Lowest Processing Fee (0%) on Home Loan

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With rising property prices, home loan is the only solution when you want to achieve your dream of owning a home. And there is no dearth of home loan providers in India. You can get home loan for various purpose such as:

  • House construction
  • House (new or old) /land purchase
  • Home improvement/renovation
  • Home extension

However borrowers have to pay various other charges apart from the interest rate. Amongst them, processing fee is one such extra cost.

What is a home loan processing fee?

Every home loan application goes through a detailed evaluation before final approval. All these involve manual human intervention. So to cover up the cost, lender charge a processing fee.

It is a fee which is charged by the housing loan providers and may include multiple charges – legal, administration, application, technical evaluation and others.

This fee varies for each lender and there is a minimum and maximum fee applicable. Typically lenders take 7 -15 working days to process any application.

Listed in the below table is the processing fee (minimum fee – lowest to highest) charged by various home loan providers in India.

Name of Lender% Processing Fees of the loan amountMinimum Fee (Rs.) excluding taxes
State Bank of India for all Central / State Govt. Employees0Nil
Punjab National Bank - Government Employees0Nil
Syndicate Bank - SYNDKUTEER SCHEME0Nil
Allahabad Bank for pensioners0Nil
Bank of Maharashtra (Waived off from 10Oct2016 to 31Dec20160Nil
Central Bank of India - Cent Home Loan PlusNARs. 500
Jammu and Kashmir Bank0.25Rs. 500
Corporation Bank - GHAR SHOBHA0.5Rs. 1000
UCO Bank - Pre Approved Home Loan0.25Rs. 1000
UCO Bank - Home Loan0.5Rs. 1500
UCO Bank - Top-Up Home Loan0.1Rs. 1500
Canara Bank0.5Rs. 1500
State Bank of India0.35Rs. 2000
ICICI Bank0.50% - 1.00% Rs. 2000
ICICI Home Finance0.50% - 1.00% Rs. 2000
Vijaya Bank - Upto Rs. 10 LakhNARs. 2000
HDFC (home loan, renovation, extension, plot, )0.5Rs. 3000
Allahabad Bank (other housing loan products)0.31% - 1.22%Rs. 3070
Karur Vysya BankNARs. 3500
Vijaya Bank - Above Rs. 10 LakhNARs. 4000
Dewan Housing Finance LimitedNARs. 5000
IndiaBulls Housing FinanceNARs. 10000
Axis BankUpto 1%Rs. 10000
YES Bank0.5Rs. 10000
Central Bank of India - Cent Home Loan Scheme0.5NA
Corporation Bank - GHAR SANSAR1NA
Dena Bank0.5NA
Indian Bank1.173NA
Indian Overseas Bank0.53NA
Oriental Bank of Commerce0.5NA
Punjab National Bank - General Public0.5NA
Catholic Syrian Bank0.5NA
Tamilnad Mercantile Bank0.5NA
L&T Housing Finance0.25NA

Note: In the above table NA denoted Not Available. You need to check with the bank to know the % fee.

Processing fee depends on the loan amount and purpose of loan (new house, renovation etc.). And higher the loan amount, higher would be the fee.

Remember that, in case the application gets rejected, not every lender will refund the processing fee. Only a certain percentage of fees is refunded. So it is best to get this clarified and get in written before giving money for further processing of the loan.

Additional reading – Tips on getting home loan easily.

One very important point to remember is that post Goods and Service Tax (GST) implementation; borrowers will have to pay marginally extra money. Earlier 15% service tax was applied on the processing fee. But after GST, the rate has gone up by 3% and borrowers will now have to pay a tax of 18%.

In addition to the processing fee, lenders also levy various other charges depending on the purpose of home loan (as mentioned above) taken. These charges further increases the burden on the borrowers.

