How We Work
- Which banks offer the most affordable home loan.
- Home loan interest rates of the top lenders.
- Best offerings in the home loan segment
Best Home Loans Of 2024
Armaan Joshi
Editor
Editorial Note: This content has been independently collected by the Forbes Advisor team and is offered on a non-advised basis. This content is not part of the comparison service provided by RunPath Regulatory Services. Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
Home loans can be divided into various categories depending on their features like interest rates, availability, extra charges etc. Choosing a home loan at a time when the market is flooded with multiple options can be daunting.
Forbes Advisor India analyzed 84 home loans to select the ones that are most affordable and comparatively easier to honor. Here are some of the best offerings in the home loan segment in India.
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- Featured Partner Offer
- Best Home Loans In 2024
- BOI Star Home Loan
- Cent Home Loan
- HDFC Bank Home Loan
- LIC Griha Suvidha Home Loan
- Maha Super Housing Loan Scheme
- Summary of Best Home Loans In 2024
- Methodology
- Featured Partner Offer
Featured Partner Offer
1
Aditya Birla Capital Home Loan
Interest rate starting from
9.05% per annum
Loan tenure
Up to 30 years
Charges
Nil pre-payment charges for floating rate home loans given to individuals
On Aditya Birla’s secure website
Best Home Loans In 2024
FEATURED PARTNER OFFER
J&K Housing Loan
4.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.00%
Processing Fee
0.25%
Loan Amount Up to
Will depend on an individual case.
Interest Rate
Starting with 8.00%
Processing Fee
0.25%
Loan Amount Up to
Will depend on an individual case.
Why We Picked It
Jammu and Kashmir Bank’s home loan is available at an interest of 8.00% for salaried people and 8.10% for non salaried. The tenure of the loan is between 1 to 30 years for salaried and 1 to 20 years for non salaried. The processing fee is 0.25% and there is a rebate of 50% for female borrowers, making it 0.125% for women.
Pros & Cons
- Economical processing fee.
- Different processing fee for women(lower than men).
FEATURED PARTNER OFFER
BOI Star Home Loan
4.0
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.60%
Processing Fee
Nil
Loan Amount Up To
5 crore
Interest Rate
Starting with 8.60%
Processing Fee
Nil
Loan Amount Up To
5 crore
Why We Picked It
Bank of India’s home loans are available at an interest rate starting at 8.60% and the maximum interest rate is 10.60%. The maximum amount available as loan is INR 5 crore. Applicants can get it for a maximum period of 30 years or till the age of retirement, whichever comes first. There is no processing fee at this point in time. There is a free accidental coverage of up to INR 5 crore.
Pros & Cons
- Economical interest rate.
- Nil processing fee.
- May not cover all districts.
FEATURED PARTNER OFFER
Cent Home Loan
3.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.20%
Processing Fee
0.5%
Loan Amount Up To
Will depend on the circle rate.
Interest Rate
Starting with 8.20%
Processing Fee
0.5%
Loan Amount Up To
Will depend on the circle rate.
Why We Picked It
The Central Bank of India’s home loan is known as Cent Home Loan. The rate of interest of loan is between 8.20% to 9.00% and there is a rebate for women applying for the loan, which is 7.00% onwards. The processing fee is 0.5% and will not exceed INR 20,000. Applicants can get INR 10 lakh to repair the house, and for construction maximum loan will depend on the circle rate.
Pros & Cons
- Economical processing fee.
- Different interest rates for women.
FEATURED PARTNER OFFER
HDFC Bank Home Loan
3.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.20%
Processing Fee
0.50%
Loan Amount Up To
Will depend on the circle rate.
Interest Rate
Starting with 8.20%
Processing Fee
0.50%
Loan Amount Up To
Will depend on the circle rate.
Why We Picked It
HDFC Bank is offering home loans to people with a credit score 800 and above at an interest rate of 8.20%, but for others it will start with 8.60%.
For amounts more than INR 75 lakh and a credit score about 750 the rate of interest can go up to 9.50%, making it a little expensive. This loan can be considered better for people with a credit score of 800. Processing fee is 0.50%( can go higher). The tenure of this loan can be 30 years or the age of retirement, whichever is earlier.
Pros & Cons
- Economical rate of interest for people with less credit score.
- Slabs for interest rates not clear.
FEATURED PARTNER OFFER
LIC Griha Suvidha Home Loan
3.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.30%
Processing Fee
0.25%
Loan Amount Up To
Will depend on an individual case.
Interest Rate
Starting with 8.30%
Processing Fee
0.25%
Loan Amount Up To
Will depend on an individual case.
