Home Loans are generally extended for purposes such as the purchase of houses, construction of residential properties, extensions and renovations thereof. To ease your home buying decision, the 10 Best Home Loans Interest Rates in the Indian market in the year 2023 are discussed below.
SBI is the largest PSB in the country and exercises stringent verification of property papers.
Interest rates: However, SBI Home Loans are synonymous to the best rate loans in the market.
Some of the salient features are:
They do not provide fixed interest Home Loans.
Interests are offered at floating rates of interest ranging from 8.40% to 9.05%. p.a.
They also have a unique offering called SBI MaxGain Home Loan or Overdraft facility whereby a Home Loan is offered against the surplus cash held in your Savings Account. This results in a reduction of interest paid because the account balance acts the principle component.
MaxGain interest rate ranges from 8.95% to 9.45%. p.a.
Other applicable charges: A processing charge of upto Rs. 10,000 may be charged when the loan is disbursed. No charges for pre-payment or part payment are levied.
Logic of interest calculation: Interest is charged on daily reducing balance. A part of principle paid today will result in lesser interest paid from the very next day.
Tenure of loan: Maximum tenure for which loan is extended is 30 years.
Types of SBI home loans:
SBI Regular Home Loan: This loan can be used for the purchase of ready-built/ under construction property/ pre-owned homes, house construction, extension and repair/ renovation.
SBI Balance Transfer of Home Loan: This facility enables transferring your existing home loan from other banks, housing finance companies and the borrower’s employers to SBI. The borrower should have valid documents as proof of title to the house/ flat.
SBI NRI Home Loan: This loan allows Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to get home loans when investing in properties in India for better returns.
SBI Flexipay Home Loan: Flexipay home loan provides 20% higher loan amount eligibility exclusively for the salaried borrowers and offers them the option to pay only interest during the moratorium (pre-EMI) period and moderated EMIs thereafter.
SBI Privilege Home Loan: This is a home loan exclusively for employees of Central or State Government, including PSBs, PSUs of Central Government and other individuals with pensionable service.
SBI Shaurya Home Loan: This housing loan scheme is tailored for the Army and Defence Personnel of India and comes with lower interest rates, ease of repayment options, longer repayment period and other added benefits.
SBI Pre-Approved Home Loan: This scheme sanctions home loan limits to the customers before finalizing the property, which enables customers to negotiate with the builder/ seller confidently.
SBI Realty Home Loan: SBI Realty enables customer to purchase a plot for the construction of a dwelling unit. The maximum loan amount offered under the scheme is up to Rs. 15 Crores for the tenure of 10 years.
SBI Home Top Up Loan: This loan is offered to existing SBI home loan customers to borrow a certain amount over and above their home loan amount for any financial purpose like a personal loan.
SBI Smart Home Top Up Loan: It is a general-purpose loan offered to meet your urgent financial requirements such as education, marriage, health care, house repair/ renovation/ furnishing, etc. You don’t have to visit the branch/ RACPC to avail this loan.
SBI YONO Insta Home Top-Up Loan: It is a facility available to SBI’s pre-selected home loan customers over YONO mobile app. This home loan top-up can be availed in just 3 easy steps.
SBI Home Loan to Non-Salaried – Differential Offerings: This home loan product is designed to cater to the housing-related needs of non-salaried individuals like construction/ acquisition of house/flat, the takeover of home loans, and house/flat repair/renovation.
SBI Tribal Plus: This home loan can be availed for the purchase or construction of a new house/ flat without a mortgage of land, purchase of an old house / flat (not older than 10 years), and repair/ renovation/ extension of an existing house/ flat in tribal areas.
HDFC Home Loans
Types of Home Loans: HDFC Bank offers a loan on fixed, floating, and TruFixed types.
Unique feature offered by HDFC for its Home Loan customers: They offer multiple options for repayment of the loan. This is a unique feature and favourable to customers who look for such a differentiating factor while selecting a bank for availing Home Loan.
Step up Repayment Facility: Repayment schedule linked to the expected increase in your income.
Flexible Loan Instalments Plan: High EMIs in the starting months and declines as time progresses.
Tranche based EMI: For under construction properties, you may pay for the entire amount of applied loan rather than the amount of loan disbursed.
Accelerated Repayment system: This provides flexibility to increase EMI every year to have it commensurate with the level of your income.
Telescopic Repayment system: This extends the repayment tenure to 30 years, thereby enhancing loan eligibility and resulting in low EMIs.
Stringent process of property documentation verification.
Simplified document pick up and submission process.
Free doorstep services provided.
Types of HDFC home loans:
Home Loan: This is a regular home loan for the purchase of a flat/ row house/ bungalow. You can get up to 90% of the cost of the property as home loan for up to 30 years’ tenure under this scheme.
Plot Loan: This loan is offered to buy a new/resale plot of your choice for house construction.
HDFC Rural Housing Finance: It provides homes loan to salaried and self-employed individuals wishing for a space of their own in their home town or village.
Home Renovation Loan: With this loan, you can upgrade your existing home to a contemporary design and a more comfortable living space. The loan can be used for tiling, flooring, internal and external plaster, painting etc.
