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10 Best Banks For Home Loan in 2022: Know Home Loan Interest Rates & More!
February 5, 2022
Are you looking forward to purchasing house property in 2023 for your family? The banking industry in India is growing fast at a tremendous rate in terms of the housing loans.
There are several banks in India, both in the private and public sector, which offer home loan services to the people at affordable interest rates. It is quite a challenging task to choose a financial institution to take home loans with so many of them present in the market.
As buying a home with complete down payment is not possible for everyone and people prefer to take home loans to spread their housing loan expenditures over the years, here we have brought a detailed list of top 10 banks for home loan in 2022 that will help you pick the best banks for housing loan.
Table of Contents
1. Union Bank of India
Headquartered in Mumbai, Union Bank of India came into existence in the year 2022 when there was an amalgamation of Corporation Bank and Andhra Bank. The bank proudly owns approx. 9,300 bank branches pan India and have 11,000 plus ATMs nationwide. Union Bank home loans finance maximum 90& of the house property cost for a time period of 30 years. The bank also offers overdraft facility to fresh home loan applicants and balance transfer facilities to existing home loan borrowers of other finance companies and banks at low interest rates. It also offers a special home loan scheme “Union Awas” to applicants from rural and semi-urban locations in the country.
The Union Bank of India home loan interest rate in 2022 is as follows:| Interest Rates | 6.40% p.a.-7.25% p.a. for salaried individuals and 6.40% p.a. to 7.40% p.a. for non-salaried individuals |
| Loan tenure | Maximum 30 years for home purchase |
| Loan amount | Depends on borrower’s eligibility and thresholds on LTV ratio |
| Processing fees | 0.50% of loan amount and maximum up to Rs. 15,000 plus GST |
| Home loan fixed rates (up to 5 years) | < Rs. 30 lakh – 11.40% p.a. Rs. 30 lakh > Rs. 50 lakh – 12.40% p.a. Rs. 50 lakh > Rs. 2 crore – 12.65% p.a. |
| Union Bank Smart save home loan rates | < Rs. 30 lakh – 7.05% p.a. to 7.50% p.a. > Rs. 30 lakh – 7.15% p.a. to 7.65% |
| Union Ashiyana personal loan scheme rates | 9.30% p.a. to 9.55% p.a. for salaried employees 9.80% p.a. to 10.05% p.a. for non-salaried |
| Union Ashiyana overdraft scheme rates | 8.50% p.a. to 8.85% p.a. for salaried employees 8.55% p.a. to 8.90% p.a. for non-salaried |
2. Bank of Baroda
Headquartered in Vadodara, the Bank of Baroda is the third largest Indian bank after State Bank of India as a result of a merger between Vijaya Bank and Dena Bank in April 2019. There are more than ten thousand branches of this public sector bank across India and worldwide. The Bank of Baroda home loan interest rates in 2022 start at 6.50% per annum for a maximum time period of 30 years on a loan of up to Rs. 20 crores. The bank offers the facility of balance transfer to its existing home loan borrowers of other banks and financial institutions at low interest rates.
