This holiday season, interest rates payable and processing fee discounts are pouring into the mortgage box office, bringing rates to their lowest level in 15 years. Now is a good time to carry out your plan, whether you are trying to buy a new home or transfer your outstanding debt to another lender. In addition, another motivating indicator is the stability guaranteed by the system of external loans indexed to benchmarks. Kotak Mahindra Bank has once again raised the table, lowering its interest rate to 6.75%. And looking at mortgage interest rates, public sector banks have taken the top positions in the “cheapest loans” clusters and they tend to conquer the list. With interest rates starting at 6.8%, the Union Bank of India is at number two on the list after Kotak Mahindra Bank. Bank of Baroda (BoB), Bank of India (BoI) and Central Bank of India mortgage rates start at 6.85% respectively. Currently, interest rates are below 7 percent of all major lenders respectively.
|Kotak Mahindra Bank||6.75|
|Union Bank of India||6.80|
|Bank of India||6.85|
|Central Bank of India||6.85|
|Bank of Punjab and Sindh||6.90|
|Housing finance for LICs||6.90|
To note: The interest rates mentioned in the above table only apply to a loan amount of Rs.30 lakh with a period of 20 years and to the eligible borrowers respectively.
The State Bank of India (SBI) is India’s largest bank and offers interest rates starting at 6.9%. A 25 basis point interest rate waiver for loans above Rs 75 lakh has also been declared. As is the trend with ICICI Bank and LIC Housing Finance, the nation’s largest mortgage lender, HDFC, is also offering 6.9% interest on its home loans. While home loan interest rates are great, depending on your credit score, loan size, and even your profession, you may need to pay higher rates. For example, compared to their salaried counterparts, SBI’s non-salaried borrowers will charge 15 basis points more. Likewise, a 15 to 20 basis point exemption on mortgage interest rates will be offered to BOI borrowers with credit scores of 760 or higher, respectively.
It is best to ask your bank how the credit risk aspect will be managed, which will change if your credit rating changes significantly, thereby influencing your interest rate. Your preferred option is a bank that blatantly assesses how credit risk will be measured over the life of the loan.
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