Home Extension Loan: This loan provides funding for adding more space to your home, such as additional rooms, etc.
Top Up Loans: It is an additional loan of up to Rs. 50 Lakhs offered on an existing home loan, with minimal documentation for expenses like marriage, a dream vacation, business expansion, debt consolidation, etc.
HDFC Reach Home Loans: It is designed for micro-entrepreneurs and salaried customers (who are fruit/ vegetable vendors or own a kirana shop, pharmacy, salon, fast food outlet, and skilled professionals like a carpenter, plumber, tailor, consultant, etc.), who may or may not have sufficient income documents.
Home Loan Balance Transfer: Under this scheme, transfer your existing home loan taken from other banks/ NBFCs to HDFC at a lower interest rate.
PMAY: HDFC also provides the Credit Linked Subsidy Scheme (CLSS) based housing loan scheme under Pradhan Mantri Awas Yojana (PMAY).
Axis Bank Home Loan
Axis bank specialises in extending loans for various home related purposes.
Size of loan: Axis Bank also extends Home Loans of low ticket size as low as Rs. 3 Lakh.
Rates of interest applicable: They extend Axis Home Loans at fixed as well as floating rates of interest.
Rate of 10% is applicable on loans extended on fixed rates of interest.
Floating loans have a rate of interest ranging from 8.60% to 9.05% p.a.
Other applicable charges
Processing fees: A flat processing fee of Rs. 10,000 is applicable irrespective of the loan amount.
Pre- Closure charges: Nil for loans on floating basis; 2% for fixed interest rate loans.
Part payment charges: 2% for fixed-rate loans.
Unique features of EMI Holiday: Axis Bank allows EMI Holidays to its valuable loan customers. Fast Forward Home Loan seekers get extended EMI holiday for 6 months on completion of 10 and 15 years respectively, provided they maintain a regular payment record.
Types of Axis Bank home loans:
Axis Bank Home Loan: This scheme offers home loans starting at Rs. 3,00,000 with a host of benefits such as smaller EMIs, longer tenure, attractive interest rates, an easy application process, doorstep service, etc.
QuikPay Home Loan: It is a unique financing solution that lets you repay higher principal earlier in the loan tenure, and your monthly instalments reduce every month, helping you make huge savings on interest.
Shubh Aarambh Home Loan: This scheme provides quick, and easy loan disbursals with minimum documentation and you also get an interest subsidy on qualifying under the PMAY scheme. Also, on maintaining a clean track record, you can be offered 12 EMI waivers.
Fast Forward Home Loan: This scheme provides quick and easy loan disbursals with minimum documentation, maximum loan amount, and waivers for 12 EMIs for loans serviced beyond 10 years.
Asha Home Loan: Under this loan, get an amount starting from Rs. 1 Lakh up to Rs. 35 Lakhs at an affordable interest rate, 12 EMIs waived off, longer tenures and customized loan based on your banking pattern.
Top-Up Loan: Axis Bank home loan customers can avail of extra finance of up to Rs. 50 Lakhs against the mortgage of their property with this loan scheme and use it for multiple personal as well as business purposes.
Super Saver Home Loan: Under this scheme, any surplus funds at your disposal can be deposited in the Super Saver account, enabling you to save on interest while still being able to use it whenever needed.
Power Advantage Home Loan: Under this scheme, the interest rate for the home loan will be fixed for the initial two years and floating after that.
New Home Loan: This home loan from ICICI Bank can be obtained for purchasing or constructing a new home. It is offered at an affordable rate of interest for tenure up to 30 years. NRIs can also apply for this loan.
Insta Home Top Up Loan: Under this scheme, you can get a pre-approved instant home loan up to Rs. 1 Crore for tenure up to 10 years in just 3 clicks for personal and business financial needs.
Instant Home Loan: The sanction for this home loan is pre-approved, and it is offered exclusively to customers who have a Salary Account with ICICI.
Pre-Approved Balance Transfer: With an online pre-approved balance transfer, transfer your home loans to ICICI at a lower interest rate under this scheme.
PMAY: You can avail of the benefit of interest rate subsidy under the PMAY housing loan scheme from ICICI Bank.
Bank of Baroda Home Loans
Interest rates applicable: Bank of Baroda offers loans at low and competitive rates. Bank of Baroda Home Loans can only be availed on a floating rate of interest basis, rates range from 8.25% to 9.80% p.a.
Loan approvals: A big advantage is that the loan can be approved even before the property for which it is being sought is finalised.
Reduced interest payable: Home Loan advantage is a specialised product wherein surplus funds held in the Savings Account are treated as principal, thereby reducing the amount of interest payable on the loan.
Special benefits offered:
Accident insurance is provided free of cost with every Home Loan.
Access to Credit Card and a discount of 0.25% for Car Loan, if Home Loan is taken from Bank of Baroda.
Small loans up to 2 lakh can be applied for.
Maximum tenure of Home Loan is 30 years, which may be extended to 70 years under special terms and conditions.
Types of Bank of Baroda home loans:
Baroda Home Loan: It is a regular housing loan for purchasing a plot/ flat, building your own home, and extending your existing residence.
