What are the best home loan options available in India for a techie for 50 lacs, with a tenure of 20 years?

It depends on your priorities. If you are willing to buy some time and waste less money, then go for PSU banks. They take time, but are very transparent and their interests are reasonable and have no hidden charges but you might not get the expected amount.

Private banks offer good service, fast processing and you might the get amount as you expect but beware of hidden charges, high interest rates, they are slow to reduce interest rates, have pre-closure charges, etc.

so if you are in a hurry, financially smart and have a keen eye for detail, and expecting your income to rise considerably in the future, or surely make profit from your home, then go for private banks but keep a tab on their charges every month.

If you just want a peaceful home to stay, and not get into any further trouble in the future, just struggle a bit till you get the loan from a PSU bank and be contempt.

As of now competition is tough and all banks offer interest rate in the range of 9 percent to 10.75 percent. This is one of the best times to buy a home loan with interest rates at a low point. If you are young and your spouse is earning or financially secure, go for floating rate of interest, as interest rates are expected to go down due to the market conditions.

If you are already having a lot of financial commitments and have saved very less money, and don't want to take any risks go for fixed rate of interest home loan.

What are the merits and demerits of SBI and HDFC home loans?

SBI home loans:

• Reasonable or lower interest rates.


• Some branches might have poor customer service.


• No unnecessary charges


• No pre-closure or part payment charges


• Over draft facility with SBI max home loan for loan account


• Overall You get what you see.. transparent home loan

Demerits

• Time consuming


• Have to produce all the documents


• Might have to make down payments or margin payment, which is usually up to 20 percent of the home loan amount. For eg: if your home loan is for 30 lakhs, you might be asked to have a amount of 5 to 6 lakhs in hand.


• Lot of rules and regulations


• Might not get expected loan amount

HDFC Home loan merits

1. Fast loan amount disbursal


2. Prompt customer service


3. Not a time consuming process


4. Can bargain and also get higher loan amount

Demerits

• Very slow to reduce interest rates if home loan rates come down


• Penalty is high if one month EMI is missed


• Hidden charges


• Pre-closure charges


• Pre-payment charges


• Highly expensive when compared to PSU home loans