rates are applicable for loans that are borrowed up to Dec 31, 2023. The rate of interest varies on the basis of the credit score and the amount of loan.
HDFC Bank: The private lender charges the lowest rate of 8.5 percent from salaried and self-employed professionals (special category). The interest rate goes up to 9.15 percent based on the sum borrowed, and the borrower’s credit score.
The standard rates, meanwhile, are higher at 8.75 percent and go up to 9.4 percent per annum.
|Bank||Lowest interest rate (%)|
|Kotak M. Bank||8.75|
|IDFC First Bank||8.85|
(Source: Bank websites)
ICICI Bank:This private lender charges an interest rate that starts from 9.25 percent for salaried individuals and goes up to 9.9 percent based on the amount of loan and credit score.
From the self-employed individuals, the bank charges an interest rate that starts from 9.4 percent and goes up to 10.05 percent. These rates will be applicable until Sept 30, 2023.
The salaried borrowers with a credit score higher than 750 can raise home loan at a concessional rate of 9 percent from ICICI Bank under special home loan rate. The concessional rate for self-employed borrowers with high credit scores is 9.10 percent.
Kotak Mahindra Bank: The lowest rate that Kotak Mahindra charges is 8.75 percent from salaried borrowers and goes up to 9.35 percent. The self-employed borrowers can, at the same time, procure a home loan at the rate of 8.8 percent per annum. These interest rates can go up to 9.6 percent.
The same rates are applicable for balance transfer from other lenders for salaried and self-employed borrowers, as the case may be.
IDFC First Bank: The lowest interest rate charged by IDFC First bank from salaried borrowers is 8.85 percent, and from self-employed, the rate is 9.25 percent.