The Bank of Baroda home loan interest rate in 2022 is as follows:| Interest Rates | Baroda Housing Loan and Home Improvement Loan: 6.50%-7.85% p.a. for salaried individuals and 6.60%-7.95% p.a. for non-salaried individuals Baroda Home Loan Advantage (up to Rs. 75 lakh): 6.50%-7.85% p.a. for salaried individuals and 6.60%-7.95% p.a. for non-salaried individuals Baroda Home Loan Advantage (above Rs. 75 lakh): 6.75%-8.10% p.a. for salaried individuals and 6.85%-8.20% p.a. for non-salaried individuals |
| Loan tenure | Maximum 30 years for home purchase |
| Loan amount | Up to Rs. 20 crore |
| Processing fees | Up to Rs 50 lakh: 0.50% of loan amount and maximum up to Rs. 8,500 to Rs. 15,000 plus GST Above Rs 50 lakh: 0.25% of loan amount and maximum up to Rs. 8,500 to Rs. 25,000 plus GST |
| Baroda Home Loan Advantage | Interest rate: 6.50% to 7.85% p.a. Processing fee: Up to 0.35% of the loan amount |
| Baroda Top Up Loan | Interest rate: 7.35% p.a. Processing fee: Up to 0.35% of the loan amount Loan amount: Rs. 1 lakh to Rs. crore |
| Baroda Ashray Reverse Mortgage Loan | Interest rate: 9.10% p.a. Processing fee: Up to 0.35% of the loan amount |
| Bank of Baroda Home Improvement Loan | Interest rate: 6.50% to 7.85% p.a. Processing fee: Up to 0.50% of the loan amount (Rs. 7,500 to Rs. 20,000) Loan amount: Rs. 1 crore in rural and semi-urban areas and Rs. 5 crore in metro cities |
3. State Bank of India (SBI)
The State Bank of India has helped more than 40 lakh families in buying homes till present. Incepted in the year 1995, SBI has more than 25,000 branches across India and worldwide. This bank is the largest player in terms of home loan and there is an increase in its booking by 11% in quarter one of financial year 2022. The current home loan interest rate of SBI starts from 6.70% per annum for a maximum tenure of 30 years with the home loan amount of up to 90% of the home property cost. There is a wide variety of home loan products for the government employees, defense personnel, people purchasing green homes, non-salaried individuals, and people residing in tribal or hilly locations. The bank also offers concessions on home loan interest rates to women of 0.05%, overdraft facility, step up loans, balance transfer facility, and more.
The State Bank of India home loan interest rate in 2022 is as follows:| Interest Rates | 6.70% – 9.70% p.a. |
| Loan tenure | Maximum 30 years for home purchase |
| Loan amount | Depends on eligibility |
| Processing fees | 0.35% – 1% of the loan amount |
| SBI Term loan interest rates | 6.80% – 7.35% p.a. for salaried employees 7.10% – 7.50% p.a. for non-salaried individuals |
| SBI MaxGain scheme interest rate | 7.30 – 7.70% p.a. for salaried employees 7.45% – 7.85% p.a. for non-salaried individuals |
| SBI insta home top up loan interest rate | 8.20% p.a. for salaried and non-salaried individuals |
| SBI home top up loan (overdraft) interest rate | 8.40% – 8.65% p.a. for salaried employees 8.55% – 8.80% p.a. for non-salaried individuals |
| SBI home top up loan (term loan) interest rate | 7.50% – 9.55% p.a. for salaried employees 7.65% – 9.70% p.a. for non-salaried individuals |
| SBI smart home top up loan (overdraft) interest rate | 8.55% p.a. for salaried employees 9.05% p.a. for non-salaried individuals |
| SBI smart home top up loan (term loan) interest rate | 8.05% p.a. for salaried employees 8.55% p.a. for non-salaried individuals |
| SBI tribal plus scheme interest rate | 10 bps + final rate |
| SBI CRE home loan interest rate | 50 bps + final rate |
| SBI Realty scheme interest rate | 7.65% p.a. onwards |
| SBI Reverse Mortgage Loan interest rate | Public: 9.05% p.a. SBI pensioners: 8.05% p.a. |
| SBI Privilege and Shaurya | 6.95% p.a. onwards |
| SBI Bridge Home Loan | First year: 9.60% p.a. Second year: 10.50% p.a. |
4. Punjab National Bank (PNB)
Punjab National Bank is the second biggest public sector bank in India that offers home loan services at affordable home loan interest rates. Founded in 1894, PNB has approx. 7,000 branches across the country. The interest rates for home loan charged by the Punjab National Bank start at 6.50% per annum for a loan tenure of 30 years. The bank home facilities include overdraft facility and special home loan products like government employees, defense personnel, salaried employees working for IT companies up to the age of 40 years. EWS, LIG, and MIG applicants can avail subsidized interest rates under the PMAY scheme through this bank.
