10 Best Banks for Home Loan in India in 2021

10 Best Banks for Home Loan in India in 2021

Home Loans are generally extended for purposes such as the purchase of houses, construction of residential properties, extensions and renovations thereof. To ease your home buying decision, the 10 Best Home Loans in the Indian market in the year 2021 are discussed below.

Top 10 Banks of Home Loan Interest Rates in India:

Banks Interest rate (%) Processing fee
State Bank of India

7% – 7.85%

Up to 0.50% of the loan amount + applicable GST
HDFC  Ltd 6.90%-9.25% Up to 0.50% of loan amount subject to maximum of Rs.3000
Axis Bank Ltd. 7.75%-8.55% Up to 1% of the loan amount subject to minimum of Rs.10000
ICICI Bank Ltd. 6.90%-8.05% 0.50-1% of loan amount subject to maximum of Rs.1500+ GST, Rs.2000-Mumbai, Delhi & Bangalore
Bank of Baroda  6.85% – 8.70% Rs. 8,500 + GST
Punjab National Bank 7.10% – 7.90% Up to 0.35% of the loan amount (Min. Rs. 2,500 and Max. Rs. 15,000)
LIC Housing Finance 8.10% Up to 1.0% of the loan amount + applicable GST
Aditya Birla Capital 9.0%-12.50% Up to 1.0% of the loan amount + applicable GST
Citibank 8.50%-8.60% Application Fee- Upto Rs.5000
Bajaj Finserv 8.55% Up to 1.0% of the loan amount + applicable GST

1. State Bank of India Home Loan

Document check at the time of loan approval:

SBI is the largest PSB in the country and exercises stringent verification of property papers.

Interest rates: However, SBI Home Loans are synonymous to the best rate loans in the market.

Some of the salient features are:

  • They do not provide fixed interest Home Loans.

  • Interests are offered at floating rates of interest ranging from 7.00% to 7.85%. p.a.

  • They also have a unique offering called SBI MaxGain Home Loan or Overdraft facility whereby a Home Loan is offered against the surplus cash held in your Savings Account. This results in a reduction of interest paid because the account balance acts the principle component.

  • MaxGain interest rate ranges from 8.15% to 9.45% p.a.

Other applicable charges: A processing charge of upto Rs. 10,000 may be charged when the loan is disbursed. No charges for pre-payment or part payment are levied.

Logic of interest calculation: Interest is charged on daily reducing balance. A part of principle paid today will result in lesser interest paid from the very next day.

Tenure of loan: Maximum tenure for which loan is extended is 30 years.

 

Lowest Home Loan Interest Rates on Kotak Mahindra Bank

 

2. HDFC Bank Home Loans

Types of Home Loans: HDFC Bank offers a loan on fixed, floating, and TruFixed types.

Unique feature offered by HDFC for its Home Loan customers: They offer multiple options for repayment of the loan. This is a unique feature and favourable to customers who look for such a differentiating factor while selecting a bank for availing Home Loan.

  • Step up Repayment Facility: Repayment schedule linked to the expected increase in your income.

  • Flexible Loan Instalments Plan: High EMIs in the starting months and declines as time progresses.

  • Tranche based EMI: For under construction properties, you may pay for the entire amount of applied loan rather than the amount of loan disbursed.

  • Accelerated Repayment system: This provides flexibility to increase EMI every year to have it commensurate with the level of your income.

  • Telescopic Repayment system: This extends the repayment tenure to 30 years, thereby enhancing loan eligibility and resulting in low EMIs.

Other Positives:

  • Stringent process of property documentation verification.

  • Simplified document pick up and submission process.

  • Free doorstep services provided.

  • Transparent charges.

3. Axis Bank Home Loan

Axis bank specialises in extending loans for various home related purposes.

Size of loan: Axis Bank also extends Home Loans of low ticket size as low as Rs. 3 Lakh.

Rates of interest applicable: They extend Home Loans at fixed as well as floating rates of interest.

  • Rate of 10% is applicable on loans extended on fixed rates of interest.

  • Floating loans have a rate of interest ranging from 7.75% to 8.55% p.a.

Other applicable charges

  • Processing fees: A flat processing fee of Rs. 10,000 is applicable irrespective of the loan amount.

  • Pre- Closure charges: Nil for loans on floating basis; 2% for fixed interest rate loans.

  • Part payment charges: 2% for fixed-rate loans.

Unique features of EMI Holiday: Axis Bank allows EMI Holidays to its valuable loan customers. Fast Forward Home Loan seekers get extended EMI holiday for 6 months on completion of 10 and 15 years respectively, provided they maintain a regular payment record.

4. ICICI Bank Home Loan

Interest rates: ICICI Bank offers Home Loans for fixed as well as floating rates of interest.

  • Applicable rates of interest range from 6.90% to 8.05% p.a. 

  • Cheaper rates are extended to women applicants. Joint applications with women as primary applicants are also entitled to rate reductions.

Other applicable charges: They have established rules for Processing fees, part payment, and pre-closure charges.

  • Processing fees- 0.50% to 1.00% of the loan amount or Rs. 1500 whichever is higher (Rs. 2000 for Mumbai, Bangalore, and Delhi)

  • Pre- Closure charges- Nil for loans on a floating basis, 2% for fixed interest rate loans.

