Types of home loan

With the rising costs of owning a residential property in India, availing a Home Loan has become a necessity for most prospective homeowners. Add to it the various benefits of availing housing finance, and you can understand the reason behind the increase in the number of individuals applying for a Home Loan in 2019. This increase in demand for Home Loans has forced financial institutions to come up with the latest offers to attract more customers. The increased competition between different financial institutions goes well for the customers, as you are likely to get a good deal on your Home Loan.

Though, you must be aware that availing a Home Loan is a significant financial responsibility and the decision should not be taken in haste. Generally, the amount availed as a Home Loan is substantial and the repayment tenor can extend up to 30 years, the implications of the decision are significant, and therefore, you must do thorough research, consider all parameters and only then make a final decision.

Factors to consider while comparing Home Loan offers

With so many financial institutions on the horizon, you obviously would want to pick the best Home Loan offer.

The factors that you need to consider are:

• Interest Rate: With repayment tenor of up to 30 years and loan amount running into lakhs and crores, the interest rate is an important factor for you to consider. Even a slight reduction or increase in the Home Loan interest rate can have significant financial implications.
• Repayment Tenor: You must opt for a repayment tenor that gives you an EMI amount as per your comfort level. You must consider that the longer the repayment tenor, lower is the EMI, but higher is the interest cost and vice-versa.
• APR: APR or Annual Percentage Rate specifies the total cost of the loan for you in a year. It is a more accurate parameter to ascertain the suitability of a loan as compared to the interest rate.
• Foreclosure Charges: If you intend to repay your Home Loan before the timelines mentioned in the repayment schedule, then you must consider the foreclosure charges as well. Some financial institutions do not levy foreclosure charges while some levy up to 4 percent.
• Loan to Value Ratio: It specifies the maximum amount that the financial institution is willing to offer against the value of the property. This ratio will determine the down payment you need to make.

10 best Home Loans available in India in 2019

Thanks to the rising demand for Home Loans in India, almost all financial institutions are now offering Home Loans, including banks, NBFCs, and HFCs. It is therefore essential for you to identify the best Home Loan offers available for you.

Here are the ten best home loans in India in 2019 that you should consider:

State Bank of India Home Loan

State Bank of India is one of the leading public sector banks in India and offers Home Loans to its customers at attractive interest rates. SBI Home Loan key features are mentioned below:

• There is no upper limit on the maximum amount sanction. You can avail home loans for above Rs. 5 crore as well.
• Extensive repayment tenor available for up to 30 years.
• Interest rates starting from 8.55 percent.
• Processing fees of 0.35 percent plus GST (min. Rs. 2,000 and max. Rs. 10,000)
• Available for salaried as well as self-employed professionals

HDFC Bank Home Loan

HDFC Banks provides some of the best home loan offers in India. The key features of HDFC Bank Home Loans are:

• Home Loans up to Rs. 10 crores.
• Interest rates starting from 8.60 percent per annum.
• Maximum repayment tenor of up to 20 years.
• Processing charges are 0.5% or Rs. 3,000/-, whichever is higher
• The Loan to Value ratios are:

90% for loan value less than Rs. 20 lakhs

80% for loan value more than Rs. 20 lakhs

75% for loans above Rs. 75 lakhs

ICICI Bank Home Loan

A leading private sector bank, ICICI Bank offers Home Loans with following features:

• The maximum loan amount up to Rs. 3 crore.
• Maximum repayment tenor of 30 years.
• Interest rates starting from 8.70 percent.
• Processing charges between 0.5 to 1 percent.
• Quick and speedy approvals.

AXIS Bank

Axis Bank is one of the most respected private sector banks in India. The key features of Axis Bank Home loans are

• Maximum amount of up to Rs. 5 crores.
• Maximum repayment tenor of up to 30 years
• Interest rate starting from 8.90 percent (linked to MCLR)
• Processing charges are 1 percent subject to a minimum of Rs. 10,000/-
• The Loan to Value ratios are:

90% for loan value less than Rs. 20 lakhs

80% for loan value more than Rs. 20 lakhs

75% for loans above Rs. 75 lakhs

PNB Housing Loan

PNB Housing is a trusted name among Indian Households. PNB Housing Loan is offered with some interesting features like: -

• Maximum amount available is Rs. 1 crore.
• Interest rates starting from 8.65 percent.
• Maximum repayment tenor of 30 years
• The Loan to Value ratios are:

90% for loan value less than Rs. 30 lakhs

80% for loan value more than Rs. 30 lakhs

Bank of Baroda Home Loan

If you are looking to apply for a Bank of Baroda Home Loan, then you must note its following key features: -

• Loan amount subject to a maximum of Rs. 10 crores.
• Interest rate starting from 8.65 percent.
• Maximum repayment tenor of 30 years.
• The Loan to Value ratios are:

90% for loan value less than Rs. 30 lakhs

80% for loan value more than Rs. 30 lakhs

• Nil foreclosure charges

LIC Housing Finance Ltd. Home Loan

LIC Housing Finance offers loans for purchasing, construction, and renovation of residential properties. Its key features are: -

• Maximum loan amount of Rs. 5 crores
• Rate of interest starting from 8.40 percent
• Nil foreclosure charges
• Maximum repayment tenor of 30 years.
• Processing charges 0.25%
• The Loan to Value ratios are:

90% for loan value less than Rs. 20 lakhs

80% for loan value more than Rs. 20 lakhs

75% for loans above Rs. 75 lakhs

Aditya Birla Housing Finance Home Loan

The leading NBFC in India, Aditya Birla Housing Finance offers Home Loans with the following features:

• Maximum amount of up to Rs. 10 crores.
• Interest rate starting from 8.55 percent.
• Maximum repayment tenor of 30 years
• Processing charges are 1 percent.
• The Loan to Value ratios are:

90% for loan value less than Rs. 30 Lakhs

80% for loan value more than Rs. 30 Lakhs

75% for loans above Rs. 75 Lakhs

Tata Capital Home Loan

Tata Capital is another leading NBFC in India and offers Home Loans with noteworthy features like: -

• Loans of values as low as Rs. 2 lakhs and as high as Rs. 5 crores.
• Interest rates starting at 9.25 percent.
• Maximum repayment tenor of 30 years.
• No foreclosure charges for repayment from own funds.
• Processing fees of 0.5 per cent plus taxes.
• Balance Transfer facility also available.

Indiabulls Home Loans

Indiabulls has emerged as a leading financial institution of India in the last few years and offers Home Loans with noteworthy features like:

• Maximum amount of up to Rs. 3 crores
• Interest rates starting at 8.80 percent.
• Maximum repayment tenor of up to 30 years
• Processing fees are 0.5 percent.
• The Loan to Value ratios are:

90% for loan value less than Rs. 30 Lakhs

80% for loan value more than Rs. 30 Lakhs

With so many options to choose from, it is natural to get overwhelmed; nevertheless, do your research and analyse all offers before making a final call.