Are you looking for the best home loans in India to buy a home? If yes, this article will help you to find out the best home loans in India. Home loans are classified into various categories like interest rates, availability, and additional fees. Choosing a home loan in a market flooded with options can be daunting.
Home loans are typically used to finance the purchase of a home, the construction of a home, as well as extensions and renovations. In today’s topic, we will discuss the 15 best home loans in India to help you make your home purchase decision. So, continue reading.
What is a Home Loan?
As mentioned before, a home loan is a type of financial assistance provided by banks and financial institutions. With the loan amount offered, such banks or financial institutions can help you increase your budget to buy a house. You must repay the loan amount borrowed plus interest at the predetermined interest rate over the term of the loan.
The home loan is repaid in monthly instalments, just like any other loan. Today, most banks offer home loans that not only assist you in purchasing ready-made homes but also in the construction of a home from the ground up. You can also seek Home Loans for renovation or repair purposes. Check out the benefits of taking a home loan.
Benefits of Home Loan
There are several benefits of taking home loans in India while purchasing ready-made homes, constructing a home, and repairing your old home.
1) Tax Benefits
The most significant advantage of a home loan is the income tax deduction available for interest and principal repayments. You can claim up to Rs.1.5 lakh in principal repayments under Section 80C, in interest repayments under Section 24B, up to Rs.2 lakh in interest repayment under Sections 80EE and 80EEA, and up to Rs.1.5 lakh in stamp duty expenses under Section 80C.
2) Lower Interest Rates
In comparison to other loan options, the interest rate on a home loan is significantly lower. If you run into financial trouble, you might be able to extend your current home loan at a lower interest rate than a personal loan to get by.
3) Due Diligence of Property
When you buy a house through a bank, the bank will conduct extensive legal checks on the property and ensure that all documents produced are valid. This due diligence check from the bank reduces the possibility of you being duped. If the property is approved by the bank, you and your home are safe.
4) Long Repayment Tenure
Home loans, unlike other types of loans, have longer repayment terms, up to 25-30 years. This is due to the substantial loan amount required to purchase a house. Spreading the loan amount and applicable interest over a longer term reduces monthly EMIs, easing the borrower’s burden.
5) No Prepayment Penalty
When you take out a floating-rate home loan, you can make prepayments whenever you have a lump sum available without incurring any penalties. This will allow you to pay off the home loan much sooner than the set loan term.
6) Balance Transfer Facility
You can transfer your home loan from one lender to another for a variety of reasons, including interest rates, service charges, customer service experience, and so on.
Types of the Home Loans in India
If you want to build a new home, buy a ready-made home, or extend your home, banks will provide loans on that basis. So, there are several types of the home loan depending on your aim.
1) Best Home Loans
This is the most common type of mortgage used to buy a home. Many housing finance companies, public banks, and private banks offer housing loans in which you borrow money to buy the house of your choice and repay the loan in monthly instalments. Financing is available for up to 80%-90% of the market price of the home. The lender will keep the house until the loan is completely repaid.
2) Home Construction Loan
If you already own a plot of land and need funding to build a house on it, this is the home loan for you.
3) Home Extension Loan
Assume you already own a home and would like to add another room or floor to accommodate your growing family. A home extension loan can help you with this.
4) Home Improvement Loan
A home improvement loan provides financing for renovating or repairing the house if there is a problem with the existing system, such as painting the interior or exterior, plumbing, upgrading the electrical system, waterproofing the ceiling, and more.
5) Home Loan Balance Transfer
Suppose, your current home loan interest rate is too high, or you are dissatisfied with your current lender’s service. You can transfer the outstanding balance to a different lender who offers a lower interest rate and better service. You can even investigate the possibility of a top-up loan on your existing loan after the transfer.
6) Composite Home Loan
This type of home loan combines financing for both the plot of land on which you want to build a house and the construction into a single loan.
