What are the best Home Loan Interest Rates Options in 2021?

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Interest rates are important in deciding on a home loan, if not the only one. As per the latest rates offered by various banks and institutions, here is a list of some of the best home loan interest rates offered in 2021.

Home Loan

Tata Capital

Tata Capital is offering its online customers an interest rate of 6.90%. It provides further concession to women applicants and under the PMAY scheme. With Tata Capital, you enjoy the Flexi-pay benefits. Under Flexi-pay, you initially choose to repay a lower EMI and pay more as your income grows. A home loan EMI calculator can help you with this decision. Salaried and self-employed applicants find this option highly beneficial, particularly if they are at the beginning of their career.

Indian Overseas Bank

An interest rate of 7.05% onward is offered to salaried and self-employed applicants on Indian Overseas Bank home loans. There are no prepayment charges, and a loan-to-value ratio of up to 90% is offered. There is a processing fee of 0.50% of the loan amount.


PNB HFL is offering an interest rate of 7.55% to salaried and self-employed applicants between 18 and 70 years old. These loans are available for a maximum tenure of 30 years, and a CIBIL score of 750 and above is preferred.

State Bank of India

SBI officially mentions that its home loan interest rate depends on the application’s risk score. However, they are presently known to offer a minimum interest rate of 6.9%. They also feature a zero-prepayment penalty.


LIC Housing Finance Limited offers an interest rate of 6.9% for loans as low as Rs 1 lakh. LICHFL charges a processing fee of up to Rs 10,000 on loans of up to Rs 50 lakhs and up to Rs 15,000 on loans amounting to Rs 50 lakhs to Rs 3 crores.

Axis Bank

Available for a loan amount between Rs 1 lakh and Rs 5 crores, Axis Bank home loans presently carry an interest rate of 6.9%. The processing fee is 1% of the loan amount and a minimum of Rs 10,000. They are not charging any penalty on the prepayment of the loan.

UCO Bank

From an interest rate of 6.9% onward, UCO Bank offers home loans for up to 90% of the property value. The processing charges can be up to Rs 15,000 or 0.5% of the loan amount, whichever is lower. The UCO Bank home loan can be availed for up to 30 years.

Don’t let finances become a hindrance in fulfilling your dreams. Choose a lender that suits your need and pocket and become a proud owner of your abode.

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