Latest home loan interest rates compared: ICICI Bank vs HDFC Bank vs Axis Bank; check all charges before applying

Latest home loan interest rates compared: First and foremost to be considered are the interest rates because these decide how much interest you will have to pay while repaying the home loan.

From the home loan interest rate perspective, HDFC Bank looks most suitable banker for home-loan-takers. Photo: PTI

Latest home loan interest rates compared-ICICI Bank vs HDFC Bank vs Axis Bank: Owning a dream home is one of the biggest desire of a common man. Since very few have the money to buy a home on their own, they go for a home loan. Smooth access to the home loan is making this dream become true for the public in general, especially after the entry of the private banks. ICICI Bank, HDFC Bank and Axis Bank are the major private sector banks that have given stiff competition to the existing public sector banks in urban India because their services are very fast and the interest rates are very competitive. Therefore, today, a common man is not shy of banking with these banks for personal banking or for availing any loan including home loan. However, it is advisable for the home applicant to check the interest rates and other charges before choosing their bank for home loan disbursal. The home loan applicant must remember that there are some other charges like processing fee, interest rates, prepayment charges that different banks levy differently. So, a reality check is the must before finalising your banker for a housing loan.

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Speaking on the various variables that a home loan applicants must keep in his or her mind before availing a home loan SEBI registered investment expert Jitendra Solanki said, "First and foremost is the interest rate because it decides how much interest you will have to pay while repaying the home loan. But, these days home loans are subject to home loan interest rate that should change after every two months after the RBI MPC. But, the banks are reluctant to pass on the benefits of RBI rate cut decisions to its customers. So, the percentage change occurred in the last six month in various banks should also be checked before applying for a home loan."

If we compare the ICICI Bank, HDFC Bank and Axis Bank in terms of home loan and the various charges being applied by these banks on the home loan applicant we would found that ICICI Bank levies a floating home loan rate of 9.05 per cent to 9.10 per cent, HDFC Bank levies floating home loan interest rate from 8.65 per cent to 8.7 per cent while the Axis Bank levies the same rate from 8.9 per cent to 9.10 per cent. On the basis of this, if a person avails home loan for twenty years, his or her per lakh EMI in ICICI Bank would be Rs 903 to Rs 906, in HDFC Bank it would be Rs 877 to Rs 881 while in Axis Bank the monthly EMI per lakh would fall between Rs 893 to Rs 906. So, from the home loan interest rate perspective, HDFC Bank looks most suitable banker for applying for a home loan.

But, there are some other charges that a home loan applicant must look before at the time of applying for a home loan. Most prominent after home loan interest rate is a processing fee, which an applicant has to pay before the home loan is disbursed. Some times to hide the burden of the processing fee, bankers deduct their processing fee from the net amount approved as a home loan. Here in these three banks, ICICI Bank charges Rs 10,000+ all taxes or 0.25% + all taxes whichever is lower, at HDFC Bank processing fee is up to 1.25% of the loan amount or Rs 3,000 whichever is higher along with applicable taxes while in the case of Axis Bank this charge stands up to 1% of the Loan amount subject to minimum of Rs 10,000. When it comes to prepayment charges all the three banks have nil charges but when we compare the percentage change in home loan by these three banks in last six months as RBI has cut the Repo Rates in its three successive Monetary Policy Meetings (MPC), we found that HDFC Bank has lowered maximum by 1.98 per cent, ICICI Bank registered 1.52 per cent while the Axis Bank log 0.9 per cent at this variable.

So, by going through the expert's opinion and the variables he has mentioned HDFC Bank is the clear winner over other rival banks.

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