best home loan

Do Home Loan Interest Rates Comparison before Finalizing the Deal

A home loan is generally taken for 10 years and can continue up to 30 years depending on your repayment capacity. As a borrower, you should always compare different deals available in the market before you decide that the lender you have chosen is offering the rate that you can afford.

In order to repay the loan smoothly, it is necessary that you choose the tenure as per your repayment capacity. Since the rate of interest is not in your hands, you can only decide the loan amount you want and the tenure. However, the overall deal is finalized by the lender depending on your income and other factors.

The Home loan interest rates are decided by keeping into account your property type, income, savings, and your credit history along with other factors. If the bank or NBFCs is satisfied with the information provided by with, your application would be considered suitable for the rate.

The better the match is, the higher is the chance to get a lower rate. Below are some of the lowest housing loan interest rates offered by top housing finance companies and banks in India. You can check the rates and the general eligibility criteria with the documents checklist to apply at any of these lenders.

LIC Housing Loan Interest Rate

The home loan interest rate at LIC is one of the lowest interest rates in India presently. The minimum interest rate on housing loan is 8.35% per annum for women applicants. Below is the rate chart for the variable loan amounts and for different applicants:

  • Up to ₹30 lakhs- 8.35% p.a. (for women) and 8.40% p.a. (for others)
  • From ₹30 lakhs to ₹2 crores- 8.50% p.a. (for all)
  • From ₹2 crores to ₹5 crores- 8.70% p.a. (for all)

DHFL Home Loan Housing Loan Interest Rate

DHFL home loans are offering home loans with the interest rate starting from 8.60% per annum.  

SBI Home Loan Interest Rate

At present, the home loan interest rate at SBI is the lowest. If you are a salaried person, you can get the rate of 8.30% to 8.60% per annum.

Axis Bank home loan interest rate

The home loan rate at Axis Bank is presently is at 8.35% per annum onwards.

ICICI Housing Loan Interest Rate

The interest rate on home loans is starting at 8.35% per annum which is a special rate for women applicants. The rate for others is 8.40% per annum onwards.

Home Loan EMI Calculator

A home loan EMI calculator is an online facility that is accessible anytime anywhere. You just need to mention the basic details on your home loan which are as follows:

  • Loan amount
  • Tenure
  • Interest rate

Now, when you mention the above details in the calculator, it would give you the data of the EMI, the total interest outgo, and the total amount (principal+interest). Here is an example with the loan amount ₹20 lakhs with the tenure of 15 years and interest rate of 8.35% p.a.

EMI: ₹19,519

Total interest outgo: ₹15,13,480

Total amount: ₹35,13,480

Documentation Required

Have a look at the general documents checklist required by home loan lenders.

For Salaried:

  • Identity Proof- Voter ID/Passport/Aadhar Card/PAN Card/Driving License
  • Address Proof- Telephone Bill/Electricity Bill/Passport/Pass Book with Address/Ration Card/Bank Statement
  • Income Proof- Last 3-month Salary Slip, Bank Statement/Pass Book for the Past 6 Months
  • Detailed cost estimate with regards to the property to be constructed or renovated

For Self-employed:

  • Identity Proof- Voter ID/Passport/Aadhar Card/PAN Card/Driving License
  • Address Proof- Telephone Bill/Electricity Bill/Passport/Pass Book with Address/Ration Card/Bank Statement
  • Income Proof- ITR for Last 3 Years along with Balance Sheet and Profit & Loss Account for the Last 3 Years Attested by a CA, Last 6-months Bank Statement, Tax Deduction Certificate (If Applicable), Partnership Deed Copy (If Applicable), Tax Paid/Self-Assessment Tax Challan
  • Detailed cost estimate with regards to the property to be constructed or renovated

Eligibility Criteria

The general eligibility criteria required for a home loan at top banks is as follows:

For Salaried:

  • The age of the applicant must be between 21-60 years
  • The minimum annual income of the applicant should be ₹1,20,000
  • The applicant must have the work experience of at least 2 years

For Self-employed:

  • The age of the applicant must be between 21-65 years
  • The minimum annual income of the applicant should be ₹1,50,000
  • The applicant must have the business stability of at least 3 years

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