The Punjab National Bank home loan interest rate in 2022 is as follows:| Interest Rates | 6.50%-8.80% p.a. |
| Loan tenure | Maximum 30 years |
| Loan amount | Depends on eligibility |
| Processing fees | Complete waiver of this fees and documentation charges from 01.01.2022 to 31.03.2022 |
| PNB Pride Housing loan interest rate | 6.50% to 7.05% p.a. |
| PNB Max Saver (Term loan) interest rate | > Rs. 50 lakh – 6.65% to 7.60% p.a. < Rs. 50 lakh – 6.70% to 7.65% p.a. < Rs. 30 lakh – 7.00% to 7.95% p.a. |
| PNB Max Saver (overdraft) interest rate | > Rs. 50 lakh – 6.65% to 7.60% p.a. < Rs. 50 lakh – 6.70% to 7.65% p.a. < Rs. 30 lakh – 7.00% to 7.95% p.a. |
| PNB Gen-Next Housing Finance interest rate | > Rs. 50 lakh – 6.50% to 7.45% p.a. < Rs. 50 lakh – 6.55% to 7.50% p.a. < Rs. 30 lakh – 6.85% to 7.80% p.a. |
| PNB Pradhan Mantri Awas Yojana | EWS: 6.50% p.a. for annual household income up to Rs. 3 lakh LIG: 6.50% p.a. for annual household income from Rs. 3-6 lakh MIG-1: 4% p.a. for annual household income from Rs. 6-12 lakh MIG-2: 3% p.a. for annual household income from Rs. 12-18 lakh |
5. Kotak Mahindra Bank
Kotak Mahindra Bank is one of the fastest growing private banks in India offering amazing home loan schemes to its customers at interest rates starting at just 6.50% per annum. The bank offers a popular scheme “Digi Home Loan” for both salaried and self-employed individuals. The maximum time for repayment of loans is 20 years with zero bank processing fees for the people applying online. There are concessions for women borrowers and housing loans under the PMAY scheme. This private sector bank offers new home loan interest rate of 6.55% effective till 10 February 2022 and applicable on balance transfer home loans and new home loans. Kotak Mahindra Bank even offer interest subsidy on the PMAY scheme to borrowers of LIG, MIG and EWS categories.
The Kotak Mahindra Bank home loan interest rate in 2022 is as follows:| Interest Rates | 6.55% p.a. onwards for salaried employees and non-salaried individuals |
| Loan tenure | 30 years |
| Loan amount | Up to 90% of property value |
| Processing fees | Up to 1% of the loan amount |
| Kotak regular home loan interest rate | 6.55% – 7.00% p.a. for salaried employees 6.60% – 7.10% p.a. for non-salaried individuals |
| Kotak home loan balance transfer | Interest rate: 6.55% p.a. onwards Tenure: 15 years Loan amount: 90% of the property value |
| Kotak home improvement loan | Interest rate: 6.55% p.a. onwards Tenure: 20 years Loan amount: 90% of home improvement cost |
| NRI home loan | Interest rate: 6.55% p.a. onwards Tenure: 15 years Loan amount: 80% of the property value |
| NRI home improvement loan | Interest rate: 6.55% p.a. onwards Tenure: 15 years Loan amount: 80% of home improvement cost |
| Kotak Mahindra Pradhan Mantri Awas Yojana | EWS: 6.50% p.a. for annual household income up to Rs. 6 lakh LIG: 6.50% p.a. for annual household income from Rs. 3-6 lakh MIG-1: 4% p.a. for annual household income from Rs. 6-12 lakh MIG-2: 3% p.a. for annual household income from Rs. 12-18 lakh |
6. HDFC Bank
Founded in 1994, HDFC bank assisted more than 80 lakh people have their homes till present. Headquartered in Mumbai, HDFC home loans starts at 6.70% for a tenure of one to 30 years for a loan of maximum Rs. 10 crore. The bank offers home loan balance transfer facility to its existing home loan borrowers and of other banks. It also provides the facility of Reach Loans to salaried people and micro entrepreneurs who have insufficient funds and documents. HDFC Bank offer Rural Housing Loan Scheme targets planters, agriculturists, dairy farmers, horticulturists, etc. living in urban and rural areas and to salaried and self-employed home loan applicants looking forward to purchase or construct homes.