Here are few of the charges/fees applied on home loan:

  • Bounce charges
  • Penal charges
  • Foreclosure charges
  • Pre-payment charges
  • Converting interest rate from fixed to floating and vice-versa
  • Cancellation of loan
  • Advocate’s fee
  • Valuer’s fee
  • Stamp duty
  • Loan transfer fee from one lender to another (most offer this free of cost)
  • Prepayment statement
  • Duplicate NOC
  • Revalidation of NOC

Remember that your loan selection criteria should not be dependent only on the interest rate. The above listed extra costs also need to be considered to calculate the overall money outflow. There might be more additional fees as well, which you need to check with the lender before finalizing. But the above listed ones are most commonly charged.

Home loan is considered to be the most risky for any lender even though the lenders keep the applicant’s asset mortgaged with them. And in case of non-payment of EMIs; lenders have legal right to take any action on the said property and recover their money. And if this situation arises, your total loss would actually be very high considering the fact that you have paid interest and other rates and most importantly the loss of property.

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PM Awas Yojana: Apply Online, Rs. 6 Lakh Loan, 6.5% Interest

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Everyone has a dream to own his/her own house. But with rising inflation and real estate prices, it has become extremely difficult for individuals from poor section of the society to own their own house. Keeping in mind this situation, Pradhan Mantri Awas Yojana was launched on 25th June 2015 with an objective of providing affordable housing to every Indian by the year 2022. It is on the similar line of Pradhan Mantri Jan Dhan Yojana, wherein every Indian household to have one bank account. Read more on PMJDY here.

Pradhan Mantri Awas Yojana – Online Application

  • Online applications has started from November 03, 2016.
  • The main objective of this online initiative is to increase the number of online applications.
  • Submission of online applications can be done via common service centers.
  • These CSCs are located in urban areas
  • The cost of application is Rs. 25 only

How to track the status of the application:

Once an individual makes online application, he/she would be given an acknowledgement receipt. Photograph of the individual will be present on the receipt. This receipt will help in tracking the status.

Benefits & Features:

  1. Cap on the loan amount is Rs. 6 Lakh provided someone has taken subsidized interest rate.
  2. Loan Tenure: 15 years
  3. Lower interest rate means less EMI: In the current market, when you apply for a home loan at any bank the interest rate charged is greater than 10%. However interest rate in Pradhan Mantri Awas Yojana would be subsidized at 6.5%. So home loan borrower will save nearly 4%.
  4. Granting of subsidy: In addition to lower interest rate; government will grant subsidy in the range of Rs. 1, 00, 000 – Rs. 2, 30, 000 to the borrower. Minimum Rs. 1Lac will be granted.
  5. Preference to Female: Application made by women will be given higher preference.
  6. Preference for transgender & widows: These often neglected groups will also be given preference
  7. More preference to seniors and disabled: Senior people and those who are disabled will be given preference in getting house which is located on the ground floor. The reason for giving preference is because these people often have to stay out of the house.
  8. This scheme was earlier named as Housing for All.
  9. Construction will be done in a eco friendly manner.

Achievements of PMAY:

  • Between 2005-2014: Affordable housing was sanctioned to over 13.50 lakhs urban poor.
  • Between 2015-2016: Over 11 Lakh houses have been sanctioned.

Frequently Asked Questions on PMAY:

What would be the interest rate if someone wishes to buy home costing over Rs. 6, 00,000; for e.g. 8 Lakhs?

In this case, borrower will be charged 6.5% for the amount Rs. 6, 00,000. And for the remaining 2, 00, 000; standard interest rate available in the market would be charged.

What would be the interest rate if someone wishes to increase the tenure to 15 years and above?

Market rate would be charged for any period greater than 15 years.

Will the interest rate be lowered if someone wishes to take loan for the tenure 15 years and below?

No. 6.5% interest rate would be charged irrespective of the tenure. Market rate would be charged for any period greater than 15 years.

Which are the other lower interest loan available in the market?

Axis Bank – Asha Home Loans for low income earning individuals.

Prapti Scheme by Tata Capital Housing Finance offering interest at subsidized rate.

Who can apply and get house under PMAY?

  • Any individual who falls under the category of Lower Income Group (LIG) and Economically Weaker Section (EWS) can apply for house under PMAY.
  • Individuals from Scheduled Caste and Scheduled Tribes
  • Indian women of all religion and caste.

When will PMAY complete?

