Best Bank for Home Loan in India 2022

Related Articles

How To Improve CIBIL Score? Learn 10 Proven Ways To Improve It

Top Search Engine Optimization Strategies!

Which Company Would You Choose?

Home Loan is the type of loan that a wring professional do take at least once in their lifetime. As your home is close to your heart, the loan which helps you in taking it should also be appropriate & as per your needs. We here have come up with the 11 best-researched home loans for your benefit.

But before moving forward, let’s discuss – the Factors that Should Be Consider Before Choosing the Best Bank for Home Loan in India

1. Interest Rate

Interest rate is the most important factor, as even a small difference of 0.5% in the rate can make a huge difference.

2. Processing Fees

Bank charges a fixed amount or a percentage of the loan value as processing fees. The fee is for processing the application and does not guarantee loan approval; it is usually non-refundable.

3. Legal Fees

Bank charge a legal fee to verify the property documents.

4. Pre-closure Charges

Some banks have a clause, that you cannot pre-close your loan. If you close then you have to pay an additional fee (amt) in form of charges to pre-close.

5. Loan-To-Value (LTV) Ratio

It indicates the proportion of the property value that bank will finance you. It could be anywhere between 75% to 90% of the property value.

6. Part-Payment Rules

To avoid losing interest income some banks / housing finance companies (HFCs) put rigid part payment rules. Banks could also put a clause, which limits the amount or the percentage of the loan that can be prepaid during a month or given tenure.

7. Insurance Cover

You can buy an insurance cover for your home loan liability. Note, it’s optional, not mandatory, but it could be useful for your dependents at time of need.

Best Bank for Home Loan in India 2022

#1. ICICI Bank Home Loan

Pro’s

1. It has simplified documentation process.
2. Speedy approvals and competitive interest rates.
3. House Construction, Home Renovation, Top-up home loans & Plot.
4. Home loans up to Rs.5 Crores and up to 30 years loan tenure.
5. Interest is charged on a monthly reducing basis i.e. the principal is calculated at the end of every month and then interest charged accordingly.
6. Special rebate on the interest rate for the women first applicant.
7. Non-working, female partner is allowed to be the first applicant.

Con’s

1. EMI once increased cannot be decreased even after enough part-payments.

Parameters	Details
Interest Rate	6.70% – 7.55%
Processing Fees	0.75% of the loan amount or Rs. 11,000/- whichever is higher
KYC Checking Fee	Rs. 5,000/- + 18% GST
Maximum Tenure	30 years
Pre-payment Charges	Nil for floating rate loans 2% for fixed-rate loans.
LTV	up to 90%
Late-Payment Charges	2% per month

#2. State Bank of India Home Loan

Pro’s

1. Stringent property verification measures.
2. Loans for house purchase, house construction, home renovation, Top-up, SBI Maxgain loans (home loan as an overdraft loan).
3. Interest is charged on a daily reducing balance i.e. the principal is calculated at the end of every day and the interest charged accordingly.

Con’s

1. Slow approval process.

Parameters	Details
Fixed Interest Rate	None
Floating Interest Rate	6.80% – 7.15%
MaxGain interest rate	7.15% – 7.50%
Processing Fees	0.35% of loan amount Minimum – Rs. 2,000 and Maximum – Rs. 10,000
Maximum Tenure	3 years to 30 years
Pre-closure Charges	Nil
LTV	Up to 90%
Part-Payment Charges	Nil

#3. HDFC Ltd. Home Loan

Pro’s

1. Door-step services for consultation.
2. Stringent verification of property documents.
3. Easily apply online and upload the documents.
4. “TruFixed” Loan the interest rate is ‘Fixed’ for an initial 24 months.
5. Offers Multiple types of repayment options to choose from:
   1. Step Up: repayment schedule is linked to the expected growth of your income. You can increase the EMI after every few years as income increases.
   2. Flexible Loan Instalments :EMI is higher during the initial years and subsequently decreases later.
   3. Tranche Based : If you have purchased an under-construction property, instead of paying only the interest on the loan disbursed, you can actually start paying the full EMIs i.e. the EMI amount after you get the entire loan amount disbursed.
   4. Accelerated Repayment :it provides flexibility to increase the EMIs every year in a fixed proportion, helping in repaying the loan much faster.
   5. Telescopic Repayment:in this option, you get longer repayment tenure of up to 30 years for enhanced loan amount eligibility and smaller EMIs.

