Best Bank offers- Introduction
Indian banks and NBFC offer different types of Home loans like Home loans for builder purchases and resale purchases, HL- Refinance, construction loans, and HL- renovation and improvement. Home loan purchase is the main market under the Home loan category and we discussed the rate and processing fee of that category.
Home Loan Interest Rates of Banks and NBFC 2023
SBI Home Loan
SBI Home Loan is India’s largest public sector bank incorporated in 1955 and managed by the Ministry of Finance offers the most attractive and best home loan interest rate starting at 8.55% per annum. SBI Home loan also offers female borrowers an interest reduction of 0.05 percent.
A loan tenure option of up to 30 years with a comfortable repayment period. The processing fee for the loan is 0.35 percent of the loan amount (Minimum Rs.2,000/-) plus applicable GST.
HDFC Home Loan
HDFC Bank Ltd is India’s largest Pvt. Sector bank was incorporated in 1994 and the bank was inaugurated by Union Finance Minister Dr. Manmohan Singh. HDFC Loans offer affordable interest rates starting at 8.60% per year.
For loans with tenure up to 30 years, For employed professionals, the processing fee for these housing loans will not exceed Rs. 3,000/- plus GST applicable.
Axis Bank Home Loan
Axis Bank was formerly known as UTI Bank’s head office in Mumbai. IN 1993 the bank was promoted jointly by the Administrator of the Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance Company, The New India Assurance Company, The Oriental Insurance Corporation, and United India Insurance
Axis Bank offers an interest rate starting at 8.45%. Offer both floating and fixed interest rate options depending upon customer need. Fixed interest rate option rate banks will charge higher interest rates.
For the Floating rate option, The loan tenure may be up to 30 years, while for fixed-rate loans, it may be up to 20 years. The processing fee is up to 1% of the loan amount or a Minimum of Rs. 10,000/- may be charged as a processing fee with applicable taxes.
ICICI Home Loan
The Industrial Credit and Investment Corporation of India (ICICI) was established on 5 January 1955 and Sir Arcot Ramasamy Mudaliar was elected as the first Chairman of ICICI Ltd.
ICICI Bank offers the most attractive rate of interest to qualified borrowers starting from 8.60% per ammum with a loan tenure of 30 years and a smart repayment option. Processing fee up to 0.50% of the loan amount plus applicable taxes.
Bank of Baroda Home Loan
Bank of Baroda (BOB or BoB) is an Indian public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India.
Home loans from the Bank of Baroda have some of the best home loan rates in India, starting at 8.45% p.a. and going up to 30 years with smart repayment options.Bank offers loans up to Rs. 10 crores and Bank of Baroda housing loans have processing costs as low as 0.25 per cent of the loan amount.
PNB Home Loan
Punjab National Bank(PNB) was established in 1984 and head office at Dwarka New Delhi. The bank offer interest rate for Home loans is 8.50% with a processing fee of 0.35 percent plus applicable taxes. The maximum loan amount is Rs. 1 crore.
Aditya Birla Home Loan
Aditya Birla Housing Finance Limited (ABHFL), a subsidiary of Aditya Birla Capital Limited (ABCL), head office situated in Mumbai.ABHFL offers a housing loan interest rate starting at 8.80% and it will be increased based on customer profile and property category. The processing fee is up to 1% plus applicable taxes.
Bajaj Housing Finance Home Loan
Bajaj Housing Finance is a leading home loan provider in India. It offers home loans at attractive interest rates ranging between 8.60% – 14.00%. Its processing fees are up to 1.0% of the loan amount with applicable taxes.
Rate of Interest:
The interest rate on your home loan is a crucial factor to consider. It’s typically determined based on the principal amount. A lower interest rate can save you money in the long run, so it’s essential to shop around for the best rates.
Initial Payment or Down Payment:
Making a substantial down payment is advisable as it reduces the loan amount and, subsequently, the interest paid over the loan’s tenure. A down payment of 10% to 20% is recommended to ensure manageable repayments.
Mortgage Insurance:
Mortgage insurance, also known as loan cover term assurance, can provide financial security for your family in case of your untimely passing. It ensures that the outstanding loan balance is paid off, relieving your family from the financial burden. Many banks and housing finance firms may require borrowers to purchase this insurance to prevent defaults.
Choosing the Right Loan Program:
It’s emphasized that not all loan programs are suitable for every borrower. Individual financial requirements, repayment capacity, and cash flow should be carefully considered when selecting a home loan. Each bank or lender may have different criteria and offerings, so it’s crucial to match your needs with the right loan program.
In summary, the decision to get a home loan should be made after careful consideration of various factors, including interest rates, down payments, insurance, and additional fees. Choosing the right loan program that aligns with your financial situation and goals is crucial for a successful home-buying experience in India.