10 Best Banks in India Offering Low Interest Home Loans 2020

2020-05-20T04:15:43.046Z

The decision to avail home loan demands deep research, and analysis on the part of the borrower before deciding to apply for it in a bank. It is because a home loan is a high-value loan, which comes with long term commitment and financial burden of EMI on your monthly budget. It is a big decision not just financially, but also mentally and emotionally for you and your family. Thus, one of the key aspects in deciding the home loan is a low rate of interest.

Many people start looking at the lowest rate of interest when they set out to research the available home loan options. But soon it gets complicated because of the number of lenders and options available in the market. In order to help you in this regard, here are the 10 best banks along with the rate of interest and other crucial details.

SBI Home Loan: The interest rate for SBI home loan starts from 7.40%. It offers a concession of 5 bps to women borrowers, and the maximum loan amount offered is Rs. 10 crores. The maximum tenure for a home loan is 30 years while for an under-construction property it may even get longer.

Bank of Baroda Home Loan: The interest rate for a home loan of Bank of Baroda starts from 7.25%. The maximum loan amount available is up to Rs. 10 crores. There are no prepayment charges on floating rate loan, and the maximum tenure available is 30 years.

PNB Home Loan: The interest rate of PNB home loan starts from 7.20%. It provides 5 bps concessions to women borrowers as well. The processing ranges from Rs. 2,500 to Rs, 15,000. There are no prepayment charges, and maximum loan tenure is 30 years.

Central bank of India Home Loan: The interest rate of home loan starts from 7.25%. The maximum tenure extends up to 30 years or till the borrower attains 75 years as age, whichever is earlier. The processing fee is 0.5% of the loan amount limited to Rs. 20,000.

Syndicate Bank Home Loan: The rate of interest for a home loan from syndicate bank starts from 8.00%. The processing fee is a maximum of 0.13% of the loan amount, limited to Rs. 5,000. The home loan schemes by syndicate bank are; Synd Nivas, SyndNivas Plus, and Synd Kutter.

Canara Bank Home Loan: The rate of interest for a home loan offered by Canara bank starts from 8.05%. The processing fee 0.50% or a maximum of Rs. 10,000. Some popular schemes provided by Canara Bank are; Canara Bank Housing Loan, Home Improvement Loan, Canara Site Loan.

United Bank of India Home Loan: The home loan interest rate starts from 8.00%. The processing is up to Rs. 11,800. The tenure is up to 30 years or till the borrower attains 70 years of age, whichever is earlier. Some popular schemes are; united Housing Loan, United Smart Loan, United Home Advantage.

Citibank Home Loan: The rate of interest from Citibank home loan starts from 8.20%. The maximum tenure provided is 25 years, and there is no processing fee charged. The maximum loan amount offered is Rs. 10 crores.

Bank of India Home Loan: The rate of interest for Bank of India home loan starts from 7.25%. The processing fee is up to Rs. 20,000. Some popular schemes are; BOI Star Home Loan, BOI Star Smart Home Loan, BOI Star Diamond Home Loan.

IDFC First Bank Home Loan: The interest rate for IDFC First bank home loan starts from 9.50%. Its processing fee is limited to Rs. 5,000. There are no prepayment charges, and maximum loan tenure is 30 years.

A low-interest rate is a crucial factor in deciding for a home loan, but it is not the only factor. While making the decision also consider the extent of financing you are getting, processing fee, foreclosure charges, eligibility criteria, and other terms of home loan disbursal.

How Does a Debit Card Works?

2020-04-27T09:49:59.730Z

Just like a credit card, the debit card is also plastic money. You can simply swipe the card at the point of sale and make the transaction. Through a debit card, you spend the money which you already have as it is linked to your savings account in which you have accumulated funds. The debit card does not increase your debt burden, although you can avail overdraft facility on your account subject to certain conditions.

Use of Debit Card

The use of a debit card is very much similar to your credit card. Many retailers accept payments through cards which are collected by swiping the card on the POS machine. Although in some cases you might have to inform the lender as to whether it is a debit card you are using or a credit card.

Since the debit card is connected to your savings account, make sure to be careful before swiping your card anywhere. It is particularly because in case your card information is stolen, then thieves can drain your savings account very quickly. Especially in the online arena, exercise due diligence before using your card.

ATM Card

There was a time when banks only issued ATM cards, which can be used only for cash withdrawal from ATMs. However, with a debit card, you can do so much more than just cash withdrawal from an ATM. Using the card directly at the point of sale or making online transactions, the ATM card has now developed into a debit card.

Debit Card and Bad Credit

In case you have bad credit, then a debit card can come in handy when you want to make online transactions or quick checkout at retail stores. In this way, you can avoid carrying cash around with you. However, debit cards do not contribute to building your history, as it uses the money which you already have in your savings account.

Although to improve your credit history, you can get a prepaid credit card which is allotted on the basis of a security deposit and works similar to a debit card but also helps in improving your credit.

Debit Card for Kids

Through the use of a debit card, you can easily teach children how the credit card works. Since both credit card and debit cards have limits, the difference between the two lies in the flexibility of those limits. The flexibility is much higher in case of the credit card than a debit card.

Prepaid Debit Cards

Traditionally, debit cards are linked to your savings account. It allows you to make electronic transactions instead of writing a check or using cash. However, you can also get cards without a savings account and simply on the basis of any deposit. These cards can be used without any approval and credit check. Plus, they help you in avoiding the debt trap as you can only spend as much as you made the deposit for.

Also Read: How to Use and Pay with a Debit Card?

Rewards

Just like credit cards, banks have introduced a ‘reward’ system with a debit card as well to encourage digital payments. Thus, using your debit card can get you discounts and accumulate points. These accumulated points can then be redeemed for some offers or discounts later on. This means that if you know where you will be spending your money in future, then you can even pick the debit card that will give you the maximum perks and savings.

@financialupdates

10 Best Banks in India Offering Low Interest Home Loans 2020

How Does a Debit Card Works?