For most people, owning a home is one of the most notable and expensive endeavours they will ever undertake! Such a dream home requires a lot of work from the buyer, and one feasible way for them to afford it is by applying for a home loan!
Let’s get familiar with the term; A home loan is a sum of money a person borrows, typically from banks and other lending institutions for housing needs.
Home loans are available from banks and housing finance companies (HFCs) at 8.3% p.a. and higher for terms up to 30 years, and loan amounts up to 90% of the house’s purchase price.
To address the housing finance demands of a bigger customer base, the banks and HFCs provide a variety of home construction loan schemes that include greater home loan eligibility, cheaper monthly instalments, EMI exemptions, varying interest rates, overdraft facilities, and balance transfer facilities.
To better serve our customers, OneNDF has gathered all the necessary information regarding India’s leading institutions’ current interest rates on home loans.
Home Loan Interest Rate of Banks/NBFCs in India
The top home loans banks in India are listed below in order of best home loan interest rates and loan amount:
| S.No | Bank Name | Floating Interest Rate p.a. | Loan Amount | Action |
| 1 | State Bank Of India | 8.45% onwards | From 10 Lakhs to 15 Crores | Apply Now |
| 2 | PNB Housing finance | 8.60% onwards | Rs 30 lakh onwards | Apply Now |
| 3 | HDFC Bank | 8.60% onwards | Loan amount Up to Rs.10 crore | Apply Now |
| 4 | LIC Housing Finance | 8.45% onwards | From INR 20 Lakh to INR 10 crore | Apply Now |
| 5 | Bank of Baroda | 8.40% onwards | Loan amount Up to Rs.20 Crore | Apply Now |
| 6 | ICICI Bank | 8.75% onwards | Loan amount is upto INR 10 crores | Apply Now |
| 7 | Axis Bank | 8.55% onwards | Loan amount is between Rs 30 lakh to Rs 5 Crore | Apply Now |
| 8 | Kotak Mahindra Bank | 8.50% onwards | Between INR 30 lakhs to 10 crores | Apply Now |
| 9 | Union Bank of India | 8.60% onwards | As per borrower’s eligibility | Apply Now |
| 10 | Aditya Birla Home Loan | 8.90% onwards | Between INR 20 lakhs to 5 crores | Apply Now |
| 11 | Shinhan Bank | 8.50% onwards | Between INR 30 lakhs to 10 crores | Apply Now |
Now, if you have selected the bank for yourself, then we have a news for you. You know you can save money on taxes if you have a home loan running. Yes, you heard it right! Read our article on Home Loan Tax Benefits to know how you can save money on taxes.
Top Banks for Home Loan in India
1. State Bank Of India
Public sector bank SBI is the largest mortgage lender in India. SBI has more than 65 years of experience in the industry and has so far assisted more than 30 lakh individuals in buying homes. Founded in 1955, SBI has over 24,000 branches around the globe and in India. With a book size of more than INR 5.05 trillion, it is the biggest player and one of the best Indian banks for home loans.
Key Highlights
- Eligibility: 18 to 70 years of age.
- Loan Amount: 30 lacs onwards
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet, P and L statement.
2. PNB Housing Finance
Punjab National Bank (PNB), the second-largest public sector bank in India, is one of the premier institutes for home loans with low-interest rates. The state-owned bank has 6,937 branches spread throughout 764 cities since its foundation in 1894. The bank is headquartered in New Delhi and has more than 80 million happy customers.
Key Highlights
- Eligibility: 18 to 60 years of age
- Loan Amount: From INR 30 lacs to INR 50 crore.
- Loan Tenure: Up to 30 years.
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, bank statements, and audited financial sheet.
3. HDFC Bank
Indian financial services company Housing Development Finance Corporation Limited (HDFC) is based in Mumbai. It is the primary source of home finance in India. The first specialized mortgage firm in the country and the flagship company of the HDFC group, it was founded in 1977 with support from the Indian business community. As one of the major providers of housing loans, HDFC has assisted over 1 crore individuals in purchasing homes since its foundation.
Key Highlights
- Eligibility: 18 to 70 years of age
- Loan Amount: From INR 30 lacs to INR 50 crore
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet.
Calculate Your Home Loan EMI Online
4. LIC Housing Finance
Headquartered in Mumbai, LIC Homes Finance Limited (LIC HFL) is one of India’s top providers of mortgage loans for housing. The company was founded on June 19, 1989, in accordance with the Companies Act of 1956. LIC Housing Finance offers mortgage loans on loan applications for home purchases, building projects, repairs, land purchases, home expansions, and restorations.
Key Highlights
- Eligibility: 21 to 7o years of age
- Maximum Loan Amount: From INR 20 Lakh to INR 10 crore
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, ITR, educational qualifications, property documents, audited financial sheet.
