The Best Home Loans for your Dream House

The Best Home Loans for your Dream House

Staying in own home is a dream of everyone. People see dreams of owning home at their own choice, but everybody doesn't able to afford that. Nowadays in the country like India, money is not a barrier of the dream of owning a home. All the government and on-government banks in India offer Home loan. These loans are specially given to those people who wants to build-up their own home or purchase a home.

Best home loan bank: 1

Canara Bank

Established in July 1906 in Mangalore, Karnataka, Canara Bank was nationalized in 1969. Over a century old, this bank is headquartered in Bengaluru and operates more than 10,391 branches across India. Last year, Canara Bank became the fourth largest state-owned bank by assets after its merger with Syndicate Bank, with a turnover of over Rs 16 trillion.

Canara Bank home loan interest rate

Rate of interest on home loans

Best rate

Highest rate

For salaried individuals

6.90%

8.90%

For self-employed individuals

6.90%

8.90%

 

Maximum tenure: 30 years

Processing Fee: 0.50% of the loan amount with minimum and upper limits limited to Rs 1,500 and Rs 10,000 respectively.

Affordability Scale: Average

Benefits: You can repay your loan till the age of 75 years. This means that those who are buying their home in their middle age will find this bank more suitable. 

Best home loan bank: 2

Bank of Baroda

Vadodara-headquartered Bank of Baroda became the third largest bank in India after its merger with Dena Bank and Vijaya Bank in April 2019. The bank was established by the Maharaja of Baroda in 1908 along with 13 other major commercial banks. of India, was nationalized by the government on July 19, 1969 and currently operates more than 10,000 branches in India and abroad.

Bank of Baroda home loan interest rate

Rate of interest on home loans

Best rate

Highest rate

For salaried individuals

6.5%*

8.75%

For self-employed individuals

6.75%

8.75%

*Effective from October 7, 2021 till December 31, 2021

Maximum tenure: 30 years

Processing Fee: Currently None

Affordability Scale: High

Benefits: The process of getting a loan on the online platform is very easy.

Best home loan bank: 3

State Bank of India (SBI)

The state-run State Bank of India (SBI), the largest mortgage lender in India, has so far assisted over 30 lakh families with their home purchases. Established in 1955, the lender has over 24,000 branches in India and abroad. Note that SBI is the largest player in the home loan segment with a book size of Rs 5.05 trillion. On a year-on-year basis, its home loan book grew by 11% per cent in Q1, FY22.

SBI home loan interest rate

Rate of interest on home loans

Best rate*

Highest rate*

For salaried individuals

6.7%

7.05%

For self-employed individuals

 6.7%

7.05%

*Rate applicability from May 1, 2021

Longest tenure: 30 years

Processing Fee: 0.40% of the loan amount, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000 GST. For projects where the bank has tie-up with the builder, the rate will be 0.40% subject to a maximum of Rs 10,000 plus taxes.

However, if a borrower applies for a home loan between August 1, 2021 and August 31, 2021, SBI will not charge any processing fee on the home loan under its Monsoon Dhamaka offer. After this period, borrowers will have to pay 0.40% of the home loan amount as processing fee at SBI.

Affordability Scale: High

Best home loan bank: 4

Axis Bank

A leading private sector bank established in 1993, Axis Bank currently operates around 4,500 branches in India and abroad.

Axis home loan interest rate

Rate of interest on home loans

Best rate

Highest rate

For salaried individuals

6.90%

8.40%

For self-employed individuals

7%

8.55%

Maximum tenure: 30 years

Processing fees: Up to 1% of the loan amount, with the minimum amount capped at Rs 10,000.

Affordability Scale: Average

Benefits: The bank is a leader in rewarding credit-worthy individuals and is one of the first to offer them low interest rates.

Best home loan bank: 5

HDFC Bank

Those who find it more convenient to stay with a bank rather than an HFC can apply for a home loan in HDFC Bank, HFC, the baking subsidiary of HDFC. Established in 1994, the bank has a nationwide network of 5,430 branches.

HDFC Bank home loan interest rate

Rate of interest on home loans

Best rate

Highest rate

For salaried individuals

6.80%

7.85%

For self-employed individuals

6.80%

7.85%

Maximum tenure: 30 years

Processing Fee: 0.50% of the loan amount or Rs 3,000, whichever is higher.

Affordability Scale: Average

Benefits: The bank is comparatively quick in transmitting the benefits of policy rate cuts.

Best home loan bank: 6

LIC Housing Finance

A subsidiary of LIC, the company has sanctioned over 3.35 lakh home loans so far.

LIC Housing Finance home loan interest rate

Rate of interest on home loans

Best rate

Highest rate

For salaried individuals

6.66%*

7.80%

For self-employed individuals

6.66%*

7.90%

Maximum tenure: 30 years

Processing Fee: 0.25% of the loan amount, subject to a ceiling of Rs. 10,000.

Affordability Scale: Average

Benefits: LIC HFL offers 90% of the property value as home loan.

Things to Consider to Avail Best Home Loans

Amidst increasing interest rates, almost all banks or financial institutions offer their best home loan interest rates to an applicant with a good credit score. An applicant with a credit score of 700 or above qualifies in the category of good credit score.

The revision in the repo rate does not have an immediate effect on the home loan EMI payable. Banks usually reset the repo rates at regular intervals.

Be aware that banks/finance providers are not allowed to levy any penalty for prepayment of home loan related to floating interest rate.

 

Now a day’s best property dealers in Indian real-estate sector have a tie-up with many banks for loan approval and they provide best deal to their buyers by providing home loan facility.

Banks generally follow a rigorous process of due diligence before funding any project. Hence, top builders in India insist on taking home loans from approved banks, to save time in the entire approval process. Top real estate project that has been approved by reputed banks assures the trustworthiness of the developer and the deals offered by him