Introduction
Are you looking forward to purchasing your first place? Shopping for a home is exciting, exhausting, and a little terrifying, especially in this market. Ultimately, you want to end up with a home you adore at a price you can pay.
Arm yourself with the list below to compare and narrow down the choices to get the best for you. To lend a helping hand to our customers, we have consolidated all the necessary information regarding the current rate of interest on home loans with the best bank for home loans in India.
Please keep visiting this section to check the latest interest rate for home loans. Check out the top home loan banks offering low interest and a simple application process. Compare today’s home loan rates & avail the best housing loan. Read More!
Our Top Picks
Best for Bad Credit - Axis Bank
An Axis Bank Insta Easy Credit Card can be obtained based on your salary or a fixed deposit. Cardholders can increase their credit score with this card due to its minimal documentation requirements.
Best for Quick Approval - ICICI Bank
Personal loans from ICICI Bank are simple and hassle-free. You can now get a loan up to Rs. 15 lakhs with very little documentation.
Best for Low-Interest Rates - Union Bank of India
If you want a bank loan with the cheapest interest rate, visit Union Bank of India. They provide their lenders with a minimum of 9.00% interest rates.
Comparison of 10 Best Home Loan Banks in India
Here is the list of the best home loan banks in India that provide the best interest rates and approve the loan as soon as possible:
Top 10 Home Loan Banks in India
We have given proper details of India's best home loan banks. Below you can read the details of the top 10 banks for home loans along with pros and cons, eligibility, required documents, loan amount, and loan tenure.
1. Aditya Birla Capital
The Aditya Birla Capital group finances your journey of creating a dream home by providing loans at processing costs as low as 1% of the loan amount and interest rates as low as 9.05% onwards p.a. For a loan payback period of up to 30 years, loan amounts ranging from 75% to 90% of the property's value are available. For house loans with adjustable rates, there are no prepayment penalties.
Eligibility - 18 to 65 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet, P/L statement
Loan Amount - ₹ 5,00,000 to 75 to 90 per cent of the property cost
Loan Tenure - 30 years
Pros
Competitive interest rates depend upon the amount and tenure of the loan
Doorstep services for quick and transparent loan processing
Customers have the option to transfer the balance amount.
Cons
EMI, if increased, cannot be decreased later on even if the customer has made enough part payments
2. Union Bank of India
Purchases of old and new residential properties, plots and construction, and renovations are all available through Union Bank loans with no top-ups. You can receive a house loan to finish a residential unit still under construction. The cost of purchasing a solar power panel while purchasing or building a house is also included in the home loan from Union Bank.
Eligibility - 18 to 65 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - 30 lakhs to 2 crores
Loan Tenure - 30 years
Pros
Home loans with fixed and floating rates are available.
It has the lowest, 9.00% home loan interest.
Cons
They can not have the availability of top-up loans.
A fixed-rate loan can last a maximum of five years.
3. Kotak Mahindra Bank
The Uday Kotak-led banks have over 100 branches across India and are fast-growing private lenders. Kotak Mahindra is now giving the lowest interest rate on house loans in the industry.
Eligibility - 18 to 65 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P And L Statement
Loan Amount - 50,000 to 25,00,00 lakhs
Loan Tenure - 20 years
Pros
For people with unpredictable incomes, an overdraft option is a particularly effective means of repaying house loans.
Borrowers can use an overdraft amount from their loan account.
For people with unpredictable incomes, an overdraft option is a particularly effective means of repaying house loans.
Cons
The overdraft facility is not eligible for the section 80C tax deduction.
Savings have a greater chance of earning higher returns. As a result, taking out an overdraft on a house loan entails forgoing savings to pay off the loan sooner, which isn't always the best financial decision.
4. HDFC Bank
HDFC is well-known for conducting thorough property document verification. You can have a door-to-door consultation with an HDFC loan expert or apply online and upload your documents. The interest rates on HDFC home loans are competitive, and you may use them to buy a house, buy a plot of land, build a house, improve your home, or extend your property.
Eligibility - 18 to 70 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount-Rs 10 Crore
Loan Tenure - up to 30 years
Pros
These are very transparent charges.
There are multiple options to choose from for home loan repayment.
Cons
For a loan reappraisal, HDFC charges up to RS. 2,000.
5. ICICI Bank
ICICI is known for its easy-to-understand documentation, quick approvals, and low-interest rates. There are loans available for home purchase, construction, renovation, and top-up home loans. Interest is computed on a declining monthly balance, which means the principle is determined at the end of each month, and interest is calculated accordingly. If you make a partial payment today, the interest on your loan will be reduced beginning on the 1st of the following month.
Eligibility - 21 to 70 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - Rs. 5 crores
Loan Tenure - 30 years
Pros
Women can co-borrow with non-working female partners and get lower interest rates.
You can easily get a home loan from this bank.
They also provide a doorstep service free of charge.
Cons
If your EMI has already been raised, it can't be lowered even if you have made enough part payments.