The HDFC bank home loan interest rate in 2022 is as follows:| Interest Rates | 6.70% – 8.20% p.a. |
| Loan tenure | 30 years |
| Loan amount | Rs.5 lakh – Rs.10 crore |
| Processing fees | Up to 0.50% of the loan amount or Rs. 3,000 (higher one) for salaried and self-employed professionals Up to 1.50% of the loan amount or Rs. 5,000 + GST (higher one) for self-employed non-professionals |
| HDFC Rural Housing Loan | Interest rate: 6.95% p.a. to 8.70% p.a. Loan tenure: Up to 30 years Loan amount: Up to 90% of the property value |
| HDFC Home Improvement Loan | Interest rate: 6.75% p.a. to 7.85% p.a. Loan tnure: Up to 15 years Loan amount: 100% of the renovation estimate |
| HDFC Home Extension Loan | Interest rate: 6.75% p.a. to 8.20% p.a. Loan tenure: Up to 20 years Loan amount: Up to 90% of the construction estimate |
| HDFC Home Loan Top Up | Interest rate: 7.25% p.a. to 8.25% p.a. in case of outstanding home loan and 6.85% p.a. to 7.85% p.a. in case of balance transfer Loan tenure: Up to 15 years Loan amount: Total amounts of previous sanctioned home loans or Rs. 50 lakh, whichever is lower. |
| HDFC Plot Loan | Interest rate: 7.05% p.a. to 8.30% p.a. Loan tenure: Up to 15 years Loan amount: Up to 80% of the property value (70% of the plot value if it is outside the city limits) |
| HDFC Home Loan Balance Transfer | Interest rate: 6.75% p.a. to 8.20% p.a. Loan tenure: Up to 30 years Loan amount: Up to 90% of the property value |
| HDFC NRI Home Loan | Interest rate: 6.95% p.a. to 8.70% p.a. Loan tenure: Up to 30 years Loan amount: Up to 90% of the property value |
| HDFC Reach Home Loan | Interest rate: 8.75% p.a. to 14% p.a. Loan tenure: Up to 30 years Loan amount: Up to 80% of the property value |
| Pradhan Mantri Awas Yojana | EWS: 6.50% p.a. for annual household income up to Rs. 6 lakh LIG: 6.50% p.a. for annual household income up to Rs. 6 lakh MIG-1: 4% p.a. for annual household income from Rs. 6-12 lakh MIG-2: 3% p.a. for annual household income from Rs. 12-18 lakh |
7. ICICI Bank
ICICI Bank is the second biggest private sector bank that offers home loan services to the people and has about 5,300 branches nationwide. The bank offers home loan services at 6.70% per annum for tenure of 30 years. The bank offers home loan balance transfer facilities to its existing loan borrowers at low interest rates and pre-approved instant home loans to its salary account holders. The other loan products of the ICICI Bank include ICICI Bank Extraa Home Loans and a special scheme supported by Mortgage Guarantee to increase home loan amount eligibility of the loan borrowers by increasing their tenure.
