by Clare Louise | April 30, 2018 9:27 am
If you are opting for a home loan (https://www.loanbaba.com/home-loan/), you need to research first. One of the major factors on which you should focus on to before deciding the loan lending institution is the interest rate charged by the various kinds of banks. The lesser the interest rate, the better it is for you.
The factors you should be considering are the floating interest rate, MCLR or Marginal cost of funds based Lending rate.
List of Best Institutions that provide you with Home Loans
Some of the institutions provide lesser interest rate than others on home loan. If you are looking forward to applying for home loan, the following list could save you a lot of hassle and save some money:
Dena Bank would be the best choice as it is providing home loans with interest rate of 8.25%.The floating interest rate of Dena Bank for home loans is 8.25 % to 8.35%, with MCLR rate of 8.25%. Along with this, the processing fee in Dena bank is NIL, which would be like icing on the cake. You don’t even need to pay any prepayment charge if you opt for Dena Bank. The tenure for the purchase of new property could be up to 30 years while for renovation and repair could be up to ten years.
State Bank of India
The floating interest rate offered by SBI is between 8.35% to 8.65%, with MCLR rate of just 7.95%. SBI avails the processing fee of 0.35% of loan amount or Rs. 10000 plus service tax whichever is less. SBI also offers a reward point program named SBI Rewardz under home loans. SBI is one of the most trusted financial institutions at present, who are known for not taking any hidden charges from customers. Along with this SBI offers an easy and smooth verification process to its borrowers. You should also consider going for SBI MaxGain loan feature.
Bank of Baroda
The floating interest rate offered by Bank of Baroda is 8.30%, which is one of the lowest being provided and MCLR rate is also 8.30%. Bank of Baroda charges the processing fee of 0.5% of the loan amount along with GST. One of the key benefits of opting for Bank of Baroda is they provide a free credit card (BOBCARD) which is complimentary for one year to all those who avail their home loan with a loan limit of Rs. 2 Lacs and above. Home loan borrowers also get a concession of 0.25% for car loans from the bank. The eye-catching part is that the close relatives of the applicant could be the co-applicant of the loan borrower for higher eligibility, with or without being a co-owner of the respective property.
ICICI offers floating interest rate of 8,35% – 8.80% with MCLR rate of just 8.20%. ICICI charges the processing fee between 0.50% to 1.00% of the loan amount or Rs. 15000/- plus applicable service tax and surcharge. ICICI provides a loan to the borrowers having minimum monthly income up to 20,000 per month and loan tenure could be up to 20 years.
Union Bank of India
Union Bank of India’s floating interest rate for the home loan between 8.30% to 8.35%, with an MCLR rate of 8.20%. The processing fee and prepayment charges are NIL for now. There is no Prepayment penalty charged by Union Bank of India if a loan is prepaid from verifiable sources.
These are the best financial institutions which provide you a home loan at a low-interest rate, don’t get confused by considering many institutions at the same time, save your time and go with these.
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