Interest rates on home loans have taken a hit after the Reserve Bank of India (RBI) increased the repo rate by 40 basis points earlier this month. Some banks, like ICICI Bank and Bank of Baroda hiked the interest rates of home loans. Other banks also updated their interest rates. Those applying for home loans can do their research to get the best deal.

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Here’s a look at the top banks offering the best home loan interest rates:

1. State Bank of India

State Bank of India offers attractive interest rates with a comfortable repayment period. Women borrowers are offered an interest concession of 0.05 percent on SBI home loans. No hidden charges and a full waiver of prepayment charges makes SBI home loans one of the most preferred in the country.

Interest Rate: 6.65 to 6.85 percent per annum.

Tenure: Up to 30 years.

Processing Fee: 0.35 percent of the loan amount (minimum Rs 2,000 and maximum Rs 10,000) with applicable taxes.

2. Bank of Baroda

Bank of Baroda also offers attractive interest rates on home loans with the same comfortable repayment period as SBI. Borrowers can get a maximum loan amount of Rs 5 crore with the Bank of Baroda housing loan.

Interest Rate: 6.90 percent per annum onwards.

Tenure: 30 years.

Processing Fee: Starts from 0.25 percent of the loan amount.

3. Citibank

Citibank offers home loans of up to Rs 10 crore at low interest rates. The bank also provides borrowers an option to extend the tenure for ease of repayment till 25 years. Borrowers can get up to 80 percent of the total property cost with Citibank home financing schemes.

Interest Rate: 6.65 percent per annum onwards.

Tenure: Extendable till 25 years.

Processing Fee: Application Fee of Rs 5,000 plus GST and 0.40 percent of the sanctioned loan amount plus GST.

4. HDFC Bank

HDFC Ltd offers affordable home loans to eligible borrowers with attractive interest rates and a comfortable repayment period.

Interest Rate: 7 percent per annum onwards.

Tenure: Up to 30 years.

Processing Fee: Maximum of Rs 3,000 (plus applicable taxes) for employed individuals and Rs 5,000 (plus applicable taxes) for self-employed individuals.

5. Kotak Mahindra Bank

Kotak Bank offers the Digi Home Loan at attractive interest rate for both salaried and self-employed applicants. The bank is offering a special interest rate as part of its special balance transfer offer. With the Digi Home Loan of Kotak Mahindra Bank, borrowers can get 90 percent of the property value in case of a home loan balance transfer. The bank also offers housing loans under the PMAY scheme and provides concessions for women borrowers.

Interest Rate: 7 percent per annum onwards.

Tenure: Up to 20 years.

Processing Fee: Zero processing fee for online applications.

(Edited by : Shoma Bhattacharjee)