The ICICI bank home loan interest rate in 2022 is as follows:| Interest Rates | 6.70% p.a. – 7.40% p.a. for salaried individuals 6.80% p.a. – 7.55% p.a. for self-employed individuals |
| Loan tenure | 30 years |
| Loan amount | Rs. 5 lakh – Rs. 3 crore |
| Processing fees | Up to 0.50% of the loan amount + taxes |
| ICICI Bank Home Loan Balance Transfer | 6.70% p.a. – 7.40% p.a. for salaried individuals 6.80% p.a. – 7.55% p.a. for self-employed individuals |
| Express home loan | Interest rate: Starts at 6.75% p.a. Loan tenure: Up to 30 years Loan amount: Up to Rs. 5 crore |
| Land loan | Interest rate: Loan tenure: Up to 20 years Loan amount: Rs 8 lakh – Rs 3 crore |
| Extraa home loan | Interest rate: Loan tenure: Up 67 years of age of the loan applicant Loan amount: Up to Rs 2 crore |
| Instant home loan | Interest rate: 8.95% p.a. to 9.25% p.a. Loan tenure: Up to 30 years Loan amount: Up to Rs 3 crore |
| ICICI home loan top up | Interest rate: 6.75% p.a. to 7.40% p.a. Loan tenure: Up to 10 years Loan amount: Up to Rs 1 crore |
| Home loan balance transfer | Interest rate: 6.75% p.a. to 7.40% p.a. Loan tenure: Up to 20 years Loan amount: Up to Rs 1 crore |
| NRI home loan | Interest rate: Loan tenure: Up to 30 years Loan amount: Up to Rs 1 crore |
| Pratham home loan | Interest rate: 8.60% p.a. to 9.30% p.a. for salaried employees and 8.85% p.a. to 10% p.a. for self-employed borrowers Loan tenure: Up to 20 years Loan amount: Rs 5 lakh – Rs 50 lakh |
| PMAY home loan | EWS: 6.50% p.a. for annual household income up to Rs. 6 lakh LIG: 6.50% p.a. for annual household income up to Rs. 6 lakh MIG-1: 4% p.a. for annual household income from Rs. 6-12 lakh MIG-2: 3% p.a. for annual household income from Rs. 12-18 lakh |
| Pragati home loan | Interest rate: 6.75% p.a. to 7.40% p.a. Loan tenure: Up to 20 years Loan amount: Rs 5 lakh – Rs 50 lakh |
8. Axis Bank
One of the reputed and largest private sector bank founded in 1993, Axis Bank has over 4,500 branches across India and worldwide. The bank offers home loans at just Rs. 3 lakh at easy EMIs with attractive interest rates starting at just 6.75% p.a., doorstep services, long tenure, easy application process, and more. The tenure for home loans is 30 years for floating rate loans and 20 years for fixed rate loans. The additional home loan products of Axis Bank comprises affordable housing home loans, home loan overdraft facilities, EMI waivers, and home loans with floating and fixed interest rates.
The Axis bank home loan interest rate in 2022 is as follows:| Interest Rates | 6.75% – 7.10% p.a. for salaried individuals 6.90% – 7.20% p.a. for self-employed individuals |
| Loan tenure | 30 years |
| Loan amount | Up to Rs. 5 crore |
| Processing fees | 0.50% (Min Rs. 10,000) + GST |
| QuikPay Home Loan | Interest rate: 7.95% p.a. – 8.45% p.a. for salaried individuals 9.15% p.a. – 9.35% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Up to Rs. 5 crore |
| Shubh Aarambh Home Loan | Interest rate: 7.75% – 8.25% p.a. for salaried individuals 8.95% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Up to Rs. 30 lakh |
| Fast Forward Home Loan | Interest rate: 7.75% – 8.25% p.a. for salaried individuals 8.95% – 9.15% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Rs. 30 lakhs to Rs. 5 Crore |
| Top-Up Home Loan | Interest rate: At bank’s discretion for salaried individuals and
8.90% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Upto Rs. 50 lakhs |
| Asha Home Loan | Interest rate: 10.05% – 11% p.a. for salaried employees and 10.30% – 11.50% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Rs. 1 lakh to Rs. 35 lakhs |
| Power Advantage Home Loans | Interest rate: 8% p.a. – 8.35% p.a. for salaried employees and 9% p.a. – 9.20% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Up to Rs. 5 Crore |
| Super Saver Home Loan | Interest rate: 8.15% p.a. – 8.30% p.a. for salaried employees and 9.20% p.a. – 9.35% p.a. for self-employed individuals Loan tenure: Up to 22 years Loan amount: Rs. 10 lakhs to Rs. 5 Crore |
| Pradhan Mantri Awas Yojna | EWS: 6.50% p.a. for annual household income up to Rs. 6 lakh LIG: 6.50% p.a. for annual household income up to Rs. 6 lakh MIG-1: 4% p.a. for annual household income from Rs. 6-12 lakh MIG-2: 3% p.a. for annual household income from Rs. 12-18 lakhLoan tenure: Up to 30 years, subsidy up to 20 years Loan amount: Subject to applicant’s eligibility |
9. LIC Housing Finance Limited
LIC Housing Finance Limited is one of the reputed housing finance company which offers home loans at reasonable rates of interest. Not just loans for house property, the bank also provides nursing homes, clinics constructions, diagnostics centers, office spaces, and purchasing of equipments.
