Top 15 Housing Finance Companies in India – 2021
A Housing Finance Company (HFC) is A Non-Banking Financial Company (NBFC) primarily engaged in business of financing purchase or construction of a residential unit. This may include direct or indirect funding i.e. purchase or construction of plots or refurbishment of existing home.
On August 2019, RBI took over the regulation of Housing Finance Companies from National Housing Bank and shared updated guidelines:
1) Housing Finance Companies should have at least 60 per cent of their net assets deployed in the business of housing finance. The last deadline to meet this requirement is March 31, 2024.
2) Also, the HFC holding a Certificate of Registration (CoR) should have net owned funds of Rs 20 crore to continue business of housing finance.
RBI has provided some relaxation to meet these guidelines for housing companies and allowed gradual timeline to meet the criteria.
Let’s take a look at list of top 15 Housing Finance Companies in India for 2021
1. HDFC Housing Finance
HDFC Housing Finance is a leading Housing Finance Company which is a subsidiary of HDFC Ltd. The company has catered to 7.9 million housing loans worth Rs.5.4 trillion since 1977. The lender has operations across Asia, Africa and East Europe.
With robust distribution network of 588 interconnected offices, you can trust on HFC Home Loans for fast and hassle free financing solution for your dream home.
HDFC HFL Home Loans are available for salaried as well as self employed individuals. The lowest HDFC Housing Home Loan EMI currently start from Rs. 659 per lakh and interest rates start from 6.90% p.a.
You can choose from following categories:
- Home Loans
- Plot Loans
- Rural Housing Loans
- Inclusive Home Loans
- Home Improvement Loans
- Home Extension Loans
- Top-up Loans
- Balance Transfer Home Loan
- Home Loans For NRI/PIO
The loan can be availed for up to 30 years and the applicant should be between 18 to 65 years old. Retail Prime Lending Rate is 16.10%.
Maximum funding criteria:
|Loan Amount||Maximum Funding (LTV)|
Up to Rs 30 lakh
90% of the property value
Rs 30.01 lakh to Rs 75 lakh
80% of the property value
Above Rs 75 lakh
75% of the property value
2. LIC Housing Finance Limited
LIC Housing Finance offers seamless Home Loans to all types of customers, including & not limited to salaried, self-employed, professionals, NRIs, etc. The NBFC offers convenience of applying Home Loan online as well as offline as per customer choice. The maximum loan tenure offered is 30 years or up to 60 years of the borrower’s age, at the time of repayment. The LIC HFL Home Loan can be borrowed for construction or purchase of house/ flat from private developer, housing board. The loan can also be obtained for repair or renovation of the existing property. The NBFC also offers attractive takeover or balance transfer options for existing Home Loans.
LIC HFL Home Loans currently start from 6.90%. The loan can be borrowed for Rs. 20 Lakhs to 5 crore. The processing fee is 0.25 % of the loan amount.
3. Indiabulls Housing Finance Limited
Indiabulls Housing Finance allows you to apply for Instant Home Loan with a flexible repayment structuring for as low as 8.99%. The rate of interest will vary as per customer profile, valuation of property, loan amount, tenor etc. The processing fee is up to 2% of the loan amount.
The IBHFL Housing Finance Company offers end-to-end online fulfilment of Home Loan processing option to customers. One can apply through Indibulls app or website. The Indiabulls Home Loan can be applied as Home Construction Loan, Home Improvement Loan, Home Extension Loan, Rural Home Loan, NRI Home Loan and Balance Transfer Home Loan. The eligible customers may avail benefit of PMAY CLSS. The self employed customers may also apply for LAP, MSME or ECLLGS against a residential property.
The borrower should be anywhere between 21 years to 65 years to avail of Indiabulls Home Loan.
4. ICICI Home Finance
ICICI HFL is a one stop Home Loan destination for all types of home buyers. Whether you are a salaried individual or a self employed borrower, you can apply for a hassle free housing finance at ICICI Home Finance. The loan can be applied for Rs 3 Lakh to Rs 5 crore of loan amount. The online application to ICICI HFL can be completed within 10 minutes and the HFC claims that it will not take more than 72 hours to disburse the amount. Both Indian residents and non resident Indians can apply.
You can apply with a co applicant and add a women co borrower to enhance loan eligibility and avail of lower rate of interest respectively. The maximum loan tenure is 25 years with ICICI HFC. All in all, ICICI HFC offers a customised loan option to meet the borrower’s requirements.
5. L&T Housing Finance Limited
L&T Housing Finance offers Home Loans for maximum tenor of up to 30 years. The Home Loans range from Rs 3 lakh to Rs 10 crore at attractive rate of interest. The customer has an option to choose fixed or floating rate of interest. The loan can be availed of for up to 90% of property value.
