- Where should you apply for a home loan?
- Let’s read out the specialties of top lenders before choosing the best one for you
With many banks and housing finance companies (HFCs) offering impressive home loan amounts, people are now able to buy a home much more comfortably than what was the case before. You can get a maximum of 30 years to repay the loan. However, with such a high repayment tenure, you need to be careful of the cost factor. If you don’t get the loan at affordable rates, the interest repayment can be much more. At the same time, you also need to see which charges less processing fee and has a quick loan sanction process. To have all these in one lender may or may not be possible. But it should have many attractive features before you could think of applying there. In this post, we have jotted down the name of lenders that are renowned in the home loan segment. Let’s take a look at what these lenders have in store for you.
SBI – Good in Terms of Interest Rates & Least Processing Fee
The country’s largest lender, State Bank of India (SBI), triggers the mind of borrowers by offering home loans at much lower interest rates and less processing fee. The bank has cut the benchmark rate to 6.65%. With this, the SBI Home Loan Interest Rate will fall further from the existing 9.15% - 11.30%. The processing fee is also quite lower at 0.35% of the loan amount, subject to a maximum of INR 10,000, plus Goods and Services Tax (GST). For government employees, there’s no processing fee.
HDFC Limited – Known for Quick Loan Processing
HDFC Limited is known for processing home loans quickly. Once the application comes, it starts reviewing it and sends the legal and technical team to check your property. The professional approach of the housing finance company ensures quick legal and technical verification. This results in quick sanction of the loan amount and the subsequent disbursal. Even in interest rates, it gives competition to most lenders, including SBI. HDFC Home Loan Interest Rates range from 8.50% - 9.40%. If your credit score (CIBIL) is 780 and above, you can get a lower rate of 7.35%, irrespective of the loan amount you apply for.
PNB Housing Finance – Best for Self-employed Applicants
PNB Housing Finance may have higher interest rates than the previous two. But it is regarded as one of the best lenders for self-employed applicants by offering them home loans quickly than others. The income of self-employed is dependent on changing market trends and seasons. As a result, most lenders take a lot of time to disburse a loan, but not PNB Housing Finance Limited.
LIC Housing Finance Offers Competitive Interest Rates
LIC Housing Finance, like SBI and HDFC Limited, also offers competitive interest rates on the home loan it provides to borrowers. Presently, LIC home loan rates are ranging from 8.50% - 10.75%. The rate can come down to 7.40% per annum for borrowers assigning new or existing term insurance plans with sum assured equaling the loan amount. Even the processing fee is quite minimal. The renowned HFC charges the fee at 0.25% of the loan amount plus GST or INR 10,000, whichever is less.
ICICI Bank Can Also be Considered
ICICI Bank is also a prominent home loan lender by offering competitive rates to its borrowers. It provides the loan at interest rates ranging from 9.00% - 10.05%. Whereas, you can get the balance transfer deal at 7.80% if you are salaried and 8% if you are self-employed. The balance transfer rates are irrespective of the loan amount.
If you look at the home loan details carefully, SBI wins the race in terms of interest rates. However, HDFC leads the race as far as quick processing is concerned. On the other hand, PNB Housing Finance is best for the self-employed class. Overall, all these lenders are jostling against each other to grab more share in the intensely competitive home loan space. Now, it’s up to you to decide which you should choose for your home purchase.