Perhaps you’re on the fence with regards to buying a house. And believe us when we say we completely understand. Buying a house isn’t child’s play. Gone are the days when your parents saved enough money to pay for their house in full and in cash.
With demonetisation, you can’t really pay for anything in cash anymore, and with property prices on the rise, it is nigh on impossible to buy a house without a Home Loan.
However, a Home Loan is a smart solution to getting your dream house. Although, you will have to pay for the down payment of your house, the remaining 85% will be paid by the bank, which you can repay through monthly instalments.
Additional Reading: The Beginner’s Guide to Taking a Home Loan
Before getting a Home Loan, you can also calculate your Equated Monthly Instalments (EMI) and figure out the total amount that you will have to shell out each month. This way, you don’t have to pay more than you need to, and it sure helps with budgeting your monthly salary and other expenses.
A Home Loan comes with a price though. And the price in this case is the interest rate. Banks charge a certain percentage of money on a yearly basis over the money they lend. Hence, when you’re repaying your loan, you end up paying more than the actual cost of your home.
Let’s say you bought an apartment for Rs. 40 lakhs through a Home Loan from XYZ bank at an interest rate of 8% per annum for a period of 15 years. This means you will end up paying Rs. 3,20,000 as interest alone.
Additional Reading: What To Do With Your Home Loan As Interest Rates Bottom Out
Different banks have different rates of interest. And because we want to ensure that you make an informed decision before taking that Home Loan, we have collated a list of banks along with their interest rates for your benefit.
| SI No | Bank Name | Interest Rate | Processing Fee | What you’ll love |
| 1. | Bank of Baroda Home Loan | 8.35% – 9.35% Fixed | Rs. 7,500 – Rs. 20,000 | · No guarantor required
· No pre-closure and part payment fees · Top up loan available |
| 2. | SBI Home Loan | 8.65% – 8.70% Floating | 0.35% (max Rs. 10,000)+ ST | · Special offers are available for women applicants at a lower rate
· E-approval available · No guarantor required |
| 3. | Central Bank of India Home Loan | 8.50% Fixed | 0.5% (max Rs. 20,000) | · Balance transfer available
· Part-payment available
|
| 4. | HDFC Home Loan | 8.5% – 8.55% Floating | Up to 0.5% | · Door step service available
· No pre-closure and part-payment fee · Top-up loan available |
| 5. | DBS Bank Home Loan | 8.5% – 8.55% Floating | Rs. 10,000 + ST | · No guarantor required
· Top-up loan available · E-approval available |
| 6. | Kotak Mahindra Bank Home Loan | 8.95% Floating | Nil | · Balance transfer available
· No pre-closure and part-payment fee |
| 7. | IDBI Bank Home Loan | 8.55% – 8.6% Floating | Nil | · E-approval available
· No guarantor required · Balance transfer available |
| 8. | Bank of Maharashtra Home Loan | 8.75% – 8.85% Fixed | Nil | · Top up loan available
· Part-payment available · No guarantor required |
| 9. | Bank of India Home Loan | 8.65% – 8.7% Fixed | Rs. 1,000 – Rs. 20,000 | · Balance transfer available
· No pre-closure fee
|
| 10. | Tata Capital Home Loan | 8.65% – 8.85% Floating | Up to 0.2% | · Door step service available
· E-approval available · No guarantor required |
Taking a Home Loan while you’re young and employed is way better than taking it once you’ve retired once you’ve crossed your forties. A Home Loan tenure is usually about 15-20 years, and that’s why it’s best to take it when you’re in your twenties.
However, remember that acquiring a loan is solely dependent on factors like your annual income, your Credit Score, and is solely at the discretion of the bank. Do check your eligbility before you apply for one.
And now that you know what the various interest rates are for Home Loans, why don’t you compare some of your top favourites.