Top Home Loan Schemes & Offers
Kotak Mahindra Bank - Best for Low-Interest Rate
Low-interest rates start from 8.75% p.a.
Processing fee of up to 0.50% of the loan amount
Loan tenure of up to 20 years
Zero prepayment charges
Balance transfer with top-up loan available
Canara Bank Housing Loan - Best Interest Rate for Women
Low-interest rates for women starting from 8.85% p.a.
Maximum repayment tenure of 30 years
Processing fee of up to 0.50% of the loan amount
It Can be used to purchase or construct a house/flat
Zero prepayment charges
Axis Bank Home Loan - Best Interest Rate for Salaried Employees
Low-interest rates starting from 9.00% p.a.
Loan amounts of up to Rs.5 crore
Maximum repayment tenure of 30 years
Processing fee of up to 1% of the loan amount
No prepayment/foreclosure charges
HDFC Reach Home Loans for self-employed professionals
Attractive interest rates start from 8.45% p.a.
Flexible repayment tenure of up to 30 years
Processing fee of 2% of the loan amount
Minimal documentation with minimum income of Rs.2 lakh p.a.
Add a woman co-owner for lower interest rates
SBI Privilege Home Loan for Government Employees
Low interest rates starting from 9.15% p.a.
Zero processing fee
Loan tenure of up to 30 years
Reduced interest rates for women borrowers
Interest concession when checkoff is provided
HDFC Home Loans for Purchase
Low-interest rates starting from 8.60% p.a.
Flexible loan tenure of up to 30 years
Processing fee of up to 0.50% of the loan amount
Special arrangement for Indian army employees through a partnership with AGIF
Legal and technical counselling from experts
EMIs starting at just Rs.776 per lakh*
PNB HFL Plot Loan - Best Home Loan for Plot and Construction
Attractive rates starting from 9.50% p.a.
Flexible loan tenure of up to 30 years
Processing fee of up to 0.5% of the loan amount
Loan enhancement in case of escalating costs
Quick loan application and approval process
HDFC Home Loans for Existing Customers - Best Home Loan for Existing Customers
Low-interest rates starting from 8.60% p.a.
The Maximum tenure of 30 years
Processing fee of 0.5% of the loan amount
Quick loan disbursal
Can add a co-applicant to increase the loan amount
EMIs start at just Rs.776 per lakh*
SBI Realty Home Loan - Best Home Loan for Land Purchase
Low-interest rates starting from 9.45% p.a.
The Maximum tenure of ten years
Processing fee of up to 0.35% of the loan amount
Maximum loan amount of up to Rs.15 crore
Interest rate concession for women borrowers
HDFC Home Loans Balance Transfer - Best Home Loan Balance Transfer
Interest rates starting from 8.5% p.a.
Avail of an additional top-up loan of up to Rs.50 lakh
Loan tenure of up to 30 years
Processing fee of up to 0.5% of the loan amount
Adding a co-applicant can further maximise the loan amount
EMIs start at just Rs.776 per lakh*
SBI Smart Home Top-Up Loan - Best Top Up home loan
Interest rates starting from 9.55% p.a.
Processing fee of Rs.2,000 + GST
Overdraft facility for loans above Rs.20 lakh
Loan tenure of up to 30 years
No prepayment penalty
Union Awas Home Loan - Best for Low Credit Score
Interest starts from 8.70% p.a. for credit scores below 600 for loans of up to Rs.30 lakh
Moratorium period of up to 3 years for construction or purchase of a home
Loan tenure of up to 30 years
For agriculturists, quarterly/half-yearly/annual repayments instead of EMI can be availed
Open to permanent employees of educational institutions and agriculturists with a yearly income of up to Rs.48,000 p.a.
Types of Home Loans in India
Banks in India provide different types of housing finance options for various purposes. Here’s a list of the prominent types of housing loans in India based on a study of products offered by some of the top banks:
New Home Loans: New Home Loans are offered to eligible customers looking to purchase a house or property for the first time.
Pre-approved Home Loan: Banks offer Pre-approved home loans to eligible borrowers once their creditworthiness, income and financial position are considered considerable for an in-principal approval of the loan.
Home Purchase Loans: Home purchase loans are given explicitly to borrowers looking to purchase a house or flat.
Home Loan for Construction: A home loan is offered to customers looking to construct their own house on existing land.
Plot Loans: Plot loans are offered to customers looking to purchase a piece of land or plot to construct a house.
Home Loan Top Up: Home Loan Top Up is a facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the existing home loan.
Home Extension/Renovation Loans: Home loans for the extension or renovation of homes are offered to borrowers who wish to renovate/extend their existing house/property.
Balance Transfer Home Loan: Individuals can use the balance transfer option to transfer their home loan from one bank to another. Most people choose this option to avail better interest rates.
FAQs on Home Loan / Housing Loan Online
What is a home loan?
A home loan is a secured loan from a financial institution to buy a residential property. You can avail a home loan to buy a ready-to-move-in house, apartment, or one under construction. Home loans can be availed from both banks and Non-Banking Financial Companies (NBFCs).
