The Reserve Bank of India (RBI) kept the repo rate unchanged in its monetary policy committee meeting earlier this month. For home loan borrowers, this was a piece of news to rejoice as floating-rate home loans sanctioned after October 1, 2019, are linked to an external benchmark, mainly the repo rate in the case of most banks. However, while retaining the accommodative stance, the central bank had said that the focus would be the withdrawal of accommodation to keep inflation within the target going forward. This may indicate that a hike in key rates is on the cards in June. Home loan interest rates are still trending lower, so if you plan to take a home loan or switch to a lower home loan interest rate, this may be the best time. The table below provides the list of 10 banks currently offering the lowest interest rates for floating-rate loans under Rs.30 lakh. Do note the interest rate applicable to you would be determined by your lender based on your age, gender, income, credit score, loan amount, loan to value ratio or any other terms and conditions.
Banks Offering the Lowest Rates on Floating Rate Home Loans Under Rs.30 lakh
| Bank’s Name | Lowest Advertised Interest Rates For Loan Amount Under Rs.30 Lakh(in% p.a.) |
| Bank of Maharashtra | 6.40-7.95 |
| UCO Bank | 6.50-6.70 |
| Punjab & Sind Bank** | 6.5-7.60 |
| Bank of India | 6.50-8.35 |
| Indian Bank* | 6.50-7.2 |
| Punjab National Bank | 6.55-7.8 |
| Kotak Mahindra Bank | 6.60-7.20 |
| Union Bank of India | 6.6-7.35 |
| State Bank of India^ | 6.65 – 7.15 |
| Canara Bank | 6.65-8.9 |
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 Apr 15, 2022. ^Card Rates;*as on 1st Apr 22; **as on 8th Apr 22
