Home loan comparison

Home loan rates in India: how to compare lenders properly

The lowest headline rate is not always the cheapest or smoothest loan.

Most Indian borrowers compare lenders by rate alone. That is understandable, but incomplete. The better comparison includes rate type, spread, reset frequency, fees, service quality and prepayment freedom.

Compare the full cost

Ask every lender for processing fee, legal fee, technical valuation fee, insurance requirement, documentation charges and whether any fee is refundable if the loan is not sanctioned.

Floating rate details

Floating loans move with the benchmark and lender spread. Ask how quickly rate reductions are passed to existing borrowers, not just new borrowers.

Prepayment and balance transfer

For floating-rate individual home loans, foreclosure charges are often restricted, but policies vary by product and borrower type. Confirm part-payment rules before signing.

Eligibility is not the same as comfort

A bank may approve a loan that stretches your monthly budget. Use your own DTI comfort threshold before accepting the maximum sanction.

Compare EMI and eligibility