There are many different types of home loans that are offered by various banks in India. The most common ones are home refinancing loans, home equity loans, and home purchase loans. Among these, home equity loan is the most preferred as it is a great source of funds when the need arises.
This type of home loan can come in the form of a Stand Alone Second Mortgage or Home Equity Line of Credit. If you are planning to take a loan to buy a home, you need to know the current interest rates that banks are charging.
To help you get the best loan, here are 10 of the best home loan offers by banks & finance companies in India. The numbers that are given are based on a home loan amount of Rs.38, 00,000. The interest type is floating and 20 years is the time given for repayment. The borrower is salaried with a net monthly income of Rs.90, 000.
Also read: Best home loan rates in India.
1. Home Loans From State Bank of India
The interest rate that SBI is offering its customers is 11 per cent annually. The monthly installment is Rs.39, 223 and the processing fee for the loan is Rs.38, 000. The prepayment penalty self is zero while the repayment penalty for refinance is 2 per cent. The loan to value ratio is about Rs.20, 00,000.
2. Home Loans From ICICI Bank
This bank’s interest rate is 11.25 per cent annually. The monthly installment comes to about Rs.39, 872. The loan processing fee is Rs.19, 000 with zero prepayment penalties for self. The repayment penalty for refinance is 2 per cent. The loan to value ratio is 80 per cent.
3. Home Loans From Standard Chartered Bank
The interest rate offered by this bank is 10.75 per cent per year. The monthly installment is Rs.38, 579. The processing fee for the loan is Rs.19, 000. The repayment penalty self is zero while the prepayment refinance is 2.5 per cent. The loan to value ratio is 80 per cent as well.
4. Home Loans From DHFL
The interest rate is 11.25 per cent per year. The monthly installment is Rs.39, 872. The processing fee for the loan is Rs.38, 000. The prepayment penalty for self and refinance is 1 to 2 per cent. The loan to value ratio is 85 per cent.
5. Home Loans From Canara Bank
The bank offers an interest rate of 11.25 per cent per year. The monthly installment is Rs.39, 872. The loan processing fee is Rs.19, 000. The prepayment penalty self is zero while the prepayment penalty refinance is 2 per cent. The loan to value ratio is 80 per cent.
6. Home Loans From Corporation Bank
The interest rate offered is 12.25 per cent per annum. The monthly installment is Rs.42, 505. The loan processing fee is Rs.19, 000. The prepayment penalty self as well as refinance is 1 per cent. The loan to value ratio is 75 per cent.
7. Home Loans From HSBC Bank
The interest rate is 10.75 per cent per year. The monthly installment is Rs.38, 579. The loan processing fee is Rs.38, 000. The prepayment penalty self and refinance is 3 per cent. The loan to value ratio is 80 per cent.
8. Home Loans From Bank of Baroda
The interest rate is 10.5 per cent every year. The monthly installment is Rs.43, 173. There is no loan processing fee and the prepayment penalty self is zero as well. The prepayment penalty refinance is 0.5 to 2 per cent. The loan to value ratio is 90 per cent.
9. Home Loans From IDBI Bank
The interest rate is 11.25 per cent annually. The monthly installment is Rs.39, 872. There is no loan processing fee. The prepayment penalty self is nil while the prepayment penalty refinance is 2 per cent. The loan to value ratio is 85 per cent.
10. Home Loans From Axis Bank
The interest rate offered by this bank is 11 per cent per year. The monthly installment is Rs.38, 233. The loan processing fee is Rs.38, 000. The prepayment penalty for both self and refinance is zero. The loan to value ratio is 80 per cent.
A large number of banks & housing finance companies are offering home loans at attractive interest rates. The rates will vary according to each loan’s terms & conditions. There will also be differences in interest rates for the same kind of home loan in various banks. To get the best deal, it is important to take the time to research and compare different rates. This will prevent heavy financial burden in the future.
References : Home Loans Hub, Economic Times, Wikipedia.