The target to provide housing for all urbanites is 2022. i.e. 7 years is the estimated targeted time frame.

What are the contact numbers for Credit Linked Subsidy Scheme (CLSS)?

Interested individuals can contact below mentioned toll free numbers:
NHB: 1800-11-3377 & 1800-11-3388
HUDCO: 1800-11-6163

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Prapti Scheme: Cheapest Home Loan @4%, Flexi Repayment

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For any type of loan or credit card, the most important thing lenders look for is the income of the applicant apart from your CIBIL score. For higher income individuals getting credit is not a cumbersome process as long as their CIBIL score is good.

However for low income individual’s it is very difficult whether it is a credit card or loan. There are credit cards for low income individual’s but getting loan especially home loan is almost impossible unless and until they have good amount of money to pay as a down payment (i.e. initial payment made when taking something is bought on credit). Check out personal loan for poor income earners.

But there is a good news for low income earners looking to buy their own house. Tata Capital Housing Finance (TCHFL) has launched Prapti Scheme. It is a housing loan scheme for poor income earners with subsidized interest rate starting from as low as 4% per annum. The scheme is under the Government of India’s Pradhan Mantri Awas Yojana (PMAY) and includes the subsidy PMAY offers.

Prapti Scheme Features:

FeaturesPrapti Scheme
Interest RateStarting from 4%
Annual Household Income RequiredMinimum Rs. 6 Lakh per annum
Loan repayment flexibilityYes
Loan conversion chargesNo
Target audienceLower income, economically weaker section, SC/ST and to women residing in the periphery of urban areas.
Target locationsMetros, Tier-I, II & III cities as identified by the PMAY initiative
Loan TenureNot yet announced

Prapti – Home Loan Scheme – Contact Details:

Interested home loan buyers can reach following official contact points:

  • SMS PRAPTI to 5616161 from any mobile phone
  • Call 1800209 6060

Affordable housing is the main objective of Prapti Scheme. And by offering flexibility in loan repayment, low cost housing will definitely get a boost and dream of million Indians will become a reality. Currently there are two options when taking a loan from any bank – fixed and floating. And shifting from one type to another carries additional charges. But in Prapti Scheme there won’t be any such charge, which is a very attractive feature and will benefit low salaried people the most.

Even if there is lot of unsold houses in India due to low demand, the loan rates are still on a higher side making buyers to stay away from buying a home even if developers offer discounts.

Other loans available in the market requiring low income:

Axis Bank – Asha Home Loan – Is another home loan option for low income group individuals. Monthly income required is minimum Rs. 8000 – Rs. 10000 depending on the location. You can read more details about this home loan here.

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Loan for Plot/Land: Eligibility, Loan Amount, Documents, Rejection Reasons

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Everyone wants a house of their own or invest in a property to safeguard the family’s future. But the rising housing rates keeps many deprived of their dream. In such a case plot/land loan is a good alternative. You can buy a plot and later construct your own house. Plot loan or land loan is a type of loan offered exclusively for buying a plot or land. But the condition is that the house must be constructed on it. And whenever you decide to start construction on the plot, then you can apply for construction loan for the same.

Eligibility:

  • Age should be between 18-60 years. This varies for each lender.
  • Only resident Indians and NRIs are eligible.
  • The plot or land should be a residential or commercial plot.
  • Only salaried, self employed professionals and businessman can get loan for plot.
  • Land should not be an agricultural or commercial land.
  • And the land should come within the corporation or municipal limit.
  • The most important condition is that construction on the plot should start within the stipulated period which is two years for most of the banks. This period starts from the date of first loan disbursement. However HDFC Plot/Land Loan has grace period of 5 years.

Loan amount:

Loan to Value: This ratio is between 70%-80%. However the actual value of the plot will be assessed by the lender irrespective of the value mentioned by the borrower. So for e.g. if the value of the plot is Rs. 70, 00, 000, then you can expect the sanctioned amount to be Rs. 49, 00, 000 (assuming 70%). Remaining money will have to be put from your own pocket. Check out home loan for low income earners.

