The cheapest home loans above Rs 75 lakh: Find out which banks and HFCs offer the lowest rates

The decision of the Reserve Bank of India to keep a low repo rate of 4% in an effort to counter the economic fallout from the current Covid-19 pandemic has been a big part of most banks cutting their interest rates on home loans at decades-long lows. In fact, there are at least 15 banks and four housing finance companies (HFCs) that currently offer home loans starting at less than 7% per annum.

This low interest rate trend makes it an opportune time for aspiring borrowers – provided they have sufficient margin funds, a credit score of over 750-800, and repayment capacity. adequate. All of these factors should be carefully considered, as many aspiring borrowers would have a large loan amount, especially if they are planning to buy a home in a metropolitan city.

So, if you have a large loan requirement, note that the highest loan-to-value ratio (LTV) allowed might be slightly higher in your case compared to someone with a lower loan amount. This means that you could qualify for a loan of up to 75% -80% of a high value property (for example, worth Rs 1 crore or more) as opposed to a more affordable property where the Maximum allowed LTV could go up to 90%. of the property’s value, according to BankBazaar.

Additionally, many lenders may charge a higher rate of interest for high value loans as compared to lower loan amounts. You will therefore be well advised to carefully assess your margin fund requirements as well as affordability of loan IMEs after comparing your options based on your eligibility and requirements before finalizing your decision.

If you are unsure whether you should take out a mortgage with a bank or housing finance company, note that the latter usually have slightly higher interest rates than banks, but they might be better suited to high loan amount requirements. HFCs are NBFCs which specialize in mortgage loan products unlike banks which have multiple loan products. However, the interest rates on variable rate mortgage loans from banks are tied to an external benchmark like the repo rate, while HFCs set their interest rates at their prime rate, according to BankBazaar.

So, if you want to apply for a high value home loan, here is a list of 10 banks and 10 HFCs – including Axis Bank, Kotak Mahindra Bank, PNB, UBI, HDFC Ltd, and LIC Housing Finance Ltd – that are currently offering the mortgage rates. lowest interest on loans over Rs 75 lakh nationwide. Note that the interest rate applicable to you would be determined based on your age, gender, income, credit score, loan amount, LTV ratio or any other condition of the chosen lender.

Banks and HFCs currently offer cheapest variable rate home loans above Rs 75 lakh

Disclaimer: Data taken from the bank’s respective websites as of May 7, 2021. Data compiled by BankBazaar.com, an online marketplace for loans, credit cards and more.