Home loan interest rates: SBI vs ICICI Bank vs HDFC Bank vs BoB vs Axis Bank vs PNB compared; check and pay cheaper EMIs

Rise or fall in repo rate has a direct impact on home loans. That is because this type of loan is related to floating rates mostly and banks change it according to repo rate movement. Amazingly, the RBI has bagged a hat-trick by trimming down the repo rate by total 75 basis points between February 2019 to June 2019 policies. Now, opting for home loan has become better and more attractive than ever. While it was only a matter of time to see which bank moves first and brings down their home loan interest rates passing on the benefit of RBI rate cut. Well, the largest lender State Bank of India (SBI) has scored a lead once again. In a major jaw dropping move, SBI has decided to link their home loan product with policy repo rate with effect from July 01, 2019. While clarity is still needed in regards to whether SBI’s home loan rates come down from next month or policy. But for now, if you are planning to opt for home loan, it is always advisable to compare banks interest rates. This is because it will help you in understanding who offers better and lower interest rate so that your repayment burden is lessened. Also, that will make your EMIs you pay every month cheaper and flexible in managing your monthly budget. 

Let’s compare! 

State Bank of India (SBI):

Currently here, home loan interest rates are set in two categories namely salaried and non-salaried separately for men and women. In case of loan upto Rs 30 lakhs, SBI charges interest rate between 8.55% to 8.65% on salaried women, while the non-salaried ones here get between 8.70% to 8.80%. While, for loans above Rs 30 lakhs but up to Rs 75 lakhs - a salaried women gets 8.80% to 8.90%, while the non-salaried one 8.95% to 9.05%. Similarly, a salaried woman gets rates ranging from 8.90% to 9% and that for non-salaried one the rates are 9.05% to 9.15% on above Rs 75 lakh loans. 

In case of men for similar loans mentioned above, interest rates are just 5 basis points higher in the same manner. So that means, a salaried man will get 8.60% to 8.70% on home loan below Rs 30 lakhs. The same applies on other home loan limit as  well. 

1-year MCLR at SBI currently stands at 8.45%. 

HDFC Bank:

The bank offers interest rates of 8.60 to 9.10% to salaried woman, while 8.75 to 9.25% to non-salaried ones on home loan upto Rs 30 lakh. In the same category, loan above Rs 30 lakh but upto Rs 75 lakh, interest of 8.85 to 9.35% is levied on salaried and 9.00 to 9.50% on non-salaried. While above Rs 75 lakh loan, a salaried women gets 8.90 to 9.40%, on other hand, the non-salaried one 9.05 to 9.55% respectively. 

Similar to SBI, HDFC Bank’s rate of interest on home loan for salaried and non-salaried men also gets higher by 5 basis points compared to that of women home loans. 

1-year MCLR at HDFC Bank stands at 8.70%.

ICICI Bank: 

Unlike SBI and HDFC Bank, the private lender ICICI Bank’s home loan interest rates are divided between salaried and self-employed borrowers. A salaried borrower will have to pay interest rate of 9.05% on home loan upto Rs 35 lakh, whereas rate of 9.15% is levied for loan between Rs 35 lakh to Rs 75 lakh and finally 9.20% is set on above Rs 75 lakh loans. 

As for self-employed, the home loan interest rates are ranging from 9.10% to 9.25% in the above mentioned loan limit. 

1.-year MCLR at ICICI Bank now stands at 8.75%. 

Axis Bank: 

The bank offers two types of home loan interest rates namely on floating and fixed. In case of  floating rates, loan upto Rs 30 lakh has interest of 8.90% per annum which is a breakup of MCLR plus 0.15% spread. While on loans above Rs 30 lakh but less than Rs 75 lakhs, interest rate is derived from MCLR plus 0.30% resulting in 9.05% per annum. While home loans above Rs 75 lakh, has MCLR plus 0.35% indicating interest rate of 9.10%. These rates are offered to salaried individuals. 

As for self-employed individuals, home loan interest rates are just 0.05% higher compared to the salaried ones. So for instance, interest rate here will be 8.95% on loan amount upto Rs 30 lakh.

If you are already an existing customer of Axis Bank, then the lender also offers top-up plans to them. A top-up loan is a loan given by the bank over and above your home loan.

Meanwhile, the fixed rate for both salaried and self-employed is similar at 12% per annum for any kind of home loan amount, however, at tenure of 20 years. 

Bank of Baroda (BoB): 

Home loans here are unique and given in form of various schemes. Let’s find out! 

1. Baroda Home Loan & Baroda Home Improvement Loan - Interest rates are derived from One year MCLR to One year MCLR +1.00% (As per Risk Rating of the applicant/s.).

2. Baroda Home Loan Advantage - Here upto Rs 75 lakh loan, the interest rate is normal like above. While over Rs 75 lakh loan, the rates would be 0.25% higher than the normal rate. 

3. Baroda CRE Home Loan (Advantage) - Upto Rs 75Lacs : 0.25% over Normal Home Loan Rate. Above Rs 75 Lacs : 0.50% over Normal Home Loan Rate.

Punjab National Bank (PNB):

Here, the interest rate is set at MCLR plus 0.20% for home loan upto Rs 75 lakhs to women and government employees. If the loan amount is above Rs 75 lakh, then the interest rate is MCLR plus 0.25%. While for other category, interest rate is higher as MCLR plus 0.25% on loan amount upto Rs 75 lakh, and MCLR plus 0.30% on above Rs 75 lakh. 

There is also PNB Max Saver home loan scheme which is available under floating ROI only, to both men and women. PNB’s 1-year MCLR rate is set at 8.45%.