Ten Banks Presenting The Lowest Interest Rates for Home Loans

To review the repo rate, the Reserve Bank of India’s (RBI) Monetary Policy Committee will convene from June 5 to June 7. Analysts predict that the RBI will likely maintain interest rates at present levels in light of both domestic and international considerations as well as the existing inflation outlook.

In order to maintain its cautious approach, the RBI is unlikely to cut interest rates anytime soon unless domestic inflation reaches its 4% target. Furthermore, because the world’s financial markets are interconnected, the RBI has been coordinating its activities with those of other major central banks. Notably, the US Federal Reserve has maintained its “higher for longer” interest rate policy in order to contain inflation and has not signalled any intention to lower rates.

It is widely anticipated that the majority of Asian central banks will postpone reducing interest rates. In particular, we do not anticipate that the RBI will lower rates before to the Fed’s pivot, which might not occur until later in the year or in 2024 at all.
Given this, it is anticipated that loan rates that are correlated with the repo rate would be steady this quarter, with minimal possibility of a decline. In a similar vein, it is anticipated that fixed deposit (FD) rates will not significantly fluctuate during this time.

An interest rate cut on key has been much anticipated by borrowers. Home loan EMIs and loan terms have increased dramatically after the rate rises that started in May 2022. Existing borrowers should aim to prepay 5% of their loan sum each year or move to a loan with a lower interest rate in order to manage their mounting debt. The chart below shows the top 10 banks with the lowest interest rates for customers wishing to refinance at a cheaper cost.

Bank Name Range of Interest Rates (%) per annum for Home Loans Under Rs. 30 Lakh

Bank RBL 8.20–14.75
Bank UCO 8.30–10.00
Bank Central
8.35 – 9.50
Indian Union Bank
8.35–10.75
Indian Bank >=8.40 Indian Overseas Bank
8.40 – 9.80
Baroda Bank
8.40–10.60 Indian Bank
8.40–10.85
National Bank of Punjab
IDBI Bank 8.45–10.10 8.45–12.25

Disclaimer: Within the selected loan amount, interest rates that change based on credit scores or tenure are shown as a range. Information retrieved on May 31, 2024, from the websites of the relevant banks.