Outlook Money
Finding the right lender is as important as finding your dream home. Here’s what you should look for before choosing your home loan provider.
Start by comparing loan offers from leading banks such as HDFC Bank, State Bank of India, ICICI Bank, and Axis Bank, along with housing finance companies. Each lender offers different terms, so take time to understand what suits you best.
Most lenders provide between 75 to 90 percent of the property’s value as a loan. The amount you qualify for depends on your income, credit profile, and relationship with the bank.
Interest rates vary from one lender to another. While the interest rate may change with market conditions, the spread on the loan remains constant. A lower spread can help you save more in the long run.
Before finalising a lender, ask about the processing fees, foreclosure charges, and prepayment rules. Knowing these details in advance helps you avoid extra costs later.
Each lender may ask for slightly different documents, even though the basics remain the same. Keep your identity proof, income documents, and property papers ready for faster processing.
Choose a lender known for quick loan approvals and efficient customer service. Good after-sales support, such as timely account statements and interest certificates, makes a big difference.
Prefer a lender that quickly passes on any rate cuts announced by the Reserve Bank of India. This ensures you benefit from lower EMIs when market rates fall.