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Buying a home is a dream for almost everyone. It is one the big ticket purchases an individual makes in his lifetime and needs proper due deligence. Correction in realty market and low interest rates, has restored the interest of prospective home buyers.

Home loan is a long term comittment and the tenure usually goes up to 20-25 years. This means, even a minor half a percentage difference can make an immense difference to the amount of money the borrower repays to the lender at the end of the tenure. Therefore, scanning the market for cheap rates is a must before taking the plunge.

Cheapest home loans by banks

You can get a home loan at 6.50% interest rate from leading banks. Here’s a look at the lowest interest rates offers by top banks.

Kotak Mahindra Bank recently reduced the interest rate by 15 basis points (bps) to 6.50% – all-time-low. According to the bank, this is a limited festive season offer and will continue till November 8, 2021.

State Bank of India, country’s largest lender, is offering home loans at an interest rate of minimum 6.75%. Bank of Baroda, another public sector lender, is also offering home loans at the same interest rates.

Similarly, HDFC Bank, the largest private sector bank of the country, and ICICI Bank are offering home loans at 6.75%.

Cheapest home loans by NBFCs

While home loan rates have hit rock bottom, there could be certain individuals who have not been able to make the most of it due to credit score or other reasons. If your bank has rejected your loan application, you may consider approaching non-banking finance companies (NBFCs) where credit assessment norms are relatively relaxed and the process is faster.

Among non-banking financial companies (NBFC) LIC Housing Finance offers cheapest home loans with an interest rate as low as 6.66% per annum. While HDFC Ltd and Bajaj Finserv are offering home loans at interest rate 6.75%, interest rate in Tata Capital is 6.90%.