In the last couple of years, the prominent banks and NBFCs significantly lowered down their Housing Loan interest rate, specifically to realize the “housing for all” initiative more rapidly. To transform this dream into an achievable event, the RBI introduced the MCLR rate, cutting down the Housing Loan interest by a rewarding margin. Summing up all the events, the preceding year 2017 highly favored the home buyers and 2018 is anticipated to remain the same.
The BIG question - where to apply for a Housing Loan?
1. The Banks: As mentioned above, the banks are following the MCLR rate and therefore the banks are more likely to offer lower interest rate opposed to any other financial institutions. However, securing a Housing Loan from a bank is like catching a black cat in the dark. Banks follow a very strenuous process to evaluate Home Loan applicants, and it can be challenging at times to qualify the eligibility criterions.
2. The NBFCs: The interest rate on Home Loan offered by NBFCs may be equal to or insignificantly greater than the bank schemes, but the aggregate payable amount including the secondary and tertiary charges is more or less equal to the latter.
Attractive Benefits of NBFCs Housing Loan
The BIG question - where to apply for a Housing Loan?
1. The Banks: As mentioned above, the banks are following the MCLR rate and therefore the banks are more likely to offer lower interest rate opposed to any other financial institutions. However, securing a Housing Loan from a bank is like catching a black cat in the dark. Banks follow a very strenuous process to evaluate Home Loan applicants, and it can be challenging at times to qualify the eligibility criterions.
2. The NBFCs: The interest rate on Home Loan offered by NBFCs may be equal to or insignificantly greater than the bank schemes, but the aggregate payable amount including the secondary and tertiary charges is more or less equal to the latter.
Attractive Benefits of NBFCs Housing Loan
- Flexi repayment scheme
- Minimal Documentation
- Faster approval
- Easy-to-meet eligibility criteria
- Higher loan amount
- Top-up loan facility
Bottom Line: Whether to apply at a bank or an NBFC is entirely on your discretion, but make sure you have the required credit worthiness and the economic stability to qualify the eligibility criterias.
Reference Read:
Which of the Leading NBFCs is Offering Lower Housing Loan Interest Rates?
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