Home Loans: All you need to Know

What is home/house loan?

Home or House loan is a loan offered by financial entities (generally banks) to an individual to help in buying or built a house or Apartment. The property is mortgaged to the lending entity as security till the loan has been paid back with the interest as agreed. The value of the property determined the amount of loan.

Type of home loans: 

There are different type home loans available in the market. The types are differentiated and described below.

Home Purchase loan: - 

These loans which are provided for the buying of a house or an apartment are the most basic category of home loans.
- The loan amount is 80%-85% of the property value.
- A fixed and floating interest rate is a feature of this type of home loan which is available for various
new onetenure period. 

Home improvement loan: -

This type of loan provided for assist in the improvement and home renovation work.
- They are available for any kind of renovation in a home. 

Land loans: -

This type of loan usually provided to purchase a piece of land or plot for construction.
- They are provided 70% of the property value
-Land loans cannot be avail for buying agricultural lands. 


Bridge home loans: 

This type of loan is very helpful for those who are trying to sell their old house and buy new one
.This is normally a short term loan and the loan can be used to purchase the new home and repay the bank once the existing home is sold.

Home Extension Loan: 

This kind of loan provided when the borrower wants to extend an existing house. 

Home Construction Loan: 

This type of loan provided when the borrower wants to construct a new home. 
There lots of banks and NBFC (Non-banking financial company) which provide homes loans to borrowers. Any individual can avail these loans from any commercial banks and NBFCs on a various floating and fixed interest rate. These interest rates depend on the loan issuer entity.

Home loan interest rates of all major banks/NBFC are:

Banks:

  •  State Bank of India - 8.60% - 8.65% (For Women), 8.65% - 8.70% (For Others)
  •  ICICI bank - 8.65% - 8.80%(For women) - 8.70% - 8.85%(For Others)
  •  HDFC - 8.65%(For women) - 8.70%(For Others)
  •  Bank of Baroda - 8.35% - 8.55%
  •  AXIS bank - 8.65% (fixed)
  • IDBI- 9.15% - 9.20%
  •  Union Bank of India- 8.75% - 8.80%
  •  Bank of India- 8.65% - 8.70%
  •  Corporation bank- 8.85%(fixed)
  •  United bank of India- 8.80%(fixed)
  •  HSBC bank- 9.35% - 9.45%
  •  Indian bank- 8.60%(fixed)
  •  Deutsche bank- 10.50%(fixed)
  •  Standard Chartered- 9.35%(fixed)
  •  Federal bank- 9.57% - 9.82%
  •  Allahabad bank- 8.85%(fixed)
  •  Central bank of India- 8.50%(fixed)
  •  UCO bank- 8.75% - 8.90%
  •  Canara bank- 8.65% - 8.75%
  •  Kotak bank- 8.75%(fixed)
  •  Dena bank- 8.55% - 8.80%
  •  Vijaya bank- 8.90%(fixed)
  •  Syndicate bank- 8.75%(fixed)
  •  Citi bank- 8.80%(fixed)
  •  Punjab national bank- 8.45% - 8.50%
  •  Oriental bank of commerce- 8.60% - 8.70%
  •  Indian overseas bank- 8.65% - 8.90%
  •  Development credit bank- 10.60%(fixed)
  •  Bank of Maharastra- 8.95% - 9.05%
  •  Andhra bank- 9.50% - 9.70%
  •  Karnatak bank- 9.50% - 9.75%

Non-Banking housing finance companies:

  •  DHFL - 8.60% - 8.70%
  •  LIC housing - 8.50% - 8.70%
  •  Industrial housing finance limited-8.65%(For Women) - 8.70%(For others)
  •  National trust housing finance Ltd.- 14% - 16.50%
  •  Reliance home finance Ltd.- 10.60%(fixed)
  •  Repco home finance Ltd.- 9.60%(fixed)
  •  L&T housing finance- 9.65% - 10.25% (for Salaried/ SEP) 9.65%-10.50%(SENP
  •  TATA capital housing finance- 8.65%(For Women) - 8.90%(For Others)
  •  PNB housing finance- 8.90% - 9.10%

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