L&T Housing Finance Home Loan can be availed for home or plot purchase, house construction, home improvement, house extension, balance transfer and/or top up. Only customers, whether self employed non-professionals or professional customers with a fixed monthly income from approved financial institutions can apply.
6. PNB Housing Finance Limited
PNB Housing Finance is one of the leading housing finance companies in the country. The Company provides a bouquet of Home Loans for a diverse base of customers. The loans are available at interest rate as low as 7.50% p.a. Both Indians and NRIs can apply. Loan can be availed of applying online or offline as per your preference. The PNB HFL has a robust branch network spread across India. The Home Loan can be availed for Rs 20 Lakh to Rs 20 Crore. The housing finance scheme for low income group is called PNB Unnati Home Loan. The customer should be at least 21 years old to Apply for PNB HFL Home Loan.
7. Tata Capital Housing Finance Limited (TCHFL)
Tata Capital is another leading HFC. It offers Home Loans up to Rs 5 crores to Indian residents and up to Rs 10 crore to NRI applicants. The Home Loans are tailor made as per customer needs. The Home Loan can be availed right of for purchase of plot to construction of new home/apartment, or extension/ improvement of the existing property. As a limited time offer, Tata Housing Home Loans are available at as low as 7.50% p.a. The final interest rate may vary as per your profile. The processing fee is also discounted and is merely charged as 0.20% of sanctioned amount presently. The maximum tenure of 30 years can be availed of with Tata Capital.
8. Edelweiss Housing Finance Limited
Edelweiss HFL Home Loans are available to self employed as well as salaried individuals alike. The loan can be availed for construction, purchase, repair and renovation of a residential unit. The loans are available as highly customised financing option and the rate of interest will start from 9.75%. The loan eligibility is determined basis factors such as income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history by the NBFC. The maximum loan tenure available is 20 years.
9. Fullerton India Home Finance Company Limited
Fullerton India Grihashakti Home Loans are available to salaried as well as self employed individuals for purchase, construction or improvement of a home. The NBFC has a dedicated Home Loan EMI Calculator on its website to facilitate customers evaluate the cost of their loan. To be eligible for a Fullerton India Home Loan a salaried borrowers should be working in with organisations such as Multinational Cos, Listed Public Ltd Cos, Government Organizations, Private Ltd Cos, Closely Held or Unlisted Companies, Partnerships, or Proprietorship Firms.
However Self Employed individuals such as Business-owners, sole Proprietors, Employed Professional like Doctors, Architects, Co-partnership Firms, Private Limited Companies, Closely Held and Unlisted Companies can apply.
10. Bajaj Housing Finance Limited
Bajaj Housing Finance Home Loans can be applied for up to Rs 3.5 crore for purchasing, building or developing a residential unit. The loan is available at an attractive rate of interest and at flexible terms, assuring a customised deal for the borrower. Likewise, the NBFC also provides a lot of flexibility in repayment terms. To be eligible for Bajaj Housing Finance Loan, one must have a minimum salary or monthly income of Rs 30000.
11. Aditya Birla Housing Finance Limited
Aditya Birla Housing Finance Home Loans are available at attractive interest rates for maximum tenure of up to 30 years. The application process is quick & transparent to ensure customer satisfaction and ease. The borrowers can apply online or offline according to their preference. The NBFC has a strong pan India branch network. There is no prepayment charge on floating rate Home Loans for individuals. Affordable balance transfer options are also available for eligible customers. The lender also offers door step services to the borrowers.
To apply for Aditya Birla Housing Finance Home Loan, the minimum age should be 21 years, while maximum age limit for loan maturity is capped at 60 years for salaried and 70 years for self employed individuals.
The loan amount is offered as per following Loan to Property Value criteria:
- Up to 30 Lakhs : 90%
- 30 Lakhs to 75 Lakhs: 80%
- More than 75 Lakhs: 75%
The interest rate start from 9% for both salaried and self employed individuals. The processing fee will be charged up to 1% of the loan amount.
12. Shriram Housing Finance Ltd
Shriram Housing Finance Ltd is ideal for anyone who needs Home Loan at affordable and flexible repayment structure. The loan is available to salaried as well as self employed individuals for Rs 1 lakh to Rs 10 crore for maximum of 25 years. The rate of interest starts at 10.49%, which is linked to Shriram Housing’s Prime Lending Rate (SHPLR) which is 15% presently. To apply for the Home Loan, the minimum age limit is capped at 21 years for salaried individuals and 25 years for self employed borrowers. The EMI can be repaid on tranche basis or flexible repayment structure as per customer’s preference.
