Before you apply for a housing loan, check your loan amount eligibility and calculate monthly home loan EMI. Home loan eligibility is calculated based on age, monthly income, current obligations, LTV ratio, property type, and other factors. EMI can be calculated based on the loan amount, interest rate, and tenure. It is advisable to shortlist the banks which offer the maximum loan amount once you check your EMI and eligibility.

In case you are buying a builder property, then check for the banks that have approved the shortlisted projects. In case of a resale property, map plans are to be approved. Ensure that the property registration documents are accurate for both the first and the current owner. On ensuring the authenticity of the documents, shortlist the banks that give a loan on your selected property.

• Choose between floating and fixed rates: Most of the banks offer home loans at either floating or fixed interest rates. As per the fixed interest rates on home loans, the interest rate remains constant during the loan tenure. On the other hand, as per the floating home loan rate, the rate changes after periodic intervals in response to MCLR, PLR, and external benchmarks like RLLR and TBLR. It is preferable to do a home loan interest rates comparison before you apply for a home loan.
• Home saver loan option: Banks offer overdraft facilities to allow borrowers to save interest on the home loan. A surplus amount can be deposited in the loan overdraft account as and when available with an option to withdraw the amount anytime. The interest rate on overdraft loans is higher than regular home loans.
• You can also evaluate a mortgage guarantee home loan as it covers any default risk and allows the lender to give you a loan at a lower rate of interest. You will however need to pay a mortgage guarantee fee to the bank.

You can compare home loan interest rates of all banks and NBFCs at an online marketplace like MyLoanCare.in. Along with rates, you can also check processing fees, prepayment charges, and any other associated cost on the loan. Compare all the rates and charges to shortlist the banks further and reduce the options to 2-3 banks.

Finally, as you decide to take the loan, consider other services and related transparency parameters of the chosen banks. Some of these factors are turnaround time, quick loan delivery, doorstep services, transparency in the loan process. In addition to that, understand the trends and changes in MCLR, PLR, and external benchmark rates over time. Lastly, read reviews of existing customers of banks on their services, interest rates, and transparency to take your decision to borrow from a bank.