Suggested Read: Fake Loan App List
5. Bank of Baroda
Bank of Baroda, or BoB, offers a variety of home loans to satisfy all your demands for purchasing a property at the most reasonable interest rates. With a maximum term of 30 years and loan amounts ranging from INR 30 lakhs to INR 10 crore, the Bank of Baroda provides house loans to all clientele types, including salaried, self-employed, and NRIs.
Key Highlights
- Eligibility: Minimum 21 years of age
- Loan Amount: between INR 30 lacs to INR 50 crore
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, PAN card, copy of duly filled application form, ITR, and audited financial sheet.
6. ICICI Bank
The second-largest private lender in the country by market capitalization, ICICI Bank, was founded in 1994 as a wholly-owned subsidiary of ICICI Limited. ICICI Bank, which has over 5,288 locations across India, is now one of the top 10 banks in India for home loans due to its affordable rates and exceptional features.
Key Highlights
- Eligibility: 21 to 70 years of age
- Loan Amount: between INR 30 lacs to 50 crores.
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement.
7. Axis Bank
Axis Bank offers home loans starting at INR 30 lakhs. Loans for built-in home purchases, new construction, and top-ups are all permitted. Axis Bank offers fixed and adjustable interest rate home loans with terms ranging from 10 to 30 years.
Key Highlights
- Eligibility: 21 to 60 years of age
- Loan Amount: Between INR 30 lakh to 50 crores
- Loan Tenure: 30 years max
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, income tax returns, qualification certificate, audited financial sheet, P and L statement.
8. Kotak Mahindra Bank
The Uday Kotak-led entities are some of the fastest-growing private lenders, with more than 100 sites across India. Kotak Mahindra currently provides home loans at the lowest market interest rate. It is India’s third-largest private sector bank by assets and market capitalization. There are over 1600 locations and 2519 ATMs for the bank. It is regarded as one of the leading banks in India for home loans because of its well-known reputation for low-interest rates.
Key Highlights
- Eligibility: 18 to 65 years of age
- Loan Amount: Between 30 lakhs to 50 crores
- Loan Tenure: 20 years
- Documents Required: Identity card, address proof, original copy of sale deed, NOC, income tax returns, qualification certificate, audited financial sheet. P And L Statement.
9. Union Bank of India Home Loan
Union Bank home loans can be availed for acquiring new and existing residential property, purchasing plots for construction, and restorations. You can also acquire a house loan to finish building a residential unit currently under development. The home loan from Union Bank also covers the cost of purchasing solar panels concurrently with the purchase or construction of a home.
Key Highlights
- Eligibility: 18 to 65 years of age
- Loan Amount: As per borrower’s eligibility
- Loan Tenure: 30 years
- Documents Required: Government-issued id proof, address proof, original copy of sale deed, NOC, income tax returns, qualification certificate, and audited financial sheet.
10. Aditya Birla Home Loan
The Aditya Birla Group’s financial services sector is branded under the ABC umbrella, providing one of the best mortgages. Current borrowers of home loans from other home loan lenders can also get the best home loan balance transfer service provided by the housing finance organization at cheaper interest rates. It also offers tailored housing finance packages for small houses in specific Indian locales.
Key Highlights
- Eligibility: Atleast 21 years of age
- Maximum Loan Amount: Between 20 lacs to 5 crores
- Loan Tenure: Upto 30 years
- Documents Required: Identity card, address proof, birth certificate, bank statement and a passport-size photograph
11. Shinhan Bank
Shinhan is a foreign sector bank in India that offers a variety of Home Loan Schemes tailored to the diverse requirements of its customers. With a highly competitive and affordable interest rate, minimal documentation and flexible repayment options, the bank provides an ideal platform for borrowers looking to finance their dream home. The dedicated team of well-experienced employees at Shinhan Bank is committed to offering personalised services, ensuring that the process of approval and disbursal of home loans is both easy and fast.
Key Highlights
- Eligibility: Atleast 21 years of age
- Maximum Loan Amount: Between 30 lacs to 10 crores
- Loan Tenure: Upto 30 years
- Documents Required: Valid ID/passport, Confirmation of residence information, Proof of income and Evidence of property ownership.
What to do if your housing loan application is rejected?
Loan application could be rejected if you were initially unable to get the first loan. You may want to consider several aspects, though. Since the loan is generally a retail loan, the lender reviews the repayments of applicants before approving a loan request or rejecting it.
You must know if you are capable of repaying loans. A bad CIBIL/credit score means your credit application could have a chance of being denied. Therefore, a credit score is a measure that determines your creditworthiness.
Also Read: What is Top up Home Loan?
