Buying dream home is easy today. We have number of home loan options. Selection of best home loan is crucial exercise as it is long term debt. Small variation in interest rate can make huge difference in payment. In this article we will compare the home loan interest rates, features and figure out best home loan interest rates.
5 Factor to consider before taking home loan:-
- Interest Rate: – Select Home loan with low interest rate.
- Processing Fees:-Select Home loan with low processing fee processing fees varies from 0.5% to 1%.
- Interest rate history and trend:- Look at interest rate trend and history if bank is increasing rate quarter to quarter or year on year be prepared for additional EMI.
- Prepayment penalties: – Look for zero pre-payment penalties.
- Home Loan Tenure: – Select home loan with lower tenure so you will end up paying less money.
Also Read:-Prepayment of Home Loan – Good Descision
Best Home loan interest rates in India (July -2013):-
We are herewith current home loan interest rates in India / comparison of home loan interest rates in India.
This comparison chart clearly revels that State Bank of India is providing cheapest home loan in terms of interest rate. On second number we have HDFC Bank and third winner is ICICI Bank.
State Bank of India Home Loans
- Home loan interest rate: Upto Rs. 30 lakhs – 9.95%; Rs. 30 lakhs and above – 10.10%
- Processing fees: Up to Rs. 25 lakhs – 0.125% or Rs. 1,000 minimum;    Rs. 25 to Rs. 75 lakhs – Rs. 3,250;  Rs. 75 lakhs and above – Rs. 5,000
- Prepayment charges: Nil
HDFC Bank Home Loans
- Home loan interest rate: Upto Rs. 30 lakhs – 10.15%; Rs. 30 lakhs and above – 10.40%
- Processing fees            : 0.5% of the loan amount
- Prepayment charges   : Nil
ICICI Bank Home Loans
- Home loan interest rate: 10.25% (fixed for 1, 2 or 3 years) and thereafter it would be 10.50%
- Processing fees            : 0.5% of the loan amount
- Prepayment charges   : Nil
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Best home loan interest rates comparison chart in India
