“Real estate cannot be lost or stolen, nor can it can be carried away. It is the safest investment in the world” – Franklin Roosevelt, Former U.S. President.
This is undoubtedly one of the most exciting times for all home buyers. You can find a beautiful home that suits your budget & needs. You are also flooded with attractive home purchase loans from banks & NBFCs. Surely it is the best of both worlds. But it presents one problem to you, i.e., the problem of plenty.
Buying a property is one of the biggest decisions of your life. Once you have finalized that dream home, the next challenge is managing finances. Banks & housing finance companies dole out innumerable offers to win over prospective customers. Not to be left behind, modern-day loan apps have launched schemes that appeal to the younger crowd. Choosing the right one is indeed an arduous task. This article makes an attempt to curate the best home loan offers in 2022.
1) Navi Home Loan:
Although it is a new offering, this product has some irresistible features that drive it to the top of the list. There is zero paperwork, and the documentation is minimal. You just need to download the app and register with your mobile number. Interest rates start at just 7.9% p.a. With loan tenures as long as 30 years; you get the benefit of flexible EMIs. The zero processing fee sets Navi apart from its competition. Loans up to Rs.5 Cr are approved instantly. Keep the PAN, Aadhaar card & bank account statements handy to complete the documentation. It is not another me-too loan product but a true-blue instant home loan scheme.
2) Kotak Mahindra Bank Home Loan:
Kotak Bank home loans start at 7.99% p.a.for the salaried class. It is slightly higher at 8.05% for self-employed people. A special feature of this loan is that the In-principal approval is granted within 24 hours based on your income tax credentials. The bank charges a processing fee of 0.5% and 1% for the salaried & self-employed classes, respectively. The bank also provides doorstep services to its home loan customers. The maximum tenure of this home loan product is 20 years. You can either apply online through the bank’s website or by visiting the nearest branch.
3) Bank of Baroda Home Loan:
You can apply for a housing loan with the Bank of Baroda, which is one of the premier public sector banks in India. It offers home loans for a maximum of 30 years, and interest rates start at 7.95% p.a. Loan is granted for up to 90% of the property’s value, and the maximum loan amount is Rs.10 Cr to an individual applicant. The processing fee is low, and there are no prepayment or foreclosure charges. You can make lump sum payments to reduce the principal and/or close the loan early at zero additional cost. You can either apply online through the bank’s website or contact the nearest branch.
4) LIC Housing Finance Limited (LICHFL) Home Loan:
LICHFL is one of the pioneers and the biggest home finance companies in India. It offers home loans starting at 8% p.a.interest. You can apply for a home loan through the online mode. The company charges a flat processing fee of Rs.3,000 (plus GST) for online applications and home loan approvals. The documentation is simple, with quick sanctions. The maximum loan repayment tenure is 30 years, and there is no penalty for prepayment & foreclosure of loans.
LICHFL also offers home loans to pensioners and NRIs at extremely competitive rates. Plot loans are also granted for the purchase of land and construction of a house within three years.
5) HDFC Bank Home Loan:
HDFC Bank offers a wide array of home loans to suit different customer profiles. These low-interest home loans start at 8.1% p.a. You can avail of a loan for the purchase, construction, extension, or improvement of your home. Top-up loans of up to Rs.50 lakh are granted to existing customers of the bank. Special loan schemes have been designed for farmers & agriculturists. You can also get special rates for the purchase & construction of properties in rural areas (e.g., a farmhouse).
HDFC is a veteran player in the home finance space with over 35 years of rich experience. The bank renders excellent service through its wide network of branches spread across the country. A key feature is the bank also offers property advisory services. The document storage service is provided free of cost to the bank’s customers.
Important Pointers on Home Loans:
- Cheapest home loans are offered by lenders to customers with a stable income and high credit rating (CIBIL Score of 750+).
- The amount of loan sanctioned depends on several factors like family income, occupation & age of the primary applicant, number of co-applicants, and credit score.
- You also get attractive tax benefits on home loans. Principal repayment up to Rs.1.50 lakh p.a. is eligible for deduction under section 80C, and interest payment up to Rs.2 lakh can be claimed as a deduction under section 24 of the Income Tax Act.
- You can reduce the EMI burden by opting for a longer tenure. But a longer tenure loan increases the total interest outgo. A bigger downpayment and periodic lump sum repayments can significantly reduce the EMI amount.
- Research the market and negotiate hard with the lenders to avail of the best home loan
Conclusion:
You can hit a goldmine if you get your real estate investment right. Property worth a few lakh rupees 2-3 decades back is now valued in crores. Just a bit of good planning can completely transform your life and that of your family. Security, value appreciation, rental income, tax benefits, and the pride of ownership are invaluable benefits that a property offers.
Not just the privileged lot; today, a common man can enjoy all these benefits. Due to home purchase loans, even young people in their 20s can aspire to be proud homeowners!
