Popularly known as the ‘Silicon Valley of India’, Bangalore has become home to more than 1.5 million professionals associated just with the IT sector. Apart from that, the city is a thriving market for small and medium-scale industries, pharma companies, textiles, R&D, and more.
Bangalore is also an education hub with well-known institutions such as IISc, IIM, NLSIU, and several of the top engineering colleges in the country. In addition, the city has an ample amount of greenery and multiculturalism that attracts ex-pats from all across the globe. Loved for its pleasant weather, Bangalore is one of the most preferred choices for anyone to settle down.
Why apply for Home Loan in Bangalore?
The cosmopolitan city of Bangalore is also one of the most progressive as well as developed cities of India. Wouldn’t you wish to have a home in such a place? Home loans are offered by several popular financial institutions at varying rates of interest. A Home loan in Bangalore helps you borrow a particular sum of amount from any bank so that you can build a new home. It is not essential that the amount has to be utilized to build a new home. It can also be used for renovation purposes, to purchase land, apartment, existing property, and so on.
Advantages of availing a Housing Loan in Bangalore
There are several benefits that you can gain when you avail a home loan in Bangalore.
Few of them are as follows:
- Capital Appreciation: When you avail a home loan, you can always benefit from the surge in the value of property over time.
- Tax Benefits: The Indian Government offers tax deduction on the interest paid and principal applicable on the home loan.
- No Prepayment charges: When compared to other loans, home loans do not come with any prepayment penalty charges.
Eligibility criteria for House Loan in Bangalore
All the popular financial intuitions in Bangalore consider the following few factors to determine if you are eligible to avail of the loan:
- Age: The age limit for applying for a home loan is between 18-65 years.
- Profession: Both self-employed, as well as salaried individuals, are eligible for availing of a home loan.
- Annual Income: The annual income for salaried and self-employed individuals should be between ₹1,80,000 and ₹1,80,000-3,00,000, respectively.
- Occupational stability: The salaried individual must have a work experience of minimum of 2 years. The self-employed individual should be in his business for at least 3 years.
- Credit Score: A good credit score will help you to avail of the home loan at a faster rate.
Typical Interest Rates offered for Home Loan in Bangalore
Several financial institutions offer home loans to their customers in Bangalore. However, most of the people opt for the services of ICICI Bank, SBI, and HDFC to avail a home loan.
- ICICI Bank charges a nominal processing fee of 0 –5% with a tenure range of 3-30 years with an interest rate of 8.65-10.35%.
- SBI Bank charges one-time processing fees of 35% but at an interest rate of 8.55-9.25% and with a tenure period of 1-30 years.
- HDFC offers an interest of 6.95-7.85% for a tenure of 30 years and a processing fee of up to 0.5%.