Banks and NBFCs Offering Competitive Housing Finance Rate of Interest

Home loan interest rates are one of the most important factors to consider when applying for a home loan. Low interest rates mean lower EMIs (monthly payments). It makes owning a home easier and more affordable. So, which lender is offering the lowest rates on the best terms? Let’s find out! 

What Are The Current Home Loan Interest Rates?

Below is a comparison of the current starting interest rates offered by some of the leading lenders, providing a quick reference to help you evaluate your borrowing options.

Lender	Interest Rate starting from
Bajaj Housing Finance	7.50% p.a. onwards
PNB Housing Finance	8.50% p.a. onwards
L&T Finance	8.60% p.a. onwards
LIC Housing Finance	8.65% onwards based on credit score
ICICI Bank	9.00% onwards based on credit score

Disclaimer: These rates can change and may differ based on loan details and credit score.

Interest rates differ by lender, borrower profile, tenure and more. One has to understand that these numbers are not fixed because there are several factors influencing the interest rates from buyer to buyer. For example, while the minimum PNB Housing Finance rate of interest is 8.5% per annum, it may increase based on the credit score. The best rates are usually reserved for borrowers with credit scores above 750.

Why Interest Rates Matter?

When someone borrows money to buy a home, they pay back more than what they borrowed. The extra is the interest. The home loan interest rates decide how much extra. A little lower rate = big savings over many years.

Here are some benefits of lower rates:

• Lower monthly payment (EMI)
• More money left for other needs
• Shorter loan tenure is possible
• Better chances of loan approval

It’s important to compare across banks and NBFCs. A financial marketplace allows buyers to compare lenders, their rates, and the latest offers in an organised manner and choose wisely.

Banks vs NBFCs: Which One to Choose?

Both banks and NBFCs (Non-Banking Financial Companies) are good options. However, they work a little differently. Knowing their differences helps a borrower decide what’s better for their needs.

Feature	Banks	NBFCs (e.g., Bajaj Finserv)
Regulatory Authority	Regulated by the RBI under the Banking Act	Registered under the Companies Act
Interest Rate	Floating rates linked to MCLR	Fixed or floating, more flexible rates
Loan Processing Time	Slower, more paperwork	Faster, quicker sanction
Eligibility Criteria	Stricter, high credit score needed	More flexible, allows more borrowers
Documentation	Lengthy and strict	Less paperwork, easier process
Loan Flexibility	Limited customization	More customised loan options
Customer Service	Standard services	Personalised service with a customer manager
Online Application	Limited availability	Online application and tracking
Top-up & EMI Holidays	Offered by many banks	Also widely offered by NBFCs

Banks – The Safe and Low-Cost Option

• Lower home loan interest rates for strong credit profiles.
• Transparent linkage to RBI repo rate.
• Ideal for salaried or government employees.
• Reliable for long-term stability.

NBFCs / HFCs – The Flexible Option

• Easier approval for self-employed or variable income earners.
• Can offer customized repayment plans.
• Less documentation and quicker disbursal.
• May accept slightly lower credit scores.

How Bajaj Markets Helps You Find Better Home Loan Rates

It allows buyers to compare the home loan interest rates from various banks and NBFCs in one place. It makes your loan search easy and fast by offering:

• A wide list of lenders.
• Updated list of interest rates.
• Loan calculators to estimate your EMI.
• Direct links to apply online.
• Expert advice and tips.

The website helps buyers quickly find the lowest interest rates that suit their budgets.

Tips to Get the Lowest Home Loan Interest Rates

• Check your credit score; a higher score helps.
• Compare interest rates. A financial marketplace can be helpful.
• Opt for a shorter loan tenure.
• Keep your documents ready for quick approval.
• Negotiate processing fees and other charges.

A Quick Checklist Before You Apply

Before clicking apply, check this:

• The interest rate is clearly mentioned
• The type of rate: floating or fixed
• All fees (processing fee, documentation fee)
• The prepayment/foreclosure policy
• The loan tenure and total cost
• Whether the rate is valid for your profile (salary, self-employed, or credit score)
• Whether there are special offers or discounts

Final Take

Home buying is exciting and mostly a dream-come-true moment. But the lender and the interest rate of your home loan can impact your finances for years. Even a 0.25% difference in home loan interest rates can mean thousands saved every year. Compare, calculate, and apply through Bajaj Markets and bring your dream home closer, smartly. Your decision based on research can save a lot of money in the long run and make your new beginnings happier.