How do I get cheapest home loan interest rates in India?

After researching thoroughly and comparing many bank’s rates and online portals who are the aggregators for home loans here is my pick.

I did a comparison of all key loan details and to my surprise, I realized that the bank with which I am having an account is not the one who is offering the lowest home loan rates. So how can I get the cheapest home loan in my city?

Step by step process of applying for the home loan

• Home Loan Eligibility

• CIBIL Score

• Evaluate Interest Rates

• Loan Application

• Appraisal by Bank

• Loan Sanction

• Legal Evaluation of Documents

• Valuation Check

• Loan Agreement

• Loan Disbursement

Thanks to which guides a customer through the loan process to get the best possible deal in the shortest time. It is the place to be for comparing the home loan interest rates for all the banks.Some really practical and easy tips and filters help me to check the best rates within a minute.




I can apply the filters like the type of the property, whether its ready to move / under construction/plot & construction etc.

The best part about is they offer a home loan with zero processing fees. I am surprised to see the zero processing fees as I have inquired with my bank about the processing fees and they are charging 0.2% of the home loan amount as a processing fee. On the home loan amount of Rs. 30 lakhs, I can save Rs. 6000 straight away without doing anything. This is the direct benefit to me.


One thing I like about the is the transparency they have given on the each and every home loan offer. On clicking on the particular offer, you can see every minute details as well as terms & conditions about the offer. This according to me is a very important aspect while choosing the best offer on the home loan. I have a habit of checking every minute details before taking any decisions. See the screenshot below on the details they have provided on each offer. It is easy for me to compare different offers not only on the home loan rates but also on the basis of terms and conditions.




How to get best home loan rates?

  • Beware of the marketing gimmicks

There is a number of home loan agents and DSA (Direct Sales Agents) to lure customers by quoting a lower rate of interest at the time of pitching you the offer. They will never tell you that there is a catch in the offer and after a certain time period, the loan interest will be higher. Always check with the authorized and well-reputed agency and get the offer in writing before making your decision.

  • Your salary bank may not offer you the cheapest loan

Most of the bank is offering “pre-approved home loan” to the salaried people who have a salary account with them. This does not guarantee you the cheapest home loan rates. Its always better to check and compare the home loan rates with all leading banks before applying.

· Do not apply to multiple banks for your home finance needs – Remember that every loan application is recorded in your CIBIL report. Too many home loan applications at the same time can hurt your chances of getting a loan and even lead to an increase in the rate of interest. Multiple applications signal desperation to get a loan on the part of the customer.

  • Don’t apply to multiple banks

You should know that the every loan application is submitted to CIBIL for checking your credibility. Applying for multiple applications at the same time can hurt your credit rating. It is sometimes lead an increase in the rate of interest as multiple applications signals how desperate are you to get a loan.

  • Don’t apply for loan more than what you are eligible for

There are many online tools available for free for checking your home loan eligibility. This calculator will check your eligibility and gives you an estimate of how much loan amount you are likely to be eligible for. Always apply for the home loan either less or up to the maximum eligibility. Applying for the higher loan than your eligibility may lead to rejection of your loan application.

  • Compare, compare and compare

As I mentioned above, look not only for the home loan interest rates but compare other things like processing fees, prepayment charges, insurance premium and other charges offered by different banks.You should compare all-inclusive cost on the home loan to be able to further shortlist the best offer. You can take the help of loan advisors of online marketplaces to be able to get details on home loan rates of all banks and take an informed decision.

  • Don’t forget customer service standards as a shortlist criteria

Finally, as you decide to take the loan, also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, transparency in the loan process. You also need to understand the trends and changes in MCLR rates over a period of time. Last but not the least, read reviews of existing customers on banks on their services, interest rates, and transparency to take your decision to borrow from a bank.

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