From HDFC to SBI, look beyond interest rate when taking a home loan

The interest rate is the most important criterion, but also consider how the rate is benchmarked, the terms and conditions for repayment and balance transfer, and the processing fee.

• Banks usually lend up to 80-85 per cent of the property value, and up to 90 per cent in case of properties costing up to Rs 3 million
• Loan eligibility depends on repayment capacity, which in turn will be a function of your monthly income and that of your spouse, number of dependants, other loan liabilities, etc
• Loan tenure should not exceed your date of retirement
• Do a comparison of interest rates using aggregator websites
• Consider the processing fee 
• Find out the terms and conditions for prepayment and balance transfer
• Citi has launched a home loan linked to an external benchmark. The interest rate on such a loan is likely to fall faster in response to declining interest rates