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Home loan in Kerala

To get your dream home in Kerala, you can get home loan from banks and financial institutions like HDFC, SBI, PNB housing finance, IIFL, Aadhar housing finance, Indiabulls housing finance. The home loan interest rate starts from 8.50% whereas the processing fees are nominal starting from 0.25% + GST.

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Compare Home Loan Interest Rate Offered by Various Banks & HFCs in Kerala

Compare various banks and housing loan interest rates that they are offering for different requirements.

Let’s have a look below to know the same:

Name of LenderInterest Rate
SBI10.10% - 11.65%
HDFC Bank9.50% - 11.00%
LIC Housing Finance9.70% - 11.55%
ICICI Bank10.85% - 12.50%
Kotak Mahindra Bank9.50% - 10.50%
Punjab National Bank9.24% - 12.45%
Bank of Baroda10.85% - 16.50%
Union Bank of India10.55% - 12.85%
IDFC First Bank9.00% - 20.00%
L&T Housing Finance9.60%
Bajaj Housing Finance9% - 14%
Godrej Housing Finance8.39% -10.99%
Tata Capital10.10%
Federal Bank11.15% - 14.80%

You can also check Best Loan Against Property Interest Rates Online

Best Loan against Property in India

Home Loan Interest Rate in Kerala

Housing Loan Interest Rate in Kerala and neighbouring areas start from 8.50%:

Home Loan ParametersHome Loan Details
Interest Rate8.50%
Processing Fee0% to 1.25 % of the loan amount
Tenure/ Repayment1-30 years

Best Bank for Home loan in Kerala

There are more than 30 banks and financial institutions that can give you the best home loans in Kerala. 

Here we are mentioning some of those lenders which give lucrative deals on your home loans:

PNB Housing Finance Limited Home Loan in Kerala

PNB HFL starts giving home loans in Kerala from Rs 8 lakh onwards and takes approximately 10 days to process. The minimum home loan rate of interest in Kerala is 8.50% for salaried and self-employed professionals whose CIBIL or credit score is more than 800.

HDFC Home Loan in Kerala

HDFC or HDFC Limited caters to home loan in Kerala under different loan slabs based on the requirement amount of home loan. There are different home loan interest rates for women that can benefit you greatly if one co-applicant of your home loan is a woman.

Special Home Loan Rates for Salaried & Self-Employed 
Loan SlabInterest Rates (% p.a.)
For All Loans*8.50% to 9.15%
Standard Home Loan Rates for Salaried & Self-Employed 
Loan SlabInterest Rates (% p.a.)
For All Loans*8.75% to 9.40%

LIC Housing Finance Limited Home Loan in Kerala

LIC Housing Finance gives 7 different types of home loans in Kerala or any other place. The starting home loan interest rate starts from 8.50% for people having a CIBIL score more than 800 and are salaried. 

Bajaj Housing Finance Kerala

Bajaj Housing Finance offers attractive Home Loan interest rates starting at 8.50% - 15.00% for salaried and professional individuals. Borrowers also have the advantage of availing of a sizable sanction with minimal documentation and quick processing and approval.

Aadhar Housing Finance Kerala

With 13 types of home related loans, Aadhar Housing Finance home loan interest rate is one of the good options.

Customer TypeHome Loan Interest Rate*
Salaried - Home Loan11.75% - 16.50%
Self-Employed - Home Loan12.75% to 17.00%
Loan against Property15.00% to 17.00%

Aditya Birla Housing Finance 

Getting a home loan in Kerala is easy with Aditya Birla Housing Finance home loans.  Below is the home loan interest rate based on salary.

Home LoansInterest Rate
Rate of Interest8.80% to 14.75%

Sundaram Home Finance Kerala

With 6 types of home loans schemes, the home loan interest rate at Sundaram Home Finance in Kerala starts from 8.65% p.a.

