Which Bank has the Best Offer for a Home Loan?

This is undoubtedly the best of times for all prospective homebuyers in India. The real estate sector has become much more organized & stable with the enactment of the RERA law for the benefit of the common man. The top builders are launching a multitude of projects across the country offering the best amenities. The banks also provide a variety of home purchase loans to attract homebuyers. If there is any problem for the investors, it is definitely the problem of plenty as they are literally spoilt for choice.

Property investment is one of the most significant decisions for every family. Nobody wants to compromise when they are buying their dream home. Right from the location to the selection of interiors, people expect the best. But what about the Bank that finances your dream home? Surely you want to know the best home loan offers that you can get. Read on!

Benefits of Home Loans

A home loan offers multiple benefits to borrowers. You can invest in a suitable property right at the beginning of your career with the help of home loans. While you indeed save on rental expenses, the tax benefits & interest subsidies given by the government can save a ton of money too. As home loans are long-term products, you can enjoy the benefits for an extended period. A property is an appreciating asset that gives a deep sense of security to investors. You finally have a place that you can call your own and come back to. 

Best Home Loan Offers in 2022

It is very straightforward to apply for housing loans today. Both public & private sector banks offer products with attractive features & benefits. A curated list of the top 5 home loan schemes is given below. 

1. HDFC Bank Home Loan

HDFC Bank is one of the established names in the housing loan space. It offers a range of home business loan to suit almost every customer segment. Home loans are available for the purchase, construction, extension, and renovation of your home. The digital application process is quick & safe. Additional top-up loans of up to Rs.50 lakh are available to the bank customers. Farmers & agriculturists are eligible for special schemes. The low-interest home loan schemes start at an interest rate of 8.60% p.a.

2. State Bank of India (SBI) Home Loan

The premier public sector bank is one of the largest lenders in the home loan segment that has fulfilled the dreams of over 30 lakh families in India. The Bank offers a wide array of home loan products and charges very low processing fees with no hidden charges. Loans are available for tenures up to 30 years, and the interest is charged on a daily reducing balance method. Special concessions on interest rates are available for women customers. The maximum age for home loan applicants is 70 years. SBI offers the cheapest home loan at 8.55% p.a. For customers with a CIBIL score of 800 & above.

3. Axis Bank Home Loan

The leading private-sector Bank offers housing loans starting at just Rs.3 lakh. Home loans are provided for up to Rs.5 crore for a maximum tenure of 30 years. The interest rates start at 8.6% p.a, and there are no foreclosure charges for early loan repayment. Home loans are provided for purchase, construction, expansion, repairs & renovation, and top-ups for existing loans. If all the necessary documents are in place, the home loan will be approved within 15 days for all eligible applicants.

4. Kotak Mahindra Bank Home Loan

Kotak Bank offers home loans starting at just 8.49% p.a. for the salaried class. The rates are slightly higher at 8.55% for self-employed people. You can apply online and get the benefit of instant home loan approval. The Bank has a facility of granting an In-principal approval within 24 hours based on your income tax credentials. Kotak Bank also provides doorstep services for its housing loan customers. The Bank charges a processing fee of 0.5% and 1% for the salaried & self-employed classes, respectively. 20 years is the maximum home loan tenure provided by the Bank. Home loan insurance is provided to every customer at very reasonable premiums.

5. Bank of Baroda (BoB) Home Loan

Bank of Baroda is one of the leading public sector banks in India. It offers home loans with several exclusive features for its privileged customers. Loans are granted for a maximum of 30 years tenure. The interest rates start at 8.45% p.a. BoB home Loans cover up to 90% of the property’s value, and the maximum loan amount is Rs.10 Cr to an individual applicant. Up to a 3-year moratorium is granted after the loan disbursal. Special benefits are extended to farmers to facilitate loan repayments in half-yearly instalments to match the crop harvest & sale period. The Bank charges low processing fees with zero foreclosure charges. Free credit cards are offered to all BoB home loan customers. You can apply for a home loan through the Bank’s website or visit the nearest branch.

Important Points to Note

• Banks offer the lowest interest rates on home loans to customers with a stable income and good credit rating (CIBIL score of 800+)
• Several other factors, like the age of the applicant(s), family income, employment type, property details, etc., play a decisive role in sanctioning of home loans by the banks.

• Principal repayment up to Rs.1.50 lakh (p.a) can be claimed as a tax deduction under section 80C. Interest payments up to Rs.2 lakh (p.a) are also eligible for deduction under section 24(b) of the Income Tax Act.

Conclusion

Despite the availability of several asset classes, the property still remains the most popular investment choice across all social groups. Rich or poor, young or old, men or women, everybody wants to buy a house. It’s no surprise that property is called ‘real’ estate across the world. The easy availability of home purchase loans is the perfect icing on the cake for all those who want a home that they can call their own.