Which bank is best for a home loan? Which bank in India is good for housing loans? इन बैंको के साथ अपने घर लेने का सपना करें सच

First of all, congratulations to you for your upcoming purchase of a new house.best home loan Purchasing a house is still a dream of every individual, especially middle-class people like you and me.


Which bank is best for a home loan?
There are plenty of banks available in the market. Some of the top-rated banks with the competitive interest rate are:

Which bank is best for a home loan?Which bank in India is good for housing loans
Which bank is best for a home loan





Which bank is best for a home loan


  1. SBI Home Loan
  1. ICICI Bank Home Loan
  1. Axis Bank Home Loan
  1. Hdfc Bank Home Loan
  1. LIC Housing Finance Home Loan
  1. PNB Housing Finance Ltd.
  1. Kotak Mahindra Bank
  1. Bajaj Finserv


Before you choose any of the above-mentioned banks, you should know in short some of the important terms associated with home loan in India.
As an author of a financial blog, I would always suggest you, to go through the terms explained below :

  1. Interest Rate
One Of the most important factors, while deciding Best Bank For Home Loan in India 2020, is interest. Even a slight difference of 0.5% may affect your overall budget.
Interest rates are generally of two types - Fixed and Floating.
2. Processing Fees
Processing Fees may be fixed or percentage value of loan amount depending on the bank.
3. Pre-closure Charges
This is charged when one tries to close his home loan account before the scheduled tenure.
4. Legal Fees
Some bank charge legal fees for verifying the documents.
5. Part Payment Rules
Part-payment means paying off extra money when you have surplus. This money is than adjusted with your home loan account.


6. Home loan Tenure
Home loan tenure implies for the duration for which you want to take loan. Generally it range from 5 years to 30 years.
7. Equated Monthly Installments ( EMI )
EMI is the monthly installment amount that you have to pay in return of home loan.
It consist of both principal amount and Interest charged.
8. Down Payment
Down payment is the lump-sum amount that you pay from your own pocket during the purchase.
Bank allows maximum of 80% of the home value as loan and the rest is to be beared by the buyer.
This initial amount of payment by the buyer is termed as home loan.
I have shared this information from my experience that I gained writting a financial blog. Hope your doubt has been cleared.



Which bank in India is good for housing loans?


Factors to Consider While Choosing a Bank
1. Processing and Disbursal Speed
Go for the bank that rules out the possibility of any delays and is quick in processing the home loan application
2. Loan Qualification
Each bank has an internal lending criteria that depends on the borrower’s age, job profile, employment stability, credit history and others.
There are several calculators and eligibility charts, for instance the one offered by ICICI bank, which help the borrowers in apprehending their eligibility well in advance.


3. Repayment Terms
Each bank imposes distinct terms and conditions pertaining to the repayment of home loan.
You must clarify the terms related to settlement/foreclosing the outstanding amount, transferring the balance to another lender’s account, prepaying a part or full amount of home loan, and other things, before finalizing the bank.
4. Interest Rates
At the end of the day, the bank which offers you the better deal with a lower interest rate is going to spike your attention the most.
As a rule of thumb, if the loan period ranges between 2-5 years, going with fixed interest is considered an ideal move. Otherwise, floating rates are considered ideal for long tenure loans.
5. Hidden Charges
Hidden charges are something that tend to prick the pocket of borrowers the most. Thus, while narrowing down the options, it is advisable to compare the processing fees, down payment, valuation fees, prepayment costs and other charges levied by different lenders.
So Which Bank To Go For?
That depends on you, after taking into account your preferences for each of the above mentioned factors. But for starters, State Bank of India and ICICI Bank are two of the most popular lenders in the housing loan space in India.

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