DetailsInterest Rate/ Fees
For general customer8.65%
For women customers8.65%
Processing FeeMaximum upto 0.50% + GST

IIFL Home Loan in Kerala

IIFL Home Loans progressively works towards facilitating affordable home loans to first time homebuyers of the country. Through a wide network of branches, backed by a digital infrastructure and social development intent, the Company caters to the evolving home finance needs of marginalized sections across the length and breadth of the nation. The IIFL home loan interest rate in Kerala starts from 8.75%.  

Indiabulls Housing Finance Kerala

Indiabulls Home Loans offers customers competitive interest rates that will make it easier to own a home of choice. The home loan interest rate at Indiabulls Housing Finance in Kerala start from 9.30% p.a.

SBI Home Loan Kerala

State Bank of India is one of the premier banks of India and so to get a home loan in Kerala is very easy with SBI. The cheapest SBI home loan interest rate in Kerala is 8.50% - 10.05% and the maximum tenure for which home loan can be availed is 30 yrs. The loan disbursement process can take upto 3 weeks in SBI housing loan Kerala.

Axis Bank Home Loan

Axis Bank home loan in Kerala is one of the most searched options to get a home loan. The home loan interest rate varies depending on the applicant profile, salary and credit score.

Repco Home Finance Home Loan in Kerala

The rate of interest starts from 8.10% p.a. for home loans. There are 2-3 types of mortgage loan schemes at Repco Home Finance in Kerala.

You can also check Best Banks for Home Loan in India in 2024

Home Loan Interest Rate for Salaried and Self Employed Individuals in Kerala

Loan TypeEffective ROI (p.a.)
Home Loan8.50%
Home Loan (Balance Transfer)8.30%* to 14.00%*
Top Up9.20%* to 15.00%*

Interest Rate For Salaried Individuals in Kerala

TypeRepo Rate + SpreadEffective Rate of Interest
Floating RateRepo Rate + 2.70% to Repo Rate + 3.05%8.60% - 8.95% p.a.
Fixed RateAll Loan Amounts14% p.a.

Home Loan Interest Rate For Self Employed Individuals in Kerala

Loan TypeEffective ROI (p.a.)
Home Loan8.50%
Home Loan (Balance Transfer)8.90%* to 14.00%*
Top Up9.40%* to 15.00%*

Interest Rate For Self Employed Individuals in Kerala

TypeRepo Rate + SpreadEffective Rate of Interest
Floating RateRepo Rate + 2.80% to Repo Rate + 3.15%8.70% - 9.05% p.a.
Fixed RateAll Loan Amounts14% p.a.

You can also check Home Loan for Salaried Employees

Types of Home loans offered in Kerala

There are more than 10 types of home loans offered in Kerala. Have a look below to understand what different types of home loans you can take from banks and other financial institutions(FIs) or NBFCs(non-banking financial institutions):

Types of Home LoanPurpose of Home Loan
Home LoanThis type of loan is taken to purchase residential property like flats and apartments.
Loan against PropertyGet a loan by pledging your property to the bank.
Home improvement LoanThis loan is taken for house renovation related activities like painting, wiring revamp etc.
Home Extension LoanThis type of loan is taken to extend an already existing loan. For example to build a floor, room and balcony.
Land purchase LoanThis type of loan is taken to purchase a land. The construction of property should be completed within a fixed timeline.
House construction LoanThis type of loan is taken to construct a house.
Home Loan Balance TransferHome loan balance transfer is used to transfer the existing home loan to a lower interest rate reducing the overall outgo in process.
Pre-approved Home LoanThis type of pre-approved home loan is given by banks and lending institutions to their existing customers on the basis of their creditworthiness and income.
Home Loan Top-upsThis is given as an extra loan on your existing home loan.
Home loans for NRIThis type of home loan is suitable for people who live outside India but are willing to construct a house in India.
Home Loan OverdraftHome loan overdraft allows borrowers to get more loan amount linked to their savings and current account.

