About half of home loan seekers prefer public sector banks: Survey

New Delhi: About 47 percent of home loan seekers prefer public sector banks as compared to private ones, according to a survey by BASIC home loan.

Of the 1,000 people surveyed, 270 said they preferred home loan from a private bank.  The survey gathered responses from people across the rural and urban cities in India, and captured data from 25 cities.

Around 24 percent of the survey participants preferred to use their personal savings to construct a house. As low as 1 percent of the survey respondents said they would like to avail a home loan from a non-institutionalised private money lender.

Around 36 percent of the respondents preferred to inspect the property on their own rather than depend on a broker or a professional.

Atul Monga, Co-founder and CEO, BASIC Home Loan said, “Every bank is unique, be it a public or private sector one. Usually, public sector banks offer better rates in processing charges and prepayment restrictions while with private banks, there’s an advantage of quick turnaround time and better technology through the disbursal process.”

“However, the borrowers tend to go with a product whose cost is low both in the long and short term. This decision is also based on the perception that a borrower has of a bank, the reference from a friend or family member, as well their eligibility for the loan,” added Monga.