One of the biggest hurdles that a homebuyer has to cross is to zero on the right flat for sale in Electronic City backed by the right builder. This is no mean feat by itself. Once you have picked your dream home from zillions of enticing properties in Bangalore, the next step is to choose the right home loan that is well suited for your needs. The notion that the bank offering the lowest interest rate is the best bet is not necessarily true. There are several hidden charges that the lenders may impose on you which you need to look for.

All this might sound a little confusing to you. To clear your confusion, we have curated a list of banks to finance your properties in Bangalore.


The best rate of interest for both salaried individuals and self-employed individuals is 6.7% while the highest rate is 7.65%. Maximum tenure is 30 years and the processing fee is up to 0.5% of the loan amount or Rs 3000 whichever is higher.

The major advantage that you receive by availing a home loan here, for your 2BHK flat in Electronic City, is the bank is relatively fast in transferring the benefits of policy rate cuts.

Keep in mind though that there is a lot of documentation involved.

  • Union Bank of India

Since October 2021, Union Bank has slashed its interest rates to an all-time low of 6.4% for salaried customers and 6.5% for non-salaried customers. The highest rate of interest to salaried customers is 7.25% while for non-salaried it is 7.35%. You may feel that they have a limited number of branches but the best part is that there is no cap on the home loan amount.

The downside is though the rates are at their lowest presently, the transfer of downwards charges is not very fast.

  • Canara Bank

The best rate of interest for both salaried and self-employed individuals is 6.9% while the highest rate is 8.9%. The processing fee is 0.5% of the loan amount with the minimum and the upper limit capped at Rs 1500 and Rs 10,000. The maximum tenure is 30 years and you have the benefit of repaying the loan till you attain the age of 75 years. Hence, this is a boon for middle-aged people investing in properties in Bangalore.

The disadvantage is you will have to contribute up to 25% of the property’s value for a higher loan size.

  • SBI

SBI is currently offering home loan festive offer interest rates. The lowest rate of interest is 6.7% while the highest is 6.9%. The extra good news is that the processing fee is NIL for approved projects and they are offering a full waiver to unapproved projects subject to recovery of actual expenses (for TIR and valuation).

Though there is a lot of documentation involved, the major advantage that you get by availing a home loan in a government-run bank is that it would be among the first ones to reduce its interest rates if the RBI lowers the REPO rate.

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