What are the Most Popular Home Loan Schemes in India?

What are the Most Popular Home Loan Schemes in India?

From Muhammad Tahir

With a host of options available in the market, selecting the best Home Loan deal can be a challenging task. Only in-depth research and comparison can help ascertain the suitability of a Home Loan and go ahead with yo...

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With a host of options available in the market, selecting the best Home Loan deal can be a challenging task. Only in-depth research and comparison can help ascertain the suitability of a Home Loan and go ahead with your application. 

Points to consider while selecting the best Home Loan scheme

Some of the aspects that you must understand and take care of before deciding to apply for a Home Loan are:

Quantum of loan: The maximum amount that you can avail as a Home Loan is dependent on the LTV ratio as per the lender's credit policy. Depending on the value of the property, the LTV ratio can vary between 75%-90%. The rest of the margin money needs to be arranged by the applicant.

Repayment tenor: Maximum repayment tenor for a Home Loan can extend up to 30 years. Though, you must opt for such a repayment period, which gives you an EMI which is easily affordable and, at the same time, will help you repay your loan quickly.

Interest Rate: You must opt for a Home Loan that comes with the lowest interest rate according to your profile. A small difference of even 0.25% percent in the interest rate can make a massive difference in the affordability of the loan.

Processing fees: The processing fee is a one-time charge levied by financial institutions while processing your application. Depending on lenders, this fee can go up to 2% of the loan amount.

Part-payment rules: You must opt for a Home Loan on the floating interest rate if you intend to foreclose the loan account, as in this case, there are no applicable foreclosure charges. 

Best Home Loan Schemes in India

A Home Loan is a financial product that is offered by all major lenders in India, but the details of the offers vary across lenders. Some of the best Home Loan schemes in India are: -

HDFC Home Loan- HDFC Bank provides Home Loans in different categories for salaried and self-employed personnel. The EMI starts from as low as Rs. 734 per month per lakh. HDFC Home Loans are available at fixed interest rates as well as flexible interest rates. HDFC Home Loan Interest Rates start from as low as 8.00% per annul and can go up to 9.65%. The maximum amount available can go up to Rs. 10 crores with the repayment tenor going up to 30 years. 

For a loan up to Rs. 30 lakhs, the maximum funding that is provided is 90% of the property cost.

For a loan above Rs. 30 lakhs and up to Rs. 75 lakhs, the maximum funding provided is 80% of the property cost.

For a loan above Rs. 75 lakhs, a maximum of 75% of the property cost will be funded by the bank.

ICICI Bank Home Loan- ICICI Bank is a leading private sector bank and offers various types of  Home Loans to cater to a large customer base. 

One of the unique Home Loan products by ICICI Bank is FLIP (Flexible Loan Installment Plan). Herein, the bank assumes that the income of the borrower is going to reduce after a certain time prior to the loan maturity. Thus, the lender extends flexibility in repayment of loans.  

It is completely hassle-free to find a Home Loan according to your preferences. For HNIs, the bank extends high-value Home Loans above Rs. 5 crores with interest rates starting from 8.60% to 9.40%. The maximum repayment tenor offered can go up to 30 years. 

The economically weaker section can avail of Home Loans under Pradhan Mantri Awas Yojana at subsidized interest rates. The interest subsidy that starts from 3% and can go as high as 6.50%. 

State Bank of India Home Loan- The Home loan schemes provided by SBI to its customers offer one of the lowest interest rates, which start from as low as 7.95% to 8.70%. The maximum amount available is Rs. 10 crores, and the extended repayment tenor can go up to 30 years. The loans disbursed by SBI fall under different categories depending on the amount of loan sanctioned. There are different plans for salaried and non-salaried or self-employed individuals. The women applicants are offered lower SBI Home Loan Interest Rates. 

Punjab National Bank Home Loan- At present, Punjab National Bank is the lender offering one of the cheapest Home Loans with low-interest rates. With Repo Linked Lending Rate interest rates starting from 7.80%, PNB Home Loan schemes begin with an interest rate of 7.95% for an individual who has a CIBIL score of >= 750 and can go to as high as 9.35% for loan amounts greater than 75 lakhs and lower CIBIL score. The women applicants can apply at a lower interest rate and enjoy some additional benefits. There is no upper limit for PNB Home Loans; however, a capping of Rs. 1 crore is placed on Plot Loans. The maximum repayment period offered is 30 years, including the moratorium period.

Bajaj Finserv Home Loan: Bajaj Finserv is a leading NBFC in India offering high-value Home Loans up to Rs. 3.5 crores. Bajaj Finserv also offers Home Loans under Pradhan Mantri Awas Yojana, which allows borrowers to accrue interest savings of up to Rs. 2.67 lakhs. The maximum repayment period on offer is 20 years, with the interest rates starting from 8.55% per annul. Customers also have the option of availing a Top-Up Loan of up to Rs. 50 Lakhs for various financial requirements. 

These are some of the best Home Loan offers in India. However, being a significant financial commitment, it requires due diligence before you make a final decision on availing a Home Loan. 

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