Which bank is best for a home loan in India

Here are 3 representative responses:

Saru Kaushal, 27 years in BFSI – INDmoney | American Express | Citi Bank

The best bank for a home loan is one that gives a loan at the lowest rate of interest.

That being said, most often than not, public banks give loans at a lower interest rate than private banks. Even among the public banks, the State Bank of India has been known to give the lowest interest rates for the last few years.

However, there are other factors that determine whether the bank is good enough to take a loan from. These can be summed up as:

1. Lowest Interest Rates
   The bank that gives the lowest interest rates will naturally imply the lowest EMI. That means lesser burden each month for repayment of the loan.

1. Lowest Prepayment Charges
   Prepayment charges are a nuisance when it comes to paying back in lump sum to reduce the time period of the loan. When the banks have low prepayment charges, one can pay off the loan easily thereby reducing the total interest paid.
2. Lowest Processing Fees
   One should check the processing fees for availing the loan and opt for the banks that, in addition to the above two, ask for a low processing fees.
3. Lowest Legal Fees
   Certain banks ask for a legal fees for documentation of the loans. The lower the fees, the lower the burden on the customer.
4. Highest Down Payment
   When the down payment is high, the remainder amount is low, and the total interest paid is low. Therefore, opt for a bank that allows for the highest down payments to be paid while availing the loan.