The LIC Housing Finance Limited home loan interest rate in 2022 is as follows:| Interest Rates | 6.66% – 7.90% p.a. |
| Loan tenure | 30 years for salaried employees and 20 years for self-employed |
| Loan amount | Upto 75%-85% of the property value |
| Processing fees | Loan amount < Rs. 1 crore – 0.25% of the loan amount or Rs. 10,000 plus taxes, whichever is lower. Loan amount > Rs. 1 crore – Rs. 15 crore: Rs. 20,000 plus taxes |
| Home Renovation Loan | Interest rate: 6.75% p.a. – 7.20% p.a. for salaried employees and 6.75% p.a. – 7.30%p.a. for self-employed non-professional individuals Loan tenure: 30 years for salaried employees and 20 years for self-employed Loan amount: Up to 90% of the property value |
| Plot Loans | Interest rate: 7.10% p.a. Loan tenure: Up to 15 years Loan amount: 75% of the property value |
| Griha Suvidha Home Loan | Interest rate: 7% p.a. – 7.95% p.a. for salaried employees and 7% p.a. – 8.05% p.a. for self-employed individuals Loan tenure: Up to 30 years Loan amount: Up to Rs. 3 Crore |
| NRI home loans | Interest rate: 6.70% p.a. – 7.80% p.a. for salaried employees and 6.70% p.a. – 7.90% p.a. for self-employed non-professional individuals Loan tenure: 30 years for salaried employees and 20 years for self-employed Loan amount: Up to 90% of the property value |
| Home loan for pensioners | Interest rate: 6.70% p.a. – 7.80% p.a. for salaried employees and 6.75% p.a. – 7.90% p.a. for self-employed non-professional individuals Loan tenure: 80 years of age of the applicant |
| Home loan top up | Interest rate: 7.25% p.a. – 7.75% p.a. Loan amount: Up to Rs. 15 Crore |
| Home Construction Loan | Interest rate: 6.70% p.a. – 7.80% p.a. for salaried employees and 6.70% p.a. – 7.90% p.a. for self-employed non-professional individuals Loan tenure: 30 years for salaried employees and 20 years for self-employed Loan amount: Up to 90% of the property value |
| Home extension loan | Interest rate: 6.70% p.a. – 7.80% p.a. for salaried employees and 6.70% p.a. – 7.90% p.a. for self-employed non-professional individuals Loan tenure: 30 years for salaried employees and 20 years for self-employed Loan amount: Up to 90% of the property value |
| Pradhan Mantri Awas Yojana (PMAY) | Interest rate: 6.70% p.a. – 7.80% p.a. for salaried employees and 6.70% p.a. – 7.90% p.a. for self-employed non-professional individuals Loan tenure: 30 years for salaried employees and 20 years for self-employed Loan amount: Up to 90% of the property value |
10. TATA Capital
TATA Capital provides affordable home loans at reasonable rates of interest starting at 6.70% per annum. The maximum loan amounts to Rs. 5 crore on a maximum term loan of 30 years. The interest rate starts at 6.70% p.a. and applicants’ age range from 24 years and 65 years and have CIBIL scores of 750 and above.