Con’s

1. HDFC charges up to Rs. 2,000 for re-appraisal of loan.

Parameters	Details
TruFixed Interest Rate	7.40% – 8.20%
Floating Interest Rate	6.70% – 7.65%
Processing Fees	Up to 0.50% of the loan amount or Rs. 3,000/- whichever is higher.
Maximum Tenure	30 years
Pre-payment	Nil for floating rate home loans 2% in case of fixed-rate or combination rate loan
LTV	90% for loan value less than Rs. 20 lakhs 80% for loan value more than 20 lakhs 75% for loans above Rs. 75 lakhs
Charges for delayed payment of EMI	24% per annum

#4. Axis Bank Home Loan

Pro’s

1. Home loan as small as Rs.3 lakhs.
2. Loan for purchase of a constructed residences, construction of property, and top-up loans.
3. Axis bank offers floating and fixed interest rate home loans with a maximum tenure of up to 30 years.
4. Fast Forward Home Loans, bank offer up to 6-month EMI holiday on completion of 10 years loan tenure and another 6 months on completion of 15 years from the first disbursement, provided the repayment track record is clean. Here, the EMI holiday means that you can stop paying EMIs for a few pre-determined months.

Con’s

1. Charges for statement issue, re-pricing, document photocopy issue, document retrieval, interest certificate issue etc.

Parameters	Details
Fixed Interest Rate	12% for all cases.
Floating Interest Rate	6.75% – 7.20%
Processing Fees	Higher of 1% of the loan amount or Rs. 10,000 + GST
Maximum Tenure	30 years
Pre-closure Charges	Nil for floating-rate loans and 2% for fixed-rate loans
LTV	90% for loan value less than Rs. 30 lakhs 80% for loan value more than 30 lakhs to Rs. 75 lakhs 75% for loans above Rs. 75 lakhs.
Penal interest rate	2% per month

#5. Union Bank of India Home Loan

Pro’s

1. Home loan as small as Rs.3 lakhs.
2. Bank also includes the cost of simultaneous purchase of a solar power panel

Con’s

1. Fixed rate are for maximum of 5 years

.

Parameters	Details
Fixed Interest Rate	Up to Rs. 30 lakhs – 11.40% Rs. 30 to 50 lakh – 12.40% Rs. 50 lakh to Rs. 2 Crore – 12.65%
Floating Interest Rate	Home Loan up to Rs. 30 lakh – 6.60% to 7.35% Home Loan above Rs. 30 lakh – 6.60% to 7.40%
Processing Fees	0.50% of the loan amount. Maximum of Rs. 15,000 + GST
Maximum Tenure	30 years
Pre-closure Charges	Nil for floating rate loans Nil for a fixed-rate loan if repaid from own sources 2% – if the loan is being refinanced
LTV	90% for loan value less than Rs. 30 lakhs 80% for loan value more than 30 lakhs
Part-Payment Charges	Nil

#6. Indiabulls Housing Finance Home Loan

Pro’s

1. Indiabulls do not charge for legal opinion and technical valuation charges.
2. The interest is calculated on a monthly reducing balance basis.
3. It offers a dual-rate loan i.e. ‘Fixed and Floating Rate Loans’ in this interest rate remains fixed for initial 2 years.
4. It is preferred lenders for those who want to buy properties with incomplete documentation or an unclear chain.
5. “eHome Loans” is a innovative product where the entire application process is online i.e. document submission, loan sanction, loan disbursal, status of application.

Con’s

1. Slow processing of application and customer service not up to the mark.
2. Rs. 650 charges for database admin fee.
3. Processing fee is as high as charges 2%.

Parameters	Details
Dual loan (Fixed and Floating) Interest Rate	8.99% onwards
Variable Interest Rate	7.60% to 10%
Processing Fees	Up to 2% of the loan amount
Maximum Tenure	up to 30 years
Pre-closure Charges	Nil for floating rate loans For fixed-rate loans – 2% (during the fixed interest rate period)
LTV	90% for loan value less than Rs. 30 lakhs 80% for loan value 30 lakhs to 75 lakhs 75% for loan value above Rs. 75 lakhs
Late-Payment Charges	24% per annum

#7. LIC Housing Finance Home Loan

Pro’s

1. Loans for house purchase, house construction, repairs, plot purchase, home extension as well as renovation.
2. Top-up loans available under certain conditions.
3. You can choose a fixed or a floating rate loan with a tenure of up to 30 years.
4. The interest is calculated on a monthly reducing basis.
5. People with low CIBIL score can apply here.

