Cheapest Home Loan: Which government bank is offering the cheapest home loan? See full list here

Every Indian dreams of buying a house, but the biggest wall between this dream and reality is home loan interest rates. Whenever we decide to buy a house, the first thing that comes to our mind is government banks. A slightly higher rate means higher EMIs over the years and additional payments of lakhs of rupees. This is the reason why when it comes to home loan, most middle class families still trust government banks. Public sector banks remain the first choice due to transparency, low charges and reliable system. Let us know which government bank is offering the cheapest home loan?

Comparison of home loan interest rates of government banks

According to recent data, some government banks are offering home loans at around 7%, which is considered quite attractive in the current market conditions. See full list below

Bank of India won

If we look at the list, Bank of India (BOI) is currently offering the cheapest home loan with a rate of 7.10%. Canara Bank stands right behind it with a rate of 7.15%. The country’s largest lender, State Bank of India (SBI), is offering a rate of 7.25%, which is still considered a very competitive rate considering the security and network.

Why are government banks a better option?

The biggest advantage of government banks is transparency. There are usually no hidden charges here and the rules are clearly stated. Sometimes exemption in processing fees is also available during festive season or under special schemes. Apart from this, government banks pass on the benefits of RBI’s repo rate cut to customers relatively quickly.

What things should be kept in mind before taking a loan

Your CIBIL score plays a very important role in getting cheaper interest rates. Typically, customers with scores of 750 or higher receive the lowest rates. Banks can increase the interest rate if the score is low.

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