Some Of the Best Banks for Home Loan In 2024!

HDFC Home Loan Interest Rate 2024

Tenure – 30 years (maximum)

Processing fees – 0.50% of the loan amount or Rs 3,000, whichever is higher.

Affordability scale for HDFC Home Loan – High

Advantages – The advantage of going forward with HDFC is that it is also among one of the first HFCs that reduce rates after the RBI announces rate cuts. They also offer significant benefits to their customers, who the bank calls their extended family. 

Disadvantages – HDFC offers the best rates to borrowers who have a credit score of at least 750, if your score is below this, you will not be able to apply.

Best Banks for Home Loan 7 – ICICI

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Many claim that this bank is the best bank to get a home loan. It currently has a network of over 5,288 branches that are located all over India.

ICICI Home Loan Interest Rate 2024

Tenure – 30 years (maximum)

Processing fee – 0.50% of the home loan amount.

Affordability scale – ICICI Bank Home Loan: High

Advantages – It is one of the most customer-friendly banks. Also, ICICI Bank is one of the banks that is quick in offering their customer’s rate transmission benefits, which is a great boon. The ease with which business is carried out here is effortless.

Disadvantages – The only complaint we can think of is you will be subjected to multiple cold calls which have stopped ICICI bank from being the best bank for a home loan.

Best Banks for Home Loan 8 – LIC Housing Finance

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A subsidiary of LIC, LICHFL has so far approved over 3.35 lakh home loans all over the country. It is one of the country’s largest Housing Finance Mortgage loan companies, which has its registered and corporate office located in Mumbai. Having over 12,000 marketing intermediaries across the country, they help customers navigate through the loan processes. It is known to finance the repair and renovation of existing flats and houses in the country.

LIC Housing Finance Home Loan Interest Rate 2024

Tenure – 30 years (maximum)

Processing fees – 0.25% of the loan amount, with the upper limit, capped at Rs. 10,000.

Affordability scale for LIC Housing Finance – Average

Advantages – They offer 90% of the property value to their customers as a home loan.

Disadvantages – Their interest rates are lower than some other more prominent brands. 

Best Banks for Home Loan 9 – Canara Bank

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This bank has its headquarters in Bengaluru and operates over 10,391 branches located all across India. It is one of the best banks to take a home loan from as they have reasonable interest rates. 

Canara Bank Home Loan Interest Rate 2024

Tenure – 30 years (maximum)

Processing fees – 0.50% of the loan amount, with the minimum and the upper limit, capped at Rs 1,500 and Rs 10,000, respectively.

Affordability scale for Canara Bank – Average

Advantages: If you are in the middle age bracket, you will find this bank and its policies suitable as you need to repay your loans before turning 75.

Disadvantages: Canara Bank charges a processing fee on home loans.

Best Banks for Home Loan 10 – Axis Bank

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As of now, Axis Bank runs around 4,500 branches that are located within India and in international locations as well. The common question is what are the interest rates at Axis bank? We have answered that for you. 

Axis Bank Home Loan Interest Rate 2024

Tenure – 30 years (maximum)

Processing fees – 1% of the loan amount, with the minimum amount capped at Rs 10,000.

Affordability scale for Axis Bank – Average

Advantages: Axis Bank has been among the first banks to offer customers lower interest rates. To top up your home loan, you will need to get in touch with your agent from the bank.

Disadvantages: While several banks have offered a processing fee waiver because of Covid-19, starting October 2020, Axis Bank continues to charge duty to their customers. 

Information on the Best Banks for Home Loans in India 2024

As home loans are long-term commitments, we are here to offer you some tips on choosing the best banks for home loans in India. We have listed some of the best banks for a home loan, thus answering a highly googled question, as to which bank is the best bet for a home loan transfer?

In this day and age, the home loan requirement is different for different people. Some need to find the best bank for home loan balance transfer in India, whilst others need to find a bank with the lowest home loan interest rates in India. If the recent forecast is anything to go by, the Reserve Bank of India (RBI) will not be cutting policy rates further any time soon. Read the article to know which is the best bank to take a home loan from.

How to Check Home Loan Eligibility

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If you’re wondering about how to check the home loan eligibility, then read the detailed list below.

Age 

• 18 years minimum 
• 70 years maximum.

Type of Residence

• Resident Indian (RI)
• Non-Resident Indian (NRI)
• Person of Indian Origin (PIO)

Employment Status

• Salaried
• Self-employed

Net Annual Income

• minimum of 5.6 lakhs of annual income (highly dependable on the type of income).

Residential Type

• Either a permanent address, or
• a rented residence (for at least a year of consistent residence before applying for a loan).

Credit Score

• A credit score of 750 or more is required to get a home loan from a good bank.

It is easy to obtain a loan if all housing loan eligibility criteria are followed. to know more about Home Loan Eligibility, click here.

Income Proof Documents

For Salaried Applicant/ Co-Applicant

• Last 3 month’s salary slip
• Last 2 year’s income tax returns or copy of Form 16

For Self-Employed Applicant/ Co-Applicant

• Certificate of Qualification (for CA/ Doctor or other such professions)
• Last 3 year’s income tax returns
• TDS Certificate
• Details of Business License
• Address Proof of Business
• A professional CA audited the balance sheet, as well as the profit and loss account for the past 3 years.

