SBI and Punjab National Bank waive processing fees on home loans, many banks are offering home loans at cheaper interest rates

 SBI and Punjab National Bank waive processing fees on home loans, many banks are offering home loans at cheaper interest rates

    LIC Housing Finance Limited's home loan interest starts at 6.66%

    Kotak Mahindra Bank is offering the cheapest loan with an interest rate of 6.65%

Recently, Punjab National Bank and SBI have waived processing fees on home loans. SBI has decided to charge processing fees till August 31 and Punjab National Bank till September 30. If you are also thinking of taking a home loan, first find out which bank gives loan at what interest? Also keep an eye on how much processing fee it charges.

Kotak Mahindra Bank is offering the cheapest home loan

Kotak Mahindra Bank is offering the cheapest loan. Its interest rate is 6.65%. LIC Housing Finance Limited's home loan interest starts at 6.66%. Many banks are currently offering home loans at less than 7% interest.

Bank interest rate (in%) processing fee

Kotak Mahindra Bank 6.65 Maximum 10 thousand rupees

LIC Housing Finance Ltd. 6.66 from 10 to 15 thousand rupees

ICICI 6.70 0.25% and maximum 5 thousand rupees

SBI 6.70 Sorry till 31st August

Punjab National Bank 6.80 pardoned till 30th September

Understand here how much interest and how much installment you have to pay on taking loan from Kotak Mahindra, LIC and SBI.

Loan Amount (in Rupees) Time Interest Rate (in%) Installment (EMI) Total Interest (in Rupees)

10 lakh 20 years 6.65 7,544 8.11 lakh

10 lakh 20 years 6.66 7,550 8.12 lakh

10 lakh 20 years 6.70 7,574 8.18 lakh

10 lakh 20 years 6.80 7,633 8.32 lakh

Here are 4 things to keep in mind when taking out a home loan

The cum loan-to-value (LTV) ratio can make the loan process easier for you. This means you have to keep your contribution high to buy a home. Selecting a lower LTV ratio increases the buyer's contribution to the property. This keeps the bank's risk low. The chances of getting a loan will also increase. Banks usually offer loans up to 75-80% of the property price. The remaining amount has to be paid to the borrower in the form of downpayment or margin contribution. Without it you will not get a loan.

Beware of fixed obligation to income ratio

When we apply for a home loan, the bank looks at the Fixed Obligation to Income Ratio (FOIR). This shows how much you can pay in installments up to Rs. If the lender charges you 50% of your salary, they may reject your loan application. So make sure that the loan amount is not more than that.

Be sure to know the pre-payment penalty

Many banks impose penalties on premature loan applicants. Know all the details from such a bank as repaying the loan ahead of time gives low interest to the bank. They have certain terms and conditions. So get all the information when taking a home loan.

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Take a loan from the respective bank

If you are thinking of a home loan, take it from the same bank where you have an account or you use a fixed deposit or credit card service, as the bank gives the loan to its regular customer easily and at a reasonable interest rate.