Home loans are secured loans offered by banks and NBFCs wherein the borrower has to keep some valuable things as the security to the particular lender. In present times, when banks have cut their lending rates recently, the lowest home loan interest rate is offered by Bank of Baroda at 8.35% p.a. However, there are many other options in the market as well that come up with low-interest rates and higher loan amount. Hence, go through the home loan or housing loan interest rates in top 10 banks below:
Home Loan Interest Rates in Top 10 Banks
- State Bank of India- 8.70% p.a. onwards
- ICICI Bank- 8.65% p.a. onwards
- Axis Bank- 8.65% p.a. onwards
- HDFC Bank- 8.65% p.a. onwards
- Bank of Baroda- 8.35% p.a.
- Bank of India- 8.65 p.a. onwards
- LIC HFL- 8.50% p.a. onwards
- Canara Bank- 8.65% p.a. onwards
- Andhra Bank- 8.90% p.a. onwards
- Bank of Maharashtra- 8.95% p.a. onwards
It is also important to note that there are certain factors on the basis of which you can get a home or housing loan. These factors are however subject to change from one applicant to another and from one lender to another. Having said that, here are the factors affecting the home loan eligibility:
Factors Affecting Home Loan Eligibility
Monthly Income- The higher you will earn, the more loan amount you can get. So, the applicants who have a handsome monthly salary are most likely to get low-interest rates as well.
Age– If you are a young professional, you will obviously have less financial responsibilities on your shoulders. Hence, a young professional can get an overall great deal of home loans as his eligibility is higher.
Property Value– When you buy a property from an authorized dealer, banks will find it easier to finance that property. So, it is advisable to go for a property that would make the loan application easier.
Credit History– Be it any loan, having a good credit history is very important as lenders would trust you on the basis of your credit score also. Since defaulters are not much acceptable by the banks for any kind of loan.
Work Experience– The stability in the present organization is also another important factors when it comes to housing loan eligibility. Having said that, generally, 2-3 years of job stability is required by the bank for a home loan.
Your Employer Category- Banks and lenders generally trust applicants who are working in a reputed firm or MNC. So, if you are one of them, good for you!
Professional/Business Status- In the case of self-employed, there must be a good business running experience of an impressive stability in the present profession.
Relationship with Lender– If you are an existing customer or a borrower, it will add on to a plus point for you.
How to check loan affordability
On the basis of the above rates, you can check your loan affordability also. Loan affordability in simple term means the fund you actually afford for a smoother repayment. Many people often take a loan and then face difficulty while paying it back to the bank. However, checking the EMI, the total interest outgo, and the total amount (interest+principal). For this purpose, EMI calculator is used. An EMI calculator is actually an online calculator that is used to calculate the EMI (Equated Monthly Installment) and other related payment details. With the help of this, you can know in advance the total payment you will have to make for the loan you have taken and then decide if you can afford that particular amount or not.
Once you have done the research and decided to apply for a home loan, you must go through the eligibility criteria as well. The eligibility criterion set by the bank is subject to change from an applicant to another. However, the general eligibility criteria for a home loan is as follows:
- The applicant must be between 21-60 years
- The minimum annual income should be ₹1,20,000
- Applicant must have the work experience of 2-3 years
- The applicant must be between 21-65 years
- The minimum annual income of the applicant should be ₹1,50,000
- There must be at least 3 years of current business stability
- ID Proof (Passport/PAN Card/Voter Card/Driving License)
- Address Proof (Passport/Ration card/Utility Bill)
- Last 3 months salary slip
- 2 Passport size photographs
- Last 1-year bank statement with salary credit details
- ID Proof (Passport/PAN Card/Voter ID Card/Driving License)
- Address Proof (Ration Card/Passport/Utility Bill)
- Last 3-years ITR with the details of profit and loss
- Last 1-year bank statement (both credit and savings account)
How to apply
Now that you have got all the information, you can apply for loan without any hassle.Thus, with the all the above details, you can easily apply for the loan in any of the top banks that suits your purpose.