balashri

I was looking at different issues of property plus in Hindu. I see that, on an average, the floating interest rate offered by canara bank for different tenures seems to be lower than most of the other banks. This had been the case for quite sometime now.

What aspects does one look into, when selecting a bank to get home loans, especially for NRIs? Is the interest rate the only deciding criteria or are there any other parameters?

Thanks in advance for your suggestions.

Vijay.

yash

Many banks and financial companies offer home loans. But before choosing any home loan option, consider few points as mentioned below.

Property Types: You should know more about type of property in lieu of which you seek loan. There are loans offered by banks to Resident Indians and NRIs for ready property, under construction property, self-construction and home improvement.

Loan Tenure: The loans provided by financial institution are offered in tenures or period of years. You should check out the tenure for loans available in the market. There are loan tenures available for upto 25 years.

Repayment Options - You need to choose between fixed and floating rate home loans. Many banks and financial institutions will provide you with the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. But you need to check out the facts first with the loan providing firm.

No Penalty option - There are also no penalty option offered by few finance companies. In this mode, you can opt to pre-pay up to 25% of your loan every year. Pre-payment is permitted after a minimum of 6 months following loan disbursal.

Tax Benefits - You should know the right of your tax benefits on home loans. Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961.##

List of Premium Banks Offering Home Loans:

ICICI Bank - ICICI Bank Home Loan

HDFC Bank - Adjustable Rate Home Loan

Bank of India - Star Home Scheme

Standard Chartered - HomeAssist

State Bank of India - SBI Unique Housing Scheme

Bank of Baroda - Housing Offer

Citibank- Building & Renovation of House

Always check with a financial home loan expert or financing company to understand home loan processes and to avail the best bargain on your home purchase.

Source: www.guide2homeloan.com

expeniepida

hey! i have been canvassing this forum for a bit; it was time to cease sitting in the background