Owing a home is one of the biggest challenges in the Indian country considering the economics times. However having a financial helping hand is the best thing which can help realize your dream. We all want to live in best build house and see families grow. Indian banks and financial institutions have come up with housing loans which run at different rates according to the banks term.
The normal rate however range from 8.35% to 14%, banks are working to attract customers by offering low interest rates and reasonable repayment period. They have differences small numbers and this makes a lot of Indians to opt for the housing loans. This being the case banks have set some terms to be followed by the customers. The loan should be refunded each month according to the agreement.
We have several banks who are offering the housing loans at the best interest rate. They have two rates namely fixed interest rates and the floating interest rate.
Fixed interest rate:
Here the rate remains constant throughout the paying period. The rate is also flexible as the bank can allow you to shit from fixed to floating rates. It is believed the interest rate are much higher than the floating rate. With kind of rate you are sure of the much money to pay every month.
Floating interest rate
The rates keep fluctuating and there is no constant flow of interest rate. Sometime it might be too high thus paying more than expected. In most case the rates goes lower thus favoring the clients.
This are the kind of terms you should check before picking on the housing loans not to inconvenience you in terms of payments. Below we have tables showing the interest rates of various banks. Picking some of the well-known banks one can choose on which to work with.
HDFC bank8.70% onwards RS 0-10,000Nil
|Home loan provider||Home loan interest rate||Home loan processing fees||Prepayment charges.|
|SBI bank||8.65% onwards||RS 0-10,000||Nil|
|ICIC bank||8.85% onwards||Up to 0.5 of the loan||NIL|
|LIC housing finance||8.50 onwards||1 CR-RS 5000 and above 1CR -RS 10,000||Nil|
|Punjab national bank||8.85% onwards||Min 1000 and max RS 20,000||Nil|
|Canara bank||8.70% onward||It will be according to the applicant’s profile||Nil|
|Tata capital||8.70%||0.2 of the amount taken||Nil|
This some of the recognized banks in the Indian country. They vary in loan terms but offer almost the same range of interest. Clients should be more focuses on the interest rates which will determine their payments.
Facts to check before buying the house and applying for the housing loan
Getting to decide on a home is difficult decision you have to check the kind of house being offered. Is it worth the loan and will it serve its purpose. In terms of location and basic necessities like water and electricity. Check all financial institutions and banks for the best terms. Don’t just pick later to find a cheaper bank. Have a bit of history of the bank or institute you want to borrow from how loyal they are and reviews from other clients.