Popular Housing Loan Schemes at Best Interest Rates

January 20, 2022

Have you forethought to purchase a swanky house but the paucity of finance is baffling you off? No worries as home loans come as a pre-eminent finance tool in this era of skyrocketing real estate rates. To apply for a home loan, ensure that you see through your credit score as it is the utmost priority to avail cheapest home loan interest rate. On top of other factors, credit score impersonates as a vital parameter for home loan eligibility. Although, if you want to plump for the best home loan rates, then here is a cutback to popular home loan schemes, which will cater to twirl your dream house into reality. Quit and finish the monthly rental scenarios by investing a notable chunk of your hard-earned cash into a home loan as down payments. Rather than paying sky-touching rents, pay it as a monthly EMI and get your own house. Moreover, calculating everything from interest rate to monthly EMI has become effortless through a home loan calculator. 

But before grabbing maximum possible benefits of the foremost home loan schemes, put up with certain crucial factors: 

Home Loan Eligibility

The loan amount that the lender can disburse thoroughly depends upon the applicant’s monthly income, property’s market value, and monthly expenses. Additionally, credit score and debt-to-income ratio play a vital role in home loan approval. Although banks or financial institutions can sanction at max 80 to 90 percent of the property’s value, the rest have to be borne by the applicant in terms of down payment. Consider your financial situation, expenses, other ongoing debts, to depict your repayment capabilities. 

Best Home Loan Rates

The next crucial factor that an applicant should take into consideration is the home loan interest rate. Interest rate is the soul of total repayment amount and monthly EMIs. Interest rates generate a major impact on home loan EMIs together with the overall interest outflow. So, when you apply for a home loan, always compare interest rates offered by various lenders to avail the cheapest home loan interest rate. Moreover, don’t skip scrutinizing types of interest rates i.e., fixed or floating rates. As the market is uncertain and the interest rates are constantly falling down it is better to consider floating rate home loans. If you notice constant uplift in the interest rates, then easily switch to fixed home loan rates. 

Processing Fees And Home Loan Prepayment Terms

To process the home loan application, banks and finance providers usually charge a small amount. Typically, it is 0.25 to 2 percent of the to be sanctioned loan amount. Moreover, when you apply for home loan, don’t get tempted with the best home loan rates, look into the home loan prepayment terms too. You should be familiar with the fees you might have to pay while shifting from fixed to floating rate or vice versa, home loan balance transfer, home loan foreclosure, and much more. 

Loan Rate Revisions

When you apply for home loan as per your home loan eligibility, go through the tenure that the lender takes to reset the rates as per the new RBI charges. When you avail of a housing loan with a floating rate of interest, count on the lender who updates and reflects the interest rates on home loan EMIs in a minimal period.

Choosing a finance provider can be a daunting task especially when stepped in without assistance. It is quite difficult to pick the best one from numerous existing lenders. You need to look into all the aforementioned factors to get the best out of all. Now when you have acquainted enough about housing loans, here is a rundown to popular home loan schemes: 

ICICI Bank Home Loan

Rate of Interest: Lowest home loan interest rates, home loans at floating interest rate are available from 8.70%.

Loan Amount: As per the home loan eligibility you can avail amount up to INR 10 crores

Loan Tenure: You can get maximum loan repayment tenure of 30 years.

Fees and Charges: Initially you have to pay an erstwhile processing fee. It sums up to 0.25 percent of the loan amount.

Additional Perks

  1.  You can opt for a home loan online and get paperless loan approval 
  2.  Top-up home loan is available
  3.  You can get a loan without any guarantor
  4.  Easy home loan balance transfer option after specific tenure
  5.  Reduced interest rates for women home loan applicants

HDFC LTD Home Loan

Rate of Interest:  home loans at a floating rate of interest starting from 8.60 percent.

Loan Amount: INR 5 lakh to INR 10 crores based upon the eligibility

Loan Tenure: Maximum loan repayment time frame is 30 years.

Fees and Related Charges

  • You have to pay either 0.5percent of the home loan amount or INR 3,000 [ the one with higher value] in addition to applicable GST (in case of salaried professionals)
  • At max 1.5 percent of the home loan amount or INR 4,500 [the one with higher value] in addition to GST (for non-professionals)

Additional Perks

  1. Transparency in applicable charges
  2. Customised option of repayment 
  3. Competitive interest rates
  4. Distinct home loans for salaried as well as self-employed individuals

Axis Bank Home Loan

Rate of Interest: home loan floating interest rate beginning from 8.90 percent.

Loan Amount: INR 5 lakh to INR 10 crores based upon the applicant’s eligibility 

Loan Tenure: Flexible repayment tenure of up to 30 years. 

Fees and Other Charges: You don’t have to pay any pre-closure charges or part payment charges in case of floating interest rate. Whereas in the case of fixed interest rate you are liable to pay 2percent in addition to applicable taxes on the outstanding loan amount.

Additional Perks

  1. Minimum finance of INR 3 lakh
  2.  Flexible options of interest rate i.e., fixed or floating rate 
  3.  Home loans are easily accessible to salaried as well as self-employed individuals
  4.  Finance up to 90 percent of the property value

PNB Housing Loan

Rate of Interest: Home loans are available at a 9 percent interest rate (floating rate of interest)

Loan Amount: You can avail of the minimum amount of INR 8 lakh as per your eligibility 

Loan Tenure: At max, you have to repay the loan in 30 years

Fees & other charges: Absence of pre-closure charges and part payment fee

Additional Perks

  1. E-approval through official website and option for no cost part-payment 
  2.  Top-up home loan available
  3.  There is no need for a loan guarantor 
  4.  You can opt for a home loan balance transfer

Wrapping Up

Once you finalize a lender with the best home loan rates, without any second thought apply for home loan. Beforehand prepare a set of all home loan documents and approach the bank with your housing loan applications. You can choose any of the popular home loan schemes to grab the cheapest home loan interest rate and easy approvals based upon your home loan eligibility. If you have not found the best home loan till now that perfectly matches your requirement count on the mentioned ones. Moreover, you can check your eligibility from home comfort through a home loan calculator. 

Looking for something more?

Category:Home Loan

You may like these posts