Which Bank Is Best for Home Loan in India?

In its first bi-monthly policy review for the current fiscal (2018-19), the Reserve Bank of India (RBI) kept the repo rate unchanged at 6% last week.

In case you are wondering, the repo rate is the rate at which the RBI lends to banks, which is why this rate impacts home loan interest rates.

While a rate cut may not be on the cards anytime soon, you can still get a good deal on your home loan by selecting the right bank.

Here are five simple tips that will help you select the right bank.

• Obtain home loan quotes and offer details from as many banks and Housing Finance Companies as possible.
• Make a detailed note of the interest rates, tenure, and expected EMIs provided by all banks to compare the loan offers.
• Make a note of all additional fees such as administrative charges, processing fees, prepayment charges, and hidden costs of all the banks.
• Check if any bank is ready to waive off any specific charge for you.
• Do not get lured by freebies and offers.

Now that you are know how to select a right bank, let’s look at the current interest rates offered by 10 major banks in the country.

Let’s also see the rates offered by some of the leading housing finance companies.

While comparing the interest rates is one of the easiest ways to finalise a bank, your decision should not entirely depend on this one factor. As mentioned above, enquiring about the processing fee and prepayment penalty is equally important.