Understanding Home Loans

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Home loan, also known as a mortgage, is a type of loan provided by financial institutions such as banks or mortgage companies to help individuals or families purchase a home. Home loans typically have a long repayment period, often ranging from 15 to 30 years, during which the borrower makes regular monthly payments to repay the loan amount along with interest.

Key Points to Consider

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• Down Payment: Most lenders require borrowers to make a down payment, which is a percentage of the home’s purchase price. The size of the down payment can vary but is usually around 20% of the home’s value.
• Interest Rates: Interest rates for home loans can be fixed or adjustable.
• Loan Types: Various types of home loans available, including conventional loans, FHA loans, VA loans, and USDA loans.
• Credit Score: A higher credit score usually results in better loan terms.
• Loan Application Process: Involves submitting personal and financial information to the lender.

List of Popular Indian Banks/HFCs Offering Best Home Loan Rates

Name of Lender	Interest Rates (% p.a.) Up to Rs 30 Lakh	Above Rs 30 Lakh & Up to Rs 75 Lakh	Above Rs 75 Lakh
State Bank of India	8.50-10.15	8.50-10.05	8.50-10.05
HDFC Bank	8.50 onwards	8.50 onwards	8.50 onwards
ICICI Bank	9.00-9.80	9.00-9.95	9.00-10.05
Kotak Mahindra Bank	8.75 onwards	8.75 onwards	8.75 onwards
Punjab National bank	8.55-10.25	8.50-10.15	8.50-10.15
Bank of Baroda	8.60-10.65	8.60-10.65	8.60-10.90
Union Bank of India	8.50-10.75	8.50-10.95	8.50-10.95
Federal Bank	8.80 onwards	8.80 onwards	8.80 onwards
Bajaj Housing Finance	8.50% onwards	8.50% onwards	8.50% onwards