The home loan rates of these home finance companies are the same as the SBI home loan rates

The home loan rates of these home finance companies are the same as the SBI home loan rates

Key highlights

  • For the approval of building loans, the documentation of the banks is extremely strict
  • Banks offer a lower volume of credit compared to HFCs
  • When you take out a home loan from an HFC, you can get a larger loan amount

New Delhi: If you want to take out a home loan, you have two options. You can either take out the loan from a bank or opt for a home loan from a home finance company (HFC). While HFCs are more accommodating and flexible in approving home loan applications, they offer a loan at higher interest rates. Also, compared to banks, HFCs are slower at passing rate cuts on to borrowers.

Recently, home loan rates have been falling. After the Reserve Bank of India (RBI) left the repo rate unchanged at 4.40%, Indian banks can now issue home loans at lower interest rates. Currently, the private lender Kotak Mahindra Bank and the public lender State Bank of India (SBI) are the banks that offer home loans at the lowest interest rate.

The Kotak Mahindra Bank home loan starts at 6.60 percent while the SBI home loan starts at 6.70 percent. There are some home finance companies (HFCs) that offer home loans with interest rates on par with SBI and Kotak Mahindra Bank. For example, LIC Housing Finance and HDFC are some HFCs that offer home loans at an interest rate equal to the SBI home loan rate and the Kotak Mahindra Bank home loan rate.

1. LIC housing finance: The housing loan at LIC Housing Finance starts at an interest rate of 6.66 percent per year. If the home loan applicant is an employed person and has a CIBIL score of over 700, they can obtain a home loan at an interest rate of 6.66 percent per annum. For non-employees and non-professionals with a CIBIL score greater than 700, the home loan interest rate can be up to Rs 50 lakh 7.00 percent.

For a home loan of Rs 50 lakh to Rs 1 crore, an employee with a CIBIL score of 700+ will be charged 6.90 percent interest on a home loan. The same goes for non-employees and non-professionals, 7.00 percent.

2. HDFC: The interest rate on the HDFC home loan starts at 6.75 percent per year. For female applicants, the company offers home loans up to Rs 30 lakh at an interest rate of 6.75 percent per year to 7.25 percent per year. For general applicants, an interest rate on a loan of up to Rs 30 lakh is available for a home loan of 6.80 percent to 7.30 percent per year.

For home loans of Rs 30 lakh to Rs 75 lakh, women can get 7.00 to 7.50 percent per year. For others, an interest rate of 7.05% to 7.55% per year applies.

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