Are SBI Home Loan Interest Rates The Lowest?

State Bank of India (SBI) remains on the forefront when it comes to offering attractive home loans for buying, constructing, renovating or extending housing units. The PAN India presence with more 25,000 branches across India makes it the most preferred lender amongst masses. However, as home loans run deep with the tenure extending to as long as 30 years, you must be careful of not paying more through interest. And so, you must glance at SBI Home Loan Interest Rates and compare the same with what others have. This way you can set the pace of repayment in your favour. The article can help you compare the interest rates of different lenders.

What’s Special About SBI Home Loan Interest Rates?

SBI home loan interest rates are based on a variety of factors such as income, profession, repayment potential, credit record, gender, etc. The rates are also based on the amount of loan one applies for. Loans up to ₹30 lakhs can be offered at interest rates ranging from 8.70%-9.00% per annum. On the other side, loans above ₹30 lakhs and up to ₹75 lakhs can be given at 8.90%-9.20% p.a. You can expect the interest rates to be around 9.00%-9.35% while servicing loans above ₹75 lakhs.

HDFC Limited - A Serious Competitor to Challenge SBI’s Home Loan Supremacy

The premier mortgage finance company HDFC Limited packs a punch and fights tooth and nail with SBI in the home finance space. Like SBI, HDFC home loan interest rates are also influenced on the basis of the loan amount, profession, gender, etc. The housing finance company disburses home loans up to ₹30 lakhs at 8.80%-9.35% per annum. Loans above ₹30 lakhs to ₹75 lakhs and above ₹75 lakhs can be given at 8.95%-9.50% and 9.00%-9.55% per annum, respectively.

Verdict - SBI’s interest rates are lesser than HDFC’s by 10-20 basis points. 100 basis points equal to 1%.

How Competitive is ICICI Bank to SBI in India’s Home Finance Space?

ICICI Bank throws a real challenge to SBI in terms of interest rates. Broadly speaking, the rates range from 9.10%-9.30% per annum. Loans up to 35 lakhs, above 35 lakhs-75 lakhs and above 75 lakhs are offered at 9.10%-9.15%, 9.20%-9.25% and 9.25%-9.30% per annum.

Verdict - Overall, ICICI Bank home loan interest rates are lower than SBI’s. However, SBI’s rates are more competitive for loans up to 75 lakhs.

These are primarily the leaders in home finance space. SBI holds the fort pretty well as far as interest rates are concerned.

Check Home Loan EMI Calculator Before Applying

The calculator serves as an important tool to decide the pattern of repayment. It helps to calculate the repayment summary in a matter of a few seconds. All that you require is to enter the loan amount, tenure and the rate of interest in the calculator and see the results that come after. You can check the EMI, which stands for Equated Monthly Installment, as well as the interest to be paid over the course of a loan. This will help you decide the tenure in particular. Yes, the interest rate is the top consideration. But not emphasizing on the tenure can cause financial disharmony.

You can choose a very long tenure to keep the amount of affordable without realizing the burden of massive interest waiting to sink your finances. While choosing a very long tenure is a sin, having a very short one doesn’t help either. It’s because you find it hard to pay the EMI with ease. And so, by experimenting with tenures with the calculator, you can decide the tenure that can ensure EMI and interest affordable to you.