Which Bank should I take a loan from?

If you have a good credit record (salaried job, no past defaults, no revolve on credit card, etc), you are better off seeking a loan from a Public Sector Bank. These Banks involve more paperwork and time for getting approval, but in a high stakes product like a home loan, this one-time effort is very much worth it! Opt for Private Banks only if Public Sector Banks have refused you a loan for some reason. And non-banking finance companies should only be a last resort.

One useful thing to do is to initiate processing in two Banks that are offering competitive rates. This way, you pay the processing fee twice over. But it is useful to drive a good bargain at the end and get the best possible deal from one of them.

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