List of the 15 best Home Loans in India
| Bank Name | Interest Rate | Processing Fee | Loan Amount | Tenure |
|---|---|---|---|---|
| SBI Home Loan | 8.55% – 12.35% p.a. | 0.35% onwards (min. ₹2,000 & max. ₹10,000) | Max. up to ₹15 Cr. | 1-10 Years |
| HDFC Home Loan | 8.60% onwards | 0.5% or ₹3,000 whichever is higher | Contact the bank for Loan Amount details | 1-30 Years |
| Union Bank Home Loan | 8.25% p.a. onwards | 0.50% or ₹15,000 Maximum | ₹25 L Min | 1-30 Years |
| PNB Housing Home Loan | 8.50% p.a. onwards | Up to 0.5% of the loan amount (min. ₹10,000 in both cases, excluding taxes) | Up to 90% of the cost of the property | 1-30 Years |
| LIC HFL Home Loan | 8.30% p.a. onwards | Up to ₹1 Cr – 0.25% of Loan Amount, subject to a maximum ₹10,000/- (Plus GST) Above ₹1Cr and up to ₹5Crs – 0.25% of Loan Amount, subject to maximum ₹25,000/- (Plus GST) | ₹30 L – ₹5 Crs | 5-30 Years |
| Axis Bank Home Loan | 8.10% p.a. onwards | 0.50% (min ₹ 10,000) | ₹5 L – ₹10 Crs | 1-30 Years |
| Aditya Birla Capital Home Loan | 9.00% – 12.50% p.a. | ₹5,000 to ₹10,000 + applicable tax | ₹20 L – ₹10 Crs | 1-30 Years |
| IDFC Home Loan | 8.50% p.a. onwards | ₹5,000 + Applicable Tax | ₹30 L Min | 5-30 Years |
| Bank of Baroda Home Loan | 8.25% | Up to ₹50L, 0.50% & above ₹50L, 0.25% of the Loan Amount | ₹1 L – Up to ₹10 Crs | Up to 30 Years |
| Canara Bank Home Loan | 8.10% p.a. onwards | 0.50% (min. ₹1,500; max. ₹10,000) | Contact the Bank for Loan Amount details | 30 Years |
| Kotak Mahindra Bank Home Loan | 8.30% p.a. to 9.10% p.a. | 0.5% of the loan amount | Contact the Bank for Loan Amount details | 1-20 Years |
| ICICI Bank Home Loan | 8.60%-9.60% p.a. | 0.50% to 1.00% of the loan amount or ₹1,500 whichever is higher | Contact the Bank for Loan Amount details | 1-30 Years |
| Bajaj Finserv Home Loan | 8.30% – 14.00% p.a. | Up to 1.0% of the loan amount + applicable GST | Up to 85% of the property cost (up to ₹5 Crs) | Up to 20 years |
| DBS Home Loan | 8.25% p.a. & 8.60 p.a. | ₹10,000 + taxes | ₹50 L – ₹5 Crs | 1-25 Years |
| Sundaram Home Finance Limited Home Loan | 7.85% onwards | ₹3,000 + GST PF (For salaried) (Not applicable on plot loans) | ₹12 L – ₹5 Crs | 1-20 Years |
Detailed information of the best Home Loan bank in India
Bank offers different features and different types of home loans to needy people. Depending upon the taken loan, interest rate and tenure time, your monthly instalment would be set. So, check out the things carefully.
SBI Home Loan – Home Loans in India
SBI Home Loans is India’s largest mortgage lender. They assisted over 30 lakh families in realizing their dream of owning a home.
- Low-interest rates starting from 8.85% p.a.
- Interest rate concession for women borrowers
- Maximum loan amount of up to ₹15 crore
- Processing fee of up to 0.35% of the loan amount
- The maximum tenure of 30 years
Types of different Home Loans offered by SBI
- Regular Home Loan
- Balance Transfer of Home Loan
- NRI Home Loan
- Flexipay Home Loan
- Privilege Home Loan
- Shaurya Home Loan
- Pre-Approved Home Loan
- Realty Home Loan
- Home Top-Up Loan
- Smart Home Top-Up Loan
- YONO Insta Home Top-Up Loan
- Home Loan to Non-Salaried
HDFC Home Loan – Home Loans in India
The leading housing finance company in India, HDFC offers a variety of home loan products that are tailored to your needs. You can comfortably repay over a longer term.
- Interest rates starting from 8.60% p.a.
