Currently, home loan rates in India are enticingly low, starting from 6.4 percent. For first-time home buyers, it is the ideal time to apply for a home loan. Home loans are a long-term liability, therefore it is important to be thorough with your research and make the right decision at the right time to avail maximum benefits.

However, lower rates are not always good as they often come with a variety of terms and conditions. Moreover, the same interest rates are not provided to all borrowers. The interest rate may differ according to your credit score.

Also read: This tax benefit on home loans will not be available from April 1

Some lenders offer special interest rates to women borrowers as well. It is advisable to shortlist a few plans from lenders and then make a comparative study to reach the best conclusion. Lower interest rates can help lower the EMI payments.

Here are five banks that are offering the lowest interest rates as per Bank Bazar:

Bank of Maharashtra: 6.40 percent

Bandhan Bank: 6.40 to 13.5 percent

Bank of Baroda: 6.50 percent

IDFC First Bank: 6.50 percent

Punjab National Bank: 6.50 percent

An excellent credit score may fetch you the lowest interest rates. Also, having a women co-applicant may lower the interest rate by 0.05 percent.

Also read: Interest Only Home Loans: What is it? Pros and Cons

How to Calculate EMI

There are many online calculators available to help you calculate your EMI. Alternatively, the EMI calculation formula can be used.

EMI = /

Here, P is Principal, r is rate of interest, and n is number of instalments or loan tenure in months.

Also read: How better home loan benefits can boost the post-pandemic economy

(Edited by : Shoma Bhattacharjee)