Parameters	Details
Fixed Interest Rate	10.05% to 10.15%
Floating Interest Rate	6.70% – 7.90%
Processing Fees	Rs. 10,000 for loans up to 50 Lakhs Rs. 15,000 for loans above Rs. 50 Lakhs
Maximum Tenure	up to 30 years salaried / up to 25 years self-employed
Pre-payment Charges	Nil
LTV	90% for loans up to 30 Lakhs 80% for loans above 30 Lakhs and up to 75 Lakhs 75% for loans above 75 lakhs
Late-Payment Charges	1.5% for default of up to 12 months 2% for default beyond 12 months

#8. PNB Housing Finance Home Loan

Pro’s

1. Products like Home Purchase Loans, Home Construction Loans, Home Extension Loans, Residential Plot Loan and Home Improvement Loans.
2. You can request for enhancement in your loan amount, in case of escalations in costs.
3. People with low CIBIL score can apply here.

Con’s

1. But does not provide top-up loans

Particulars	Details
Floating Interest Rate	Loan amount up to Rs. 35 lakhs – 6.75% to 9.60% Loam amount greater than Rs. 35 lakhs –  6.90% to 9.75%
Processing Fees	1% of the loan amount. Minimum fees – Rs. 10,000 If the loan is approved then PNBHF keeps all the fee. In case the loan is not approved then PNBHF retains Rs. 3,000 per property.
Maximum Tenure	30 years
Pre-payment Charges	Nil for floating rate loans
LTV	90% for loan of less than Rs. 30 lakhs 80% for loan of more than 30 lakhs and up to Rs. 75 lakhs 75% for loan of value more than Rs. 75 lakhs
Late-Payment Charges	2% per month

#9. Bank of Baroda Home Loan

Pro’s

1. Loans for house purchase, buy plot, construction, improvement, top-up and renovation.
2. Pre-approved home loan are also available even before you finalize the property.
3. In Home Loan Advantage product you can park your savings in a savings account which is linked to the loan account. The entire amount in the savings account will be treated as principal paid and thus interest outgo will reduced.
4. Free credit card facility and concession of 0.25% for car loans. Bank also offers free accident insurance with every home loan.

Parameters	Details
Fixed Interest Rate	Not offered
Floating Interest Rate	6.85% – 8.70%
Processing Fees	For loan up to Rs. 50 lakhs Processing fee- 0.50% of the loan amount. Minimum – Rs. 8,500 and Maximum – Rs. 15,000 For loan above Rs. 50 lakhs Processing fee- 0.25% of the loan amount. Minimum – Rs. 8,500 and Maximum – Rs. 25,000
Maximum Tenure	30 years
Pre-closure Charges	Nil
LTV	90% for loan of less than Rs. 30 lakhs 80% for loans of more than 30 lakhs and up to Rs. 75 lakhs 75% for loans of value more than Rs. 75 lakhs
Part-Payment Charges	Nil

Tips – When You About To Choose Home Loan

1. Make a woman (either your wife or mother) as a co-borrower to avail lesser interest rate.

2. If a property is already approved by a bank, even then you have to pay legal & property verification fees.

3. Bank will approve the amount based on your income eligibility, no matter how much loan-to-value the banks claim to finance.

4. Your loan amount eligibility will get reduced by your existing loans such as personal loan, education loan, car loan, etc.

5. A good CIBIL score above 750 will help you in getting lesser interest rates. If you have a lower CIBIL Score you should know

6. In a situation where your bank value’s the property at a lesser price than what the builder has quoted. Then always, trust the bank’s valuation and renegotiate with the builder.

7. Before transferring your existing home loan to the new banker for a lesser interest rate, keep in mind that your current lender might charge you a fee (usually in a percentage of your loan amt) to transfer it. This cost could subside the benefit of lesser interest.

9. Bank always take away the original sale deed and documents immediately on registration and store it with them till the home loan gets over. So check how and where they store it, and how much time will it take to retrieve it after the loan is paid. As losing your original sale documents is a big loss and may present legal challenges too.

10. Along with interest rates and processing charges, do check other miscellaneous charges too, like document retrieval charges, valuation charges, documentation charges, additional statement charges, part payment charges, pre-closure charges, CIBIL Report charges, No Due Certificate/ NOC charges and Conversion charges.

11. On the closure of loan, it’s the duty of bank or financial institution to update the same in your CIBIL. Ensure that, as failing might affect your score.