Planning to buy your dream home but short of funds to do so? Don't worry, there are many lenders such as banks, housing finance companies and NBFCs who are helping people realize their dream of owning a house by extending home loan on attractive rates and for long tenure. Ideally for availing a home loan, the borrower should be aged between 21 years and 65 years.
It seems that all lenders are eager to lend but in reality, getting a home loan sanctioned quickly is a tedious task.
It is to be advised here that after analysing all the features and making comparison among home loan lenders, you should choose the best lender and then only step forward and apply for home loan.
Public Sector Banks are banks where a majority stake i.e. more than 50%, is held by the Indian government. The largest public sector bank is State Bank of India (SBI). Currently, there are 21 public sector banks in India. Almost all of them are offering Home Loans to the customers at attractive interest rates.
Below table will show you the list of all Public Sector Banks who are extending home loans with their interest rates and tenure. This table will be offering you a chance to pick a bank of your choice under one roof:
|Allahabad Bank||8.25% to8.85%||30 Years|
|Andhra Bank||8.15% to 8.30%||30 Years|
|Bank Of Baroda||8.15% to 9.15%||30 Years|
|Bank Of India||8.10% to 9.00%||30 Years|
|Bank Of Maharashtra||8.25% to 8.45%||30 Years|
|Canara Bank||8.05% to 10.05%||30 Years|
|Central Bank Of India||8.00% to 8.30%||30 Years|
|Dena Bank||8.15% to 9.15%||30 Years|
|Indian Overseas Bank||8.20% to 8.45%||30 Years|
|Oriental Bank Of Commerce||8.00% to 8.55%||480 Months, , including the moratorium period of 18 months|
|Punjab National Bank||7.90% to 8.70%||30 Years|
|Punjab And Sind Bank||8.45%||15 Years|
|State Bank Of India||7.90% to 8.30%||30 Years|
|Syndicate Bank||8.15% to 8.40%||30 Years|
|Uco Bank||8.05% to 8.15%||30 Years|
After submitting the loan application form along with all the required documents (as mentioned above), the lender will go through your application & verify your documents and inform you how much home loan you can get. The lender will also inform you about the interest rate, tenure, terms & consitions and other fees associated with the loan.
Based on the value of the house property and available funds with you, you must have decided the amount of loan which you require but it is not necessary that the lender will approve for the full amount of loan that you are looking for. It is also necessary for you to know approximately how much loan you are eligible for.
It is the decision of the lender to decide the amount for which you are eligible for based on certain criteria. Lender will decide upon the loan amount after considering some important factors like your income, age (to check how many years you have left for your retirement), repayment capacity, number of dependents, existing EMIs, assets and liabilities in your name, savings history, credit score, etc.
If you are taking a Home Loan for a self-occupied property then you will get following tax benefits:
Principal Repayment up to Rs. 1.50 lakhs every financial year: As per Section 80C of the Income Tax Act 1961, Principal Repayment of maximum up to Rs. 1,50,000 per financial year on your home loan taken for purchase or construction of a residential house property is eligible for deduction from gross salary.
Interest payment up to Rs. 2 lakhs every financial year: As per section 24 of the Income Tax Act 1961, Interest Repayment on home loan of maximum up to Rs. 2,00,000 per financial year is allowed for a self-occupied house property as expenditure under the head "Income from House Property".
Home Loan Balance Transfer is a facility that enables you to transfer the outstanding balance on your existing home loan to another financial institution offering better terms and conditions. Usually, this facility is availed in order to lower your home loan repayments. You can get attractive interest rates making your home loan affordable and easy on your pocket.
Home loan balance transfer involves the fore-closure of the current home loan with the existing lender and shifting the remaining loan account to another lender.
Following are the necessary requirements if you want to go for Home Loan Balance Transfer:
At the end, we want to mention that it is not just the interest that you pay towards home loan but there are other fees and charges associated with home loan. Hence, we suggest you to be careful about the additional charges such as processing fee, administrative charges, legal fee or inspection charges. Also, there are some penalties like on prepayment of the loan or late payment of EMIs. You must consider these also while comparing the deals offered by various lenders.
You should opt for home loan balance transfer only when it is cost effective for you. You need to consider all costs involved in home loan balance transfer and compare it with the total savings that you will get after balance transfer. If the savings after balance transfer are considerably more then you should opt for home loan balance transfer. You can check following aspects for deciding to opt for Home Loan Balance Transfer:
Actual savings in case of balance transfer depends upon difference between the interest rates, loan outstanding, tenure remained and the cost involved in balance transfer.
An important point to be taken care by the borrowers is that loan agreement terms of the new lender allows for prepayment, par payment and balance transfer to another lender without any penalty.