Top Home Loan Schemes: This Festive Season

Courtesy: thehindu.com

Buying a house is the cherished dream for every individual and most rely on their trusted banker to help out with procedures and paperwork. But are you aware of the options available with other banks and non-banking financial organisations?

Most home buyers that opt for home loans get carried away by convincing sales talk and forget to ask relevant questions about charges, late payment penalties, flexible interest rates etc., and then end up paying more than double of the amount borrowed.

So, how do you choose the best home loan plan that suits your financial commitments even if there is a large unforeseen expense in the future?

It is advisable to carry out a thorough check of all lenders in key areas like:

Interest rate
Processing fees
Loan approval time period
Penalties and charges for late payments
Flexible loan regulations and nil foreclosure charges

Remember that if interest rates are low, the fee structure is likely to be high though long duration loans come with low interest rates.

Due to the festival season, both banks and financial institutions are offering attractive freebies to customers. Here are some of the top home loan schemes that have reasonable interest rates, limited charges, and several other benefits.

State Bank of India Home Loan

With a market share of nearly 42%, State Bank of India is the current top favourite of home loan applicants.

Rate of interest: Between 8.35 to 8.70%　

Festive offer: Zero processing fees valid till Dec 2017 for all new loans. This could help to save around Rs.10000 to Rs.12000 depending on the loan amount applied for and the duration.

HDFC Home Loan

Aggressive marketing and flexible home loan plans tailored to suit borrowers has helped HDFC bank capture 24% of the market to become the second largest home loan disbursing organization. 　

Rate of interest: Between 8.35% to 8.55% and their processing fee is 0.5% of loan amount or Rs. 10,000 + service tax.

LIC Housing

LIC Housing has a wide network of branches and promises hassle-free documentation to make it easier for customers to get faster loan approvals. 　

Rate of interest: Between 8.35% to 8.60%

ICICI Bank – Being a private bank, its home loan processing is faster than public banks. This bank is part of the Indian’s government’s Pradhan Mantri Awas Yojna to enable low cost housing for the salaried class. So, depending on a customer’s payment track record, it also offers overdraft facility to them for personal emergencies.

Rateofinterest: Between 8.35 to 8.80%.

Axis Bank – Though a relatively new entrant into the market, Axis Bank has managed to create a strong reputation for itself through aggressive marketing and loan disbursal policy.

Rateof interest: Between 8.35 to 8.70%.　

New: The bank’s new home loan scheme offers a waiver of 12 equated monthly instalments for customers that pay regularly during the fourth, eighth and twelfth year of loan disbursal. This loan waiver will help in cutting down the tenure of home loan. 　　　　

This article is contributed by RoofandFloor, part of KSL Digital Ventures Pvt. Ltd., from The Hindu Group

Source: thehindu.com