Which bank is best for Home loan?

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Which bank is best for Home loan?

What is a Home loan?


A home loan is a type of loan that is used to cover the expenses of building a property. A mortgage loan, on the other hand, has no limitations on how the money can be used. The distinction between a home loan and a mortgage loan demonstrates that each is appropriate for a specific purpose.

Documents required for Home loan:


  • Documents related to housing. Allotment certificate, sales document, or verified contract of sale NOC from the development authority or construction contractor.
  • Aadhaar card, Proof of address on a PAN card, voter's Id.
  • Any of the above-mentioned identity proof documents must be accompanied with a permanent address.
  • The bill for electricity.
  • Passport sized Photograph.

Top five best banks offering Home Loans:


You may require a loan for a variety of reasons. Many various loan products are available in the market nowadays, depending on the circumstances. With the cut throat competition among the lenders home loan rates have been revised by various banks ahead of the festival season. Almost all players in the Indian market have revised their rates including giant banks like State Bank of India, ICICI Bank among others. However, only a cheap rate of interest does not mean that a loan offer is best. Although interest rates are considered to be one of the most important parameters you also have to look at other factors like processing fees, repayment period etc. while evaluating home loans.

Let’s have a look on the top five best banks offering Home Loans:

1. Kotak Mahindra Bank:


This bank charges floating interest on home loans. Floating rates the interest rate that changes with the time. Whenever the RBI revised base rate linked to it the final rate of interest rate will also be updated. These rates are following:

Loan Amount

Category

Interest Rate*

Salaried Individuals

6.50% onwards

Self-Employed Individuals

6.60% onwards

*Rates applicable from September 10 to November 8, 2021
Maximum Tenure: 30 years, Processing fees: 0.5% to 1.00% normally

2. HDFC LTD:


Housing Finance Corporation Ltd is another major player catering a wide range of credit offerings in the home loan market. However one should not confuse HDFC with the HDFC Bank though these are the companies of the same group. It offers various kinds loans for purchase, renovation or extension of houses on with the following rates

Category

Best Rate

Highest Rate

Salaried Individuals

6.7%

7.40%

Self-Employed Individuals

6.70%

7.85%


Maximum Tenure: 30 Years
Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher.
You need a credit score above 750 to get a housing loan with best interest rates.

3. ICICI Bank:


One of the most customer friendly banks operating in the private sector is also offering housing loans at attractive rates. Recently the bank has revised its rates for housing products as follows

Category

Best Rate

Highest Rate

Salaried Individuals

6.70%

7.40%

Self-Employed Individuals

6.80%

7.55%


Maximum Tenure: 30 Years
Processing fees: 0.50% of the home loan amount or starting from Rs 1,100 whichever applicable.

4. Punjab National Bank (PNB):


The second largest bank in the Public sector i.e. PNB is also offering a range of loan products for Housing needs. The recently updated rates of this bank are as follows:

Category

Best Rate

Highest Rate

Salaried Individuals

6.55%

7.40%

Self-Employed Individuals

6.60%

7.40%


This bank also offers housing loans for a maximum period of 30 years.
Processing fees:Processing fees at this period is 0.00%. Typically the bank charges 0.35% of the loan amount with a minimum and maximum limit of Rs2,500 to 15000 respectively.

5. SBI Home Loans:


SBI is the biggest player of the Indian market in the home loans segment with a book size of 5.05 Trillion. The rates charged by SBI for home loans:

Category

Best Rate

Highest Rate

Salaried Individuals

6.55%

7.40%

Self-Employed Individuals

6.60%

7.40%


Maximum Tenure: 30 Years
Processing fees:0.40% of the loan amount, subject to a minimum of Rs 10,000 and a maximum of Rs 30,000 with GST. For projects where the bank has a tie-up with the builder, the rate will be 0.40% subject to a maximum of Rs 10,000 plus taxes.
The biggest disadvantage with the largest player is that it conducts a rigorous documentation process and employs strict due diligence in order to affirm credit worthiness of the borrower.

FAQs


Is it possible to purchase a home loan without having any property paperwork?
A loan amount can be secured without such property ownership paperwork if the building is still undergoing building work. But, after taking right of ownership of the land, it must be registered and a construction document issued. An applicant can get a home loan without land registration paperwork if the residence is still under progress.

What are the basic documents and paperwork for obtaining a home loan?
Documents including a Pan Card and Aadhar Card; revenue paperwork, such as financial documents; job files, such as wage slips or statement of financial position; and land documents are all required for home loan applicants.

In order to apply for a home loan in India, you'll need the following documents: Passport if required, voter ID, driver's licence, and PAN card, Property Documents, Proof of Residence that includes: Telephone Bill/Electricity Bill/Passport/Bank Statement/Passbook.
A photocopy of the actual purchase contract, a society's NOC, an occupancy certificate, and so forth. Income Tax Return (ITR) proof, income records, and certificate of employment.

What security can I provide?
The loan's collateral would typically be a warranty deed in the asset we're financing, or any assets or provisional security that we may demand. It is critical that you check that the building's ownership is accurate, valuable, and free of liabilities. There should be no outstanding mortgages, loans, or legal actions that could jeopardise the ownership of the land.

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