- Avail of an additional top-up loan of up to ₹50 lakh
- Adding a co-applicant can further maximize the loan amount
- Processing fee of up to 0.5% of the loan amount
- EMIs start at just ₹776 per lakh
- Loan tenure of up to 30 years
Different types of Home Loans offered by HDFC
- Home Loan
- Plot Loan
- HDFC Rural Housing Finance
- Home Renovation Loan
- Home Extension Loan
- Top Up Loans
- HDFC Reach Home Loans
- Home Loan Balance Transfer
- Pradhan Mantri Awas Yojana (PMAY)
Axis Bank Home Loan – Home Loans in India
With the Axis Bank Home Loan, realize your desire to own a home. Numerous advantages come with the Axis Bank Home Loan, including manageable EMIs that allow you to spread payments over a longer term, competitive interest rates, a simple application process, doorstep service, etc.
- Low-interest rates starting from 8.10% p.a.
- Processing fee of up to 0.5% of the loan amount
- Loan amount of up to ₹10 Cr.
- Maximum repayment tenure of 30 years
- No prepayment/foreclosure charges
Different types of Home Loans offered by Axis
- Axis Bank Home Loan
- QuikPay Home Loan
- Shubh Aarambh Home Loan
- Fast Forward Home Loan
- Asha Home Loan
- Top-Up Loan
- Super Saver Home Loan
- Power Advantage Home Loan
Bank of Baroda Home Loan – Home Loans in India
With Bank of Baroda Home Loans, you can make your dream of owning a home a reality. They offer the right Home Loan for you whether you are buying an apartment, building a house, or renovating your home.
- Low-interest rates starting from 8.25% p.a.
- Processing fee of the Loan Amount 0.50% of up to 50L & 0.25% of above 50L
- Loan amounts of up to ₹10 Cr.
- Maximum repayment tenure of 30 years
Types of different Home Loans offered by Bank of Baroda
- Baroda Home Loan
- Baroda Home Loan Takeover Scheme
- Home Improvement Loan
- Baroda Pre-Approved Home Loan
- Baroda Top Up Loan (Resident/ NRIs/ PIOs)
- Baroda Home Suvidha Personal Loan
- Credit Risk Guarantee Fund Scheme for Low-Income Housing
ICICI Bank Home Loan – Home Loans in India
ICICI Bank Home Loan is a one-stop solution for buying or building a new home. They provide low-interest home loans with terms of up to 30 years.
- Low-interest rates starting from 8.60% p.a.
- Processing fee between 0.50% to 1.0% of the loan amount
- Loan tenure of up to 30 years
Different types of Home Loans offered by ICICI
- New Home Loan
- Insta Home Top-Up Loan
- Instant Home Loan
- Pre-Approved Balance Transfer
- PMAY housing loan scheme from ICICI Bank
Union Bank Home Loan – Home Loans in India
Union Bank of India offers a variety of home loan products that are tailored to your needs. You can comfortably repay over a longer term.
- Attractive rates starting from 8.25% p.a.
- Processing fee starts from 0.5% to max. 15000/- of the loan amount
- Quick loan application and approval process
- Flexible loan tenure of up to 30 years
- Loan enhancement in case of escalating costs
Types of different Home Loans offered by Union Bank
- Home Loan
- Builder tie-ups (Approved projects)
- Union PMAY
- Home – Smart Save
LIC HFL Home Loan – Home Loans in India
Make a LIC home loan a part of your solution if home ownership is your goal. As a result, we go above and beyond simply extending home loans to walk you through the process step by step.
- Low-interest rates starting from 8.30% p.a.
- Processing fees ranging between Rs.10,000 and Rs.25,000
- Repayment tenure of up to 30 years
- Loan to be repaid before the age of 70
- Individuals above the age of 50 having a pension scheme but are still employed can also Apply
Types of different Home Loans offered by LIC HFL
- Housing Loan for Resident Indians and Non-Resident Indians
- Griha Suvidha Home Loan
- Plot Loan
- Home Improvement/Renovation loan
- Home Extension Loan
- Home Loan for Pensioners
- Top Up on Home Loan
- Home Loan Balance Transfer
Aditya Birla Capital Home Loan – Home Loans in India
Collaborating with Aditya Birla Capital‘s home loan, you can get financing help for a new home, home extension, home improvement, home construction, or even purchasing a plot of land before building your home.
