A Comparative Study on Home Loan Interest Rates of Top 5 Public and Private Sector Banks

Abstract

When it comes to the country's economy, banks are essential. They mediate the transfer of money, goods and services in the financial sector on behalf of consumers, businesses and governments. Banks play a vital role in every economy due to their many important services like receiving deposits, making loans, exchanging currencies, managing investments and processing payments. Taking deposits from customers is an important part of what banks do. Money deposited by individuals and companies is kept in various bank accounts such as savings, checking and fixed deposits. Customers can earn interest on their savings while providing banks with a reliable source of income. Financial institutions also provide credit in the form of loans to consumers and businesses. Lenders assess applicants' creditworthiness and offer loans for things like home purchases, company projects, and school expenses. Interest charged from borrowers is how banks make money. Payment facilitation is another important function offered by banks. Credit and debit cards, electronic money transfers and online banking services are just some of the payment options it offers. Banks provide a safe and reliable way for individuals and businesses to send and receive money, which simplifies the payment process. In addition, banks provide services such as buying and selling of currencies, asset management, investment products and financial advice. Apart from acting as custodians, they also offer insurance products and safety deposit boxes for valuables.