Baroda Home Loan Advantage: Under this scheme, the home loan sanctioned will be linked with your savings bank account. Any credit available at the end of the day in the linked account will be counted for credit in the linked home loan account.
Baroda Home Loan Takeover Scheme: Switch your existing home loan from other Banks/ HFCs/ NBFCs/ FIs, etc., to the Bank of Baroda with this scheme.
Home Improvement Loan: Upgrade your residence with Bank of Baroda home renovation loans. The loan can be used for repairs and renovation to your existing house/ flat, purchase of new furniture, fittings and furnishings, etc.
Baroda Pre-Approved Home Loan: This scheme provides in-principle approval for a home loan before identifying a specific house, flat or plot by a prospective home loan applicant.
Baroda Top Up Loan (Resident/ NRIs/ PIOs): It is an additional loan facility extended to home loan borrowers for any purpose except speculative or illegal purposes.
Baroda Home Suvidha Personal Loan: This loan helps you finance the miscellaneous costs related to the purchase of your home, such as the cost of insurance, registration costs, stamp duty, goods & service tax, and club membership fees, etc.
Credit Risk Guarantee Fund Scheme for Low Income Housing: Under this scheme, the trust provides a credit risk guarantee fund to the lending institutions against housing loans up to Rs. 5 Lakhs for borrowers in the Economically Weaker Section (EWS)/ Lower Income Group (LIG) categories in an urban area without any collateral security or third-party guarantee.
PNB Home Loans
Enhancement of loan: They do permit an enhancement in the amount of loan sanctioned on grounds of cost escalations.
Purpose: PNB does not provide Top Up Loans.
Rates of interest applicable: Loans are available on fixed as well as floating rates. Floating Interest Rate loans varies from 8.40% to 9.20% p.a.
Other charges applicable: Processing charges are payable at the rate of .35%, however, these are subject to a minimum of Rs. 2500 and a maximum of Rs. 15000 capping.
Tenure: The maximum tenure of the loan is 30 years. However, it may be extended to 60 years in special cases.
Types of PNB home loans:
Housing Finance Scheme for Public - PNB Max-Saver: This housing loan variant provides the advantage of substantial savings to the borrowers on the interest component on account of the facility to deposit their surplus funds in the overdraft account and withdraw the same at their choice as per their needs.
PNB Pride Housing Loan for Government Employees: This scheme provides housing loans to permanent employees of Central/ State Government, Defence Personnel, and Paramilitary Forces, at attractive rates.
Housing Loan for Public: Home loan for construction of house/ flat, purchase of built house/ flat, purchase of under-construction house/ flat, carry out additions/ repairs/ renovation/ alteration to the house/ flat, and purchase of land/plot for house building.
Housing Loan for Public – Pradhan Mantri Awas Yojana – Housing for All: Housing loan to individuals from EWS and LIG categories at attractive rates for purchase, construction and addition of rooms, kitchen, toilet etc., to the existing dwelling units.
PNB Gen-Next Housing Finance Scheme for Public: Housing finance to Gen-Next salaried class borrowers such as IT professionals, PSBs/ PSUs/ Government employees.
LIC Housing Finance Limited
Purpose: LIC Housing extends Top Up loans subject to special approvals in certain circumstances only.
Interest payable: LIC Home Loans are offered at very cheap rates; you may avail them at the lowest possible rates here. Interest is offered on floating rates only. The rates of interest vary from 8.30% p.a. Interest is computed on a monthly reducing basis.
Other charges payable: This is another big advantage to loan seekers.
Processing fees are applicable at the rate of 0.5% but is subject to a maximum of Rs. 10,000.
Pre-closure charges and part payment charges are not applicable.
Types of LIC Housing Finance Limited home loans:
Housing Loan for Resident Indians: Home loan to salaried as well as self-employed resident Indians for the purchase of under-construction/ ready to move homes or for the construction of own house.
Griha Suvidha Home Loan: Home loan to salaried as well as self-employed resident Indians drawing part of salary in cash.
Home Loan to Non-Resident Indian: This is a housing loan facility for NRIs who are aspiring to own a house in India.
Plot Loan: This loan is provided against the purchase of residential plots for the construction of a home within a period of 3 years.
Home Improvement/Renovation loan: This loan is available for existing as well as new customers for improvement or renovation of an existing house.
Home Extension Loan: Home loan for extension of an existing house.
Home Loan for Pensioners: It is a home loan for up to 65 years old Central government/ State government/ PSU/ Nationalized Bank employees and individuals who are drawing pension under Defined Benefit Pension Schemes (DBPS).
Top Up on Home Loan: This loan can be availed by new/ existing home loan borrowers of the bank on their existing home loan.
Home Loan Balance Transfer: Under this scheme, you can switch your home loan to LIC Housing Finance without any hassle to enjoy benefits such as lower rate of interest, affordable EMIs, top-up loans, etc.
Advantage Plus: Under this scheme, you can switch your home loan to LIC Housing Finance to get benefits such as a lower rate of interest, affordable EMIs, a top-up loan, and a waiver of 2 EMIs.
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