With the effect, from April 1, home loan or mortgage loan interest rates in every financial institution increased by a number of points. Renowned banks like State Bank of India restored their original interest rates from the said date. The bank now schemes with new home loan rates start from 6.95%, while it was 6.7% till March 31, 2021. Before we tell you the current home loan interest percentage of the largest banks and finance houses, let us understand what home or mortgage loan is.
What is a Mortgage Loan?
Mortgage loans are a type of fund against property that can be a residential house, commercial shop or non-agricultural land. In the case of a commercial estate or residential property, the house needs to be fully constructed. The property should be a freehold ground and have proper market value. It also needs to be freed from additional charges and also from all encumbrances.
The mortgage loan allows the fund borrower to generate extra income from a contrarily idle property. This loan type is specially designed for an individual who already owns a property and needs to borrow some finances. However, the property you’re going to take the loan against should be free from any burden.
In the following process, the borrower vouches for collateral in the form of property to get the loan amount approved. In this event, if you are the borrower, you still have the right to ownership of the property. Once you successfully pay off the total loan amount on or before the tenure, then onwards, you will get back the property securely.
Mortgage Loan Interest Rates:
Here is the comparison of home loan interest rates of all reputed banks and finance houses in India as of May 2021. If you are looking to purchase property shortly, this chart will help you decide the finance institution that matches your requirements.
|Name of Finance Institution||Interest rate||Benchmark Rates on|
|SBI – State Bank of India||6.70% – 6.75%||8.15%|
|HDFC Ltd||6.75% – 6.80%||16.20%|
|ICICI Bank||6.75% – 7.15%||8.75%|
|Bank of Baroda||7.25% – 8.25%||8.75%|
|AXIS Bank||6.90% – 8.40%||8.8%|
|LIC Housing||6.90% – 7.00%||14.60%|
|PNB Housing Finance||7.35% – 9.05%||N.A|
|Union Bank of India||6.70% – 7.10%||8.65%|
|Bank of India||6.85% – 7.75%||8.55%|
|HSBC Bank||8.55% – 8.65%||8.15%|
|Piramal Housing Finance||9.50%||N.A|
|Corporation Bank||6.70% – 7.10%||8.65%|
|Tata Capital Housing Finance Ltd.||9.25% onwards||N.A|
|United Bank of India||7.00% – 7.60%||8.80%|
|UCO Bank||7.15% – 7.25%||8.55%|
|Canara Bank||6.90% – 8.90%||8.60%|
|Kotak Bank||8.65% – 9.15%||8.95%|
|Indian Overseas Bank||7.45% – 7.70%||8.50%|
|Bank of Maharashtra||7.15% – 8.45%||8.75%|
|L&T Housing Finance||8.35%||N.A|
|Indiabulls Housing Finance Limited||8.99% onwards||9.50%|
So, here’s the mortgage loan interest from top-ranked banks and finance houses. You can compare the interest rates, and based on the property amount, you can get from 30 lakhs to 75 lakhs or above. It’s always wiser to check the interest rates and benchmark rates before applying for the home loan.
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