How to Improve Home Loan Eligibility?
Factors like growing age or a lack of a steady income may make it difficult for you to get the perfect mortgage for your dream home purchase. However, there are special scenarios when your loan eligibility may be increased. Here are five ideas to help you greatly boost your potential to get a mortgage from any financial institution:
Consider applying with a co-applicant:
Asking for a joint home loan may increase your chances of getting a greater loan. You can divide the cost of the loan by adding a family member as a co-applicant, such as your parents, spouse, siblings, or kids.
Choose a longer loan tenure:
You can incur financial costs by choosing maximum loan tenure since you might have to make massive payments. However, it can cause your EMI to go down. This indicates that your chances of timely loan repayment increases your eligibility.
Clear existing debts:
Since banking firms frequently evaluate the debt-to-income ratio to evaluate your eligibility for a loan. Before requesting a home loan, you should pay off your credit card dues and existing loans. Your loan eligibility will increase as a result of improving your credit score.
Maintain good credit score:
Never have a poor credit score! A better credit score above 800 can significantly improve your qualifying for a house loan because they reflect a strong repayment ability. You can regularly check your credit score to avoid defaults and possible loan rejection.
Mention all of your extra sources of income:
Include all your other net monthly income sources in your calculations to increase your housing loan eligibility and reduce your debt-to-income ratio.
Also Read: What are Loan Resource Apps
Home Loan Eligibility Calculator
Home loan eligibility standards are almost the same for all banks and NBFCs. However, certain requirements could also apply based on each lender’s rules. Understanding the requirements for eligibility for a home loan ensures that your application process will go more smoothly and efficiently.
Home Loan Eligibility Criteria
| Age | 18 – 60 years |
| Income | INR 25,000 atleast |
| Credit Score | Above 750 |
| Employment Status | Salaried or Non-Salaried |
| Loan Amount | Decided by the lender |
| Residence Type | Permanent resident or NRI |
| LTV Ratio | Up to 90% |
| Property Type | Completed /Under Construction, Land/Plot, build on own Land, Buy Land and Build Home |
FAQs
How Much Home Loan Can I Get on My Salary?
The loan amount is determined through several factors. Your net income determines what EMI you’ll have to pay for your monthly expenses. Typically banks/ lending institutions will give loans up to 60 times your minimum income.
Which bank is best for home loan?
The top banks for acquiring a home loan are SBI, HDFC, Axis, BoB, LIC Housing, and Aditya Birla Home loan.
Is SBI good for home loan?
SBI Home Loan is known for its affordable interest rates and quick response times. Interest rates are quite low at 6.95%. The application process for loans is also easy and quick.
Which bank gives 90 percent home loan?
The State Bank of India provides financing for up to 90% of a property’s value, starting at 8.40% p.a. for terms up to 30 years.
Is SBI home loan good?
SBI Home Loans are highly coveted because of their attractive interest rates and excellent turnaround times. The current interest rate is 8.45%. Loans are reviewed and quickly approved.
What are the RBI rules on a home loan?
The Reserve Bank has increased the Loan to Valuation ratio upto 90% when the house loan is less than 30 lakhs. For a loan under 75, – the LTV ratio carries a maximum of 75 per cent loan interest.
Which loan is best for house renovation?
Home Improvement loans can help to pay for renovation and maintenance expenses. It is also available to finance internal and external renovations such as painting walls and ceiling tiling, waterproofing, plumbing, sanitary, and many other tasks.
Can we get a home loan for renovation?
Yes, you can use the home loan for renovation. The loan may be used individually or in combination. Those who own the house must be co-applicants.
What is the maximum limit for repair & renovation under home loan?
The RBI announced today it had lowered the limit on loans for repairs and improvements on a home from 15,000 to 35,000 in metropolitan cities.
Which bank is the best home renovation loan in India?
Bank of Baroda, TATA capital, Canara Bank – Home Improvement Loans,. HFL home renovation loans are some of India’s best home renovation loans.
How much home loan a salaried person can get?
You could often borrow up to sixty times the cost of your job. Often though, lenders don’t take your salary into account when calculating loan amounts.
What are some of the available mortgage options?
In India, there are six main forms of mortgages: simple, usufructuary, English, and mortgages obtained through conditional sales, mortgages acquired through title deed deposits, and anomalous mortgages.
Can I get a home loan with 22000 monthly salary?
A salaried person is generally entitled to 60 per cent of their income as a homeowner to get a personal loan.
How do I know my eligibility for a home loan?
Typically, housing loans can be applied to individuals depending on their income or repayment capability if they cannot pay back their mortgages. It also has other aspects that affect loan eligibility, including income, age, financial position, credit history, credit score or other debt obligations.
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