However one can haggle with home loan providers and can even have the loan preapproved. Besides this one can also check out State bank of Patiala home loan rates as we got this deal @ rate of 8% for first year and @9% for second and third year. For balance of the years it is PLR (prime lending rate) - 475% as the rate of interest for the home loan. However as you know public sector banks have a negative attitude and poor customer support and they made us at least waste 3 days for getting the loan approved despite having full documentation and papers intact. We wish if these PSU banks can improve their customer care and they can put all private sector banks behind the scene.
HDFC and ICICI are also providing 8.5% for first year till 31 Mar 2011 and thereafter for next 2 years it is 9% and balance years again it is PLR-4.75%. These type of loans are called as teaser loans. The above screenshot will give you an idea, how the rate of interest effects the loan amount.