Bandhan Bank Home Loan Interest Rates: How They Compare to Other Banks (2022)

Bandhan Bank Home Loan Interest Rates: Did you know that you can also get a home loan from a cooperative bank? The word cooperative conjures images of a group of people who work toward a common goal, and in this case, it is true. Most cooperative banks are owned and operated by their members.

The members are the bank’s customers. They own a part of the bank and have the right to vote for the management. Therefore, the bank’s management works in the best interests of its members. In order to qualify for a home loan from a cooperative bank, you must be a member of the bank.

Bandhan Bank Home Loan Interest Rates

This means that you must have a deposit with the bank which is higher than the bank’s lending limit. So how does a cooperative bank provide home loans to its members? While the process may be slightly different from that of a regular bank, the final interest rate is usually lower. In this article, we will discuss the (Bandhan Bank Home Loan Interest Rates) home loan interest rates of the country’s leading cooperative banks.

Interest Rate6.40% p.a. to 11.75% p.a.
Processing Fee1% of the loan amount or a minimum of Rs.5,000, whichever is applicable + taxes
Bandhan Bank Home Loan Interest Rate
SchemesInterest Rate for salaried
Suraksha Home Loan8.50% p.a. – 11.50% p.a.
Sajavat Home Loan9.25% p.a. – 11.75% p.a.
Su-awas Home Loan11.50% p.a. – 13.50% p.a.
Suvidha Home Loan8.75% p.a. – 11.75% p.a.
Bandhan Bank Home Loan Interest Rate

HDFC

HDFC is India’s most decorated bank. It was awarded the title of “Best Bank in the Country” thrice in a row. The bank offers home loans in seven different formats:

  • Flexi Loan – For those who don’t want to make a fixed amount, but want to repay the loan in full at the end of the term.
  • Education Loan – For parents who want to send their children to school or courses involving higher education.
  • Loan Against Property – For those who want to get a home loan, then let the bank take over the property they own and sell it to repay the loan.
  • Home Improvement Loan – For those who want to improve the current housing unit or make a new one.
  • Loan Against Shares – For employees who want to buy shares in the bank so that they can have voting rights.
  • Loan Against Gold – This is for those who want to convert their gold into currency.

ICICI

ICICI Bank has been ranked among the top 20 banks in the world. It is one of the largest private sector banks in the country and is often referred to as the “Barclays of India”.

ICICI Bank has its roots in cooperative principles. The bank was founded in 1944 as the Industrial Credit and Investment Corporation of India. In 1978, it was converted into a private limited company. The bank offers home loans in its two main products – Saver’s Credit and Regular Loan.

AXIS BANK

The City Union Cooperative Bank was converted into the Axis Bank in 1996. It is now the country’s sixth-largest private sector bank. The bank provides home loans in five formats – Saver’s Credit, Education Loan, Loan Against Property, Loan Against Shares and Loan Against Gold.

STATE BANK OF INDIA

The state-owned State Bank of India was founded in 1865. It is the largest bank in India and the second-largest in Asia.

SBI offers home loans in four formats: Saver’s Credit, Education Loan, Loan Against Property and Loan Against Shares. SBI has a tie-up with MyRaise, a digital lending platform, to provide home loan products.

UTI Bank

The UTI bank was formed in 1969 through the merger of three nationalized banks: Union Bank of India, United Commercial Bank and the United Bengal Commercial Bank.

The bank offers home loans in five formats – Saver’s Credit, Education Loan, Loan Against Property, Loan Against Shares and Loan Against Gold.

Canara Bank

Canara Bank, one of the oldest banks in the country, was founded in 1874. It offers home loans in three formats – Saver’s Credit, Education Loan, Loan Against Property and Loan Against Shares.

Syndicate Bank

The Syndicate Bank was formed in 1987 through the amalgamation of five regional cooperative banks located in the Western, Southern, Eastern, North-Eastern and North-Western parts of the country.

It offers home loans in three formats – Saver’s Credit, Education Loan, Loan Against Property and Loan Against Shares.

Here are the factors that determine cooperative bank home loan interest rates

There are no standard rules for cooperative banks when it comes to setting home loan interest rates. Every cooperative bank has different loan policies and lending criteria.

One of the main factors that influence cooperative bank home loan interest rates is the interest rate on the bank’s deposit accounts.

If the interest rate on the bank’s deposit account is higher than the prime lending rate, then it will have an even lower lending rate on the home loan products it offers.

Conclusion

Cooperative banks are owned by their members, who are the customers. Members can elect the bank’s management, which is a cooperative approach. In most cooperative banks, the home loan interest rates are lower than those of statutory banks.

The best option is to compare the home loan interest rates offered by different banks and choose the one with the lowest interest rate. The home loan interest rates of cooperative banks are not uniform. They vary based on the format of the loan, the lending limit and the interest rate on the bank’s deposit account.

To get a home loan from a cooperative bank, you will need to be a member of the bank. This doesn’t require any deposit; it is free to join. The only requirement to join a cooperative bank is to be a resident of India and above 18 years of age.

Before you apply for a home loan from a cooperative bank, make sure you understand the lending criteria and the interest rate charged by the bank.

FAQ,s

What is the interest rate of home loan in Bandhan bank?

Home Loans at 6.4% p.a. from Bandhan Bank.

Is Bandhan Bank RBI approved?

The RBI's decision will help Bandhan Bank in contributing to nation-building, its MD and CEO Chandra Sekhar Ghosh said. Bandhan Bank said on Monday that it has been empanelled by the Reserve Bank of India (RBI) to act as an agency bank to facilitate transactions related to government businesses.

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