Top Home Loan Banks and Housing Finance Companies in India

Updated on: 15 Jan 2024 // 4 min read // Home Loans
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With rising inflation and the mounting cost of real estate, a large percentage of India’s population is dependent on Home Loans for buying a residential property. If you too are looking out for an affordable Housing Loan, take a sneak peek at the top offers from leading Housing Finance Bank & Companies in India.

LenderInterest rate (%)Processing fee
HDFC Home Loan6.75%Up to 0.50% of the loan amount or Rs. 3,000 (whichever is higher) + applicable taxes
SBI Home Loan6.70%0.40% of Loan Amount + Applicable GST (Min: Rs.10000; Max: 30000)
Indiabulls Home Loan8.65%Up to 2.00% of loan Amount
ICICI Home Loan6.75%0.50% of loan amount (Min: Rs. 2,000) + GST
L&T Housing Finance8.80%0.25% onwards (Rs 5000 fixed as login fee)
PNB Housing Finance7.35%Up to 0.50% of the loan amount
Bank of Baroda Home Loan6.75%Up to 0.50% of loan amount 
(Minimum: Rs. 7,500 & Maximum: Rs. 25,000)
Axis Bank Home Loan6.90%1% of the loan amount (minimum Rs. 10,000) + GST

HDFC Home Loan

The Housing Development Finance Corporation (HDFC)is one of the pioneer housing lenders in India. HDFC extends a wide array of Home Loans for self-employed professionals, business owners, salaried individuals, as well as NRIs. The lender also offers HDFC Pre-Approved Home Loan Scheme, HDFC Special Home Loan for Agriculturists, HDFC Rural Housing Finance, and HDFC Extension Loan.

What makes HDFC’s Home Loans so popular amongst the masses are features such as:

  • Competitive Interest Rates
  • Flexible Loan Terms
  • Hassle-free Processing
  • Add on Facilities like Home Loan Balance Transfer and Prepayment Option

Currently, HDFC Home Loans at an Attractive Rate of Interest starting from 6.75% per annum. Female applicants can avail a lower rate starting from 7.65% p.a.

State Bank of India (SBI)

Being the largest public sector bank in India, the State Bank of India has set a benchmark as the leading housing finance lender of the country. The bank has a robust network of more than 17,000 branches in the country. Some of the most popular offerings by the SBI include SBI Realty, SBI Yuva Home Loan, SBI Her Ghar Home Loan, SBI MaxGain Home Loan, SBI PAL, and SBI NRI Home Loan.

The factors that have contributed to the bank’s formidable popularity are:

  • Flexible Loan Tenure up to 30 Years
  • No Hidden Fee
  • No Pre-Closure Charges

Presently, SBI Home Loans Interest Rates starting from 6.70% per annum to regular customers, and at a concessional rate starting from 8.05% to the female applicants.

Indiabulls Housing Finance Ltd (IBHFL)

While it may come as a surprise to you, the fact of the matter is IBHFL is the nation’s second largest Housing Finance Company when it comes to offering Home Loans.

Some of the top reasons for IBHFL’s popularity include:

  • Instant Approval of Home Loan Application
  • Approval for High Loan Amount (Up to 80% of Cost of Property)
  • Zero Pre-Closure Charges

The lender levies an Indiabulls Home Loan Interest Rate start from as low as 8.65% per annum.

LIC Housing Finance Limited

If you are looking for a Home Loan provider, that offers competitive deals for resident and non-resident Indians as well as pensioners, LIC HFL might prove to be the best pick.

The lender has managed to woo borrows since the past 3 decades, thanks to some of the compelling benefits such as:

  • Zero Processing Fee
  • Zero Pre-Closure Charges
  • Zero Prepayment Charges
  • Quick Loan Processing

The official website of the lender suggests you get in touch with your nearest branch for details on the LIC Housing Finance Interest Rate.

ICICI Home Loan

Yet another leading bank of the nation, ICICI is well known to offer multiple benefits to Housing Loan borrowers including but not limited to:

  • Minimal Documentation
  • Doorstep Assistance
  • Zero Pre-Closure Charges
  • Balance Transfer Facility
  • Extended Repayment Tenure up to 30 Years

The interest rates applicable on ICICI Home Loan Interest Rates start from as low as 6.75% per annum.

L&T Finance Limited

Also known as Larsen & Toubro offers as many as 3 distinct types of L&T Housing Finance to its customers, with benefits such as:

  • Quick Loan Processing
  • Instant Online Approval
  • Zero Prepayment Charges
  • High Loan Amounts of up to Rs. 10 crores

L&T Finance Ltd currently levies an interest rate starting from 8.80% per annum.

PNB Housing Finance Limited

Another mature player in this segment PNB Housing Finance Limited offers Home Loans to its customers for a wide variety of purposes with multiple benefits such as:

  • Doorstep Assistance
  • Instant Approval
  • Enhancement of Loan Amount
  • Varied Repayment Options

The lender which offers loans to both residents, as well as non-resident Indians, levies an PNB Housing Finance Interest Rate ranging from 7.35%  per annum.

Bank of Baroda Home Loan

Bank of Baroda has always been known for its competitive rates, especially when it comes offering compelling Housing Loanproducts to its customers.

The reliable and affordable Home Loans from BoB come with a myriad of benefits such as:

  • High Loan Amounts
  • Longer Tenure up to 30 years
  • Free Credit Card and Insurance
  • Top Up Home Loan Facility

This Housing Finance provider offers loans at interest rates starting 6.75% per annum.

Axis Bank Home Loan

For any Indian, the name of Axis Bank is not unknown, thanks to its significant rise in the past decade to attain the position of the third largest bank in the private sector.

The bank offers Home Loans to people from almost all walks of life, who meet the requisite criteria. Some of the Axis Bank Home Loan benefits that you must know about include:

  • Simplified Application Process
  • Quick Loan Approval
  • Home Loan Balance Transfer Facility
  • No Prepayment Charges for Floating Rate Loans

Currently, the lender charges an Axis Bank Home Loan Interest Rate starting from 6.90% per annum on Home Loan products.