Buying a home is a lifetime financial decision which demands a long term commitment. It is a longest debt and a biggest task in itself. Before borrowing a home loan the borrower has to make a detailed research about it. There are lots of questions that arise with a thought of borrowing a loan. Home Loan amount eligibility, EMI calculation, credit score and the calculation of other regular expenses has to be calculated beforehand. The borrower also has research on the documents, interest, processing fees, turnaround time, loan to value ratio and the prepayment options available for the product by the different financial service providers available in the market. Though, the internet service has made everything so easy that information is available with few clicks and even one can easily apply for the home loan online. There are numerous things but without any confusion the borrower has to be clear and choose that makes your life easy even after borrowing the home loan.
So, which is the best bank to borrow the home loan is the biggest question in everyone’s mind. There is no single institution that works for all perfectly. Every financial institution works on different parameters for different customers. The following Banks/ NBFC’s are described along with their characteristics that help you to judge the best fit for you and how they differ with each other.
While researching about the banks/ NBFCs the first thought that comes in mind is “are all banks same?” No, all banks (private or PSU)/ NBFC’s are not same and every individual have different experiences while dealing with them. The private Banks/ NBFC’s treat their customers like a king and keep their application process on a fast track. They are aggressive from the formality completion till the loan amount is disbursed. The private companies deviate their rules and make the things easier for you and also the number of documents required is less than any PSU or Nationalized Bank. Whereas, the PSU have strict rules and treat you as their other customers. They have their own working style which we generally call ‘ a sarkari’ way of working.
The best Banks/ NBFC’s for Home Loans
The loan processing time, transparency in the whole process, interest rate, prepayment charges, online tracking of the loan after disbursement and the attitude towards the customer are the few parameters on which the borrower ranks the Bank/ NBFC. The following characteristics of different Banks/ NBFC’s can help you to take your decision wisely.
HDFC, being a leading financial service provider for home loans, offers a home loan that allows the borrow to purchase a new house, an existing house, construction of the new property and also the provides the facility for the balance transfer of an existing loan. It is a trusted name in housing finance industry. It has a rich experience of 40 years and offers multiple schemes with attractive offers to its customers. It provides home loans for salaried and non – salaried professionals. HDFC Pre-approved Home Loan Scheme, HDFC NRI Home Loan, HDFC Home Loan Transfer, HDFC Extension Loan, HDFC Special Home Loan for Agriculturists and HDFC Rural Housing Finance are different types of home loan schemes available with the Bank. The competitive interest rates, hassle-free loan processing, no hidden charges, and flexible loan terms are few notable benefits among others. The interest rates for HDFC women borrowers ranges from 9.4% – 9.9% (floating).
Doorstep assistance with minimal loan related documentation, fast loan approval, higher loan eligibility, affordable interest rates, low loan processing fees, flexible loan tenure, low affordable EMI’s, zero pre-closure charges, convenient repayment schedule, balance transfer option to avail lower interest rates and additional top up option is the USP of ICICI Bank. The loan tenor available for ICICI customers varies between 3 to 30 years. The interest rate for general borrowers varies between 8.40% and 8.85% and for female borrowers the interest rates vary between 8.35% and 8.85%. the loans are designed to meet the need of wide variety of customer. Being an existing customer of ICICI bank allows you to get a pre-approved home loan and reduced documentation benefit.
Axis Bank is emerging as a big player among the other financial service providers in the banking sector. In it’s home loan segment it has come up with various schemes and unique offers to attract and retain the existing the customers which in turn result in great saving for the existing customers. The multiple home loan schemes are designed to meet your requirements and get your dream home or plot. The long repayment period along with affordable low EMI’s reduce your financial burden.
Kotak Mahindra Bank
Not too old and with a span of 13 years Kotak Bank has emerged as a big lender in banking industry. The bank offers low interest rates, easy documentation, doorstep service and a fast loan approval service to its customers.
Being a new player as a financial service provider in banking industry, Yes Bank is successful in gaining interest of the customers with its new and excellent customer service schemes. Though, the bank offers the loans at a slight higher interest rates as compared to other private banks but makes worth buying with its multiple schemes for all types of customers. Loans are available for the purchase of new flat/ house, plot purchase, home loan balance transfer, top ups and much more. The loan service is available for everyone without restricting the job profile or industry. The distributed branch network and a large database of approved projects allow you to choose your dream home easily.
The procedure can be a bit time consuming while directly dealing with the Bank/ NBFC. Borrowing a home loan is dream for everyone and this can easily be fulfilled with Mudra homes where we guide you to choose the best fit for yourself.