Best Home Loans In India 2022
Posted by Creditkaro
Best Home Loans In India 2022
A home loan is a secured loan taken from a financial institution to buy a residential property. You can avail a home loan to buy a ready-to-move-in house or apartment or one that is under construction. Home loans can be availed from both banks and Non-Banking Financial Companies (NBFCs).
These have varying interest rates which are often linked to your credit score. Home loans typically have tenure of up to 30 years and have to be repaid as Equated Monthly Installments. You can also get tax deductions on both the principal and interest components of your home loan under Section 80C and Section 24 respectively of the Income Tax Act.
Generally, home loans are offered in two modes, a fixed rate of interest and on floating rate of interest. In the case of a fixed rate of interest, the interest rate remains unchanged during the entire tenure of the loan. On the contrary, in the case of floating interest, the interest rate can be revised from time to time depending on the RBI's key policy rates during the loan period. The equated monthly installments can increase or decrease depending on the prevailing RBI rates in the case of floating rate of interests.
Generally, home loans take three to four weeks to get sanctioned. Still, the loan applicants require keeping a few factors in mind for a better understanding. Firstly, they need pre-approvals of their home loans from the concerned lenders to get the loans sanctioned. However, pre-approval does not always mean that loans will be disbursed immediately. It still depends on certain external as well internal factors. For instance, the sanction of loans can be delayed if there is a delay in the submission of property or income-related documents.
The determining factors for home loan eligibility
Banks or financial institutions consider the following factors that ultimately determine loan eligibility. The factors are as follows:
The applicants for home loans must be between 18 and 70 years old.
The people applying for home loans must have a net income of Rs 5 to Rs 6 lakhs per annum. Then the banks as well as other financial institutions must consider the occupational stability of the applicants. If the respective loan applicants do not have steadiness in their jobs or businesses then their applications might be rejected. Then Indian citizens as well as non-resident Indian and people of Indian Origin can apply for loans. As housing loans are generally long-term the banks or financial institutions look into the applicants' repayment capacity before approving or rejecting loan applications. In that case, the applicants' credit scores play a major role in deciding repayment capacity against the loans. There is another determining factor to becoming eligible for the loans. That is the co-applicant system. There are instances where applications are rejected due to low income. In such cases, respective applicants can consider adding co-applicants such as family members. This will help the respective applicants to get the maximum amount they are eligible for as the income and credit value of the respective co-applicants will also be taken into account while deciding their eligibility. Then banks or financial institutions can always disapprove applications for loans if the respective applicants have other ongoing loans. Since home loan lenders see to it that not more than 50% of your monthly income is being contributed to your loan repayments, any other ongoing long-term loans can result in your application being disapproved. Too many ongoing loans will not only impact the applicants' finances but also their repayment capacity. So the applicants should clear their ongoing loans first and apply for respective housing loans.
Best home loans and offers
1. Kotak Mahindra Bank– Best for low-interest rate
· This bank offers low-interest rates that begin from 6.50% per annum.
· Customers have to pay up to 0.50% of the loan amount as processing fees.
· The loan applicants will be given tenure of up to a maximum of 30 years to clear their loans.
· The loan applicants will not have to pay any pre-payment charges.
· In Kotak Mahindra Bank balance transfers with top-up loans are available.
2. SBI Bridge Home Loan – Best for Short-Term Requirements
· SBI provides attractive interest rates for loan applicants that begin from 9.50% per annum.
· The processing fee offered by the lender is 0.35% of the loan amounts.
· The customers will get up to two years of tenure for the repayment of loans.
· SBI does not impose any prepayment penalty and there is no hidden charge.
3. Canara Bank Housing Loan – Best Interest Rate for Women
· The women can get low interest especially if they apply for home loans from this bank. The interest rate starts from 6.90% per annum.
· The applicants will get a maximum repayment time of 30 years.
· Canara Bank offers a processing fee of up to 0.50% of the loan amount to the applicants for loans.
· The home loans from Canara Bank can be used to purchase or construct houses or flats. The customers who have taken loans from Canara Bank will not have to pay any pre-payment charge.
4. Axis Bank Home Loan – Best Interest Rate for Salaried Employees
· The applicants can get low-interest rates also from Axis Bank which start from 6.90% per annum.
· The customers can get maximum loan amounts of up to Rs.5 crores.
· The customers will get maximum repayment tenure of 30 years.
· The processing fee offered by the bank is up to 1% of the loan amount.
· This bank also does not impose pre-payment or foreclosure charges on the customers who have taken loans.
5. SBI Home Loan – Joint Home Loan
· Under SBI Home loan schemes the customers can low interest rates initiating with 6.75% per annum.
· The maximum time to clear the loan amount under this scheme is up to 30 years.
· If the customers apply through YONO apps then they will be benefited 100% waiver on processing fees.
· This loan scheme does not have any hidden charge.
· The women who have taken loans under this scheme can enjoy concessions on the rate of interest.
6. HDFC Reach Home Loans for self-employed professionals
· The interest rates offered under HDFC Reach home loans start from 8.50% per annum.
· The customers are provided flexible repayment time of up to 30 years.
· Loan applicants have to pay processing fees of 2% of their respective loan amount.
· Loan applicants do not need minimal documentation and they require a minimum income of Rs.2 lakh per annum to become eligible for the home loans under this plan.
· The loan applicants will get benefits of lower interests if they add woman co-owners.
7. LIC HFL Home Loan for Pensioners/Senior Citizen
· Under this plan, applicants will have interest rates that start from 6.90% per annum.
· The applicants for the loans under this plan will get maximum repayment tenure of up to 15 years.
· Under this loan scheme, customers are supposed to pay processing fees between Rs.10,000 and Rs.15,000.
· The borrowers must have to clear the loan amounts before the age of 70.
· Individuals more than 50 years old can enjoy pension schemes.
8. SBI Privilege Home Loan for Government Employees
· This loan scheme has been designed for government employees. Customers can get low-interest rates set up from 6.75% per annum.
· Applicants do not need to pay processing fees to get loans.
· The applicants can get a maximum repayment time of up to 30 years.
· Women customers can get reduced interest rates.
· Concession in the rate of interest is available when check-off is provided.
9. HDFC Ltd. Home Loan for Purchase
· The interest rates offered by HDFC start from 7.00% per annum.
· The applicants can get a maximum time for repayment of up to 30 years.
· The applicants have to pay processing fees of up to 0.50% of their respective loan amounts
· Under this scheme special arrangement has been made for Indian army employees through the association with AGIF.
· Under this scheme, customers can get legal and technical counseling from experts.
EMIs under this scheme will start at only Rs.646 per lakh. However, the rates mentioned above are applicable under the festival offers.
10. HDFC Ltd. Home Loan for Existing Customers: Best Home Loan for Existing Customers
· The interest rates are low beginning from 7.00% per annum.
· The loan applicants can get a maximum time of 30 years.
· The processing fee offered by this scheme is 0.5% of the loan amount.
· The applicants under this scheme can get the benefits of quick disbursements.
· Customers can add co-applicants to increase the loan amount.