To meet any special financial needs, we take loans from many types of banks and many types of financial institutions. Most of the borrowers take home loan from the bank to build their house. In today’s article, we will talk about some such financial institutions and banks that provide the cheapest home loan.
Which bank has the cheapest home loan?
|banks’ name||Estimated Annual Interest Rate|
|Bank Of Baroda||6.50%|
|Kotak Mahindra Bank||6.55%|
|State Bank of India||6.55%|
|HDFC & ICICI Bank||6.70%|
Read it – See new urban and rural list of housing scheme
Apart from all this, there are many other banks which give home loan but they charge very expensive interest rate along with giving all the loans. Which is much more expensive than cheap home loans. You can take a loan from these banks mentioned above. By taking a loan from all these banks, you can get a loan to build a house at the lowest and cheapest interest rate. Apart from this, you also get easy and low amount installments with easy interest, which is very easy to pay every month.
Before taking the cheapest home loan, keep these things in mind –
Cheap loan means that the bank or financial institution which charges less interest on the loan. Apart from this, which gives an opportunity to pay money in more installments. Before taking a loan, we must know about the following things –
- Which bank gives you loan in less time?
- Which bank and financial institution takes many documents from you before giving you a loan.
- How much interest is that bank and financial institution charging you for the loan money you are taking.
- Before taking the loan, it should also be known that how much time that bank or financial institution is giving you to repay that loan, in which you can repay that loan amount.
- How much time is it giving you to pay back the loan amount and how is it recovering from you in that time like how much installment is paying and how much interest is added to that installment amount.
Read it – SBI Tractor Loan Yojana 2022
Types of home loan interest rates –
Before taking a loan, make sure to find out about what kind of interest rate the lending company and financial institution is charging on your loan. Although there are 7 types of interest which you can get at the time of taking loan, but on giving loan to you bank or any financial institution, it can charge 2 types of interest rate. These two types of loans are as follows –
Fixed Interest Rate ,
This is the interest rate that you get on the loan. In this, whatever loan you take, it gives you a fixed interest rate. Suppose you take a loan of 1 lakh from a bank. Now on this the bank levies a fixed interest rate of 16 percent on your loan. Now you have to pay back 1,16,000. Suppose you pay it in a year or a month. Now you have to pay 16,000 as interest along with giving back the loan.
Annual Interest Rate :
This is the interest rate that you have to pay annually. Suppose you are taking a loan of Rs 1,00,000. Now you get one year in this. If the bank charges 16 percent interest on it, then it is something like this. In this, the amount of interest is not charged for one year, but in this, as you repay the amount of this loan, the amount of the loan also decreases along with the installment. Like you have to pay 16 percent interest on 1 lakh in the first month. If you have filled 10,000 in that loan in a month, then you have to pay 16 percent interest on 90,000 in the next month.
Read it – Best loan app through Aadhar KYC
Documents required for availing cheap home loan –
You must have these essential documents to get a home loan. With all these documents you can apply in it.
- Application form which is available from the bank.
- Aadhar card of application.
- ID proof.
- residence certificate.
- Bank statement for the last 3 months.
- Income tax return.
- Original documents of land and property.
All these documents are necessary for availing home loan. Apart from all this, more documents can be asked like some affidavit etc.
How to get Home Loan?
First of all contact the bank from where you want to take home loan. For this you go directly to the branch. By going to that bank, you have to fill the form related to the loan there. Necessary documents are also to be attached with the form. After that your forms and documents are scrutinized. If your documents and your form are correct and your CIBIL is correct for loan disbursement then you get the loan otherwise your loan may get rejected.
Read it – Know how to get Mudra loan in Hindi