Home loan: Lowest interest rates for non-salaried persons

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Buying a home is a dream for most of us. It is a long-term financial commitment if one is taking home loans. Due to their regular and reliable source of income salaried persons can get home loans relatively easily since they are considered as highly creditworthy borrowers by financial institutions of our country. On the other hand, non-salaried persons are treated a bit differently. Some banks charge slightly higher interest rates for them. Banks are offering discounts on home loan interest rates during the festive season. Now the lowest home loan starts from 6.55%. Let’s take a look at the list of the banks which are offering the lowest interest rates on home loan to non-salaried borrowers.

Best banks

Punjab National Bank (PNB), the country’s second largest public sector bank, is offering the cheapest home loan for non-salaried individuals. The interest rates start from 6.55% with a 20-year tenure.

Kotak Mahindra Bank is at the second position. Its interest rate for non-salaried home loan borrowers is 6.6%. This is also the balance transfer rate.

State Bank of India (SBI), the country’s largest lender, charges 6.7% interest rate for non-salaried home loan customers. The largest private lender HDFC Bank also offers the same interest rates.

State-run lender Bank of Baroda (BoB) charges 6.75%. The rate is the same for salaried and non-salaried individuals applying for home loans. IDBI Bank, too, offers the same interest rate.

ICICI Bank, second largest private lender, charges similar interest rates for salaried as well as non-salaried individuals applying for home loans. It starts from 6.75%.

Best HFCs

Just like banks, housing finance companies (HFCs) are a type of financial institution that offer home loans to individuals.

Among HFCs, LIC Housing Finance offers the best rates. This government-owned housing finance giant is offering home loans at interest rate of 6.66%. HDFC and Tata Capital, two major HFCs charge 6.7% from non-salaried customers.