- Low-interest rates starting from 9.00% p.a.
- Processing fee of the loan amount Rs. 5000/- to Rs. 10000/-
- Loan amount of up to Rs.10 Cr.
- Maximum repayment tenure of 30 years
Types of different Home Loans offered by Aditya Birla Capital
- Home Construction Loan
- Home Extension Loan
- Home Renovation Loan
- Plot and Home Construction Loan
PNB Housing Home Loan – Home Loans in India
PNB Housing Finance Ltd offers one of the best home loans in India. They provide home loans tailored to your budget and at low-interest rates, backed by over 30 years of industry expertise and customer trust.
- Attractive rates start from 8.50% p.a.
- Processing fee of up to 0.5% of the loan amount
- Quick loan application and approval process
- Flexible loan tenure of up to 30 years
Different types of Home Loans offered by PNB
- Housing Loan
- Home Extension Loan
- Home Improvement Loan
- Plot Loan
- Home Construction Loan
- PMAY Housing Loan
IDFC Home Loan – Home Loans in India
IDFC FIRST Bank home loans provide you with the best interest rates on housing finance and a diverse range of property options, allowing you to live your best life.
- Low-interest rates starting from 8.50% p.a.
- Processing fee of the loan amount Rs. 5000/-
- Loan amount min. 30L
- Maximum repayment tenure of 30 years
Different types of Home Loans offered by IDFC
- Home Purchase Loan
- Home Construction Loan
- Home Extension Loan
- Home Improvement Loan
- Home Loan Balance Transfer
- NRI Home Loan
- Land Purchase Loan
- Joint Home Loan
Canara Bank Home Loan – Home Loans in India
Canara Bank offers home loans tailored to your budget and at low-interest rates, backed by over 30 years of industry expertise and customer trust.
- Low-interest rates for women starting from 8.10% p.a.
- Processing fee of up to 0.50% of the loan amount
- Zero prepayment charges
- Applicable for the purchase or construction of a house/flat
- Maximum repayment tenure of 30 years
Different types of Home Loans offered by Canara
- Housing Loan
- Home improvement Loan
- Home Loans for NRI
- Home Loan Plus
Kotak Mahindra Bank Home Loan – Home Loans in India
Kotak Mahindra Bank provides a low-interest online home loan. You can comfortably repay over a longer term. Furthermore, you can apply for a Kotak Mahindra Bank home loan online or in person at your nearest branch.
- Low-interest rates starting from 8.30% p.a.
- Processing fee of up to 0.50% of the loan amount
- Available Home Loan Insurance
- Loan tenure of up to 20 years
Types of different Home Loans offered by Kotak Mahindra Bank
- Home Loan
- Home Loan Balance Transfer
Bajaj Finserv Home Loan – Home Loans in India
Bajaj Finserv offers home loans at a low-interest rate that can be comfortably repaid over a longer term. Apply for a home loan today to meet your housing requirement.
- Low-interest rates starting from 8.30% p.a.
- Processing fee of up to 1.0% of the loan amount
- Loan tenure of up to 30 years
- Hassle-free processing within 48hrs.
Types of different Home Loans offered by Bajaj Finserv
- Home Loan
- Top Up Home Loan
- Home loan balance transfer
DBS Home Loan – Home Loans in India
The DBS home loan offers attractive interest rates, quick processing, secure repayment options, and transparent charges to make your dream home in reality.
- DBS bank provides you with attractive interest rates from two of India’s leading housing finance companies, HDFC Ltd and PNB Housing.
- Interest rates starting from 8.25% p.a. in PNB Housing Loan, and 8.60% p.a. in HDFC Loan
- Processing fee of 10,000 of the loan amounts
- Loan tenure of up to 25 years
Different types of Home Loans offered by DBS
- New Home
- Home Improvement
- Home Extension
- Home Loan Balance Transfer
- Top Up Loan
Sundaram Home Finance Limited Home Loan
Sundaram Home is with you whether you’re buying, building, or renovating a home. The low-interest rates, flexible repayment terms, easy repayment options, and personalized service will help you to fulfil your dream easier.
- Low-interest rates start from 7.85% p.a. and 8.35% p.a. for salaried individuals and self-employed individuals.
