Comparative Mortgage Loan Interest Rates in 2021

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 InstitutionInterest rateBenchmark Rates on
SBI – State Bank of India6.70% – 6.75%8.15%
HDFC Ltd6.75% – 6.80%16.20%
ICICI Bank6.75% – 7.15%8.75%
Bank of Baroda7.25% – 8.25%8.75%
AXIS Bank6.90% – 8.40%8.8%
LIC Housing6.90% – 7.00%14.60%
PNB Housing Finance7.35% – 9.05%N.A
Union Bank of India6.70% – 7.10%8.65%
Bank of India6.85% – 7.75%8.55%
HSBC Bank8.55% – 8.65%8.15%
Piramal Housing Finance9.50%N.A
DHFL9.75%19.07% RPLR
Corporation Bank6.70% – 7.10%8.65%
Tata Capital Housing Finance Ltd.9.25% onwardsN.A
United Bank of India7.00% – 7.60%8.80%
UCO Bank7.15% – 7.25%8.55%
Canara Bank6.90% – 8.90%8.60%
Kotak Bank8.65% – 9.15%8.95%
Indian Overseas Bank7.45% – 7.70%8.50%
Bank of Maharashtra7.15% – 8.45%8.75%
L&T Housing Finance8.35%N.A
Indiabulls Housing Finance Limited8.99% onwards9.50%

Conclusion:

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.┬á
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