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Comparing home loan interest rates and processing fees of some of India’s popular financial institutions

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Comparing home loan interest rates and processing fees of some of India’s popular financial institutions

Bank of Baroda, Punjab National Bank, Oriental Bank of Commerce and Canara Bank are some of the most popular financial institutions in the country and so are UCO Bank, IDFC Bank Limited, Central Bank of India and Allahabad Bank. However, the real dilemma starts when you are asked to choose between these banks with regard to applying for a home loan. This is where you actually get confused with regard to taking the right decision.

You see, there are tons of banking institutions available in the country that offer home loans at competitive rates of interest and these banks and lenders are reputed public or private sector entities which have sizable customer bases. It’s not always that you have to opt for the troika of SBI (State Bank of India), HDFC and ICICI Bank or even Axis Bank when it comes to getting your home loan. While you should definitely check out the product offerings of these top lenders, you’d do well to take a closer look at the home loan interest rates and processing fees at other popular financial institutions in the country.

Home loans represent one of life’s biggest ever financial decisions. This is arguably the largest loan taken by anyone and the onus is on you to get it right. A home loan is also a loan which comes at the lowest rates of interest as compared to unsecured loans like personal loans or even auto loans. The home loan is always considered a positive loan since it helps you build an appreciating asset over a sustained period of time. This is why you have to choose your lender carefully and do your homework thoroughly prior to applying. You have to check the interest rates and processing fees of various lenders, their eligibility criteria and how well you fit into the same.

Before applying for a home loan, make sure that you know the budget at which you are comfortable buying a home and also that you have the down payment amount arranged (20% should be kept aside). You should also be ready to pay for other costs like registration, stamp duty and so on which are out of the purview of the home loan in most cases. You should also use an online eligibility calculator in order to find out the home loan amount that you are eligible for and you can then use an online EMI calculator at your desired rate of interest to see the monthly repayment amount. This will help you stay on the right track and plan out your finances prior to applying for the home loan.

Home loan interest rates and processing fees of some popular financial institutions-

On the topic of home loan interest rates and processing fees, here’s taking a look at the same for some of the most popular financial institutions in the country:

  1. Indian Bank- This bank offers home loan interest rates of 8.70-8.80% with processing fees being absolutely zero and this is a major advantage indeed.
  2. Corporation Bank- Corporation Bank offers home loan interest rates between 8.60-9.30% with processing fees being up to 0.50% of the loan amount subject to a maximum of Rs. 50, 000.
  3. Central Bank of India- You can get home loan interest rates between 8.60% and 9.60% with processing fees being 0.50% of the loan amount subject to a maximum of Rs. 20, 000.
  4. Indian Overseas Bank- Indian Overseas Bank offers home loan interest rates of 8.70% to 8.95% with processing fees of up to 0.50% of the loan amount subject to a maximum of Rs. 20, 000 for home loans up to Rs. 75 lakh. In case of home loans with higher amounts, the maximum limit for processing fees is Rs. 25, 000.
  5. Bank of Baroda- Bank of Baroda is one of the country’s most popular lenders and offers home loan interest rates of 8.70% to 9.70%. Processing fees are charged up to 0.50% for loans up to Rs. 50 lakh. For loans above Rs. 50 lakh, Bank of Baroda has processing fees of 0.25% of the loan amount.
  6. UCO Bank- UCO Bank offers home loan interest rates between 8.70% and 8.95%. There are absolutely zero processing fees charged by the lender.
  7. Punjab National Bank (PNB)- PNB offers home loan interest rates between 8.70% and 9.90%. The processing fees are 0.35% of the home loan amount with a minimum of Rs. 2, 500 and maximum amount of Rs. 15, 000.
  8. Canara Bank- Interest rates on home loans at Canara Bank are between 8.75% and 9.45%. The processing fees are 0.50% of the loan amount subject to a minimum of Rs. 1, 500 and maximum of Rs. 10, 000.
  9. Oriental Bank of Commerce (OBC) – Home loan interest rates here are between 8.75% and 8.85%. The processing fees on home loans are 0.50% of the loan amount subject to a maximum of Rs. 20, 000 + GST.
  10. Vijaya Bank- The rates of interest on home loans at Vijaya Bank are between 8.75% and 9.90%. The processing fees are 0.50% of the loan amount subject to a minimum of Rs. 1, 000 and maximum of Rs. 20, 000 + GST.
  11. Andhra Bank- Andhra Bank has home loan interest rates between 8.80% and 9.95%. The processing fees are 0.50% of the loan amount subject to a maximum of Rs. 10, 000 + applicable taxes.
  12. Syndicate Bank- Syndicate Bank offers home loan interest rates between 8.80% and 9.90% with processing fees up to 0.25% of the loan amount for loans up to Rs. 75 lakh and maximum of Rs. 10, 000 for loans above Rs. 75 lakhs.
  13. Allahabad Bank- Home loan interest rates are between 8.85% and 9.35% with processing fees being 0.4% of the loan amount for loans up to Rs. 1 crore and 0.24% for loans over Rs. 1 crore.
  14. Bank of India- Bank of India has home loan interest rates between 8.85% and 8.90% and processing fees are 0.25% of the home loan amount subject to a minimum amount of Rs. 1, 000 and maximum amount of Rs. 20, 000.
  15. IDFC Bank Limited- The home loan interest rates are 8.90%-9.10% and the processing fees up to Rs. 10, 000.
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