Home Loans are the cheapest and most affordable loan types for the dreamers of a home. The home loans are the one and only most satisfying loan types, which offer the cheap rate of interest and with the greater relaxation and ease while purchasing a home, especially if a person don’t have considerable money to purchase a home of own. With the home loans, the dream of purchasing an own home can surely turn into a reality and can offer a family their own space.
Home Loan Interest Rate varies with the Banks
When it comes to the Home Loans in India, the rates of interest and various other factors like Eligibility Criteria, the Processing Fees, the applicable conditions on properties etc vary depending upon different banks. The normal rates of interest in India for Home Loans vary from 8.35% to 14.0% from banks to banks and depending upon various reasons, which will be discussed later on in the article. There are almost no banks and NBFCs in India, which don’t work under this section of loan, but primarily the front runners are the SBI, HDFC Bank, Axis Bank, ICICI Bank, LIC, Punjab National Bank.
Special Discounts to the Women
Also, many NBFCs and Banks offer several privileges and offers to the different section of the society, for example the women. When it comes to the women, the government has decided to provide them with special privileges in an effort to motivate the women and help them in bringing in the mainstream society. In an effort to offer them a security, and thus alluring men with special offers and cut in the interest rates on Home Loans for women, the steps has been taken. The women will be motivated enough to put the hands on buying homes of their own and will also priced the entire family, a reason to buy a home on the name of women, thus offering a better security to the women.
Rates of Interest on Home Loans for Different Banks and NBFCs
Here, you will be given the entire list of the Rate of Interest at home loans for different Banks and NBFCs, thus helping you to provide a relevant detailed information on home loans and thus in the process, helping you towards making a better decision over your choice of bank.
Please note that, in actual you may see some change in the rates of interest and processing fees, when you visit bank’s respective website and branch
What Factors Influence the Home Loans Rate of Interest?
Several factors contributing to the difference in the rates of interest, which are mentioned as below:
- Income of the Applicant: One of the most crucial parts, which play in home loans or any other loan types, is the income of the loan applicant. In fact, the loan amount, and the interest rate all depends on the repayment capability of the applicant, which is calculated by several factors, and income of the applicant is one of them. The stable and high income is always a favorable and sufficient one, in getting the home loan at the best rate of interest.
- CIBIL Score of the Applicant: The CIBIL Score is another crucial factor, which decides the rates of interest on home loans and on all other types of home loans. More is the CIBIL Score, the more respectable and reliable you are in terms of repayment, and thus less is the chance of loans going default, and less is the rate of interest on loans. You must remember that the CIBIL Score must be closer to 900, which is the maximum score, a person can achieve. In fact, you should always keep an eye on the CIBIL Score of yours, in order to make a decision on how much negotiation you can do, while on your home loan rate of interest.
- Loan Type: When it comes to the Home Loans, there are various subdivisions of the home loans, and it depends on whether the person is in search of the home loans, for buying a home, or for buying a plot (Plot Loans), for renovating a home (Home Improvement Loans) etc. The rate of interest varies depending on the type of home loan, you are looking for! Always remember that the standard home loans comes at the standard rates of interest, while the loan types like home improvement etc comes at slightly dearer rates.
- Home Loan Amount: The more is the home loan amount you are looking for, the chances of lower interest rates is likely. It clearly lies in the thumb rule, that the chances of negotiation for a better deal on the interest rates depends on the higher the loan amount is.
- Home Loan Tenure: the longer is the tenure of the loan, the more is the chances that the home loan rate of interest is lower. Just it is always advised to check from your chosen bank, as what offer they are putting in front of you, on various loan tenures.
- Location of the Property: The location of the property is just another salient factor, which decides the rate of interest for home loans, the more is the posh locality of the property, the more is the trusted, the builder is, the less is the rate of interest for home loans is. Thus, if you are buying a very good property in a very posh locality, look for the better deals from banks and NBFCs.
- Types of Rates of Interest: There are two types of rates of interest; one is the fixed rate of interest, the other is the floating rate of interest. Always remember that, there are pros and cons of each type of rates of interest. While, the fixed rate of interest is slightly higher in comparison to the floating rates of interest, there are other various differences between the both.
- Employment Status: Always remember that the salaried employees are likely to get the home loans at the lower rates of interest, as compared to the self employed professionals. Also, to mention, the banks have individual slabs and eligibility criteria fixed for both the type of professionals. Thus, check it out, where you fit in.
- Any Offers and Schemes: In an effort to catch the customers, the banks and other lending agencies are on numerous occasions, seen as promoting their home loans with various offers and schemes. Also, during the festive seasons, the chances are that, you will get better deals as compared to other parts of the year. Thus, keep an eye on the various schemes and discounts offers of the banks, which keep on coming at various stages of the year!
What to compare with Home Loans from Different Banks?
When it comes to the comparison of home loans with different banks, there are some factors, which you can consider in, while making a choice of the bank you are going for:
- Rates of interest on Home Loans: The rate of interest is the first thing, which most people look towards, while choosing a bank for their home loan. The lower is the rate of interest on home loans, the better is the deal, the lower is the EMI, and the lower is the total amount you are going to pay on your home loan. Thus, consider this aspect with high priority, with no doubt. Even, a minor lower rate of interest on home loan can prove to have a huge effect on your overall amount, which you end up in paying on your home loan.
- Processing fees: While this is a one time, saving of any kind is not bad at all. Since, it is also being charged in the form of percentage on your total loan amount, any minor looking change in the processing fee can end up making a huge difference. If you are doubtful on this, take a calculator and do some mathematics on your own!
- Prepayment and foreclosure charges: A very important aspect on any home loan; any loan seeker, must be fully aware on these particular aspects for sure. While, in most cases, there’s no prepayment and foreclosure charges applicable in the case of home loans, still make sure, with the bank, you are dealing with.
- The Quality of Services: The quality of services is another aspect, which you can’t ignore for sure. Of course no one wants to end up with the bank, which is not customer friendly and don’t follow any policy. No body likes to have a long term home loan with the bank, which are slow in decreasing the rates of interest for home loans (even if the entire market has done it). Since, you are having a long term home loan with the bank, make a choice with proper research and better judgement.
The Home Loans are one important aspect, which turns your dream into the reality. Take extreme care while opting for a home loan!
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