FINANCE

Home loan interest rates August 2024: Banks offering cheapest home loan interest rates for amounts above Rs 75 lakh

Home loans can be used to purchase a home or apartment, purchase land for a home, or renovate, expand, and maintain your current home. They offer long-term, low-interest financing at a great bargain. Home loans should be paid back through EMIs. The Bank releases its charge on the property upon repayment.

Read More: Bank of Baroda Hikes Lending Rates by 5 bps; Loan EMIs To Increase

Type of home loan interest rates

According to the IDFC FIRST Bank, “A home loan product is offered in three types of interest rates, and they are floating, fixed and mixed. A floating rate of interest changes depending on the RBI’s policy rate changes. For instance, if the repo rate is reduced, banks reduce the home loan interest rate and vice versa. The fixed rate will have the same rate of interest fixed at the time of the approval of the loan, and will continue until the end of the tenure. The mixed rate will have the fixed rate of interest first and later the floating one.”

Several factors are considered by lenders when deciding the interest rate of your home loan, such as your credit score, loan amount, LTV ratio, job, and type of interest rate.

Choose a lender who offers a competitive interest rate because a home loan is a long-term financial commitment. This is because even a little drop in the interest rate on a home loan can lower the total cost of the loan and enable you to save money.

Read More: FD rate up to 7.4%: List of PSU banks offering highest FD interest rates in August 2024

Here are banks offering best interest rates on home loans for amounts above Rs 75 lakh

Name of LenderAbove 75 Lakh
PUBLIC SECTOR BANKS
State Bank of India8.50-9.85
Bank of Baroda8.40-10.90
Union Bank of India8.35-10.90
Punjab National Bank8.40-10.15
Bank of India8.40-10.85
Canara Bank8.40-11.15
UCO Bank8.45-10.30
Bank of Maharashtra8.35-11.15
Punjab and Sind Bank8.50-10.00
Indian Overseas Bank8.40-10.60
Central Bank of India8.45-9.80
PRIVATE SECTOR BANKS
Kotak Mahindra Bank8.70 onwards
ICICI Bank8.75 onwards
Axis Bank8.75-9.65
HSBC Bank8.50 onwards
South Indian Bank8.70-11.70
Karur Vysya Bank9.00-11.05
Karnataka Bank8.50-10.62
Federal Bank8.80 onwards
Dhanlaxmi Bank9.35-10.50
Tamilnad Mercantile Bank8.60-9.95
Bandhan Bank9.16-13.33
RBL Bank8.90 onwards
CSB Bank10.49-12.34
HDFC Bank Ltd.8.75 onwards
City Union Bank8.75-10.50

Source: Paisabazaar; Interest rates on August 7, 2024.

Read More: SIP For Growth, SWP For Income; Which One Is Right For You? Know The Difference Here

Tax benefits

There are many tax advantages to a home loan. If you have a house loan, you can deduct interest and principal payments from your taxable income. Under section 24 of the Income Tax Act (ITA), owners of self-occupied or rental properties may deduct up to Rs. 2 lakh in interest from their home loan. The maximum amount that can be exempted from interest is Rs. 2 lakh, or the real interest that a taxpayer has paid on all of their assets.

Source :
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top