Here are the financial institutions offering loan for plot:

  • Banks: Almost every nationalized and public sector bank in India offers loan for purchase of plot/land viz. SBI, Axis, ICICI, Federal, Bank of India to name a few.
  • Housing Finance Companies: LIC, PNBHFL, DHFL, HDFC, ICICIHFC and others.

Apart from these, you can also get loan from few co-operative banks.

Documents Required:

  • ID proof: This includes Aadhaar card, PAN card, VoterID card, passport and driving licence.
  • Income proof: Salary slips for last 6 months (varies for each lender), IT returns of last 3 years, form 16, bank statement of last 6 months.
  • Property related documents: Title deeds, copy of allotment letter or buyer’s agreement.

Other features/charges:

  • Since it is very different from home loan, banks will ask for pre-payment penalty. So check with the bank.
  • Another disadvantage of the land loan is the higher EMI. Since land loan tenure is for short period, the profits earned are less compared to home loan. Because of this, credit lenders charge high EMIs.
  • There is no income tax benefit in case of land loan even if the construction is done on the plot.

What happens when construction does not start within the stipulated time period?

This would result in increase in the penal interest which is 2%-3% above the loan rate. Or banks will reduce the loan repayment period. This will result in monthly EMI to shoot up. Third possibility is that the banks will ask the borrower to pay-off the remaining balance and close the loan.

Reasons for land loan rejection:

Amongst the factors mentioned above, following are the reasons of loan getting denied:

  1. The plot is not in gated community as the risk of encroachment in individual plot is high.
  2. Property is considered as the most profitable investment. However this does not apply to all. There are lands whose value might not grow as expected and in such cases likelihood of the borrower defaulting a loan increases. So location of the property plays a key role in evaluating the loan.
  3. Credit history of the borrower should be good else application might get rejected. This is checked by every lender irrespective of the type of credit application i.e. credit card/car loan/personal loan/home loan etc. A poor CIBIL score will straight away result in land loan getting denied. Read tips on improving CIBIL score.
  4. Insufficient documents: If you fail to provide all the mandatory documents especially income proof and land related documents, then application will get rejected.
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Home Loan for Pensioners/Retired: Salary, Eligibility, Term, Fees

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In India, depending on the grade of the employee of central and state government, defence and others, housing accommodation from their respective organization is provided until they retire or voluntarily retire. Till retirement there is no worry of searching for own house unless and until you have pre-planned of owning a house. Similarly no one thinks of renovating or reconstructing existing house. But what’s next after retirement, for the retired person, whose source of income is monthly pension received from the organization they’ve worked over years?

Here are the most common thoughts that come to mind of seniors:

  • Post retirement, where will the pensioner stay (assuming they do not have any other house elsewhere)?
  • What if they want to purchase their own house?
  • Will they get home loan on the basis of the pension amount they receive for purchasing a new house or reconstruction existing house?

Answer is YES. Many banks or housing finance companies in India offer home loan for pensioners. Here are the details:

  • Eligibility Criteria: Amongst the various requirements for getting home loan, the important ones are loan limit and repayment period as mentioned in the below table for few banks. For many banks in the below table, loan limit varies according to the age. The table also contains list of lenders (e.g. Bank of India) who also offer normal loans which can be used for only renovating/repair/extension of house. So check with the respective bank on the type of loan and its purpose.
Lender's Name
Maximum Loan Limit (in INR)
Repayment Period
United Bank of India
2,00,000Before applicant reaches the age of 70 years
State Bank of India
1) 7,50,000 - 14,00,000
2) 2,50,000 - 5,00,000 (family pensioner)
Before applicant reaches the age of 75 years
LIC Housing Finance
NABefore applicant reaches the age of 70 years
South Indian Bank
25,00,00015 years or till pensioner reaches 75 years of age
Bank of Baroda
5,00,000 - 8,00,00077-78 years depending on the age at the time loan was sanctioned
Dena Bank
1,50,000 - 3,00,000Before pensioner reaches the age of 73 years
Bank of India
5,00,00060 EMIs
Punjab National Bank
5,00,000 to 10,00,0001) 60 EMIs
2) 24 EMIs for pensioners above the age of 75 years
  • Other factors considered by the lenders before approving home loan for retired persons are:
    Pensioner should have been in service with state or central government, PSU, defence, VRS, educational institutions and other reputed companies.
  • Should be drawing pension from the applied bank only. However this may not be the case with every bank. In such a case, banks might ask for a post-dated cheque for a pre-fixed period of the bank where you hold pension account.
  • Type of property: Mostly pensioners are eligible to take home loan only when constructing/repair/renovating of new/existing house, buying piece of land, purchasing of readymade house/flat. However the condition is that it should be owned by the applicant.
  • Minimum monthly pension income received also plays a decisive factor at the time of loan approval. Based on your income, loan limit is calculated. For e.g. United Bank of India asks a minimum salary of Rs. 5, 000. This applies to all the types of loan or credit cards. So if you are a low pension earner, getting a home loan might be tough. Check out home loan for low income earners.
  • Age: Ideally any bank will offer a loan to pensioner having age less than 75 years. For e.g. United Bank of India does not provide loan, if the applicant is above 70 years.

