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Bank of India (BoI) leads the market with highly competitive interest rates on its home loans, starting at just 8.30 per cent for loan amounts ranging from Rs 30 lakh to Rs 75 lakh and above. State Bank of India, Bank of Baroda, and Union Bank of India offer home loans at attractive interest rates starting at 8.40 per cent. As part of a festive promotion, HDFC Bank is currently providing mortgages at a discounted rate, starting at 8.35 per cent across various tenures.

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For a quick comparison, Paisabazaar.com has compiled tables of home loan interest rates from public sector banks, private sector banks, and housing finance companies (HFCs) as of November 22, 2023: Public Sector Banks While the Bank of India leads in offering the cheapest home loan rate, SBI, Bank of Baroda, Union Bank of India and Indian Overseas Bank home loan rates ranging from 8.40 per cent to 10.15 per cent for loans up to Rs 30 lakh. PNB's rates vary between 8.45 per cent and 10.25 per cent. All loan figures are in rupee (Rs).

The festive season may be over but offers rolled out by banks are still ongoing. Punjab National Bank's Deepawali Dhamaka 2023 festival offer, home loans at 8.4 per cent interest with a complete waiver of upfront/processing fees and documentation charges, is valid until November 30, 2023. Bank of Baroda's Festivanza Offers feature home loan rates from 8.4 per cent per annum, applicable to takeovers, fully completed, or government projects. Special offers include nil processing fees and concessional upfront fees, available until December 31, 2023.

Private Sector Banks

Private sector banks generally offer home loans at higher rates compared to public sector banks, with a few exceptions. Notably, HDFC Bank stands out with loan rates starting from 8.35 per cent, and HSBC offers home loan interest rates from 8.45 per cent onwards across various tenures. Other major private lenders, including Kotak Mahindra Bank, ICICI Bank, and Axis Bank, provide competitive interest rates starting from 8.7 per cent.

Housing Finance Companies

Leading HFCs, Bajaj Housing Finance, Tata Capital, and PNB Housing Finance are providing competitive rates starting at 8.50 per cent. The state-owned LIC Housing Finance is offering interest rates ranging from 8.40 per cent to 10.75 per cent.