6. LIC Housing Finance
LIC Housing Finance offers mortgage loans for home purchases, construction, repairs, plot purchases, home extensions, and renovations. Under some circ*mstances, top-up loans are also possible. You can take out a fixed or variable-rate loan with a term of up to 30 years. The interest is computed every month with a decreasing rate of interest.
Eligibility - 21 to 7o years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - one lakh onward.
Loan Tenure - up to 30 years
Pros
This bank has lower and floating interest rates.
With this bank, you do not need to pay for prepayment.
Cons
The process of loan approval is slow.
7. Canara Bank
The Canara Bank was established in Mangalore, Karnataka, in July 1906 and was nationalised in 1969. The headquarters of this over-a-century-old bank are in Bengaluru, and it has over 10,391 branches across India. After merging with Syndicate Bank last year, Canara Bank became the fourth-largest state-owned bank by assets, with a business size of over Rs 16 trillion.
Eligibility - 21 to 55 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - up to 10 crores
Loan Tenure - up to 30 years
Pros
It is more than 100 years old and a trustworthy bank.
You could repay your loan up to the age of 75.
Cons
There are disadvantages to a higher mortgage size, including having to put up to 25% of the property's value as a down payment.
Canara Bank's home loans are also subject to a processing fee Like most other banks.
8. Axis Bank
Axis Bank offers home loans for as little as Rs. 3 lakhs. The purchase of built-in houses, the construction of a house, and top-up loans qualify. Axis Bank provides floating and fixed interest rate home loans with terms ranging from 10 to 30 years.
Eligibility - age 21 to 60 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - up to 3 crores
Loan Tenure - 30 years max
Pros
Axis Bank offers loans at the smallest amount of Rs. 3 lakhs.
This bank has both floating and fixed rates for home loans in India.
Cons
Charges for issuing statements, repricing, issuing photocopies, retrieving documents, issuing interest certificates, etc.
9. State Bank Of India
At SBI, one of the most stringent property verification procedures is used. The advantage is that you are assured that the property papers are genuine, and you are unlikely to face any legal issues in the future. Home loan products include construction, remodelling, and top-up loans.
SBI exclusively provides floating-rate and SBI-Maxgain loans. SBI home loan interest is cheaper as compared to others. Each day, the principal is recalculated along with the claim, and interest is calculated accordingly. A partial payment today will lower the interest expense the next day.
Eligibility - age 18 to 70 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - decided by lenders
Loan Tenure - up to 30 years
Pros
The property was subjected to a thorough examination.
Transparent charges.
Interest in the daily-reducing balance is calculated.
Cons
This bank has a slow process for approving home loans.
10. PNB Housing Finance
PNB Housing Finance offers a variety of home loan products, such as home purchase loans, home construction loans, home extension loans, residential plot loans, and home improvement loans.
Eligibility - 18 to 60 years
Documents Required - Identity card, address proof, original copy of sale deed, NOC, ITR, qualification certificate, audited financial sheet. P and L statement
Loan Amount - up to 35 lakhs
Loan Tenure - 30 years
Pros
If you take out a loan to build a house, you can ask for an increase in the loan amount if the cost of the building rises.
Cons
It has slow processing in the application form.
Frequently Asked Questions
Here are some questions that come to an individual's mind before applying for a home loan. After deep research, we will provide you with accurate answers to your questions.
1. Which is the best bank to get a housing loan from?
SBI Home Loan is number one. SBI can finance up to 90% of a property's cost for up to 30 years at an average of 7.05 per cent per year. Defence personnel, government employees, non-salaried people, candidates purchasing "green" homes, and those living in hilly/tribal areas are all eligible for special home loan packages offered by the bank.
2. Which bank gives the cheapest home loan?
If you want a home loan at the cheapest interest rate, go to the Union Bank of India or Kotak Mahindra Bank.
3. How to check home loan eligibility?
The Central Government created the Pradhan Mantri Awas Yojana plan through the Ministry of Housing and Urban Poverty Alleviation, allowing recipients to get subsidies on their house loans. According to the PMAY scheme's rules and regulations, candidates would be divided into four groups: EWS, LIG, MIG 1, and MIG 2. The yearly family income determines the PMAY eligibility requirements for these categories.
4. How to apply for a home loan?
A home loan product is best chosen after considering loans offered by banks and lending institutions.
When comparing banks, consider the interest rate, loan-to-value ratio, processing fees, and loan tenure.
Calculate your EMI using an EMI calculator.
Use this method to compare monthly payments across different mortgage companies.
Additionally, some lenders occasionally offer home loan offers with reduced interest rates.
Keep a close eye on that as you search for a loan.
Make sure you know your loan requirements beforehand.
Conclusion
Now that you have learned about the top home loan lenders and some helpful hints for selecting a bank remember that not every loan program is accurate for each individual. Every person or bank has different criteria, so you must analyse them deeply before applying for a home loan in India.
You should select a home loan that is appropriate for you based on your loan requirements, repayment ability, and cash flow. Your lender should explicitly state the expenses that the loan will pay. Lenders typically do not finance registration and stamp duty payments, annual maintenance charges, and clubhouse fees. As a result, it's critical to find a lender that will finance the amount you require while offering simple loan approval and repayment alternatives.
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