Points to remember:

  • Not all banks offer loans to pensioners of other banks. So for e.g. you receive monthly pension from State Bank of India but you apply for loan at Dena Bank then your application might get rejected. Because they offer loans to pensioners of their own bank only. So before application, check with the respective bank on their terms and conditions.
  • Charges: Along with the interest rate, there are other charges as well. This includes pre-payment fee, upfront fee, and processing fee etc. However as a benefit to the retired person, some banks such as Bank of India and Bank of Baroda do not charge any processing fee for their pension account holder but charges a small fee for other applicants. BoB does not even charge pre-payment fee from seniors. So while applying, make sure to check all the fees and hidden charges so that it does not put strain on your wallet during retirement.
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SBI FlexiPay Home Loan: Features, Benefits, Cons

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With rising real estate prices and higher interest rate, it has become very difficult for an average salary earner to pay monthly EMI or buy own house. Moreover they have to sacrifice their dream and buy small house instead of a bigger one. Considering the fact that young working professional face problem in getting a loan or paying higher EMIs in the initial phase of their career, India’s biggest bank State Bank of India has launched FlexiPay home loan. Also check out home loan for low income earners.

Here are the features of FlexiPay scheme:

  • This scheme is launched only for salaried person public or private.
  • They can get higher loan amount which is not possible under the existing home loan schemes in the market from various lenders.
  • The biggest benefit of the SBI flexipay home loan scheme is that the loan borrower can pay only the interest during the pre-EMI period of 3-5 years. And in the later years, EMIs will be moderate.
  • No pre-payment charges. This again is in favour of the loan borrower.
  • The scheme also offers extending the loan tenure upto 25 – 30 years.
  • With this flexibility, it is expected to give a boost to the reality sector which is currently facing a decline. Check out what to do after home loan is approved.

Cons of FlexiPay Scheme:

  • If the salary does not rise then it will create burden on the borrower.
  • If salary does not rise but interest rate increases then it will create financial trouble to the borrower.

Industry experts are of the opinion that FlexiPay home loan scheme is similar to teaser loan which the bank had launched some years back. This loan offered discounts in the interest rates or offered more loan to the value. However teaser loan scheme is already discontinued.

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Home Loan Transfer: Reasons, Charges, Points to Consider

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Frustrated with the bank from which you have taken home loan? This is the case with many of us and home loan transfer is recommended to such individual’s. Another term for home loan transfer is refinancing or balance transfer. It is basically transferring the outstanding loan amount (principal loan amount) from one bank to the other of your choice.

When is home loan transfer recommended?

There are many reasons when you should think about transferring a home loan as listed below:

  • One of the main reason why home loan transfer is recommended is when the banks continue to charge higher interest whereas other banks offer the loan at low interest rates. This results in loss to the borrower.\
  • If you think that existing loan tenure is too short then you can ask bank to increase the tenure length but on the other hand reduce the EMI. However if banks do not consider your case, then you can consider a transfer.
  • If you have made EMI payment on time then you can ask the bank to reduce the rate. However if banks deny this, then choose another bank.
  • Service issues with the bank.

