JKSA WEB DESK
Home Loan – Best Bank for Home Loans in India (November 2023) Check now full details
This article is related to an affiliate advertising program and The New Indian Express’s journalists were not involved in production of this article.
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 Overall Home Loan Bank – Aditya Birla Capital
Aditya Birla Capital home loans are the best as they offer attractive interest rates for loans tenuring up to 30 years. Moreover, their processing of loans is quick & transparent, with almost zero prepayment charges for floating interest rates. Additionally, they also provide doorstep services.
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:
S.No |
Bank Name |
Interest Rate |
Processing Fees |
1 |
9.05% onwards |
as low as 1% of the loan amount |
|
2 |
Union Bank of India |
9.00% onwards |
0.50% of the loan amount. Maximum of Rs. 15,000 |
3 |
Kotak Mahindra Bank |
8.85% to 9.40% |
– |
4 |
HDFC Bank |
8.50% onwards |
Up to 0.50% of the loan amount or Rs. 3,000/- whichever is higher. |
5 |
ICICI Bank |
6.75% onwards |
0.50% – 2% of the loan amount or Rs. 1,500/- whichever is higher |
6 |
LIC Housing Finance |
9.70% to 11.55% |
Rs. 10,000 for loans up to 50 lakhs. Rs. 15,000 for loans above Rs. 50 Lakhs |
7 |
Canara Bank |
8.85% onwards |
– |
8 |
Axis Bank |
8.85% to 9.15% |
Higher of – 1% of the loan amount or Rs. 10,000 |
9 |
State Bank Of India |
9.15% onwards |
0.35% of the loan amount Minimum – Rs. 2,000 and Maximum – Rs. 10,000 |
10 |
PNB Housing Finance |
8.75% to 8.80% onwards |
1% of the loan amount. Minimum fees – Rs. 10,000 Upon approval, PNBHF retains all the loan fees. Unless the loan is approved, PNBHF retains 3,000 rupees per property. |
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 |
Cons |
Competitive interest rates depend upon the amount and tenure of the loan |
EMI, if increased, cannot be decreased later on even if the customer has made enough part payments |
Doorstep services for quick and transparent loan processing |
|
Customers have the option to transfer the balance amount. |
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 |
Cons |
Home loans with fixed and floating rates are available. |
They can not have the availability of top-up loans. |
It has the lowest, 9.00% home loan interest. |
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 |
Cons |
For people with unpredictable incomes, an overdraft option is a particularly effective means of repaying house loans. |
The overdraft facility is not eligible for the section 80C tax deduction. |
Borrowers can use an overdraft amount from their loan account. |
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. |
For people with unpredictable incomes, an overdraft option is a particularly effective means of repaying house loans. |
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 |
Cons |
These are very transparent charges. |
For a loan reappraisal, HDFC charges up to RS. 2,000. |
There are multiple options to choose from for home loan repayment. |
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 |
Cons |
Women can co-borrow with non-working female partners and get lower interest rates. |
If your EMI has already been raised, it can’t be lowered even if you have made enough part payments. |
You can easily get a home loan from this bank. |
|
They also provide a doorstep service free of charge. |
6. LIC Housing Finance
LIC Housing Finance offers mortgage loans for home purchases, construction, repairs, plot purchases, home extensions, and renovations. Under some circumstances, 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 |
Cons |
This bank has lower and floating interest rates. |
The process of loan approval is slow. |
With this bank, you do not need to pay for prepayment. |
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 |
Cons |
It is more than 100 years old and a trustworthy bank. |
There are disadvantages to a higher mortgage size, including having to put up to 25% of the property’s value as a down payment. |
You could repay your loan up to the age of 75. |
Like most other banks, Canara Bank’s home loans are also subject to a processing fee. |
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 |
Cons |
Axis Bank offers loans at the smallest amount of Rs. 3 lakhs. |
Charges for issuing statements, repricing, issuing photocopies, retrieving documents, issuing interest certificates, etc. |
This bank has both floating and fixed rates for home loans in India. |
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 |
Cons |
The property was subjected to a thorough examination. |
This bank has a slow process for approving home loans. |
Transparent charges. |
|
Interest in the daily-reducing balance is calculated. |
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 |
Cons |
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. |
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.