Gone are the days when people used to wait till retirement to accumulate money in order to pay for the home they wish to buy and in the end they were able to live in that house for only a few years. This era and its generation are fast and they want things instantly instead of planning and waiting for future. In such a scenario home loan is the only option for young working class as that would make them stay where they want to for a bigger chunk of their life. While there are several banks offering home loan to customers, only a few offer low interest rates and other benefits. Read on to know about the scenario in the current time.
In order to understand home loan interest rates and know about the best offers, you need to first understand that there are two types of interest rate method which banks may offer you. You can choose floating interest where the interest rate will change as per RBI guidelines and fixed interest where the interest will be fixed for a duration of time like two or three years. Most banks have these two options and in some cases women are offered lower interest rates too.
HDFC Bank: One of the most trusted private banks as far as home loans are concerned is HDFC. The bank has almost become people’s bank due to its vast networking and numerous plans to choose from. The number of customers it deals with every day is countless. Currently the interest rate is 8.5% for the new customers and the processing fee is up to 0.5%.
IDBI bank: For IDBI bank floating interest rate is prevailing at 9.15% for the first year of availing the loan. The base rate for the bank is 9.5%. According to the recent plan, the bank may offer loans at 8.55% for the first three months.
LIC housing finance: LIC housing finance is offering home loan at 8.7% interest per annum. This is also a floating amount and will vary with time. The maximum tenure can be 30 years.
DHFL home loan: DHFL is emerging as a preferable option as far as home loans are concerned. Currently the institution is offering home loan at 8.60% with low processing fee. This is again floating interest rate that will vary with time.
Axis Bank: Axis bank is also considered a trusted bank for all kind of loans and at this point of time, the bank offers home loan at 8.65% per annum. The bank also has a unique offer where the EMI for the last 12 months will be waived off if the repayment is done on time each month for the entire tenure.
ICICI home loan: The home loan interest rates for ICICI bank is at 8.65% and the bank offers 20% extra amount than your eligibility(subject to approval). So, if the cost of your new home is a bit more, you can always opt for ICICI home loan.
Indiabulls home loan: Indiabulls has also earned a good name in the home loan market and in the current scenario, the bank offers an interest rate of 8.50% which is again a floating rate of interest.
SBI home loan: SBI also offers competitive interest rates on home loans, which is currently at 8.55%. The low interest rates bring down the EMI amount payable per month quite low.
The home loan market is witnessing increasing competition due to increase in purchase of houses and decrease in the interest rates. It is therefore the right time to make a decision and get your home loan transferred or take a new loan in order to make the most of the prevalent scenario.