How to choose the best home loan in India

A home loan will usually be the biggest and longest loan you ever take, so a small difference in terms adds up to lakhs over the tenure. The lowest rate on an advertisement is a starting point, not the answer.

1. Compare the rate you will actually get

Advertised rates are for the best profiles. Your final rate depends on your CIBIL score, whether you are salaried or self-employed, the loan amount and the property. Ask each lender for the rate on your profile and compare those numbers.

2. Look at the total cost, not just the rate

Add up processing fee, legal and valuation charges, and any insurance the lender asks you to buy. A loan 0.05% cheaper with a ₹25,000 higher fee may not be cheaper at all.

3. Check how the rate is linked

Most bank home loans are linked to the repo rate (EBLR), so rate cuts reach you faster. Some housing finance companies use their own benchmark. Ask how often your rate resets.

4. Prepayment and part-payment rules

Individuals with floating-rate home loans pay no foreclosure charges, but check how easily you can make part-payments online and whether there is a minimum amount.

5. Service matters for 20 years

Digital statements, a working app, quick interest certificates for tax and a branch near you make a long loan far easier to live with.

If you would like this comparison done for your profile, share your requirement and a MyFinanceCare advisor will call you.