Home Loans in Delhi - NCR

Below is the list of lenders offering the lowest home loan interest rate in Delhi in 2025:

Best home loan providers in Delhi depend on the borrower’s specific requirements. For instance, your requirements could be a high loan amount, the lowest home loan interest rate in Delhi, a lender with decades of lending experience, the longest repayment tenure, and so on. Below, we have enlisted 10 of the best home loan providers in Delhi based on key features:

1. HDFC Bank

• Loan amount: Up to Rs. 10 Crores.
• Rate of interest: 7.90% to 13.20% p.a.
• Processing fee: Up to 2% of the loan amount + applicable taxes/ statutory levies.
• Tenure: Up to 30 years.
• Prepayment charges: Nil for Adjustable Rate Loans & Combination Rate Home Loan (during the period variable interest rate is applicable) and 2% + applicable taxes/ statutory levies for Fixed Rate Loans & Combination Rate Home Loan (during the period fixed interest rate is applicable). 

2. ICICI Bank

• Loan amount: Up to Rs. 5 Crores.
• Rate of interest: 7.70% to 11.20% p.a.
• Processing fee: 0.5% of the loan amount + applicable taxes.
• Tenure: Up to 30 years.
• Prepayment charges: Nil for floating-rate loans and 2% on the outstanding principal amount for fixed-rate loans. 

3. Axis Bank

• Loan amount: Up to Rs. 5 Crores.
• Rate of interest: 8.35% to 14% p.a.
• Processing fee: Up to 1% of the loan amount or Rs. 10,000 (whichever is higher) + GST.
• Tenure: Up to 30 years.
• Prepayment charges: Nil for floating-rate loans and 2% on the outstanding principal amount for fixed-rate loans.

4. Kotak Mahindra Bank

• Loan amount: Up to Rs. 40 Crores.
• Rate of interest: 7.99% p.a. onwards.
• Processing fee: Up to 2% of the loan amount + taxes & other applicable statutory dues.
• Tenure: Up to 25 years.
• Prepayment charges: Nil for floating-rate loans and up to 2% on the prepayment amount for fixed-rate loans.

5. SBI 

• Loan amount: Up to 90% of the property’s market value.
• Rate of interest: 7.50% to 8.70% p.a.
• Processing fee: 0.35% of the loan amount (minimum Rs. 2,000 & maximum Rs. 10,000) + applicable GST.
• Tenure: Up to 30 years.
• Prepayment charges: Nil.

6. IDFC First Bank

• Loan amount: Up to Rs. 10 Crores.
• Rate of interest: 8.85% onwards.
• Processing fee: Up to 3% of the loan amount.
• Tenure: Up to 30 years.
• Prepayment charges: Nil for floating-rate loans and up to 2% of the principal outstanding amount + applicable charges/ taxes for fixed-rate loans.

7. PNB Housing Finance

• Loan amount: Up to 90% of the property’s market value.
• Rate of interest: 8.25% to 14.75% p.a.
• Processing fee: 1% of the loan amount + GST.
• Tenure: Up to 30 years.
• Prepayment charges: Nil if the property is in the name of an individual and up to 3% of the principal paid + GST in other cases.

8. Bajaj Finserv

• Loan amount: Up to Rs. 15 Crores.
• Rate of interest: 7.45% to 18% p.a.
• Processing fee: Up to 4% of the loan amount.
• Tenure: Up to 32 years.
• Prepayment charges: Nil for individual & non-individual borrowers with floating interest rate loans for non-business purposes and up to 4% of principal outstanding + GST in other cases.

9. Union Bank of India

• Loan amount: Up to 90% of the property’s market value.
• Rate of interest: 7.45% to 12.65% p.a.
• Processing fee: 0.50% of the loan amount (maximum Rs. 15,000) + GST.
• Tenure: Up to 30 years.
• Prepayment charges: Nil if the loan is taken over by other banks/FIs and 2% + GST in other cases. 

10. Tata Capital 

• Loan amount: Up to Rs. 7.5 Crores.
• Rate of interest: 7.75% p.a. onwards.
• Processing fee: Up to 3% of the loan amount + GST.
• Tenure: Up to 30 years.
• Prepayment charges: Nil.

The following are the main types of housing loan in Delhi based on the borrower’s needs:

