Having a house of your own is the dream of many and one major obstruction in the realization of that dream is not being financially competent enough for it. However, banks provide home loans for exactly the same purpose and you can use the money to build your house and return it along with some interest. The decision to approve a home loan depends on a lot of factors like the location of the construction, the salary of the borrower, if he or she is under any loan scheme already etcetera.

There are two important parts associated with any home loan. It is the rate of interest that the bank charges while repaying the loan and the EMI plans that the bank provides. Mathematically and logically speaking, lesser the rate of interest, better the bank is.

There are various factors that influence this interest rate and EMI though-

• Your credit score which is basically a reflection of your worthiness of being given a loan
• The tenure for which the loan has been decided.
• Down payment. More down payment means the interest rates and the EMI will also be lesser.

The type of interest rate, whether it is floating or fixed also plays a significant role.

An overview of the interest rates and the EMI schemes per 1,00,000 rupees of the loan amount has been given in the list below-

• Axis bank- one of the biggest private-sector branches right now, the interest rate ranges from 8.9 to 9.15% per annum with the EMI option of 893-901 rs per 1,00,000 rs.
• HDFC bank- a bank known for its superior quality services, offers an interest of 8.8 to 9.8% with an EMI scheme ranging from 887-952 rs.
• ICICI bank- another private-sector giant has an interest of 9.05-9.25% and an EMI of 903-916 rs which is decent considering the reputation of the bank.
• State bank of India- this government aided branch has an impressive interest rate of 8.7-9.35% with EMI ranging from 881-922 rs as convenient.
• Punjab National Bank- another type of public sector, has a rate similar to SBI and stands at 8.65-8.75 with EMI scheme ranging from 877 to 884 rs.
• Corporation Bank- the interest rate is 8.6-9.25% and the EMI stands at 874-916 rs.
• Central Bank- one such bank that has a fixed rate of 8.6% and EMI of 874 rs. and do not follow a range.
• Canara Bank- the interest rate is again along with the range of 8.7-8.9% with EMI available at 881-893 rs
• UCO bank- interest is offered at 8.7-8.95% and EMI at 881-897 rs.
• Bank of India- last but not least, this bank provides an interest rate of 8.8-8.85% and an
  EMI of 887-890 rs.

It must have become clearer from the above picture that the interest rates and EMI schemes of most of the banks are agonizingly close to one another. Therefore, it is just based on your convenience and suitability that you should make your choice.

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