Why We Picked It
LIC Housing Finance Ltd. is providing home loans at an interest rate for salaried individuals starting with 8.30% and for self employed borrowers is 8.40%. Processing fee is 0.25% of the loan amounts to a maximum of INR 20,000, processing fee is fixed at INR 60,000 after INR 2 crore. This interest will remain the same till INR 15 crore and after that amount the rate of interest will be decided by management.
Pros & Cons
- Economical processing fee.
- Fixed processing fee after 2 crore.
FEATURED PARTNER OFFER
Maha Super Housing Loan Scheme
3.5
Our ratings take into account a product's rewards, fees, rates and other category-specific attributes. All ratings are determined solely by our editorial team.
Interest Rate
Starting with 8.35%
Processing Fee
Will be decided by the management.
Loan Amount Up To
Will depend on an individual case.
Interest Rate
Starting with 8.35%
Processing Fee
Will be decided by the management.
Loan Amount Up To
Will depend on an individual case.
Why We Picked It
Bank of Maharashtra is providing home loans at an interest rate starting with 8.35%. There is a concession of 0.05% for women and defense personnel. There is no processing fee on this home loan. The loan tenure is 30 years. Bank has not disclosed the processing fee and will be decided by the manager at the time of disbursem*nt.
Pros & Cons
- Economical rate of interest.
- Different interest rate for women.
Summary of Best Home Loans In 2024
| Company | Company – Logo | Forbes Advisor Rating | Forbes Advisor Rating | Interest Rate | Processing Fee | Loan Amount Up to | Learn More CTA text | Learn more CTA below text | LEARN MORE |
|---|---|---|---|---|---|---|---|---|---|
| J&K Housing Loan |  | 4.5 |  | Starting with 8.00% | 0.25% | Will depend on an individual case. | View More | ||
| BOI Star Home Loan |  | 4.0 |  | Starting with 8.60% | Nil | 5 crore | View More | ||
| Cent Home Loan |  | 3.5 |  | Starting with 8.20% | 0.5% | Will depend on the circle rate. | View More | ||
| HDFC Bank Home Loan |  | 3.5 | | Starting with 8.20% | 0.50% | Will depend on the circle rate. | View More | ||
| LIC Griha Suvidha Home Loan |  | 3.5 | | Starting with 8.30% | 0.25% | Will depend on an individual case. | View More | ||
| Maha Super Housing Loan Scheme |  | 3.5 | | Starting with 8.35% | Will be decided by the management. | Will depend on an individual case. | View More |
Methodology
To rate a particular bank for its home loan we have taken into consideration the following factors.
- Specific Qualification Requirements: How many people can be facilitated by a particular loan and if any complex reservations like the customer should have a salary account with them bars an individual from getting a loan.
- Interest Rates: We have considered the banks with interest rates close to or below 11 percent.
- Processing Fee: Banks that charge processing fee of up to 1% have been given preference
- Availability: Loan offering to all kinds of applicants has been considered an important parameter.
- Geography: The area covered by the bank as a service provider as banks do not cater to all the districts has been kept in mind.
Featured Partner Offer
1
Aditya Birla Capital Home Loan
Interest rate starting from
9.05% per annum
Loan tenure
Up to 30 years
Charges
Nil pre-payment charges for floating rate home loans given to individuals
On Aditya Birla’s secure website
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.
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How much home loan can one get?
One can get up to 90% of the cost of a property as loan, the amount of loan will depend on the income of an individual who is taking the loan, but this will also depend on the amount one is taking as loan, this means bigger the amount larger the margin or your contribution to the purchase.
What are the factors that determine the amount of loan?
The total amount of the loan is determined by the bank by considering factors like:
- Location of the property (people living in urban areas get more money than the rural).
- Value of the property.
- Net income of the applicant.
- Credit score of the applicant.
What is a fixed rate of interest on home loans?
It is the rate of interest that does not change during the tenure of the loan and the EMI will also remain fixed.
What is the floating rate of interest on home loans?
If the interest rate is linked to an external benchmark rate it is known as floating interest rate. Banks in India consider the repo rate declared by the RBI. This benchmark rate changes from time to time. So, the rate of interest of the housing loan changes in accordance with the repo rate.
As a result, the EMI or the tenure of the loan increases or decreases depending on the repo rate. Any increase in the repo rate will increase the interest charged by the bank on any kind of loan and decrease will make the loans cheaper for the customers.
How much tax rebate can one get by taking a home loan?
Under the existing income tax regime, there are provisions for housing loan customers to avail a bevy of tax benefits. The first among them is the room to deduct interest paid on housing loans by customers. Here’s a detailed explainer on the tax benefits on home loans.
What is the GST on home loans?
GST refers to the goods and services tax. GST on home loans is 18% and it is charged on each payment that one makes to the company like paying EMIs, processing fees, among others.
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