- Processing fee of Rs. 3000 (including GST PF & Tax) of the loan amounts.
- Insurance scheme in association with Sundaram
- Loan tenure of up to 20 years
Types of different Home Loans offered by Sundaram Home Finance Limited
- Plot Loan
- Home Improvement Loan
- Home Extension Loan
- Top Up Loan
- Take over Loan
- Loan against Property
Eligibility criteria for Home Loan
| Eligibility Criteria | Requirement |
|---|---|
| Age | Minimum Age: 18 years and Maximum Age: 70 years |
| Resident Type | The applicant must be (anyone) Resident Indian / Non-Resident India (NRI) / Person of Indian Origin (PIO) |
| Employment | The applicant can be (anyone) Salaried / Self-employed |
| Net Annual Income | At least ₹5 – ₹6 lakhs depending on the type of employment |
| Residence | The applicant must have (anyone) A permanent residence / A rented residence where he/she has resided for at least a year prior to applying for a loan |
| Credit score | A good credit score of at least 750 or more obtained from a recognised credit bureau |
Required documents for applying for the Home Loan
| Applicant | Identity Proof (anyone) | Residence Proof (anyone) | Other Documents |
| Resident Indians | Voter ID, PAN, D/L, Valid Passport | Copy of Electricity Bill / Water Bill / Telephone Bill / Valid Passport / Aadhaar Card / Driving License | a) Employer Identity Card b) Filled out the loan application form with 3 passport-size photographs c) Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions d) Bank account statements for all the bank accounts owned by the applicant for the last six months |
| Non-Resident Indians | Voter ID, PAN, D/L, Valid Passport | Copy of Electricity Bill / Water Bill / Telephone Bill / Piped Gas Bill / Valid Passport / Aadhaar Card / Driving License | a) Attested copy of the applicant’s/co-applicants’/guarantor’s valid passport and visa Proof of residence indicating the applicant’s current overseas address b) Employer Identity Card c) If the applicant works in the Merchant Navy, a copy of the Continuous Discharge Certificate must be submitted (CDC) d) The Government of India issues a PIO Card if the applicant or co-applicant is of Indian origin. e) Completed loan application form with three passport-sized photographs of the applicant and co-applicants. f) The documents can be attested by: (1) Indian Embassy/Consulate (2) Notary Public Abroad (3) Focal Points/Representative Offices (4) Officials from the Indian Branch/Sourcing Units |
Required fees & charges for Home Loans
The following fees may be imposed depending on the type of loan you apply for.
- Processing fees
- Charges for prepayment
- Conversion fees
- Charges for check dishonour
- Fees for expert advice
- Home Insurance
- Charges for non-payment
- Charges for unforeseen circumstances
- Statutory/regulatory fees
- Change in the loan term
Frequently asked questions
A home loan is a secured loan obtained from a financial institution to purchase a home. A home loan can be used to purchase a ready-to-move-in house or apartment and one under construction.
We have discussed 15 banks that can offer the best home loans in India. So, read the complete article and check out the official page of the banks for a home loan to decide.
If you submit all the documents in time, it will take 3 to 4 weeks to get a home loan approved. Otherwise, your loan approval may be delayed due to the submission of property or income-related documents on time.
While determining loan eligibility, banks/financial institutions consider your age, annual earnings, stability in the workplace, residency (Indian, NRI, and PIO), Count of co-applicants, Income of co-applicants, credit score, and other outstanding loans if any.
The interest rates on floating-rate loans can be revised at any time based on the RBI’s key policy rates. Whereas, fixed-rate loans have an interest rate that remains constant throughout the loan’s term.
Yes, you can pay off your outstanding loan balance in full or in part before the end of your loan term.
A co-applicant can be a member of your immediate family, such as your spouse, parents, or even your significant children. When applying for a loan, all co-owners of the property must also be co-applicants.
Pre-EMI is the interest that must be paid to the loan provider until the entire loan amount is disbursed.
The marginal cost of funds-based Lending Rate (MCLR) is the benchmark rate set by a lending institution below which they cannot provide loans.
You can take out two home loans at once, provided your lender gives you the go-ahead to handle two Equated Monthly Instalments (EMIs) simultaneously.
