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Top Banks and NBFCs for Home Loan

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Buying your own home is no longer a dream like it used to be for many a few years back. With the help of home loan you can now purchase a home, as per your income or budget. Home loan is considered to be most viable and easy option to choose in today’s financial supermarket.

Presently, almost all the leading banks provide home loans, however the interest rates may vary from bank to bank. Many of the NBFCs (Non-Banking Financing Companies) also offer a variety of home loans to its customers at competitive interest rates. Let’s gain some understanding on the salient features of a home loan:

  • Suits every customer’s needs
  • Competitive interest rates
  • Family member can be added as a co-applicant
  • Nominal processing fee
  • Minimum pre-payment penalty
  • Maximum loan tenure upto 30 years
  • EMIs payment flexibility
  • Secured loan where collateral is required
  • Overdraft options available
  • Interest concession for women borrowers

In India, almost all the banks and financial institutions offer home loans to customers nationwide with varied interest rates and schemes. However, not all may suffice your need, thus you must find the one that meets your requirement the most.

To help you in your bid to find the perfect banking partner for home loan here is the list of the leading banks offering home loan at competitive interest rates:

HDFC Bank

HDFC (The Housing Development Finance Corporation) is a banking and financial company that offers a variety of home loans to its customers. HDFC offers home loan for the purchase of a flat, house, and bungalow from private developers in approved projects. The bank also helps in the purchase of the properties from various development authorities such as DDA (Delhi Development Authority), MHADA (Maharashtra Housing and Area Development Authority), etc. Below table provides basic information related to HDFC home loan:

HDFC Home Loan Interest Rate
Interest Rate 8.80% onwards
Processing Charges 0.5% of loan amount or Rs 3,000 whichever is higher + GST
Loan Tenure Up to 30 years
Loan Amount Max amount depends on applicant profile and other factors.
Cheque Bounce and Instrument Swap Charges Rs. 200 per instance
Prepayment or Foreclosure Charges Nil

HDFC bank offers various types of home loans, such as HDFC home loan for salaried and self-employed, HDFC home improvement loans, HDFC home extensions loan, HDFC Limited home loan for farmers and rural areas, HDFC home loan for agriculturists and HDFC rural housing finance.

State Bank of India (SBI)

SBI is an Indian multinational, public sector banking and financial services company. Its range of home loan types include Regular home loan, Balance transfer of home loan, NRI home loan, Flexipay home loan and Privilege home loan. SBI offers home loan at the interest rate of 8.70% onwards. The below mentioned table shall provide necessary details about their home loans:

 SBI’s Home Loan Interest Rates categorised with loan amount:

Category Home Loan (Term Loan)* Home Loan as Overdraft (Maxgain)*
Upto Rs.30
lakhs
Above Rs.30 lakhs
&
Upto Rs.75 lakhs
Above
Rs.75 lakhs
Above Rs.20 lakhs
&
Upto Rs.30 lakhs
Above Rs.30 lakhs
&
Upto Rs.75 lakhs
Above Rs.75 lakhs
&
Upto Rs.3 crores
Salaried
Women 8.70-8.80 8.75-8.85 8.70-8.80 8.50-8.60 8.70-8.80 8.85-8.95
Others 8.50-8.60 8.65-8.75 8.75-8.85 8.55-8.65 8.75-8.85 8.90-9.00
Non-Salaried
Women 8.60-8.70 8.75-8.85 8.85-8.95 8.70-8.80 8.90-9.00 9.05-9.15
Others 8.65-8.75 8.80-8.90 8.90-9.00 8.75-8.85 8.95-9.05 9.10-9.20

*Interest rate will vary as per the risk score of the customer

ICICI Bank

ICICI (Industrial Credit and Investment Corporation of India) bank is India’s largest private sector bank that offers a range of banking products and financial services to corporate and retail customers. The ICICI bank’s home loan interest rates and related charges are mentioned below:

ICICI Bank Home Loan Interest Rate
Interest Rate 8.80% onwards
Processing Charges 0.50-1% of the loan amount + GST
Loan Tenure Up to 30 years
Loan Amount Up to Rs. 10 crores
Cheque Bounce Charges Rs. 500 per instance
Prepayment or Foreclosure Charges Nil if floating, up to 2% for fixed rate

Axis Bank

Axis bank is the third largest private sector bank in India offering banking and financial services to individuals, salaried, self-employed and large and mid-corporates, MSMEs (Micro, Small and Medium Enterprises), and agriculture and retail businesses. Its home loan types include Asha Loan, Empower home loan and Fast forward home loan.

Below is the information regarding the fee and charges of its home loan:

Axis Bank Home Loan Interest Rate
Interest Rate 8.70% onwards
Processing Charges Up to 1% of the Loan amount subject to minimum of Rs. 10,000 + GST
Loan Tenure Up to 30 years
Loan Amount Minimum: Rs 3 Lakhs,  Maximum: Depends on combined income
Cheque Bounce / Instrument Swap Charges Rs. 500 per instance
Prepayment or Foreclosure Charges Nil if floating, up to 2% of the principal outstanding for fixed rate

PNB Housing

PNB Housing Finance Limited (PNB Housing) is a registered housing finance company with National Housing Bank (NHB). PNB Housing provides housing loans to individuals and corporate bodies for purchase, construction, renovation, improvement, repair and upgradation of houses. It also provides loans for commercial space, loan against property and loan for purchase of residential plots. The company provides an extensive range of home loan products, such as home purchase loans, home construction loans, home extension loans, home improvement loans and plot construction loans.

Some of the features of their home loan are as follows:

  • Rate of Interest: 8.85% onwards
  • Eligibility: Not more than 70 years of age
  • Loan Amount: Upto 75 Lakhs and Maximum depends on combined income
  • Tenure: Upto 30 Years

Indiabulls Housing Finance

Indiabulls Housing Finance Limited is India’s second largest housing finance company which is also regulated by NHB (National Housing Bank), like PNB Housing. Indiabulls Housing Finance is a provider of real estate, securities, housing finance and construction equipment leasing services to its customers.

Key Features:

  • Rate of Interest: 8.70% onwards
  • Loan Amount: Upto 75 Lakhs and Maximum depends on combined income
  • Eligibility: Depends on the financial advisor of the lender
  • Tenure: Upto 30 Years

Hence, these are the top banks for home loan and you can surely benefit from the information regarding the best bank for home loan.

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