Buying your dream home is the dream of most people. It is also considered a major achievement in life. If you are thinking of realizing your dream of buying a house and are considering taking a home loan for this, then for your convenience, a list of home loan schemes available in government, private and housing finance companies has been shared here. Before applying for a home loan, it is important to understand some important things related to it.
Banks or financial institutions offer home loans to buy a house. This is a secured category loan. To repay this type of loan amount, EMI i.e. monthly installment is made. These installments include both the principal amount borrowed i.e. the loan amount and the interest rate applicable on it.
Depending on the size of the loan, the applicant will have to put 10%-25% of the total value of the property as down payment. The remaining 75-90% of the total value of the property will be for the home loan. In such a case, the funds received through the property home loan can be used for building construction, renovation, etc.
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In case of home loans, applicants also get tax benefits under sections 80C, 24(b), and 80EEA of Income Tax.
A good credit score is very important for this type of loan. The minimum credit score for a home loan may vary depending on the bank or financial institution. Generally, a CIBIL score of 750 or more is considered good. For example, banks like ICICI Bank consider applicants looking for a home loan with a credit score of 700 or more. However, some banks or financial institutions may be interested in considering applications from applicants with even lower credit scores, but if the credit score is less than 750, the bank or financial institution may offer a home loan with special conditions.
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This list includes details about loans of more than Rs 75 lakh offered by 11 government banks, 9 private banks and housing finance companies and the interest rate charged on them. This list can prove to be helpful in applying for the cheapest home loan.
Bank or Housing Finance Company | |
Rate of interest (%) | |
Government Bank | |
State Bank of India (SBI) | 8.50-9.85 |
Bank of Baroda (BOB) | 8.40-10.90 |
Union Bank Of India (UBI) | 8.35-10.90 |
Punjab National Bank (PNB) | 8.40-10.15 |
Bank Of India (BOI) | 8.40-10.85 |
Canara Bank | 8.40-11.15 |
UCO Bank | 8.45-10.30 |
Bank Of Maharashtra | 8.35-11.15 |
Punjab And Sind Bank | 8.50-10.00 |
Indian Overseas Bank | 8.40-10.60 |
Central Bank Of India | 8.45-9.80 |
Private Bank | |
Kotak Mahindra Bank | Over 8.70 |
ICICI Bank | Over 8.75 |
Axis Bank | 8.75-9.65 |
HSBC Bank | Over 8.50 |
Federal Bank | Over 8.80 |
Dhanlaxmi Bank | 9.35-10.50 |
Bandhan Bank | 9.16-13.33 |
RBL Bank | Over 8.90 |
HDFC Bank Ltd | Over 8.75 |
Housing Finance Companies (HFCs) | |
LIC Housing Finance | 8.50-10.75 |
Bajaj Housing Finance | Over 8.50 |
Tata Capital | Over 8.75 |
PNB Housing Finance | 8.50-11.45 |
GIC Housing Finance | Over 8.80 |
SMFG India Home Finance | Over 10.00 |
Indiabulls Housing | Over 8.75 |
Aditya Birla Capital | Over 8.60 |
ICICI Home Finance | Over 9.20 |
Godrej Housing Finance | Over 8.55 |
,Note: The data of all the above banks is till June 12. Which has been collected by Paisa Bazaar.com. Banks or financial institutions keep changing the interest rate from time to time, so it is advisable to get confirmation from the branch or website of the concerned bank before choosing any of these home loan schemes.,