So, you are looking to buy your dream house and for that, you have adopted to acquire a home loan. Well, congratulations as you have completed the first step. Now, comes the second step and one on the important steps i.e. choosing a bank/financial institution.
I am sure you don’t want to burn a hole in your pocket while deciding a bank for a home loan. So, you need to act smart and first gather all the information as how much a bank can lend you and other related information.
Know more about the terms & conditions and eligibility for both private and government banks. In addition, there are various other elements worth considering such as – whether the interest rate is flexible & affordable, whether you should go for a balance transfer or prepay option, etc.
So, I am going to making things easier for you by discussing top 7 banks offering a home loan.
Yes Bank – Home Loan
Whether you have plans to buy a property or want to construct your own house, Yes Bank Home Loan will surely help you out. YesBank ranks at 5th position as the largest private bank in India and the bank has its branches in 7 UTs and across 29 states. The bank also enjoys a tie-up with DHFL (Dewan Housing Finance Limited). The interest rate charged by Yes Bank ranges from 9.35% to 10.50%. There is a processing fee of 0.5% of the loan amount Rs. 10000 whichever is higher. The loan term offered by Yes Bank is from 1 year to 25 years.
There is no introduction required for State Bank of India when it comes to home loans and it also acquires a market share of 25%. Home loans offered by State Bank of India comes with a processing charge of Rs 1,000-10,000. As far as the interest rate is concerned, the bank charges as a daily reducing balance, making it reasonable for the borrowers. The bank also reduced the interest rates for the home loans from 9.75% to 8.35% and interest rates for women borrowers have also reduced i.e. up to Rs. 30 Lakh it is 8.35%, Rs. 30-75 Lakh it is 8.50%, and above Rs. 75 Lakh it is 8.65.
HDFC Bank is also offering home loans through both their banks along with their housing finance channel – HDFC Ltd. (a non-banking financial company). The terms and rates are same for both. HDFC Bank’s home loan interest rate is from 8.35% to 8.60% and the processing fee is up to 0.50% of the loan amount or Rs. 11,800 whichever is minimum. The term for a home loan is 1 year to 30 years and you don’t require a guarantor. Other features offered by HDFC Bank are proportional release and Tranche EMI option.
ICICI Bank is also one of India’s popular private banks offering home loans at lucrative prices. You have the provision of borrowing a loan amount up to Rs. 10 crores. The interest rate charged by the bank is 8.35% onwards. You will have to pay 1% of the loan amount as the processing charges. The best thing about ICICI Bank’s home loan is that the loan term is for 30 years. With such a long tenure, you can easily avail higher amount and still keep the EMIs to the minimum.
The home loans offered by Axis Bank are affordable, offer flexible interest rates, and offer various other benefits such as balance transfer schemes, longer repayment term, eDGE Loyalty points. The interest rate for the home loan ranges from 8.35% to 11.75%, the processing fee is 0.5% of the minimum loan amount of Rs. 10,000 and the loan term is up to 30 years.
Kotak Mahindra Bank
Kotak Mahindra Bank offers home loans to all those who successfully meet the eligibility criteria. The loan has been designed in a way that it is easier for you to make a choice that suits your loan requirements. The interest rate starts at 8.40% per annum and the processing charge is levied up to 1.25% of the loan amount along with service tax. The term of the home loan is for a maximum term of 20 years. Ensuring fast approval of the loan, the bank practices quick Turnaround time (TAT). Rest assured you will be offered a home loan with simple documentation.
Bank of Baroda
Bank of Baroda really simplifies the whole home loan process. You can use BOB home loans for varied home-related purposes such as –
- Construction of the house.
- Purchasing a newly constructed house.
- Transferring home loan from another bank.
- Buying an existing house.
- Home refurbishment and extension.
The bank offers competitive interest rate at 8.35%, so you don’t have to think twice before acquiring a home loan. The bank also offers both fixed and floating rate of interest for the home loans. The processing fee charged by Bank of Baroda is 0.5% to 0.25% of the loan amount and the loan term is 30 years. If you are interested in prepaying the loan in full or part, then you don’t have to pay anything for that.
So, have you decided which bank you are going to apply for a home loan? Share your experience and views with us in the comment section.
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