Planning to buy your own house? Here’s a list of four popular Home Loan offers to turn your dream home into a reality.
Are you tired of throwing your hard-earned money on home rent every month? Are those endless arguments with your landlord driving you crazy? We totally get you! Nothing can beat the feeling of owning your dream home. With the cost of renting a home touching sky high in cities like Mumbai and Bengaluru, buying your own house might be a smart choice.
Here are a few factors you need to look at before bagging the best Home Loan deal:
Loan eligibility
The amount of loan you are likely to receive depends on your monthly income and the value of the property. A loan amount given out is usually up to 80% – 90% of the property’s value.
Decide the amount after taking into account your current financial situation and repayment capacity.
Rate of interest
The next important factor that you should consider is the rate of interest on your Home Loan. This will have a major impact on your EMIs and your total interest outflow. So, before choosing a lender, search and compare rates of various Home Loan lenders to get the best deal.
Also, find out if the rates are floating or fixed. Since interest rates are falling, a floating rate might be a better option. However, if interest rates start rising, you might need to shift to a fixed rate loan.
Processing fees & prepayment terms
Banks typically charge a small fee for managing your loan application. It can range between 0.25% – 2% of the total loan amount. Also, look at the loan prepayment terms before zeroing down on a lender.
Loan rate revisions
It’s important to check how much time the lender takes to change its interest rates following policy changes by the Reserve Bank of India. When you are opting for a floating rate loan, it’s better to go with a lender who changes the rate as soon as policy revisions are announced.
Choosing a lender could be a daunting task, given the number of banks and financial institutions operating in this space. Review all these factors to pick a loan that best suits your needs. Now that you are all wised-up about Home Loans, here’s a list of four popular Home Loan schemes.
ICICI Bank Home Loan
Interest Rate: Low floating interest rate starting from as low as 8.70%.
Loan Amount: You can avail a maximum loan amount of Rs. 10 crores
Loan Tenure: Maximum loan term of 30 years available.
Fees & Charges: A one-time processing fee of 0.25% will be charged by the bank.
Additional Perks:
- Paperless approval available
- Top up loan available
- No guarantor required
- The option of balance transfer is available
- Special rates for women applicants
HDFC LTD Home Loan
Interest rate: Low floating interest rate starting from as low as 8.60%.
Loan Amount: Rs. 5 lakh – Rs. 10 crores
Loan Tenure: Maximum loan term of up to 30 years available.
Fees & other charges:
- Up to 0.5% of the loan amount or Rs.3,000, whichever is higher plus applicable GST (for salaried and self-employed professionals)
- Up to 1.5% of the loan amount or Rs. 4,500, whichever is higher plus GST (for self-employed non-professionals)
Additional Perks:
- No hidden charges
- Customised repayment options
- Competitive rates
- Loans for salaried and self-employed individuals
Axis Bank Home Loan
Interest Rate: Low floating interest rate starting from as low as 8.90%.
Loan Amount: Rs. 5 lakh – Rs. 10 crores
Loan Tenure: Flexible tenure range of 1-30 years
Fees & other charges: No pre-closure and part payment fee on floating rate loan. In case of a fixed rate loan, a fee of 2% (plus taxes) will be applicable on the principal outstanding.
Additional Perks:
- Minimum financing of Rs.3 lakh
- Option to choose fixed or floating rate of interest
- Loans available for both salaried and self-employed individuals
- Financing of up to 90% of the total property cost
PNB Housing Home Loan
Interest Rate: Attractive floating interest rate starting from as low as 9%
Loan Amount: Minimum loan amount of Rs. 8 lakh
Loan Tenure: Maximum loan term of up to 30 years available
Fees & other charges: No pre-closure and part payment fee
Additional Perks:
- E-approval & part-payment facility available
- Top-up loan available
- No guarantor required
- The option of balance transfer is available
Once you pick a lender that suits your needs and requirements, make sure to keep the necessary documents handy before you approach them with your Home Loan application. By the way, we have some amazing Home Loan offers just for you. So, if you haven’t yet found the right loan, why don’t you check your eligibility?