In its monetary policy meeting last week, the Reserve Bank of India (RBI) increased the repo rate by 50 bps to 5.90 per cent. Since May, the apex bank has raised the repo rate by 190 basis points. The hike will impact both new and existing borrowers. Floating-rate home loan borrowers will see additional financial burden as rate hikes would result in longer repayment tenure while monthly EMIs remain the same. New home loan borrowers will borrow at increased rates. Existing home loan borrowers can consider refinancing their loan, pre-paying periodically or voluntarily increasing their EMIs to reduce the financial burden of an increased loan rate. If you are in the market shopping for a home loan, it would be wise to assess your credit score beforehand. A borrower with a credit score over 750, a stable income, and loan repayments on time may get a home loan at the lowest rates. Additionally, it is essential to compare different interest rates lenders offer to get the best deal.
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If you plan to buy a house this festive season with the help of a home loan, here is a list of 10 banks offering the lowest home loan interest rates.
| Bank Name | Interest Rate Range For Home Loans Under Rs. 30 Lakh (% p.a.) |
| Central Bank | >=7.50 |
| Union Bank of India | 7.75-9.40 |
| IDBI Bank | 8.0-11.15 |
| Karur Vysya Bank | 8.05-10.25 |
| Canara Bank | 8.05-10.30 |
| Axis Bank | 8.10-8.55 |
| Karnataka Bank | 8.24-9.49 |
| Tamilnad Mercantile Bank | 8.3 |
| Bank of Maharashtra | 8.30-9.85 |
| Bank of India | 8.30-10.25 |
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 Oct 7, 2022.
