Locate the Cheapest Home Loans

When you set out to buy properties, you will need a home loan. You can approach independent financial institutions, private sector banks or public sector banks. Lenders like Bajaj Finserve and others may have higher processing fees, documentation charges and rate of interest. If you go for private sector banks like ICICI and HDFC, you are assured of perfect services and timely disbursal of loans but you have to pay a higher amount towards processing fees and other charges. The cheapest home loans are available from public sector banks. State Bank of India is the leading bank but there is a feeling that only high value loans receive preferential treatment whereas if you were to approach them for amounts less than Rs. 20 lakhs, you may come across a wall.

The other banks like Bank of India are more friendly and customer friendly in this regard with easier and quicker processing and no discrimination even if loan amount is low. As regards processing fees, a survey showed that Bank of Baroda and Canara Bank charged 10.5% effective rate of interest but the former levied 0% processing fees. Punjab National Bank charged 10.75% as did HDFC home loan with a uniform 0.5% processing fees. OBC is the lowest at 10.4% and processing fee of 0.5%.

The term cheapest is relative. If you choose floating interest and rates dip in future, you benefit or lose if it is otherwise. Then again you have to consider how the banks adjust the floating rate against their internal rate. Public sector banks loans are on a reducing basis whereas some lenders have a fixed rate on the entire loan amount throughout the tenure of repayment. It is not just the initial offering you have to consider but also the final amount you will end up paying.

A good idea to get comparative statements of home loans from various lenders is to visit property sites India focused and you will come across useful information about loans and properties for sale.

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