The interest rates charged by banks and other financial institutions on home loans may vary depending on several factors.
Buying a house needs meticulous planning as it could have a significant impact on our finances and monthly budget. Almost the entire lifetime savings is invested in purchasing a house, if you require additional funds beyond your savings. Home loans become helpful for prospective buyers looking to own a new house. With the advent of the digital process of availing loans it has become hassle-free to access and compare home loans these days.
The interest rates charged by banks and other financial institutions on home loans may vary depending on several factors. However the home loan interest rates start at nearly 8% per annum. The interest rate on your home loan influences your monthly Equated Monthly Instalments (EMIs).
Let’s take a look at the home loans provided by the two largest banks of the country, the State Bank of India (SBI) and the HDFC Bank.
The comparison below highlights the differences in the home loans to assist customers in making an informed selection.
State Bank of India Home Loan
The SBI home loan is available to both salaried and self-employed individuals. The loan can be utilised to buy a ready to move house or a property that is still under development. SBI home loans can also be used to renovate a home.
The loan amount can range from Rs 5 lakh to Rs 10 crore and the rate of interest starts at 8.7 per cent per annum. The loan can be availed for a maximum tenure of 30 years.
A person seeking a loan should be at least 18 years of age and not over 70 years.
State Bank of India charges 0.35 per cent of the total loan amount along with applicable taxes or a minimum of Rs 5,000, for processing the loan.
For availing the loan the applicant should submit identity proof, residence proof, property papers such as permission for construction and occupancy certificate, along with income proof documents such as IT returns, copy of Form 16, salary slips and others.
The applications for SBI home loans can be made via online or by visiting any branch as well.
HDFC Home Loan
HDFC Bank provides home loans to both salaried as well as self-employed customers. The loan amount offered by HDFC Bank is up to Rs 10 crore and it is currently offering home loan interest rates starting from 8.4% per annum.
The loan tenure is similar to SBI, which is up to 30 years.
The applicant must be at least 18 years old and less than 65 years to avail the loan. A processing fee of up to 0.50 percent of the loan amount or Rs 3,000 (whichever is higher) is charged.
The documents required for applying for a home loan are – proof of identity, proof of residence, bank account statement for the last 6 months, proof of educational qualification, Form 16, Latest salary slips or income tax return and property related documents like allotment paper and possession certificate.
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