Things to Do to Choose Lowest Home Loan Interest Rates

What should you do when you want to know which lender is giving the lowest rate on home loans? Should you apply at many lenders? No, never. Then how would you know which of them is giving you the best deal? How can you compare? There are so many ways which are interrelated, simple and effective.

In this article, we will help you with some tips that will help you choose the lowest interest rates on home loans along with the ways to apply for it within your comfort zone. Later, you will get to know the eligibility and documents required in general by lenders offering home loans. Also, your credit history plays an important role in deciding your eligibility for the loan as well as the rate on it. So, you will find the answers to these questions here.

Compare Home Loans Interest Rates

The first thing you can do it to just compare the rates offered by as many lenders as possible. Some banks offer home loans at fixed rate of interest even though most of them have floating rate of interest. For housing loan, most of the people opt for a floating rate as it is lower than the floating. So, keep these things in mind. Below are the top banks and the floating rates offered by them.

Home Loan Interest Rates in Top 5 Banks

Below are the some of the lowest home loan interest rates by top banks

1.      State Bank of India- 8.45% p.a. onwards

2.      ICICI Bank- 8.55% p.a. onwards

3.      Axis Bank- 8.50% p.a. onwards

4.      HDFC - 8.50% p.a. onwards

5.      Bank of Baroda- 8.50% p.a. onwards

Compare Home Loan EMIs

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 ₹40 lakhs with the tenure of 25 years and interest rate of 8.50% p.a.

EMI: ₹32,209

Total interest outgo: ₹56,62,725

Total amount: ₹96,62,725

Compare Maximum Loan Amount on Home Loans

As per the guidelines of RBI, lenders can give you maximum loan amount of 90% for the loan amount of Rs. 30 lakhs. For loan amount above it, the maximum amount you can get varies from 75%-80%.

Compare Processing Fees

Even though there is not much change in the processing fees on home loans, you can check it to know how much amount will be deducted from the disbursal amount.

Compare the credibility of the lender

Home loans should be taken a from a reliable lender as you give your property documents with them so they must be trustworthy. This is the reason that most of the people prefer old lenders such as LIC HFL, SBI, HDFC Ltd. and top banks such as Bank of Baroda.

Different CIBIL score requirement

For home loans, lenders generally ask for CIBIL score of minimum 650 with a good credit history.

With the above details, choosing you can compare different lenders and choose the home loan interest rates or the cheapest home loan.