Property Documents Required for a Home Loan

To follow through with any official (bank or government) formalities, a list of personal documents are required. Below is the list of home loan documents required to follow through with the process-

Any 1 Identity proof 

• PAN Card/ Driving License/ Valid Passport/ Voter ID

Any 1 Residence proof 

• Copy of water bill/ electricity bill/ telephone bill
• Copy of Aadhar card/ valid passport/ Driving License

Other Documents

• Employment Identity Card
• 3 passport-size photos along with a correctly filled home loan form.
• If any other loan is ongoing, a monthly slip of the last year’s loan account statement.
• 6 months of bank statements of all of the accounts of the applicant.

Note: A highly searched question is which bank provides the lowest home loan interest rate, in comparison to all the best banks for housing loans. The interest that is charged will always be the single-biggest influencing factor driving the borrower’s decision. We have listed the banks that currently offer you the most affordable deals. However, while making a list, what we have also done is, we have determined each of the banks’ loan affordability. This has been done by factoring in the applicable fringe charges. It is imperative to find a bank that suits your needs. You should note that the rates mentioned in this article are regarding the floating rate of interest, which are linked with the RBI’s repo rate, and they are not based on MCLR. Each person has different needs; some need a bank that provides them with the lowest home loan interest rate. We hope to answer your question, “Which bank is good for a home loan in India?” by the end of the article. Let’s start with some of the best banks to take home loans from.  Also, the rates and numbers given below are according to the fiscal year – from 1st April 2022 to 30th March 2023. So, if any changes will be made, they will be made as public announcements by the respective banks stated below.

Types of Interest Rates in Home Loans

There are two main types of interest rates in home loans as listed below –

• Fixed Interest Rate
  The rate remains constant in this system of calculation throughout the loan term. Because the interest rate is fixed, there will be no change in the interest costs. Depending on the offer, you may be able to switch to a floating rate scheme once a set period has passed on your loan.

Advantage – Because the rate is set, you know exactly how much interest you’ll pay upfront. If lending rates rise, your loan will be protected from frequent rate swings, saving you money in the long term.

Disadvantage – The interest component remains frozen, so if ordinary loan rates decline, you will not gain.

• Floating Interest Rate
  Your home loan’s interest rate is determined by the bank’s current highest lending rates. The rate is based on the bank’s most recent stated rate, which is influenced by a number of factors including the RBI’s monetary policy and lending rate changes, the bank’s reaction to the revision, and so on.

Advantage: The most obvious advantage of choosing a variable rate is that you will be billed at the current rate. You save money on interest payments if the rates drop.
Disadvantage: In the unlikely event that normal rates rise, the loan will be billed at a higher rate.

Factors that Determine Home Loan Interest Rate

The major 7 factors that determine the home loan interest rate are –

• Credit score
• Type of Interest
• MCLR Rates
• Loan-To-Value (LTV) Ratio
• Job Profile
• Location of the Property
• Tenure of the Loan

5 Things to Know Before Taking a Home Loan

• Affordability – While there are many different types of house loans to select from, you must consider affordability before applying. You should be able to afford the set monthly EMIs as well as adjust them comfortably within your budget. Consider your monthly overhead expenses in addition to the EMI you choose to pay and maintain a continuous revenue stream in the event of an emergency. So, while you can always buy a property you like in a location you like, being able to afford the home loan is just as vital.

• Suitable EMI – You determine the amount of the equated monthly instalment. Banks provide a variety of EMI choices to meet the borrowers’ various needs. The amount of money you put down on a house when you buy it has a big impact on your EMIs. The lower the stress of having an outstanding balance turned into EMIs, the larger the down payment. It’s also a good idea to keep your EMI payments under 45% of your total earnings.
• CIBIL Score – Maintaining a good credit score is a must when applying for a bank loan. Regularity pays beneficial in a variety of situations, including cyclical credit card payments and loan repayments. If your CIBIL Score is above 750, you may be able to get even lower interest rates on your home loan. This is accompanied by a far higher likelihood of faster loan processing and disbursement.
• Repayment Tenure – Repayment duration refers to how long it takes you to pay off a loan that has been approved. The length of your repayment period and the amount of money you pay in EMIs are inextricably linked. While a longer term may result in lower EMIs, it also increases the interest rate, causing you to pay double or treble the original loan amount due to high interest. If you have a consistent and rising income and stick to a strict budget, a short repayment term with higher EMIs is preferable. To incentivize faster repayment, interest rates for such terms are significantly lower. Banks can provide low-interest rates to individuals who choose a shorter repayment period.
• Eligibility – The first step is to determine whether or not you are eligible for a mortgage. Lenders will initially examine your home loan eligibility based on your income and repayment capabilities. Age, education, financial situation, number of dependents, spouse’s salary, and work stability are all crucial factors to consider.

If you run a Google search there will be a ton of options when it comes to the best banks for home loans for first-time home buyers 2023. In recent times, almost all banks offer their best interest rates, only to those applicants who can have a credit score that is above 700. Changes made in the repo rate will not immediately reflect your home loan EMI payments. Banks reset rates from time to time. If more clarification is needed on any of the above points feel free to reach out to us at NoBroker, and we will be happy to help you. We can also clarify any doubts or questions that you may have about which are the best banks for you to approach for a home loan transfer and help you find the lowest home loan interest rate bank in India.

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Frequently Asked Questions