Which is the best bank for a home loan?
Before signing up for a home loan product, it’s best that you compare loans offered by different banks and lending institutions. While comparing, consider the interest rate, Loan-to-Value (LTV) ratio, processing fees, and tenure offered by the bank. Use a home loan EMI calculator and calculate your EMI based on these factors. Compare multiple home loan products by various banks by using this method. Also, certain lenders roll out home loan offers with reduced interest rates from time to time. Keep an eye on that too while looking for a loan. Also, know your requirements first before applying. You can go through the above list to get an idea regarding which bank’s home loan would suit your requirement.
How long it takes to get a home loan sanctioned?
Usually, it takes 3 to 4 weeks to get a home loan sanctioned. However, you need to keep a few factors in mind for a better understanding. First of all, you need a pre-approval of your home loan from the concerned lender to get your loan sanctioned. However, pre-approval doesn’t always mean that your loan will be disbursed immediately and depends on certain external as well internal factors. For instance, your loan sanction can be delayed if there’s delay in submission of property or income-related documents.
Which factors determine my home loan eligibility?
Banks/financial institutions consider the following factors such as your age, annual income, occupational stability, resident type, number of co-applicants, credit score, ongoing loans if any, etc.when determining your loan eligibility.
What is the difference between a fixed-rate and a floating-rate home loan?
The rate of interest associated with fixed-rate loans remains unchanged during the entire tenure of the loan. On the other hand, the interest rates applicable on floating rate loans can be revised from time to time depending on the RBI key policy rates. The equated monthly instalments can increase or decrease depending on the prevailing RBI rates in the case of floating rate type loans.
Can I prepay my outstanding home loan amount?
Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure. While banks do not charge any prepayment fee on floating-rate loans, fixed-rate home loans attract a penalty of up to 2% of the loan amount if prepaid through refinance.
Can I avail tax deductions on my home loan?
Yes, you can avail tax benefits on both the interest and principal component paid against your home loan. As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakh on the principal amount repaid annually.
Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.
Who can be a co-applicant?
The co-applicant can be an immediate family member such as your spouse, your parents or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.
What is Pre-EMI?
Pre-EMI is defined as the interest that is to be paid to the loan provider until the entire loan amount is disbursed. The Pre-EMI is payable on a monthly basis until the last disbursement, post which the regular EMI will be applicable comprising the principal and interest components.
What is MCLR?
Marginal Cost of funds-based Lending Rate is the benchmark rate set by a lending institution below which they cannot provide loans to their customers.
Can I switch from a fixed rate to a floating rate during my home loan tenure?
Yes, you can switch from a fixed to floating rate of interest on your home loan during the repayment tenure. However, you will be charged a conversion fee by the lender in such cases.
When does my loan repayment period begin?
The loan repayment period begins only after the loan provider has disbursed the entire home loan amount. However, you will be required to pay the interest i.e. pre-EMI on the partially disbursed loan on a monthly basis, in most cases.
Can I take 2 home loans at the same time?
Yes, you can take 2 home loans at the same time provided that your lender approves your eligibility to manage 2 Equated Monthly Instalments (EMIs) at the same time. However, the tax benefits on the second house will be different and you will be required to establish the property as self-occupied or let-out property.
Can I get 100% financing on a home loan?
No. Banks/financial institution do not grant 100% of the property value as home loan. Home loan lenders establish a margin on their loan i.e. the percentage of the cost that the lending institution will be covering. For example, if the margin on the loan is set at 10%, the bank will cover 90% of property value. In such cases, you will be required to a make a down payment of the balance amount, i.e. 10% in order to cover for the rest of the cost.
Does having a personal loan affect home loan eligibility?
When determining your home loan eligibility, the lender makes sure that your monthly repayments are not being affected by any other ongoing loans such as personal loan, two-wheeler loan, etc. However, other ongoing loans ultimately tend to affect your eligibility as your overall spending power is reduced. If your other loan commitments exceed 50%-60% of your monthly income, your home loan application may be rejected.
Is personal loan better than home loan?
If you are buying a house, home loan is the best option. Usually you will not be eligible for a personal loan for as high an amount required for the purchase of a house. If you want extra money for non-specific personal needs, then go for a personal loan. Home loans also have an added advantage of top-up loans wherein you can request a top up on your loan amount to cover additional needs such as furnishing your house.
Can I buy a house with two loans?
No, you cannot avail two home loans for the same property. Any such practice will be considered fraudulent. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) ensures that fraudulent practices such as availing two housing loans for the same asset/property are prevented.
How do joint home loans work?
A joint home loan can be availed by adding a co-applicant such as your spouse, parents, or an immediate family member on your application. Adding a co-applicant will increase your home loan eligibility as the lending institution will also be considering the co-applicant's income and credit score when determining your loan eligibility. All co-owners of the property are required to be the co-applicant for a loan. However, the co-applicants need not necessarily be the co-owner of the concerned property.
