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4 Home Loans to Consider Before the RBI Hikes Interest Rates

Updated on: 14 Dec 2021 // 18 min read // Home Loans
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The feeling of contentment and relaxation is nowhere experienced better than your home. Your own house is always better than a rented one. The dream of having their own home is common to every individual living as a tenant. Though it has become easier with the availability of Home Loans, there are certain things to be considered before taking a loan, so you don’t regret your choice of time or bank.

Interest rates may vary for different financial years. This year at the close of the three-day meeting of the Monetary Policy Committee, there is a possibility of an increase in the interest rates. If the repo rate experiences a shift, it eventually affects the interest rates of Home Loans. The possible hike in repo rate is indicating a revision in the Home Loans interest rates which would perhaps make the loans costly. Certain top banks and housing finance companies that you should consider if thinking of a Home Loan are as follows:

HDFC Home Loans 

The first choice of Indian families, this leading housing finance company grants a loan for up to 30 Lakhs at an interest ranging from 8.40% to 8.90% for women while for men its span is from 8.45% to 8.90%.

TruFixed is another facility by HDFC in which you have to pay a fixed rate for a certain term and an adjustable rate for the rest of the term. With this scheme you need to pay the fixed rate for barely two to three years, thereafter the rates will be adjustable.

HDFC is making Home Loans available for under construction houses, re-sale purpose or a flat in some builders’ developed societies. Unlike several finance companies, HDFC considers the requirement of self-employed individuals too. The Home Loan by HDFC makes you eligible for tax exemption, for both the interest and the principal amount.

Home loans before hikes in interest rates

PNB Housing Finance Home Loans

One of the most common names sought, when it comes to taking a Home Loan is Punjab National Bank Housing Finance. The rate of interest is competitive and being a government bank itis trusted by generations. The rate of interest ranges from 8.40% to 10% as per the plan you choose. Several schemes are available for women, men and even senior citizens. A small amount of 0.50% or 10,000 is charged as the processing fee as applicable. The duration to return the loan is up to 30 years while the bank has kept the minimum amount for a loan to be 8 Lakhs.

Indiabulls Housing Finance Home Loans

Indiabulls needs no introduction when it comes to housing loan services. Real Estate, Infrastructure, Housing and Securities, they deal in so many things and are equally good at each. The credibility of the company can be judged by the mere fact that it was established in the year 1999 and is listed among companies or organisations founded hundreds of years ago.

The rates of interest with Indiabulls under the Pradhan Mantri Awas Yojana are as low as 6.84 %. Indiabulls offers an interest rate of 8.40% to 9.75% for a loan of up to 75 Lakhs. There are several Home Loan categories with a variable rate of interest. The company even provides door-to-door services and is a hot favourite of many.

ICICI Bank Home Loans 

A brand known not less than any other is ICICI. With its highly competitive plans and low-interest rates, ICICI has covered a major share of the market. Gone are those times when people trusted only government banks, now they want quality services and staff that instead of forcing you into the process facilitate the same for you.

The interest rate of 8.40% is offered to working women who are not self-employed. While for working men, it goes to 8.45% per annum. ICICI Bank Home Loans to makes you eligible for tax exemption under the Income Tax Act. ICICI also charges a nominal amount as a processing fee to help your dream of buying your own house become a truth. The rate of interest obviously varies for various schemes and depends on several factors. Repo rate, financial budget, and other influences keep regulating the rate of interest. Carefully choose the right time and right bank/finance company before you lay the foundations of your dream.

Also Read: 6-Step Strategy for Single Women Home Loan Borrowers

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