To make your dream of owning your own house is expensive in the present day. Most of you can’t afford it, which is fine. Home Loan helps in transforming your dream into reality. Many financial institutions offer home loan lowest interest rate in India to help you in buying your own house without any hassle. As you know, a home loan is a secured loan.
Based on your repaying capacity and income, banks and NBFCs offer home loan interest rates in India. If your income and credit score is high, then you will be eligible for home loan lowest interest rate in India. Also, you need to fulfill other eligibility criteria to get home loan lowest interest rate in India.
Parameters affecting the home loan lowest interest rate in India
Home Loan rates in India are dependent on various parameters. Here are some of the parameters which affect the home loan lowest interest rate in India-
- Credit Score– Higher credit score means a higher repaying capacity. It reduces the risk of lending money to you by the financial institutions. So, a higher credit score helps in availing home loan lowest interest rate in India.
- Repo Rate– It is the interest rate at which RBI lends money to the banks. So, a lower repo rate helps in getting home loan lowest interest rate in India. That means you will have to pay a low home loan interest rate.
- Value of the house– If your house in a good condition and is made under a reputed developer, then you might get home loan lowest interest rate in India.
- Affordability– One must take a home loan up to an amount which he/she can easily repay. Don’t borrow an amount which is very difficult to afford in your part. So, taking a loan within your capacity helps in securing home loan lowest interest rate in India.
- Eligibility– You must satisfy all the eligibility criteria for availing home loan lowest interest rate in India. Also, the documents for the loan must be updated.
- Interest Rate Types- You can opt for either fixed or floating rates for availing home loan lowest interest rate in India.
Features of Home Loan Lowest Interest Rate in India
- Eligibility- Both salaried and self-employed people are eligible
- Age- 18 to 65 years
- Amount of Loan– Rs. 5 lakhs to Rs. 20 crores
- Tenure of Loan– 1 to 30 years
- The rate of Interest– Starting from 8.65%
- Processing Fees– Maximum 1%+Taxes
Top 5 Banks offering home loan lowest interest rate in India
| Bank Name | Interest Rate | Processing Fees |
| Bank of Baroda | 8.65% | 0.50% |
| State Bank of India | 8.70% | 0.50% |
| HDFC | 8.75% | 0.50% |
| Indiabulls Housing Finance Limited | 8.80% | Rs. 1000 to Rs. 5000 |
| Axis Bank | 8.85% | 0.50% |
Documents required for Home Loan
- Application form
- Passport size photograph
- ID proof- AADHAR card, PAN card, Driving License
- Address Proof- Passport, Gas or Electricity bill
- Income Proof
- For Salaried- Salary slip and bank a/c statement of last 6 months, FORM 16.
- For Self-employed- Bank statement of last 6 months, ITR of the last 2 years.
- Property Documents- Possession letter, Conveyance & Sales Deed, Receipt of latest property tax.