13. Aadhar Housing Finance Limited
Aadhar Housing Finance Limited offers affordable Home Loan solutions to low income group Home Loan borrowers. The minimum salary to apply for Home Loan is Rs 5000. The max loan amount can range up to 1 crore for building a home. The minimum LTV is 80%. The max loan tenure is 30 Years. Factors such as age, qualifications, income stability/continuity, dependents, income of co-applicants, saving habits, assets and liabilities are considered by the lender to assess the eligibility of the borrower. One can apply for Home Construction Loan, Plot Loan, Home Improvement Loan, Home Extension Loan, Balance Transfer Home Loan and Loan Against Property from Aadhaar HFL.
14. Piramal Housing Finance Limited
PCHFL is another leading HFC that offers hassle free financing solution for your dream home. From salaried individuals to self employed individuals to non-individual entities can avail of funding up to 90% of property value from Piramal Capital and Housing Finance Limited. The Home Loans Interest Rates are linked to Retail Prime Lending Rate (RPLR) and vary with changes in RPLR. Currently Piramal Capital & Housing Finance Interest Rates start from 9.75% p.a and
Retail Prime Lending Rate is 16.55% p.a (effective from January 2020).
15. Shubham Housing Development Finance Company Limited
Shubham HDFCL offers Home Loans to a range of salaried and self employed customers, including people with cash incomes. The loan can be availed for purchase of property, plot purchase & construction, property construction, refinance, and renovation. To apply for Home Loan, the customer should be at least 21 years of age on application and not more than 65 years at the time of loan maturity. The borrower should be a resident of the city constituting Shubham’s Office. No guarantor is required to apply for Shubham Home Loan. All property owners will be the co-applicants of the loan. The maximum loan amount offered is Rs 50 Lakh for up to 20 years starting at 11.90% p.a. You can apply online or offline as per your preference.
✅ What is Home Loan? What is the purpose of Housing Finance?
A Home Loan is an organised financing solution to buy a plot, home or develop/ construct/ renovate the existing residential unit. The property in the deal acts collateral and therefore home loans are essentially secured loans. The rate of interest is also attractive for Home Loans, compared to other types of loans. The loan amount is available as Loan-To-Property Value and that too for a long tenure ranging from 10 to 30 years, offering maximum ease of repayment to the borrower. You can apply online or offline for Home Loan in India now. There are exclusive tax benefits available on Home Loans, besides PMAY CLSS for the first time home owners.
✅ What are basic eligibility criteria for Home Loan?
To be eligible to apply for a Home Loan in India, the applicant (s) needs to prove the repayment capacity. Mainly factors such as age, income, employment status, place of residence, and property value are considered by lenders to assess the eligibility of a borrower. It is a common practice to add a co-borrower and enhance the home loan eligibility.
✅ What are different ways to improve my Home Loan eligibility?
You can improve home loan eligibility using any of the following: a) Adding a biological family member or spouse as a co-applicant, b) Presenting proof of other income sources such as Rental income, Interest yields etc to the lender. c) Adding working individuals as co-borrowers. These steps will reduce the risk premium of your Home Loan application, thereby making you eligible for a larger amount.
✅ How do I calculate my Home Loan eligibility?
Your take home income is one of the most important factors to determine the Home Loan eligibility. Using a lender’s home loan Calculator is the easiest ways to evaluate loan eligibility. As a rule of thumb, know that your monthly instalment amount should not be more than 40-50 % of take home income. Thus if your salary is Rs 40000 the size of EMI should be less than Rs 20000 per month. So borrow for optimal amount to ensure ease of repayment.
✅ What are the documents required for a Home Loan?
Here is the list of documents required for applying a Home Loan: KYC Documents, including Address proof, Identity proof and 2 passport size Photographs; Form 16 and latest salary slips as income proof; All bank accounts’ statements for last 6 months; Business continuity & profitability proof; property documents; and ITR for last 2 years for self employed borrowers.
✅ Can I prepay Home Loan? Is there any penalty on prepayment of Home Loan?
Home Loan availed on flexible repayment structure can be repaid without any penalty. The borrower gets complete flexibility in repaying a home loan prior the repayment schedule.
✅ What are the tax benefits on Home Loan?
There are annual tax benefits on both principal and interest repayment of a home loan. Under Section 80C of the Income Tax Act 1961, a borrower is eligible to avail tax deduction of up to Rs.1.5 lakh on home loan principal repayment in a FY. Besides, under Section 24B the borrowers get tax exemption of up to Rs.2 lakh on interest repayment for property they use for self-occupation. Under Section 80EE a first time Home Loan borrower is eligible for additional interest tax benefit of Rs. 50,000. You can claim these benefits while filing income tax returns each financial year when you are repaying a Home Loan.
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