BEST BANKS FOR HOME LOANS IN 2024
Choosing the right bank for a home loan is crucial for your financial well-being. The interest rates on home loans vary significantly across banks, and even a small difference in the rate can save you a substantial amount over the loan tenure. Here’s a comprehensive list of the best banks for home loans in 2024, along with their current interest rates:
| SR. NO. | BANK | INTEREST RATE |
|---|---|---|
| 1 | HDFC Bank | 8.75% p.a. onwards |
| 2 | ICICI Bank | 9.00% p.a. onwards |
| 3 | State Bank of India | 8.50% p.a. onwards |
| 4 | Bank of Baroda | 8.40% p.a. onwards |
| 5 | Punjab National Bank | 8.50% p.a. onwards |
| 6 | Union Bank | 8.35% p.a. onwards |
| 7 | Kotak Mahindra Bank | 8.70% p.a. onwards |
| 8 | Axis Bank | 8.75% p.a. onwards |
| 9 | Bank of India | 8.40% p.a. onwards |
| 10 | Citibank | 6.50% p.a. onwards |
| 11 | Bank of Maharashtra | 8.35% p.a. onwards |
Please note that the figures in the table are subject to change. Verify these details with the relevant bank before applying for a loan.)
PARAMETERS TO CONSIDER WHILE APPLYING FOR A HOME LOAN
When applying for a home loan, consider the following key factors to ensure you make an informed decision:
1. Total EMI Amount
You will pay monthly instalments (EMIs) for your borrowing until the end of the loan period. Each EMI consists of both principal and interest. Over time, your principal repayment will increase, and your interest payments will decrease.
2. Time Period
Check the loan repayment period. Choose a period that aligns with your expected income and financial goals. Longer durations may result in lower monthly EMIs but higher total interest payments.
3. Rate of Interest
Interest is the cost of borrowing money from the bank or financial institution. The interest rate is determined based on the principal amount and affects your total repayment amount. Opt for a bank offering a competitive interest rate to minimize your loan costs.
4. Initial Payment or Down Payment
A down payment is the amount you pay upfront. Contributing a larger down payment reduces your loan amount and interest burden. Aim to put down 10% to 20% of the property’s value to secure a manageable repayment schedule and lower interest rates.
5. Mortgage Insurance
Home loan insurance, or loan cover term assurance, offers financial security to your family in the event of your untimely death. The insurance provider repays the remaining loan balance, ensuring your family is not burdened with the financial hardship of unpaid dues. Many banks and housing finance firms require customers to purchase a loan cover term assurance plan.
6. Other Charges
Banks may impose administrative, processing, or service fees in addition to the EMIs. Review these fees with the lender before applying for a loan. Check if they are one-time charges or recurring monthly fees and adjust your budget accordingly.
By considering these factors, taking out home loans in 2024 will be easier. Remember, choosing a bank with competitive interest rates and favorable terms will help you secure a home loan that best fits your financial situation.
