Following the RBI’s recent repo rate cut, Union Bank of India and Central Bank of India have reduced their home loan interest rates. Borrowers can now avail themselves of home loans at an annual rate starting at 8.10%, making these banks the most competitive in terms of interest rates.
Monthly EMI Estimates for a Rs. 1 Lakh Home Loan Over 20 Years:
Union Bank of India & Central Bank of India:
With rates starting at 8.10%, the monthly EMI is approximately Rs. 843.
Bank of Baroda, Canara Bank, and Punjab National Bank:
Offering loans at 8.15%, the estimated monthly EMI comes to around Rs. 846.
State Bank of India (SBI):
With an 8.25% starting rate, the EMI is roughly Rs. 852.
Bank of India:
Starting at 8.30%, the EMI is approximately Rs. 855.
IDBI Bank:
With rates beginning at 8.50%, the monthly EMI is about Rs. 868.
Axis Bank, HDFC Bank, ICICI Bank & Kotak Mahindra Bank:
These banks start at 8.75%, leading to an EMI of around Rs. 884.
Yes Bank:
With an interest rate starting at 9%, the EMI is approximately Rs. 900.
Three Key Considerations When Taking a Home Loan
Prepayment Penalties:
Many banks charge a penalty for early repayment of loans. It’s important to obtain complete details from your bank, as paying off your loan ahead of schedule might lower your overall interest cost, but specific rules and charges may apply.
Monitor Your CIBIL Score:
Your CIBIL score reflects your credit history and is crucial for loan approvals. It is determined based on factors such as previous loan repayments, credit card usage, current loans, and timely bill payments. Scores typically range from 300 to 900, with a score of 700 or above generally considered favorable by lenders.
Keep an Eye on Offers:
Banks frequently roll out improved offers for home loan borrowers. Before committing, compare different offers to ensure you secure the best possible deal. Rushing into a loan without adequate research can lead to less favorable terms.
By considering these factors, borrowers can make an informed decision and take full advantage of the reduced home loan rates offered by these banks.
