Cheapest Bank Home Loan: Banks do not pay the full price of the house. For this, the Reserve Bank has fixed the loan to value ratio (LTV), that is, what percentage of the property price you will get as a loan. The rate of home loan also depends on the CIBIL score.
Cheapest Bank Home Loan: For many people, buying a house is the biggest dream of their life. There are many benefits of buying a house. A house not only provides a roof over their head but it is also an asset. Most home buyers buy a house by taking a home loan. Apart from the loan, there are other expenses in buying a house. Banks do not pay the full price of the house.
For this, the Reserve Bank has fixed the loan to value ratio (LTV), that is, what percentage of the property price will you get as a loan. If the property price is Rs 30 lakh or less, then 90 percent of the property price will be considered, if the property price is between Rs 30 to 75 lakh, then 80 percent will be considered.
On what basis do banks give home loans
However, if the property price is more than Rs 75 lakh, then up to 75 percent home loan can be available. Apart from the LTV ratio, many other factors like the person’s income, repayment capacity, age, job stability and credit score are also taken into consideration in the case of loans. Let’s take a look at the home loan interest rates of State Bank of India (SBI), Punjab National Bank (PNB) and Bank of Baroda (BOB).
State Bank of India
State Bank of India gives home loan at an interest rate of 9.15 percent to 9.75 percent depending on the CIBIL score of the applicant.
Bank of Baroda
Bank of Baroda offers home loans at interest rates ranging from 8.40 per cent to 10.90 per cent.
Punjab National Bank
Punjab National Bank offers home loans at interest rates ranging from 9.4 per cent to 11.6 per cent depending on factors such as the borrower’s CIBIL score, loan amount and tenure.
For example, borrowers with a CIBIL score of 800 and above for a loan amount of more than Rs 30 lakh with a tenure of up to 10 years are offered home loans at the lowest rate of 9.4 per cent.
