If you are dreaming of buying a house, then choosing the right home loan interest rates and EMI matters a lot. Major government banks like SBI, Bank of Baroda (BoB) and Bank of Maharashtra (BoM) are currently offering attractive home loans, but which of them is offering the cheapest loan? We have compared the EMI on a loan of ₹60 lakh for a tenure of 20 years based on the latest interest rates, so that you can easily understand which bank is most beneficial for you and how much you can save. Let us know the whole thing.
Know first who gets the cheapest home loan
A bank or financial institution offers its lowest interest rate home loan to customers who meet the eligibility criteria. Home loan is sanctioned only after assessing your age, income, CIBIL score, and credit history. Generally, banks easily provide home loan at the initial interest rate i.e. the cheapest rate to those with CIBIL score of 800 or more. However, the final decision is taken by the bank only.
SBI Home Loan
According to the official website, SBI i.e. State Bank of India is currently offering home loan to new customers at an initial rate of 7.25 percent.
Bank of Baroda Home Loan
Bank of Baroda is also currently offering home loan at an initial rate of 7.20 percent. The bank is not charging any hidden charges on this loan. Nor will anyone charge any penalty on pre-payment. You can choose a maximum tenure of up to 30 years. Also, interest charges will be applicable on daily reducing balance.
Bank of Maharashtra Home Loan
According to the official website of the bank, Bank of Maharashtra is currently offering home loan at an initial rate of 7.10 percent. Not only this, the bank is also offering an additional discount of 0.05 percent on the interest of this loan to women and defense personnel. You do not have to pay any charges even on pre-payment or pre-closure. The bank claims that it is offering home loans at the cheapest interest rates in India.
Based on the starting interest rates of the above mentioned three banks on home loan, it is found that the home loan of Bank of Maharashtra is the cheapest and attractive. In such a situation, you can get better deals in these banks as per your eligibility.
EMI of ₹60 lakh for 20 years
If you take a home loan of Rs 60 lakh from the bank for 20 years based on the cheapest interest rate of 7.10 percent, then according to the home loan calculator, your monthly EMI will be Rs 46,879. According to the calculation, you will pay ₹ 52,50,904 only as interest on this loan. That means in the end you will pay a total of ₹ 1,12,50,904 to the bank.
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