But the loan transfer is a win and loss situation for both the banks but a win situation for the customer in the long run. New bank will benefit, since they are getting a new customer and on the other hand existing bank will lose a customer which eventually is loss making for them. However not everything is an easy process as there are many procedures and conditions involved with both the banks as follows:

  • Existing lender: They are most likely to delay issuing the no objection certificate (NOC) or consent letter which states the balance amount on the loan. Remember that getting all the home loan documents is not easy and you should be ready for multiple follow-ups. ECS cancellation and post dated cheques will also be cancelled.
  • New lender: Any credit application i.e. loan or credit card involves rigorous back ground check by the banks. Although getting a new customer especially for a home loan which is highly profit making for the bank, they do not take any risk in providing a loan to a risky person who can become non-performing asset for them. And in order to identify such applicants, banks will check your credit rating with CIBIL i.e. they will gather data for all the credit applications you have taken or have applied to evaluate whether you are credit worthy enough. In addition to this, banks will also check all the legal documents of the property amongst others. If your property is resale one, the more documentation would be demanded by the bank. Apart from these, banks will also consider age, annual income amongst other factors.

Even if you pass the above test, there are further important points you should be aware of and most important being the various charges such as:

  • Processing fees: It can be either a flat fee or 0.5% (ideally) of the loan amount.
  • Legal fee
  • Stamp duty: Ideally 0.1%
  • Valuation fee
  • Documentation fee

Points to consider before moving to another bank:

Nothing comes for free and this applies to home loan refinancing as well. Before you finally decide to move, negotiate with the existing bank. If your repayment history is clear they might accept your conditions in order to avoid losing a customer.

  • Interest rate should not be the only reason for balance transfer and if that is the only reason for the transfer, then do a savings calculation with new and old interest rate along with the above mentioned fees.
  • Also remember to read all the terms and conditions, hidden charges of the new and existing bank.
  • Check whether the interest rate offered is not for only a limited period.
  • If you were unhappy with the service of the existing bank then check whether similar issue exists with the new bank or not. Make use of social media page of the bank.
  • If existing bank, agrees to reduce the interest rate then verify whether it is at no extra cost. And also whether the interest rate is for the full loan tenure and not short term.

Almost every Indian bank offers this facility so go for it and save money.

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Home Loan for Resale Flat: Interest Rate, Benefits, Documents

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Interest earned through any type of loan (car, home and others) in addition to various fees such as late payment, processing fee, prepayment fees, conversion fees etc. is what generates revenue for the bank. However when it comes to housing loan, revenue generated is high due to the tenure and high interest rates irrespective of whether the home loan is for resale flat/house, new house, reconstruction and other types.

Considering the delays in getting possession of the new flat, people prefer taking home loan for resale flat. Here are the benefits of housing loan for resale flat/house:

Benefits of buying resale flat over under construction or ready possession:

  • Available at price lesser than the ready one or under construction
  • Income tax benefit which owner starts to get right from the first EMI
  • It is a very common scenario that the under construction flat gets delayed due to various reasons such as material unavailability, labour issues etc. However this is not the case with resale flat as they do not have waiting period
  • What you see is what you get
  • You can get every detail checked such as the condition, legal title, electricity or water problem
  • Whether the society is registered or not

Eligibility:

Three most important factors considered by any loan provider are:

  • Income of the applicant
  • Location of the flat
  • Age of the flat

Who offers home loan for resale flat:

Almost every bank in India such as ICICI, SBI, Axis Bank, HDFC and others offer housing loan for resale flat/house. Apart from these housing finance companies such as HDFC, LIC Housing Finance, DHFL and others also offer this loan.