The TATA Capital home loan interest rate in 2022 is as follows:| Interest Rates | Starts at 6.70% p.a. for salaried and self-employed individuals |
| Loan tenure | Up to 30 years |
| Loan amount | Rs. 5 lakh – Rs. 5 crore |
| Processing fees | Up to 0.50% + GST |
| Tata Capital Affordable Housing Loan | Interest rate: 10.10% p.a. onwards Loan tenure: Up to 30 years |
| Tata Capital Home Extension Loan | Interest rate: 8.50% p.a. onwards Loan tenure: Up to 30 years Loan amount: Rs. 2 lakh to Rs. 5 crore |
| Tata Capital NRI Home Loans | Interest rate: 6.70% p.a. onwards Loan tenure: Up to 30 years Loan amount: As per eligibility |
Home loan is a very detailed procedure and there are certain rules to follow when you are choosing the best bank for your home loan.
- Bank or HFC: Banks offer concessions on interest rates to their customers as compared to the HFCs and NBFCs.
- Salaried employee or self-employed borrower: Salaried people get better offers on their home loans if their CIBIL score is good.
- Fixed rate or negotiable: There is no negotiation on the interest rates.
So, make sure before you avail housing loan from any bank or financial institution, read out their terms and conditions properly.
Frequently Asked Questions (FAQs) – Best banks for home loans in India
Q. What documents are required for a home loan?
The documents required for a home loan are:
- ID proofs: Aadhaar Card/PAN card/Passport/Voter ID/Driving licenses
- Residence proof: Copy of electricity bill/telephone bill/water bill/Aadhaar Card/PAN card/Passport/Voter ID/Driving licenses
- Employment ID card
- 6 months bank statements of all the accounts of loan borrower
- 3 passport size photographs with duly filled home loan form
- A monthly slip of loan account statement of last year
Q. What are the types of interest rates in home loans?
The types of interest rates in home loans are –
1. Fixed interest rate: This kind of interest rate remains the same throughout the loan tenure. There will be no change in the interest charges whatsoever.
2. Floating interest rate: This rate is determined by the highest lending rates of the bank. Floating interest rate is affected by the factors such as RBI monetary policy, changing in lending rates, etc.
Q. Which factors determine home loan interest rates?
The factors that determine home loan interest rates:
- MCLR rates
- Types of interest
- Credit score/CIBIL score
- Job profile
- Property location
- Loan tenure
- Loan to Value (LTV ratio)
Q. What is a repo rate?
The repo rate is the rate of interest charged by the RBI from scheduled banks in India.
Q. What is the importance of CIBIL scores for a home loan?
CIBIL score defines the creditworthiness of a person as reflected in the ‘Enquiries’ and ‘Accounts’ section of the CIR. All the public and private sector banks consider CIBIL score as a parameter to take decisions on granting home loans. But when you take a home loan from a cooperative bank, then you can avail home loan without a CIBIL score.
Q. Which one offers low interest rates – HFCs or banks?
The banks in India offer housing loans at lower interest rates than any Housing Finance Companies (HFCs). The norms and regulations to be followed to avail home loans from banks is more stringent compared to the HFCs.
Q. How to choose the best home loan offer?
The best ways to choose the best home loan offer are-
- Calculate the amount of home loan you require using the home loan eligibility calculator.
- Compare interest rates of home loans of different banks and financial institutions.
- Check whether the lending banks provide prepayment facility, online account access, home loan insurance, etc.
- Compare fees like prepayment charges and processing fees of different banks and HFCs.
- Check types of loan repayment options.
Q. How to calculate home loan rates of interest?
People can calculate interest rates for home loans using a home loan EMI calculator. It displays the total amount of home loan, amortization schedule, and the interest rates on your home loan.
Q. How to get cheap and affordable home loans in India?
The best methods to get cheap and affordable home loans in India are:
- Keep your credit scores somewhere around 900 as high credit scores say a lot about the positive credit behavior. People with high credit scores pay less interest rates on their home loans.
- Refinance your home loan by using the service of home loan balance transfer when your current bank charges a high rate of interest from you.
- Apply for a joint home loan with your wife as the majority of banks offer lower interest rates to women.
- Raise your home down payment to ensure you don’t pay higher rates of interest on a huge amount of home loan.
Q. Which banks offer low home loan interest rates?
The banks which offer low home loan interest rates are Bandhan Bank, Union Bank of India, and Bank of Maharashtra with interest rates starting at 6.40% p.a.