  • Part payment charges- Nil charges are applicable. Amount re-paid should be equal or greater than one EMI.

Logic of interest calculation: Interest is charged on monthly reducing balance. A part of principle paid today will result in lesser interest paid with effect from the next month only.

Tenure of loan: Maximum tenure for loan is 30 years.

Other positives- ICICI Bank Home Loans come packed with a lot of advantages.

  • Prompt processing of loans

  • Simplified documentation process

  • Strict and vigilant property search process

  • Free door-step services available

5. Bank of Baroda Home Loans

Interest rates applicable: Bank of Baroda offers loans at low and competitive rates. Loans can only be availed on a floating rate of interest basis, rates range from 6.85% to 8.70% p.a.

Loan approvals: A big advantage is that the loan can be approved even before the property for which it is being sought is finalised.

Reduced interest payable: Home Loan advantage is a specialised product wherein surplus funds held in the Savings Account are treated as principal, thereby reducing the amount of interest payable on the loan.

Special benefits offered:

  • Accident insurance is provided free of cost with every Home Loan.

  • Access to Credit Card and a discount of 0.25% for Car Loan, if Home Loan is taken from Bank of Baroda.

  • Small loans up to 2 lakh can be applied for.

  • Maximum tenure of Home Loan is 30 years, which may be extended to 70 years under special terms and conditions.

6. PNB Housing Finance

Enhancement of loan: They do permit an enhancement in the amount of loan sanctioned on grounds of cost escalations.

Purpose: PNB does not provide Top Up Loans.

Rates of interest applicable: Loans are available on fixed as well as floating rates. Floating Interest Rate loans varies from 7.10% to 7.90% p.a.

Other charges applicable: Processing charges are payable at the rate of .35%, however, these are subject to a minimum of Rs. 2500 and a maximum of Rs. 15000 capping.

Tenure: The maximum tenure of the loan is 30 years. However, it may be extended to 60 years in special cases.

7. LIC Housing Finance Limited

Purpose: LIC Housing extends Top Up loans subject to special approvals in certain circumstances only.

Interest payable: Home Loans are offered at very cheap rates; you may avail them at the lowest possible rates here. Interest is offered on floating rates only. The rates of interest vary from 8.10% to 9.05% p.a. Interest is computed on a monthly reducing basis.

Other charges payable: This is another big advantage to loan seekers.

  • Processing fees are applicable at the rate of 0.5% but is subject to a maximum of Rs. 10,000.

  • Pre-closure charges and part payment charges are not applicable.

8. Aditya Birla Capital Home Loan

Purpose: Customers cannot get Top Up Loans from them.

Interest offering: Aditya Birla does not provide loans at fixed rates of interest. Loans are provided on a Floating rate basis; the rate of interest vary from 9% to 12.50% p.a.

Promptness: Fast pace at which applications are processed and the loan is disbursed as their biggest USP.

Home service: Specialise at delivering to your doorstep when you cannot make it to their branch.

9. Citi Bank Home Loan

Eligibility Criteria:

  • Applicant may be salaried or self-employed but must have a regular source of income.

  • S/he must have a minimum of 2 years of work experience.

  • Minimum and maximum age for Home Loan approval are 23 years, and 65 years, respectively.

Purpose: Loan may be availed for purchase of a house property which is under construction or which is ready to move in.

Amount of loan: The amount of loan may range from 5 Lakh to 10 Crore.

Extent of financing: Home Loans may be extended to the extent of 80% of the property cost.

Rate of Interest: Interest is calculated on daily reducing balance method, thereby resulting in a reduction of EMI amount.

  • Rate of interest of 8.20% to 8.50% p.a. is applicable to all types of applicants if the amount of loan is less than Rs. 28 Lakh

  • Applicable rate varies from 8.50% to 8.60% p.a. for salaried applicants if the loan amount is greater than Rs. 28 Lakh.

  • Applicable rate varies from 9.75% to 10.25% p.a. for self-employed applicants if the loan amount is greater than Rs. 28 Lakh.

Other charges: Pre-payment and foreclosure charges are not applicable.

Tenure: Loan may be availed for a maximum period of 25 years.

Unique features: Same terms and conditions are applicable for Indian residents as well as NRIs.

10. Bajaj Finserv Home loan

Eligibility Criteria:

  • Age of the applicant should range from 23 to 62 years and 25 to 70 years for salaried and self-employed categories respectively.

  • Work experience should be above 3 years and 5 years for salaried and self- employed respectively.

  • Minimum property value for which loan is being sought should be more than Rs. 15 Lakh

Amount of loan: Maximum loan amount is Rs. 3.5 crore and 5 crores for salaried and self-employed people respectively. Top up options up to 50% of the loan amount is also available.

Other charges applicable: Nominal to none pre-payment and foreclosure charges.

Tenure: Maximum loan tenure is 20 years. The term is flexible according to the convenience of the loan seeker.

Unique features: BF Home Loan products have attached insurance policies to take care of the family in case of any unforeseen exigency.

 

Also Read: How to Buy a House without Having Money for Down Payment?

 

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Category: Home Loan