Money Market Instruments

Compare means to look into the qualities of different substitutes and rate which one is the best available alternative in terms of price, features or service.

Compare price means comparing the prices of alternatives available. Here we will be discussing about the compare prices of home loans in India.

To own a home is a far cry for many millions of Indians. Now a number of banks provide home loans with varying repayment periods. It has been a boon for the millions to make their dream come true. Home loans are given at the rate of 80-90% of property value. Only 10% need to be invested by the consumer. The term may vary from one year to thirty years. Longer the duration of loans, higher will be the interest charged. To get a home loan sanctioned there are various hurdles to pass through. You should submit the income proof and credit worthiness to the bank. Taking up a home loan has tax advantages as the interest paid on home loans is taken as a charge.

The various providers of Home Loans in India are:

HDFC Bank, IDBI Bank, Housing and Urban Development Corporation Ltd, Housing Development Finance Corporation Ltd (HDFC),

LIC Housing Finance Ltd, Kotak Mahindra, ICICI Bank, Can Fin Homes Ltd, Citibank, UTI Bank etc.

Guidelines for Choosing the best Home Loan:

Flexible/Floating and Fixed Interest Rate: If you are person shy to take up risk, then fixed interest rate is the best option or else you can opt for flexible one in which you can opt for part time fixed and part time flexible.

If your loan term is more than ten years, then flexible interest is a better option and vice versa

The fixed and flexible rates of different banks are discussed below:

FIXED RATES (percent per annum)

Bank of Baroda-9-10%

Bank of India- 8.5 : 9.25%

Canara Bank-7.75 - 9%

Central Bank of India-8.5 : 9.5%

Corporation Bank-8.25 : 8.5%

Dewan Housing Finance Ltd : DHFL-8.5%

HDFC 8.25 : 8.75%

HSBC -8%

ICICI Bank-8.5%

IDBI Bank-8 :8.5%

Kotak Mahindra Bank-8 : 8.5%

LIC Housing Finance-8%

Punjab National Bank-9.25 : 11%

State Bank of India-8.5 : 9.25%

Standard Chartered Bank-8 : 8.5%

Syndicate Bank-8 : 9%

UTI Bank-9.75 : 10.75%

FLOATING RATES(percent per annum)

Bank of Baroda-8 : 8.75%

Bank of India 7.5 : 8.5%

Canara Bank 7.25 : 8.25%

Central Bank of India 8 - 9%

Corporation Bank-7.5 : 8.25%

Dewan Housing Finance Ltd : DHFL-8%

HDFC -7.5 : 8.75%

HSBC -8.25%

ICICI Bank-8%

IDBI Bank-7.75%

Kotak Mahindra Bank8 : 8.5%

LIC Housing Finance-7.5%

Punjab National Bank-7.75 : 9%

State Bank of India-8 : 8.75%

Standard Chartered Bank-7.5 : 8.25%

Syndicate Bank-8.25 : 8.25%

UTI Bank-7.75 : 8%

The lowest fixed interest rate provided in the industry is 8% and the competitors like Syndicate bank, Kotak Mahindra, HSBC etc are in the same line providing the lowest at 8% and the highest is by UTI which comes to 9.75%.In floating rate the minimum starts from 7% offered by Syndicate Bank and goes to a maximum of 9%.

While choosing a loan from a particular bank, consumer also compares the services offered like :

The term for repayment

Interest rates

Market credibility

Risks involved

Payment facilities

Value added benefits

Features of:

Bank of India Home Loans:

Purchase or construct a house or flat

Maximum limit of Rs 3 crs

Tenure for a period of 20 years

Prepayment of loan

Free life insurance cover

Personal Accident Insurance cover

Simplified procedure

HDFC Home Loans:

Home loan counseling

Wide product range

Multiple repayment options

Disbursement services

ICICI Home Loans:

Doorstep service from initial to final stage of disbursement

100% funding for select properties

Loan amount:85% of the value of property, minimum Rs 1 lakh and a maximum of Rs 1 cr

The tenure is from 1 -30 years

Conclusion:

Consumers should be cautious while choosing the home loans. Study and evaluate the benefits and costs of each available alternative and choose that suits your budget.