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Best Home Loan Public Bank

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.

Top Public Sector Banks Offering 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:

Top Public Bank Home Loan Interest Rate

BankInterest RateTenure
Allahabad Bank8.25% to8.85%30 Years
Andhra Bank8.15% to 8.30%30 Years
Bank Of Baroda8.15% to 9.15%30 Years
Bank Of India8.10% to 9.00%30 Years
Bank Of Maharashtra8.25% to 8.45%30 Years
Canara Bank8.05% to 10.05%30 Years
Central Bank Of India8.00% to 8.30%30 Years
Dena Bank8.15% to 9.15%30 Years
Indian Overseas Bank8.20% to 8.45%30 Years
Oriental Bank Of Commerce8.00% to 8.55%480 Months, , including the moratorium period of 18 months
Punjab National Bank7.90% to 8.70%30 Years
Punjab And Sind Bank8.45%15 Years
State Bank Of India7.90% to 8.30%30 Years
Syndicate Bank8.15% to 8.40%30 Years
Uco Bank8.05% to 8.15%30 Years

Needed Documents while Applying for Home Loan

  • Home Loan Application Form
  • Passport Size Photographs
  • Copy of your PAN Card
  • Identity Proof
  • Address Proof
  • Age Proof
  • Last 6 months bank statements
  • Form 16 for the last 3 years (for salaried persons)
  • Last 6 months salary slips (for salaried persons)
  • Copy of IT Returns of last 3 years (for non-salaried persons)
  • Copy of audited Balance Sheet & P&L statements of last 3 years (for non-salaried persons)
  • Copy of the Property Title Deed

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.

For How Much Loan You Are Entitled to?

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.

Tax Benefits of Home Loan

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".

What is Home Loan Balance Transfer?

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:

  • The applicant must be an existing Home Loan borrower
  • The borrower needs to have a decent Credit Score and good Credit History

Why to Choose Public Sector Banks to Avail Home Loan?

  • One feels more secured while opting for home loan from any Public Sector Bank
  • They offer an extensive range of loan products with attractive interest rate choices
  • You get better chances of getting your home loan sanctioned and may also get a lower rate of interest on home loan, in case you are an existing customer of a public sector bank
  • Most of the public sector banks provide online platform to apply for home loan
  • You will get quick and hassle-free procedure

The Bottom Line

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.

When Should You Opt for Home Loan Balance Transfer?

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:

  • When you are getting lower interest rate
  • You should be in the early stage of your home loan tenure
  • When there are no pre-payment charges involved in your existing loan
  • If the transfer cost is very low
  • When your home loan tenure is longer

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.