It’s a dream and a lifetime goal for many to have a home of one’s own. However, building your own dream house is an expensive affair. Many banks like the State Bank of India, Central Bank of India, Kotak Mahindra Bank, and Punjab National Bank, among others, are offering home loans with cheap interest rates. You can avail the cheapest housing loan at an interest rate as low as 8.5 per cent to purchase your own home.

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You can avail the housing loan if you match certain eligibility criteria. The borrower must return the loan amount over the course of the agreed tenure along with the interest rate.

Currently, most banks offer home loans for not only ready-to-move homes, but also to facilitate the construction of a house from scratch. Additionally, one can also avail of home loans for renovation of an existing property.

It is important to know how to choose the right home loan as per your need. You should consider the interest rate, all the fees and the hidden charges, if any, before finalising the loan offer. It’s advisable to evaluate the total repayment amount as most of the home loans come with floating interest rates unlike the other loans where a fixed interest rate is charged by the banks.

Top Banks Offering Cheapest Home Loans  

Here are the cheap home loans offered by different banks:

•        Bajaj Housing Finance: The lowest interest rate that one can secure from Bajaj Housing Finance for a housing loan is 8.6 percent. The interest rate on housing loans can go up to 15 per cent, depending on various factors, including your credit score.

•        Central Bank of India: The bank offers home loans at an interest rate of 8.35 per cent to 9.35 per cent.

•        Punjab National Bank: Depending on the borrower’s profile, the home loan from Punjab National Bank starts at 8.75 percent and can go up to 11.25 per cent.

•        HDFC Bank: India’s largest private sector leader, HDFC Bank offers home loans starting at 8.5 percent and onwards.

•        Axis Bank: Home loans are available at 8.75 to 9.15 per cent.

•        Union Bank of India: Home loans secured from UBI start at an interest rate of 8.7 percent.

•        Kotak Mahindra Bank: Home loans from Kotak Mahindra Bank are available at interest rates ranging between 8.85 per cent and 9.4 per cent.

•        IDFC First Bank: Financing home loans from IDFC First Bank starts from 8.85 per cent.