New Delhi | Jagran Business Desk: With the festive season already started, several commercial banks have come up with lucrative offers on retail loans including home, vehicle and personal loans. It is well known that public sector banks offer cheaper loans as compared to their private counterparts. Staring October, Banks are required to link interest rates on all retail loans which include home loans as well. Both public sector and private sector banks, local areas and small finance banks with the exception of regional rural banks have to follow this RBI directive. Most of the banks have linked the interest rate on retail loans to apex bank's repo rate also called Repo Rate Linked Lending Rate (RLLR).

The bank calculates the RLLR after adding a spread or margin to the repo rate. For the uninitiated, repo rate is a tool used by RBI to control inflation. An increase in repo rate may result in an increase in interest rate by banks or vice versa. Here we have compiled a list of banks offering home loans to salaried individuals with the most feasible EMI options.


Union Bank of India currently charges minimum 6.880 RLLR with interest ranging between 6.70% and 7.15%. The public sector bank also charges a processing fee of 0.50% of loan amount, Max.Rs.15000.

Bank of India currently charges 6.85 RLLR with interest ranging between 6.85% and 7.15%. The nationalised bank charges 0.25% of loan amount as processing fees ranging between Rs 1500 and Rs 20,000.

Central Bank of India currently charges 6.85 RLLR with maximum interest rate at 7.30% and minimum at 6.85%. The government-woned ban charges 0.50% of loan amount as processing fees subject to a maximum of Rs 20,000

Canara Bank currently charges 6.90 RLLR with maximum interest rate at 8.90% and minimum at 6.90%. The public sector bank charges 0.50% processing fees of the loan amount with minimum Rs 155 and maximum Rs 10,000.

Punjab & Sindh Bank charges 6.90 RLLR with minimum interest rate at 6.90% and maximum at 7.25%. Interestingly, the bank doesn't charges a penny as processing fee.

Posted By: Rakesh Kumar Jha