Home loan rates: A look at what HFCs are offering

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It’s a virtual rate war to attract customers. With the onset of the festive season, several financial institutions in the country have cut their home loan rates, turning more aggressive than ever before. Just like banks, housing finance companies (HFCs) have also made their offers more attractive. Interest on home loans is coming down at the lowest level. So, if you are planning to buy a house or flat, this may be the ideal time. Money9 brings for you the best rates of home loans offered by NBFCs.

Just like banks, HFCs are a type of financial institution in the country. They are doing functions similar to banks. However, there is a difference between these two. According to RBI:

— A housing finance company cannot accept demand deposits;

— NBFCs do not form part of the payment and settlement system;

— They cannot issue cheques drawn on themselves;

— Unlike banks, the deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to depositors of NBFCs.

Advantages

While deciding the quantum of loan that an applicant is eligible for, banks use several criteria. The eligibility criteria for HFCs could be a bit flexible. They also take less time than banks to process loans.

Latest rates

Amongst the leading housing finance companies, LIC Housing Finance Ltd, a subsidiary of Life Insurance Corporation of India (LIC), is offering the cheapest home loans. It starts from 6.66% and is applicable to any amount up to Rs 2 crore.

HDFC Ltd secures the second position in the list. According to HDFC’s official website, under the special festive offer now they are offering home loan at 6.7% interest rates on up to 30 lakhs. This offer will be valid till October 31, 2021.

During this festive season Tata Capital is offering home loan interest rates starting from 6.70%.

Home loan offers at Bajaj Finserv, another reputed non-banking finance company in the country, starts from 6.75%

PNB Housing Finance, a subsidiary company of Punjab National Bank, is offering floating interest on home loans starting from 7.35%.