• Standard/ Basic Home Loan: It is the most common type of home loan and can be used for purchasing residential property, which could be new, pre-owned, or even under construction.
• NRI Home Loans: Just like standard home loans, NRI home loans are available for Non-Resident Indians (NRIs) who are residing out of India. These loans come at competitive interest rates, with a hassle-free documentation process. 
• Home Construction Loan: If you want to build a house on a self-owned piece of land, you can opt for a home construction loan. Here, the lender disburses the loan amount in instalments based on the construction’s progress. You have to provide an estimated amount you will need at every stage of house construction.
• Land/ Plot Loan: You can buy a piece of land with the land or plot loan. To be eligible for this loan type, you must ensure that the concerned land’s documents (such as ownership, title deed, etc.) are clear because the lender is not responsible for checking the same. Also, you will be required to construct a residential house within 3 years of plot purchase.
• Home Improvement Loan: If you want to renovate your existing house, you can avail of a home improvement loan. This loan can be used for painting your home, fixing a leaky ceiling, hanging wires, or giving your property a makeover. 
• Home Extension Loan: This loan enables you to extend your home's size by adding floors, rooms, etc.
• Pre-approved Home Loan: Many banks offer pre-approved home loans, wherein you can apply for the loan before starting to look for a property, based on the amount of loan you are eligible for. The lender determines the borrower’s eligibility based on their income and repayment capacity. This loan type enables you to get the best home loan rates in Delhi.
• Top-up Home Loan: With a home loan top-up, you can get additional finance on your existing home loan for any purpose (just like a personal loan). To be eligible for this loan, you must have repaid all your EMIs on time.
• PMAY Loan: Under the Pradhan Mantri Awas Yojana (PMAY) loan, banks in India offer home loans at subsidised interest rates in partnership with the government. This loan type is for economically weaker sections. Under this loan, qualified applicants can own 'pucca' houses in urban and rural India. The condition is that the applicant’s family should not have any residential house other than the proposed house.
• Home Loan Balance Transfer: If you have an existing interest rate home loan, you can transfer it to another lender under the home loan balance transfer scheme. Transferring the loan to another bank offering a lower interest rate can lower your home loan's cost.

Here are the key benefits of getting a home loan in Delhi:

• Helps you fulfil your home ownership dreams with high property prices in Delhi NCR.
• Tax deduction up to Rs. 1.5 Lakhs annually on principal repayment under Section 80C of the IT Act and up to Rs. 2 Lakhs per year on interest paid under Section 24(b) of the IT Act.
• Interest rates are lower compared to other loans
• A plethora of lenders (public sector banks, private banks, housing finance companies) to choose from in Delhi NCR.
• Long repayment tenure of up to 30 years reduces your EMI burden.
• The home loan balance transfer option can be availed of if interest rates drop.
• Regular EMI payments can improve your credit score, helping in future loan eligibility.
• Special home loan schemes for women and first-time buyers.
• Property value appreciation as Delhi’s real estate market is among the strongest in India. 
• Instead of using all your savings for purchasing/ constructing a house, you can take a home loan and keep funds for emergencies/ investments/ business needs.
• Existing home loan borrowers can avail a top-up home loan to meet their personal/business requirements. 
• Many lenders also offer pre-approved home loans to their existing customers with a good credit profile
• No prepayment/foreclosure charges are levied on home loans availed at floating interest rates.
• There is a facility of a home loan DSA in Delhi, which can make your home loan search easier.

Below are some of the common home loan eligibility criteria set by the top home loan provider in Delhi:

• The applicant should be an Indian resident.
• Some lenders also offer home loans for NRIs and Persons of Indian Origin (PIO).
• Applicant’s age must be at least 21 years when applying for the loan and up to 70 years at loan maturity.
• Applicant must have work experience of at least 3 years.
• Applicants should be salaried (government/ corporate professionals), self-employed professionals (doctor, lawyer, engineer, company secretary, chartered accountant, architect, consultant, etc.) or self-employed non-professionals (trader, contractor, commission agent, etc.).
• Applicant’s credit score should be 750 or above. A higher CIBIL score increases the chances of getting a home loan at a lower interest rate.

Documents for Salaried Applicants

• KYC documents: Passport/ PAN Card/ Voter ID/ Aadhaar Card/ Driving License
• Income Proof: Salary slips for the last 3 months, Bank statement for the past 6 months with salary credits, ITR/Form-16
• Proof of the borrower’s own contribution
• Property documents
• Bank statement showcasing loan repayment history
• Employment contract/ appointment letter if the job is less than a year old
• Processing fee cheque

Additional Documents for Self-employed Applicants

• Recent Form 26AS
• Business profile
• Income Proof: ITR with computation of income for the past 3 years
• Balance sheet and profit & loss account statement for the last 3 years
• Memorandum and Articles of Association of the company
• Current account statement of a business entity
• Savings account statement of an individual for the past 6 months

Here’s a step-by-step guide on the home loan application process in Delhi:

• Assess your eligibility by using online eligibility calculators.
• Compare various lenders and their home loan offers.
• Look out for special home loan schemes for women, first-time buyers, government employees, etc.
• Arrange required documents, including KYC, income proof, employment proof, and property documents.
• Apply for pre-approval if eligible.
• After you finalise a property, the bank will verify the property’s title & legal clearance and conduct a technical valuation.
• If all checks are clear, the lender will issue a final loan approval letter.
• You have to sign the loan agreement and sanction letter and submit post-dated cheques/ NACH mandate for EMI deduction.
• Loan disbursement will be done in full or in stages (for under-construction property) directly to the builder/seller.