Here are the latest interest rates (as on 23rd Oct’15) for the top mortgage lenders both banks and housing finance companies. And higher the loan amount, higher is the interest rate. In addition to this, every lender has different loan schemes and with a minor difference in the interest rate. The rates may vary depending on:

  • Loan amount
  • Tenure
  • Salaried/Non-Salaried
Home Loan Providing - BanksFloating Interest Rate (p.a.)
Fixed Interest Rate (p.a.)
State Bank of India
9.55%
10.15%
ICICI Bank
9.60%
9.70%
Axis Bank
9.60% - 11.75%
11.75%
Punjab National Bank
9.95% - 10.45%
9.95%-10.45%
HSBC
9.55% - 10.10%
NA
Union Bank of India
9.65%
11.40%
Bank of India9.70 % - 9.95 %NA
United Bank of India
9.75%
NA
Bank of Maharashtra
9.70% - 10.70%
NA
Corporation Bank
9.65%
12.65%
Indian Bank
9.95%
NA
Allahabad Bank
9.70%
NA
Central Bank of India
9.95%
NA
UCO Bank
9.70%
NA
Bank of Baroda
9.65%
NA
Canara Bank
9.90% - 10.00%
NA
Kotak Mahindra Bank
10.25%
NA
Dena Bank
9.70% - 9.95%
NA
Citibank
9.85% - 10.35%
NA
Indian Overseas Bank
9.90% - 10.15%
NA
Andhra Bank
9.75% - 10.75%
NA
Federal Bank
9.95% - 10.35%
NA
Dhanalakshmi Bank

11.50%
NA
Vijaya Bank
9.85%
NA
Tamilnad Mercantile Bank
10.40% - 10.90%
NA
Syndicate Bank
9.70%
NA
State Bank of Travancore
9.95% - 10.20%
NA
State Bank of Patiala
9.65%
NA
State Bank of Mysore
9.70% - 9.85%
NA
State Bank of Hyderabad
9.75% - 9.85%
NA
Standard Chartered Bank
9.75%
NA
Home Loan Provider - Housing Finance CompaniesFloating Interest Rate (p.a.)
Fixed Interest Rate (p.a.)
DHFL
10.25%NA
LIC Housing Finance

9.00%NA
Indiabulls Housing Finance Limited

9.60% - 10.50%NA
Tata Capital Housing Finance ltd

9.70%NA
PNB Housing Finance

9.75% - 11%NA
Bajaj Finserv9.85%NA
L&T Housing Finance9.90%NA
Repco Home Finance10.50%
NA
HDFC
9.55% - 10.05%NA

Documents required for housing loan for resale flat:

Most of the mandatory documentation for home loan for resale flat remains the same irrespective of the bank or housing finance company. And these are as follows, though it may slightly vary for each lender:

  • All documents related to the title of the property. So if the same flat had been purchased by the existing buyer then documents related to that are also required. This applies for all the previous purchase sale deed of the same flat.
  • Payment receipts made to the seller
  • NOC from the society
  • Income Proof
  • Agreement copy
  • ID and Address Proof: Valid passport/voter ID/Aadhar card/driving license
  • PAN card
  • Salary slip for the last 3 months
  • Bank statement for the last 6 months
  • Form-16 and IT return
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Got Home Loan? 5 Very Important Tips to Save Money

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While applying for a home loan, banks ask for many documents such as Income tax return for the last 3 years, bank statement for the last 6 months, salary slip of the company where you currently work, identification and address proof. And after lot of efforts, when home loan finally gets approved, people get happy and only thing they have in mind is paying their EMI regularly on time.

But be careful!

If you sit relaxed then you are making a mistake. Staying alert is very important otherwise you will end up losing money from your pocket unknowingly. Here are the steps to ensure home loan you have taken does not put hole in your bank balance:

