Currently, mortgage rates in India are extremely low, starting at 6.4%. For first-time buyers, this is the perfect time to apply for a home loan. Home loans are a long-term liability, so it’s important to be thorough in your research and make the right decision at the right time to reap the maximum benefits.
However, lower rates are not always good as they often come with various conditions. Moreover, the same interest rates are not offered to all borrowers. The interest rate may vary depending on your credit score.
Some lenders also offer special interest rates for female borrowers. It is advisable to shortlist a few lender plans and then do a comparative study to come to the best conclusion. Lower interest rates can help reduce EMI payments.
Here are five banks that offer the lowest interest rates according to Bank Bazar:
An excellent credit rating can earn you the lowest interest rates. Additionally, having a female co-applicant can reduce the interest rate by 0.05%.
Many online calculators are available to help you calculate your EMI. Alternatively, the EMI calculation formula can be used.
Here, P is the principal, r is the interest rate, and n is the number of installments or the term of the loan in months.
(Edited by : Shoma Bhattacharjee)