In a bid to control inflation, the Reserve Bank of India has been raising the repo rates, which have led to home loans becoming more expensive for existing and new borrowers. Since May 2022, until now, the RBI has increased the repo rate by 250 basis points. However, despite multiple hikes, the demand for home loans has not dulled.
Rising home loan interest rates directly affect your loan tenure, which increases with every repo rate hike. As a result, the borrower’s debt burden, too, goes up. When faced with such a situation, borrowers may explore options such as refinancing their loan, making pre-payments on their loan, or increasing their EMI with an increase in income, to lower their financial burden.
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When shopping for a home loan, various factors can affect the rate that you get. These include your credit score, your repayment capacity, and your income. If your credit score is low, take steps to improve it before applying for a home loan. Also, don’t forget to compare rates offered by multiple lenders before choosing the one that suits your needs.
If you want to realise your dream of owning a house, many home loans are available in the market at attractive rates. Here are top 15 banks currently offering home loans under 10%.
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| Bank Name | Interest Rate Range For Floating Loan Amount Under Rs.30 Lakh(in% p.a.) |
| Bank of Maharashtra | 8.40-10.45 |
| Central Bank | 8.45-9.35 |
| Indian Bank | 8.45-9.40 |
| UCO Bank^ | 8.45-10.30 |
| Bank of Baroda | 8.50-10.60 |
| Punjab National Bank | 8.65-9.45 |
| State Bank of India** | 8.70-9.75 |
| Axis Bank | 8.75-9.15 |
| Union Bank of India | 8.75-10.50 |
| IDBI Bank | 8.75-12.25 |
| Bank of India | 8.85-10.85 |
| Canara Bank | 8.85-11.25 |
| Kotak Mahindra Bank | 8.85-9.40 |
| Punjab & Sind Bank | 8.85-9.95 |
| ICICI Bank | 9.00-9.80 |
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 Mar 24, 2023.^include rate offered to govt employees; ** 10bps additional concession for serving defense personnel; *include spl rates for govt employees
