Home Loan: Pick the Right Bank to Live Tension Free

Taking a home loan is not a small decision as you are going to block one portion of your income to repay the loan amount for at least 10 or more than that. The reasons for owning a home could be many as such a kind of security for your family, investment, to gift your son or daughter, to save the self from paying higher rents in metro cities and much more. There are plenty of reasons to buy a home and own a property. Rajiv Singh, who is staying with his family in Gurgaon is paying a good amount as rent for a two BHK. Now, most of his friends and family members suggested that own a home in Delhi, NCR region to save that amount and in long-run he will become the pride owner of that home. So, he applied for a home loan as he thinks this is a really simple process as he is earning a good salary and working with a good company. But, the biggest drawback with him was he was paying EMIs for his personal loan and car loan. Therefore, most of the banks denied to give him the amount he was looking for.

If you are taking a home loan, the tenure of a loan will range from 10 years to 30 years. This indicates that you are going to repay the loan or the monthly EMIs for at least for the tenure, which you have agreed with the bank. Loan amount and EMIs are not the things, which you should consider before taking the loan. Rather, you have to go through a proper process such as submitting your salary, bank statements of last 3 to 6 months, age proof, identity proof and other important documents to get your loan approved. So this is really clear that taking a home loan is not a simple process and requires a great deal of time and documentation. Now, the question comes, which bank is best to borrow a home loan? There is no perfect term and conditions and a bank that is just perfect for you. You should always keep your requirements, monthly salary, and financial aspects in mind while applying for a home loan. Every individual’s situation and their requirements are different from other, therefore, you should choose a bank after doing good research and evaluation of various terms and conditions, before applying for a home loan. Here, in this article we are trying to help you out in your decision-making process and choosing the right bank for home loan solution.

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Top 5 banks for Home Loan

SBI: SBI bank is the most preferred choice of those people who want to borrow a home loan. However, it is sarkari and live with its image of being sarkari for the processes and other policies. But, if you are looking for low-interest rates and more transparency in your loan, then it is the right pick to apply for a home loan.

HDFC: HDFC bank is another leading brand in the category of home loan. This is the first choice of those who want to apply for a home loan in private bank. It has offered loan to more than 4.5 million customers till so far. It has a long list of home loan products to choose from.

LIC Housing Finance: LIC Housing Finance is one of the most reliable financing firm for borrowing a home loan. It is simple terms and conditions and transparent policies make it popular among the customers. The maximum loan tenure is up to 30 years and there is no hidden charges and extra cost applied on a home loan.

ICICI Bank: Getting a home loan from ICICI bank is much faster than any other bank. The bank offers you competitive interest rates and good service as well. It offers you various home loan products and the maximum tenure for the home loan is also same in ICICI bank.

Axis Bank: Axis bank offers flexible products in home loan category. It offers various facilities and benefits to the borrowers. The bank offers the best possible lowest EMIs and interest rates to the customers.

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Top 5 Banks Home Loan Offers

Bank Name Interest rate (p.a.) Processing Fee TenurePre-payment charges
SBI8.30% - 8.60%NilUpto 30 years Nil
HDFC8.35% - 8.95%₹10,000 + GST
Upto 30 years Nil
LIC Housing Finance8.35% - 8.70%Up to ₹1 Crore - ₹5,000 + GST
₹1 Crore & above - ₹10,000 + GST
For salaried: Upto 30 years
For self-employed: Upto 20 years
Nil
ICICI Bank 8.35% - 8.85%0.50% - 1.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore), whichever is higher + GST & SurchargeUpto 30 years N.A
Axis Bank

8.35% - 8.75%

Salaried: Up to ₹1 Crore – ₹10,000 + GST
Above ₹1 Crore to ₹2 Crores - ₹15,000 + GST
Above ₹2 Crores - ₹25,000 + GST
Self-employed: 0.50% Or ₹10,000 + GST, Whichever Is Higher
Upto 30 years Nil

Private or PSU Banks

This is the first question which comes to your mind. Should I borrow the loan from a Private Sector Bank or a Government Bank? There is no set formula to choose a bank and nobody can give you guarantee about the total positive or negative experience. You should not make your mind on a few bad experience with some people.

Most of the private sector banks might be very good in treating you when you apply for a loan. They are really aggressive, good easy and online processes, presentations and friendly in their approach and might ask for less paperwork and documentation and disburse you loan really easily. On the other hand, a PSU might ask for more documents as they are more stubborn and rigid with processes, paperwork, and formalities. They will not consider your case if they find any flaws in the documentation. But once they will disburse the loan, they will start treating you in a better way as you became their customer.

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Private Banks PSU Banks
Aggressive in their approachNot really aggressive in their approach
Not really rigid and stringent with rules Very strict and stringent with rules
Increases interest rates very soon after RBI instructionsIncreases the interest rate in moderate form
Hide few charges and fees Transparent about all charges and fees
Don't reduce the rates soon if got instructions from RBI Don't hide and implement the reduced rates easily
Take pre-payment charges 2-3%No pre-payment charges in maximum banks
Forced selling of other products like insurance and ULIP with home loanNo such conditions

Personal Loan Interest Rates January 2018
Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 10.99% - 20.70%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 12.99% - 20.00%
Kotak Bank 10.99% - 17.99%
RBL 14.00% - 18.00%
Standard Chartered Bank 10.99% - 14.49%
Tata Capital 11.49% - 18.00%
Home Loan Interest Rates January 2018
State Bank of India/SBI 8.30% - 8.60%
HDFC 8.35% - 8.95%
Bank of Baroda 8.30% - 9.30%
LIC Housing 8.35% - 8.70%
PNB Housing Finance 8.35% - 8.70%
ICICI Bank 8.35% - 8.85%
Axis Bank 8.35% - 8.75%
Citibank 8.60% - 9.35%
Indiabulls Housing Finance Limited 8.35% - 8.55%
Kotak Bank 8.35%
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