Taking a home loan could be a big task in itself and one of the biggest financial decisions. home loan is that the longest debt in our life. at times 10-20 yrs, that makes demands a long term commitment. every month you’ve got to pay your EMI, generally you’ve got to prepay some a part of home loan, sometimes you need some documents and visit the bank.
There are numerous things to be done during taking the home loan and when taking the home loan, therefore you must be very clear that that is the best bank for home loan. while not much confusion, its very clear that everybody needs to go with the bank that makes your life easy at the time of taking home equity loan and even after that. so the biggest question on everyone’s mind is “Which is the best bank for Home loan?”
First thing initial, you’ve got to be very very clear that there cant be a single bank or loan institution that is perfect for everything and you’ll ne’er face an issue with them. also there’s no “best bank for Home Loan” that has always worked for everybody till date. however overall we will always pick some banks that have been better than others on different parameters.
You’ll say that on a high level “Bank A” is better than “Bank B” and this is often based on many loan takers experience over the years. therefore now during this article we’ll try and understand difference between different banks and how they differ with each other. we’ll also see a survey result done with the vast community of this blog and that bank they choose collectively as best bank for home loan.
Public Companies vs Pvt Companies
While researching on this subject , the first factor that came to my mind was “all banks are same, everybody has bad experience can all kind of banks, whether PSU or private”. however we’ve to understand that whereas some people will have bad experience with some banks, there are positive experience too and that we have to see things from a very high level and not judge a bank just based on handful of bad experiences. the primary confusion that comes to any loan taker mind is “PSU bank or private bank?” and based on the experience here is that the conclusion.
PSU Banks are good post-loan but not friendly at the time of taking the loan
Private banks are very fast and friendly at the time of disbursing the home loan, they’ll treat you wish a king up-till the loan is disbursed, however once each formality is complete and your home loan is sanctioned, you’re a trash to them! As they’re extremely agressive in marketing of home loans, a lot of people fall for it, private companies presentation and they way they approach you is good however only till you’re not a home loan customer. a lot of times private companies make things simple for you and also bend some rules for home loans. the number of documents they have also is less compared to a PSU bank.
On the other hand, PSU banks are not that great at the start of home loan , their rules are very strict and stringent and they still operate within the “sarkari” style, but once you loan process is complete and things begin, there after life is much easier compared to private banks. the overall handling is much professional and as per the process. in short they don’t suck your blood each now and then as private companies do.
Private banks are 1st to raise the interest rates
On the interest rates increase and reduction side, its seen that private companies are 1st to raise the interest rates once the rate increase from rbi side, however private banks hide somewhere when there’s a time for reducing the interest rates. but PSU banks are a lot of transparent on this front and much less annoying than private banks. additionally private banks arbitraly increase the pre-payment charges ( like from 2 to 3%) the conversion fees is additionally charged heavily if you would like to move down to a lower interest rates.
Also the changes of fraud at employees level in private bank is far higher than PSU Banks. I cant say that PSU banks are not into the bad game, however its much much higher in private banks because of sales pressure and targets. There has been cases of forced selling of home insurance and also cross selling of ULIP’s and alternative financial products along with the home loan
Which is the best bank for Home loan in India?
Now there are millions of people that have taken home loan and there are varied parameters on that a bank will be ranked like processing time for home loan, Transparency in whole method, attitude towards customer, Interest rates and pre-payment charges, online tracking of your home loan when disbursement. however there’s no ranking of banks on of these parameters. but still you’ll rank a bank overall as good or bad in total.
Best bank for home loan and based on that decide that banks are more preferable and more trusted. Here are the results. A good place to look for all the home loan related data (Click here)
Best Bank for Home Loan in India (Survey Results)
Top 5 banks for Home Loan at the moment
If you see the survey above , you’ll clearly see that the top five banks for home loan area unit SBI , HDFC , LIC housing, Axis Bank and ICICI Bank and these five banks comprise of 83 votes . whereas huge|an enormous|a giant} reason for this could be that these are big banks having a wide reach and has more customers and hence the results are little biased. however at least you’ll see that out of 1504 people on this blog, 83 of them have a home loan from these 5 big banks , in which SBI tops the list.
1. SBI Bank
Based on the survey and overall reading’s done over net and comments section of this blog. SBI bank seems to be the best bank for home loan. whereas SBI Bank still carries the hangover of Sarkari culture and that they are strict in the overall process , which suggests you’ll have to run all over the bank and many times to get things done, however once the whole process is complete , could also be you’ll have a smooth experience overall. Things will be easy post home loan process if you wish anythings from bank compared to different banks.
2. HDFC Bank
Overall HDFC bank seems to be have mixed review. Some people had nice experience and some had very bad experience. HDFC Bank is overall recognised because the bank for home loan itself. however overall the experience was very very mixed.
3. LIC Housing Finance
LIC housing finance seem to be a decent option once SBI. whereas they’re not that great as SBI , still they appear to be a good choice when HDFC and ICICI bank . LIC Housing Finance has lesser documentation requirements, however one has to run around for smaller details.
LIC seem to offer better rates and also giving option to fix the interest rate for 5 years. One issue that many people don’t know is that LIC reduces the interest rates for home loan for its customers having any insurance/investment policy with LIC by at least 0.25% , however only if sum assured of all policies collectively is more than 15,00,000 and all policies ought to be under the name of loan applicant.
4. ICICI Bank
ICICI Bank looks to be very very fast and too friendly at the time of loan processing, however once the loan is done, the life seems to be hell for many of the people . they’re not very supportive most of the times and one gets too frustrated with their attitude. Overall their interest rates are also very high.
5. Axis Bank
Axis Bank is another good option as big bank . One good thing about Axis bank is that they need nil charges for any pre-payment . Its a big surprise that Axis bank was a lot of preferred than ICICI bank overall within the survey. while Axis Bank has few good options, there was one recent case from axis bank that I had highlighted on this blog on however they forced sell a life insurance policy along with home loan, while this was a negative factor from Axis Bank, we’ve got to understand that good and bad experience are part of all the banks.
So what’s the final answer ?
While there are positive and negative experiences from different banks, the clear answer coming out of different comments from readers and survey is that if one should choose just one name, SBI bank is that the best bank for home loan. we’ve got seen most of the votes about to SBI Bank and all the pointers are suggesting that its a right choice.
Which bank do you have home loan with and what was your experience overall from start till the end. are you able to share it in for others benefit?