Everyone wishes to buy their own house. But they cannot afford to buy a new home with their daily savings. There are many banks that provide home loans to them and help them to realize their dreams.
There are several banks in India that offer Housing loans. Some of them are:
- United Commercial Bank (UCO Bank)
- Indian Bank
- Punjab National Bank
- Hong Kong and Shanghai Banking Corporation (HSBC Bank)
These banks offers either fixed rates or floating rates for the loans. Some banks offers package rates i.e. the rates would be constant for 2 years or 5 years and then the variable rates will come into place. The reserve bank of India keeps changing the rates depending on the economy. So those changes will also impact the existing customers. You have to pay more interest for your loans. Here are some guidelines that help you to find the cheap housing loan rates.
How to Find Cheap Home Loan Rates?
- You should decide whether you would be retaining the home loan with the same bank for some time. Because some customers will take loans initially with some bank and then go for “Loan Takeover” with some other bank. The other bank would take over the home Loan. If you do not go for such loan take over, then you can go for fixed rates for certain period and then go for floating rates. By this you can reduce the risk of rising interest rates.
- You should compare the rates offered by the various banks for your home. Some banks would offer more of a loan amount, but would charge much high rates. So if you compare the rates offered by the banks, then you could be able to spot the best rates.