Cheapest Loans In India - Home Loan Interest Rates

As per the new guidelines of RBI, now banks are required to apply the MCLR method to calculate the rate of interest. For home loan schemes with floating interest rates, the rate can be changed half-yearly or yearly. A reduction in MCLR is a boon for first-time borrowers as home loans connected to MCLR for a year in fixed rate means that the rate will be the same for the whole year.

However, for the old loans that were borrowed at a higher base rate, it is helpful only after the end of the one year lock-in period. To avail the benefit of the new MCLR, the borrowers of old loans need to start a fresh contract with the bank.
Other banks that had declared the rate cut in the same year were State Bank of Travancore, IDBI Bank, and Indian Overseas Bank. India Bulls Housing Finance had also subsidized their home loan offerings.

Interest Rate of All Leading Banks in 2018

The interest rate of home loan varies from one bank to another, depending on the location of the property, the loan amount, and the monthly income of the borrower. There are many banks that offer a concession for women. The range of interest rate starts from 8.50% and extends to 12%.

How to Get the Lowest Interest Rate on Home Loans?

Apart from the enforced interest rate cuts by the banks, there are other ways through which the borrower can get a home loan on lower interest rate:

1. Avail a home loan jointly with your wife and make her the primary applicant of the home loan. Most of the loan provider institutions offer home loan to women on an interest rate that is less by 0.5% of the general interest rate of the same loan.

2. One can also opt for a balance transfer facility and switch to another bank that provides a lower rate of interest if the current bank or financial institution is charging a higher interest rate. In such a fierce competition, banks prefer to retain their customers - especially the ones who make repayments on time and have a good credit report. We at mymoneykarma help you in transferring your home loan to a different financer with favorable interest rates.

You could also apply for a home loan through mymoneykarma! We offer the best, lowest interest rates (sourced from across different banks); as well as a seamless, hassle-free process.

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