  1. If you have opted for floating interest rate then always pay attention when RBI increases or reduces the interest rate. First thing you need to check is whether the updated rates are reflected in your bank account or not. Whenever interest rate is increased then banks also change the interest rate on your loan account. On the other hand when rates are reduced, banks may not make changes in their system and will continue to charge you with old rate. In such cases, you should always keep updated on latest happenings especially the announcements by RBI and contact your bank immediately in case of any query.
  2. Never stay relaxed irrespective of whether the lender is a nationalized or a private bank. Make a habit to visit bank every 3 months to check the status of your loan amount. Or else make use of net banking facility to check the status time to time. Nowadays most of the banks have mobile applications which are handy to use and you get every details with the tap of your finger.
  3. Every year in the month of April visit your bank personally and get loan account details. Most importantly, how much you have paid and what is the remaining balance and whether you have been charged in excess.
  4. Don’t think that when you have high amount available then you can do pre-payment. Even if you have a small amount say Rs. 5,000 then make use of it and deposit in the loan account. This way burden of loan will end early and you will be more relaxed.
  5. Many times it happens that hidden fees are charged by the bank. For e.g. even if you pay EMI on time, the bank will charge late fee. In such cases you should contact your bank and ask for written explanation. Verbal communication/assurances are strictly NO because written document will act as a proof in case of future issue. Imagine loan officer with the bank verbally assures you that next month lesser EMI will be charged. However the loan officer resigns from the current bank and moves to some other bank and you find that the EMI amount remains the same. What will do in such a scenario? You will have no other option then to continue paying higher EMI.

Most common charges which customers are not aware of are:

  • Mark up fee or conversion fee.
  • Retrieval of physical copies of your loan documents.
  • Loan application processing administrative charges.
  • Legal fees
  • Switching loan from fixed to floating or vice versa.
  • Increasing or reducing the loan term and many others.

If you find that bank is charging you higher interest then immediately file a complaint and get it lowered. First check how much extra you were charged and ask your bank to reverse the amount from your ledger balance. If the bank does not act swiftly then go ahead and file an online complaint on the website of Reserve Bank of India.

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Home Loan Approved: Next Steps, Hidden Charges

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While applying for a home loan, banks ask for many documents such as Income tax return for the last 3 years, bank statement for the last 6 months, salary slip of the company where you currently work, identification and address proof. And after lot of efforts, when home loan finally gets approved, people get happy and only thing they have in mind is paying their EMI regularly on time. But be careful! If you sit relaxed then you are making a mistake. Staying alert is very important otherwise you will end up losing money from your pocket unknowingly. Here are the steps to ensure home loan you have taken does not put a further hole in your bank balance:

  1. If you have opted for floating interest rate then always pay attention when RBI increases or reduces the interest rate. First thing you need to check is whether the updated rates are reflected in your bank account or not. Whenever interest rate is increased then banks also change the interest rate on your loan account. On the other hand when rates are reduced, banks may not make changes in their system and will continue to charge you with an old rate. In such cases, you should always keep updated on latest happenings especially the announcements by RBI and contact your bank immediately in case of any query.
  2. Never stay relaxed irrespective of whether the lender is a nationalized bank or private. Make a habit to visit bank every 3 months to check the status of your loan amount. Or else make use of net banking facility to check the status time to time. Nowadays most of the banks have mobile applications which are handy to use and you get every details with the tap of your finger.
  3. Every year in the month of April visit your bank personally and get loan account details. Most importantly, how much you have paid and what is the remaining balance and whether you have been charged anything in excess.
  4. Don’t think that when you have high amount available then you can do pre-payment. Even if you have a small amount say Rs. 5,000 then make use of it and deposit in the loan amount. This way burden of loan will end early and you will more relax.
  5. Many times it happens that hidden fees are charged by the bank. For e.g. even if you pay EMI on time, the bank will charge late fee. In such cases you should contact your bank and ask for written explanation. Verbal communication/assurances are strictly NO because written document will act as a proof in case of future issue. Imagine loan officer with the bank verbally assures you that next month lesser EMI will be charged. However the loan officer resigns from the current bank and moves to some other bank and you find that the EMI amount remains the same. What will do in such a scenario? You will have no other option then to continue paying EMI.

Most common hidden charges are:

  • Mark up fee or conversion fee
  • Retrieval of physical copies of your loan documents
  • Loan application processing administrative charges
  • Legal fees
  • Switching loan from fixed to floating or vice versa
  • Increasing or reducing the loan term and many others

If you find that bank is charging you higher interest then immediately file a complaint and get it reduced. First check how much extra you were charged and ask your bank to reverse the amount from your ledger balance. If the bank does not act swiftly then go ahead and file an online complaint on the website of Reserve Bank of India: https://www.rbi.org.in/commonman/English/Scripts/AgainstBank.aspx

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