Maharashtra Bank Leads Home Loan Rates at 7.0 Percent
A 0.25 percent rate difference adds Rs 2.4 lakh to the total cost of a 25-year loan.
Key points
- Bank of Maharashtra offers the lowest starting home loan rate at 7.0 percent annually.
- A 0.25 percent rate difference adds approximately 2.4 lakh rupees to the total cost of a 25-year loan.
- Processing fees range from 0.25 percent at Bank of Maharashtra to 0.50 percent at Union Bank of India.
Bank of Maharashtra offers the lowest home loan interest rate at 7.0 percent annually. This rate is lower than the 7.10 percent starting rates offered by Bank of India and Central Bank of India.
A half-percent difference in interest raises the monthly payment by roughly 800 rupees. Over a 25-year term, that gap adds about 2.4 lakh rupees to total repayments.
Banks set varying starting rates
Union Bank of India and LIC Housing Finance start at 7.15 percent. Bank of Baroda begins at 7.20 percent, while State Bank of India starts at 7.25 percent.
Punjab National Bank and South Indian Bank also offer starting rates of 7.25 percent. HSBC and IDBI Bank list higher starting rates of 7.45 and 7.40 percent respectively.
Rate changes alter total costs
Borrowing 50 lakh rupees at 7 percent requires a monthly payment of 35,339 rupees. At 7.25 percent, the monthly obligation increases to 36,140 rupees.
The total interest paid at 7 percent is approximately 56.02 lakh rupees. At 7.25 percent, the total interest rises to 58.42 lakh rupees over the full term.
Processing fees vary by lender
Bank of Maharashtra charges a processing fee of up to 0.25 percent of the loan amount. This equates to 12,500 rupees on a 50 lakh rupee loan.
SBI lists a 0.35 percent fee capped at 12,000 rupees. Union Bank of India charges 0.50 percent, capped at 15,000 rupees, plus applicable taxes.
