In the present times of rising realty prices and the increasing cost of construction, Home Loans have become an important necessity for all existing as well as prospective homeowners. Not only do Home Loans allow you to purchase your new home without any delays but also offers you significant financial flexibility. You only need to arrange for the down-payment as per the LTV limit set by the lender and then repay the loan amount in EMIs over the repayment tenor. With the unprecedented increase in the demand for Home Loans, all major financial institutions in India have started offering housing credit at attractive interest rates.
Let’s find which top 10 banks are offering attractive rates on Home Loans in India:
Many financial institutions in India offer Home Loans at attractive interest rates. To attain your goal for the cheapest deal on a home loan, you must pick the right lender. This will require you to compare the Home Loan offered by the respective lender with your requirements. Once you have conducted a detailed analysis, you can easily select the Best Home Loan for buying your dream home. Here is a list of the top home loans in India that you should consider.
1. State Bank of India Home Loan
The State Bank of India (SBI) offers the industry best interest rates on Home Loans which start from as low as 8.25% p.a. The maximum repayment tenor available is 30 years while there is no upper limit for the maximum amount available. The processing charges levied by the bank can be up to 0.35%, and there are no foreclosure charges applicable.
2. HDFC Bank Home Loan
HDFC Bank is another leading bank in the industry and offers the best home loan schemes to the customers, packed with attractive interest rates and several noteworthy features. The interest rates start from 8.35% p.a, and maximum available amounts can go up to Rs. 10 crores. The maximum repayment tenor available is 20 years with the processing fees being up to 0.5%, subject to a minimum of Rs. 3,000.
3. LIC Housing Finance Home Loan
LIC Housing Finance Ltd. is an NBFC approved by RBI and offers some of the cheapest Home Loan products in India. They offer Home Loan with interest rates starting from 8.70% and the maximum amount sanctioned can go up to Rs. 5 crores. Maximum repayment tenor available is of 30 years with the option of foreclosure available to customers. Processing charges levied is up to 0.25%.
4. Bank of Baroda Home Loan
Bank of Baroda Home Loan offers easy application process with quick disbursals. Bank of Baroda Home Loan is available for amounts of up to Rs. 10 crores and interest rates start from MCLR+ 1% p.a repayment. The maximum tenor available to customers is 30 years with LTV of up to 90%.
5. Indiabulls Housing Finance Limited Home Loans
The Indiabulls Housing Finance Limited is an NBFC which provides affordable Home Loans for amounts of up to Rs. 3 crores. The maximum repayment tenor available to customers is 30 years with interest rates starting from 8.80% per annum. Processing fees levied by Indiabulls is up to 0.5%.
6. Axis Bank Home Loans
Axis Bank offers Home Loans to its customers for amounts of up to Rs. 5 crores with the maximum repayment tenor of 30 years. The rate of interest offered by Axis Bank is linked to MCLR and presently starts from 8.90% onwards. The minimum amount offered as a Home Loan by Axis Bank is Rs. 3 Lakhs and there are no foreclosure charges applicable.
7. Kotak Bank Home Loan
Kotak Mahindra Bank offers Home Loans for its customers with affordable interest rates starting from 8.90% and maximum repayment tenor of up to 25 years. You can even apply for a Home Loan with Kotak Mahindra Bank online with zero processing fees. 2% processing fees, NIL foreclosure charges, and an option for making pre-payments make the Home Loan from Kotak Mahindra Bank an ideal option for you.
8. Tata Capital Home Loan
Tata Capital is a leading NBFC that offers its customers with Home Loans at Affordable Interest Rates starting from 9.25%. The maximum amount available can go up to Rs. 5 crores with the maximum repayment tenor available being 30 years. Processing fees levied by Tata Capital is 0.5%.
9. PNB Housing Finance Home Loan
It is one of India’s leading Home Loan providers that offer loans with interests ranging from 8.65%. The maximum amount available as a Home Loan is Rs 1 crore with the maximum repayment tenor going up to 30 years.
10. ICICI Bank Home Loan
ICICI Bank offers Home Loans up to Rs. 3 crores at interest rates starting at 8.80% p.a and the maximum repayment tenor available is 30 years. Processing charges levied by the bank can vary between 0.5% to 1%.
These are the top 10 financial institutions in India providing the best value loans to the customers in India. While you can effortlessly apply for Home Loan through multiple channels today, it is recommended to also learn about some tips to make most of the available deal.
Tips to make most of your Home Loan
- Down payment required
Different lenders follow their own LTV ratio parameters while assessing Home Loan applications. This limit may range between 70% to 90% of the property value, depending on the customer profile. Do not go for the maximum available amount. Instead, try and make as much down-payment and reduce the Home Loan principal and interest cost while making the EMIs more affordable.
- Repayment Tenor
Home Loans are available with a repayment tenor of up to 30 years, but you must pick the shortest repayment tenor that you can afford with your finances. This will allow you to repay the Home Loan earlier and save on the interest cost.
- Consider APR
Instead of comparing interest rates, you must compare the APR of the Home Loan. APR gives you an accurate picture and is a better indicator of the cost of the loan as compared to the interest rate.
- Foreclosure and part-payments
If your finances allow then you should consider the option of making additional EMI payments, over and above your specified EMIs. You can also opt to foreclose the loan according to your financial strength. This will help you save on your interest costs.