Who doesn’t want a new home? Well, it’s a dream for many, and it’s nothing less than a dream come true. To live in your own house, live a rent-free life, create an asset for generations and have a place to make memories of a lifetime but as they say, all the right things require some heavy lifting.
Buying a house, anywhere in the world, is a huge deal. It requires time, planning, efforts and most importantly, huge-2 money. Sometimes it takes decades to save enough to own your dream home, and our previous generations used to do the same. They were saving for years before making the final deal. But millennials are living in the modern world where numerous financing options are making home buying a child’s play.
Moreover, limited job opportunities in small towns have pushed an enormous lot to migrate to metro cities and thus given a boost to urban settlement and rehabilitation.
In this blog, we will be discussing the best home loan in India, some of the best bank loans for first time home buyers, which is the best home loan provider in India and why they rank at the top among the others? Throughout our research, we have considered six critical factors to filter our list. All the contenders were competing or comparing themselves on best home loan interest rates, processing fees and other charges, insurance and a lot more.
We want prospective buyers to find the best options, and our intention is to take them to their decision as simply as possible. Take a look at the following considerations before jumping onto the best home loans in India in 2022 list:
Factors Of Consideration
1. Interest Rate:
It is one of the most important factors to be considered before everything else. Do keep in mind that even a slight difference of 0.5% can turn into lacs of rupees.
2. Processing Fees:
Every bank or NBFC (Non-Banking Financial Service) charges it. Check with your bank if they charge a percentage of the loan value or a fixed amount.
3. Legal Fees
Some banks charge a legal fee to verify the property documents. It’s a standard procedure.
4. Part-Payment Rules:
Many financial institutions put rigid rules for part payment and prepayment. Some even put clauses and charges fine.
5. Insurance:
Optionally, you can buy an insurance cover for your home loan. If the amount is too big and the revenue sources too less, then it’s a good thing to opt.
6. Loan-To-Value (LTV) Ratio:
This indicates the proportion of the property value which the bank is ready to finance.
Related Post - Home Loan FAQs
Here Are The Top Banks Offering The Best Home Loans:
| Bank Name | Minimum Interest Rate | Maximum Interest Rate | Processing Fee | LTV |
| Bank Of Baroda | 6.85% | 8.20% | Fixed fee of Rs. 7500 |
90% for loan value less than Rs. 30 lakhs 80% for the loan value of more than 30 lakhs |
| PNB Housing Finance | 7.5% Onwards | - |
0.35% of the loan amount
|
90% for loan value less than Rs. 30 lakhs.
|
Indiabulls Home Finance |
8.99% Onwards | - |
|
|
ICICI Bank |
6.90% | 7.95% |
|
90% for loan value less than Rs. 20 lakhs
|
Punjab & Sind Bank |
6.90% | 7.60% | - | - |
| State Bank Of India | 6.95% | 7.45% | Up to Rs. 10,000 |
|
| Axis Bank | 7.40% | 8.80% | Up to Rs. 10000 |
|
| HDFC Bank | 6.90% | 7.55% | 0.50% or Rs. 3000/- whichever is higher. |
90% for loan value less than Rs. 20 lakhs
|
Note: The bank names mentioned above are not in priority or in any order.
Disclaimer: This is not an official list issued by any government body. This is a self-curated list worked by our financial experts. Do not base your decisions solely on this list. ‘The best bank to take home loan’ is subject to differ according to the financial condition of the prospective home buyer.
At The Bottom
The job of choosing a home loan can be a frightening one. However, by conducting the proper due diligence, you can ensure that you find the perfect home loan for yourself. Do keep this in mind that though this brief knowledge guide helps you prepare for the process of finding a great home loan and ultimately owning your dream home, the main task is upon you- selecting the right one which fits your circumstances perfectly.
Gather all the pacers, talk to the bank official, gather all data and calculate your finances to arrive at the right decision. And most importantly, be wary of fraudsters and agents, this industry attracts a massive chunk of con artists.
In case you are planning to invest in property this year, Kohinoor Group has come up with some new residential projects in Pune. Situated in some of the best neighbourhoods like Hinjewadi, Ravet, Shirgaon, Bibvewadi, Tathawade, Wakad, etc. Kohinoor homes are envied by the competitors for their value for money offering. Meet the branded residences and get the 'Sada Sukhi Raho' promise at the Kohinoor homes.
Visit www.kohinoorpune.com for more information about residential and commercial real estate in Pune.
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