Home loans, a step which brings your dream closer to you, now you may be thinking which dream. The dream of getting secured the dream of having your own shelter the dream of buying your own house. However the task of taking a home loan is a difficult one and various factors have to be given consideration before accepting a home loan from any bank.
What Does Home Loan Brings with It?
- Home loan adds on to you a big responsibility, a financial responsibility wherein you are required to repay a fixed amount of money every month
- The EMI paid every month consists of both principal and interest amount.
- You have the option of prepaying a part of the loan, if you have surplus funds by your side, but it is not compulsory.
Factors to Be Kept In Mind While Taking a Home Loan
- Every bank which is providing the home loan services are unique in their own way, which may be related to the type of services they offer or the documentation which they require, however the amount of interest is almost the same as they are kept competitive in the market. Hence one may choose the most convenient bank for themselves, for which they feel they would be able to get the loan easily.
- Many banks offers you loan i.e. public and private banks, however each one of it has it pros and cons. In case of public loans, initially it may be cumbersome to get the loan approved as they follow strict documentation method, but once it is done then you can get carefree about it. The keep the things strictly professional and you find it easy and happy being connected with the public banks. However vice versa is the case when it comes to private banks, as when it comes to giving loans you will see them running behind you, they even ignore the proper documentation as what they are majorly concerned of is granting loans, but once the task is done they treat you like nothing, and sometimes after the loan is sanctioned they may get on your head due to their unprofessional behaviour.
- You find the difference between private and public banks more prominent in case of interest rates, in the fluctuating market the interest rate keeps on changing, you will notice that private banks are the ones who increases the interest rate much before it is declared by RBI, but if we take of deduction in interest rates then action on such deductions are slowed down by these banks. However it is not in the case of public banks, who keeps the functioning and system transparent and also the decisions of the public goes hand in hand with the decisions of RBI.
- The term of the loan and the instalment amount to repay the loan, should be within your reach, i.e. the amount should be under budget such that you can payout the same every month without facing any problems, because the default in payment may create problems for you. In adverse situations the properties mortgaged for taking the loan may be sold off by the bank to get the amount of loan advanced to the customer.
Best Banks for Home Loan in India
As we all are aware that various banks are available in the market to give you home loans, whereas various things can be your reason to choose a specific bank for your home loan, it may vary from documentation methods or processing fees for home loan or term of the loan granted, customer services etc.
According to a recent survey conducted with over 1000 respondents. Lest us share the result came out showing the name of the banks which were chosen for home loan by the customers and their average level of satisfaction in different fields specifically after the disbursal of loan.
| Name of the Bank | Count of people surveyed | Average ratings | ||
| Interest rate & other charges | Fexibility | Service | ||
| SBI Bank | 324 | 5 | 3 | 3 |
| HDFC | 192 | 4 | 3 | 4 |
| LIC Housing Finance | 124 | 4 | 4 | 3 |
| Axis | 68 | 3 | 3 | 4 |
| ICICI Bank | 115 | 3 | 3 | 4 |
| IDBI Bank | 44 | 4 | 3 | 3 |
| Bank Of India | 62 | 5 | 3 | 2 |
| HSBC | 84 | 4 | 4 | 5 |
| Standard Chartered | 74 | 4 | 4 | 5 |
| Scale | 1 | 2 | 3 | 4 | 5 |
| Poor | Average | Good | Very Good | Excellent | |
If you have a look at the survey conducted above you may get to know that one of the public sector banks are leading in terms of charges and interest rates however Private Banks are offering better Service. Foreign Banks, though not winning the battle in any particular stream however still making their way with an ideal mix in terms of charges, flexibility and Service.
Now let’s have a look at some of the banks providing these loans and an overview on their policies.
State Bank of India
This bank has topped the list in providing home loans, which means the services of the bank is the best in the market. However, it should be noted that the loan taking process in this bank may be a tough job as this would require proper documentation and also all valid proofs.
HDFC Bank
This bank has managed to bag the second number on the list, however it has received mixed reviews from the banks, some may seem to be happy of it however you some of them is disappointed.
LIC Housing Finance
It comes right after the private banks HDFC and ICICI. However when we compare it with SBI, in spite of being a public sector unit it seems to have less paper formalities hence attracting more people towards it. However they provide loan on fixed rate of interest for five years.
