If you are planning to build your own dream house, and confused as to which banks to get the best quote or which kind of loan you must opt for, we give you a list of best home loan providers you could approach in India in 2017 for your home loans. Here are a list of banks and housing finance companies that offer you the best interest and processing fees on home loans.
State Bank of India
SBI charges an interest rate which varies from 9.10 per cent to 9.30 per cent, whereas the processing fee is zero and loan amount one will be getting varied. If your property is valued upto Rs 30 Lakhs you can get 90 per cent of the property value as loan. On the other hand if it is upto Rs 75 lakhs, you get 80 per cent and above Rs. 75 lakh it is 75 per cent of the property value.
If you are availing a loan from HDFC, the interest rate will vary from 9.10 per cent to 9.15 per cent, whereas the processing fee is 1.25 per cent and the loan amount one will be getting is the same as that like SBI. It is important to remember that home loans qualify for tax rebate for the principal and the interest amount. So, your savings can be immense with a home loan. HDFC is known to offer good service, though the processing charges are not as low as State Bank of India.
As far as LIC Housing is concerned the interest rate varies from 9.15 per cent to 9.60 per cent, whereas the processing fee is zero and loan amount one will be entitled to 85 per cent of property value. While we are making ever effort to give updated rates and information, you can also check with the HFC. The advantage of taking a loan from LIC Housing is that there is no processing fee. As far as interest rates is concerned the rates are competitive.
This may not be the cheapest home loan around, as there are processing fees involved. The interest rates are pretty much competitive though. For ICICI Bank the interest rate will vary from 9.10 per cent to 9.45 per cent, whereas the processing fee is 0.5 to 1 per cent of the loan amount. One can avail upto 90 per cent of the property value as loan.
For PNB Housing the interest rate will vary from 9.30 per cent to 9.50 per cent, whereas the processing fee is zero and loan amount one will be entitled is upto 90 per cent for Rs 30 Lakhs 90%, Rs 30 to 75 Lakhs - 80% and above Rs. 75 lakh, its 75% of the property value. Here are a few things to look for in a home loan.
Interest rate will affect your loan a lot. There are two types of interest rates: the first is the floating interest rates and the second is the fixed interest rate. In the latter the EMI does not vary and remains the same over the tenure. In floating interest rate, it varies with changes in the interest rate.
This is the fee for processing a loan. All the banks have different rate of processing fee which varies based on the amount of loan one is taking. There are few banks where we have to prepay it irrespective of approval and disbursal. Some banks will waive off the processing loan during the festive season or during any special offer.
Documentation and turnaround time
Most of the private banks will send an executive to receive documents which we can't find in all banks. In some cases you have to directly go to the bank to submit and the list of documents remains the same such as address proof, copy of property documents pan card and etc.
Turn around time is the time taken for approving or disbursing a loan and the TAT varies from bank to bank and most of the banks takes a maximum of 5 days, once the documentation is completed.