Home values tend to appreciate with time, and buying a property without a loan is not possible for everyone, but it is also a wise decision to borrow a house loan for a variety of reasons. 

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When you decide to buy a property for yourself, you must first assess your expenditures. Most people opt to take a house loan if they cannot afford to pay the entire amount. 

While others take loan even if they can afford to buy the property upfront. One typical reason is that they may utilise the money they would have spent on buying the property outright for other investments or to retain liquidity.

Furthermore, some people may want to spread the cost of a property over time with mortgage payments rather than investing a big portion of their resources in a single item. Finally, taking out a mortgage may bring certain tax benefits.

Some of the benefits of taking a home loan include CIBIL score improvement, GST benefits, tax benefits, and rent savings, among others.

It is to be noted that borrowing a home loan from a bank isn't as simple or inexpensive as it may appear. 

Home loan interest rates might vary greatly based on the applicant's credit score and the lender's credit rules. As a result, before applying for a mortgage, it is usually a good idea to examine the interest rates of many lenders.

In this article, we will discuss the top 5 home loans from public sector banks and housing finance companies (HFCs) with the lowest interest rates.

Bank of India: The Bank of India (BOI) currently offers home loan at 8.30–10.75 per cent on a Rs 30 lakh–Rs 75 lakh value. The bank's interest rate remains the same for amounts below Rs 30 lakh and above Rs 75 lakh also.

Bank of Maharashtra: This bank provides home loans at 8.35-11.15 per cent interest rate on a Rs 30 lakh–Rs 75 lakh value. The interest rate remains same for all the loan amounts.

Union Bank of India: Union Bank of India offers home loan at 8.35-10.90 per cent interest rate for an amount of Rs 30 lakh- Rs 75 lakh. The interest rate remains same on above Rs 75 lakh also, but changes to 8.35-10.75 per cent for less than Rs 30 lakh value.

Indian Overseas Bank: This bank offers an interest rate of 8.40 per cent or above on any loan amount. 

State Bank of India: State Bank of India (SBI) offers interest in the range of 8.40-10.05 per cent on Rs 30 lakh–Rs 75 lakh value. This remains the same for more than Rs 75 lakh value but decreases in the range of 8.40-10.15 per cent for less than Rs 30 lakh value.