Also Read - LRD Loans

Features and Benefits of Home Loan in Kerala

Home Loan is a secured loan where the bank keeps possession of your home papers till the repayment is done. Let’s have a glance at some features of home loan in Kerala:

  • Home loans in Kerala are usually offered at a minimum interest rate of 8.50% p.a.
  • Tenures may be up to 30 years.
  • LTV ratio: 80%-90% of the cost of property.
  • Facilities like top-ups, overdraft and home loan balance transfer to existing home loan borrowers are easily available.
  • Selected existing bank customers are offered pre-approved instant home loans.
  • No prepayment charges.
  • Pradhan Mantri Awas Yojna for economically weaker sections, middle income groups and low income groups with interest subsidy of up to Rs 2.76 lakh

Additional Info: Check 30 Lakh Home Loan EMI Apply Online.

Eligibility Criteria of Home Loans in Kerala

To be eligible for home loan in Kerala there are some requirements. Let’s see what are those requirements that will allow you to have your dream home in Kerala:

  • Applicant’s nationality: Indian Resident, PIO, NRI
  • Age- 21 years up to 70 years at the time of loan maturity
  • Work experience: At least 3 years for salaried and self-employed
  • Applicant’s job profile: Salaried (government and corporate professionals)/Self-Employed Non-Professionals (contractor, trader, commission agent)/Self-Employed Professionals (Doctors, CS, lawyers, CA, architect, consultant, engineer
  • CIBIL/Credit score should be 750 and above for increased chances of availing home loan and at lower interest rates

Additional Info: Also check Home Loan Eligibility

Documents Required for Home Loan in Kerala

Below are the list of documents needed to get a home loan in Kerala:

Home loan Documents For Salaried Loan Applicants

  • Proof of Identity: PAN Card/Driving License/ Voter ID/Passport/Aadhar Card.
  • Proof of address: Passport/Utility bill/Aadhar card
  • Proof of Income: Latest salary slip/ ITR/Form-16
  • Bank Statement: Last 3 months bank statement/ last 6 months bank passbook.
  • Property Documents: Agreement sale copy, Certificate of possession, Land tax receipt, the detailed cost of construction, Letter of allotment, Original NOC.

Additional Home Loan Documents for Self-Employed Applicants

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

Additional Info: Also check Documents Required For Home Loan

Property Loan in Kerala

Property loans or Mortgage loans in Kerala is another term for home loans in Kerala. So, if you need any type of mortgage loan ie. a home loan in Kerala then you are reading just the article where you will get all the information correctly.

Property Loan Interest Rates in Kerala

Name of LenderInterest Rate
LIC Housing Finance8.50%
HDFC Ltd.8.75% - 9.65%
Tata Capital Housing Finance8.75%
Bajaj Housing Finance8.50% - 15.00%
PNB Housing Finance8.50%
Repco Home Finance9.50% onwards
GIC Housing Finance8.10% onwards
Indiabulls Housing Finance9.30%
Aditya Birla Capital8.80% to 14.75%
ICICI Home Finance8.75%
Home First Finance8.00% - 17.50%
Godrej Housing Finance8.55% – 8.99%
L&T Housing Finance8.65%

You can also check SBI Home Loan EMI Calculator

Home Loan for Government Employees in Kerala

Kerala State Government Employees were entitled for Housing Loans under House Building Advance (HBA Scheme) till July 2018. Thereafter, the Government of Kerala directed the employees to approach scheduled commercial bank / NBFCs working in the state for availing fresh or additional housing loans.  The employees will continue to enjoy housing loans as per their service conditions even after shifting to banks. Employees can enjoy income tax benefits on principal and interest under section 80 C and section 24.

FAQs for Home Loan in Kerala

Which bank is the best for home loan in India?

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The lowest home loan interest rate in Kerala is 8.50%. With the recent rate hike trend it is assumed that the search for the cheapest home loans in Kerala might take a while. 

Till then you can have a look at these banks / NBFCs and the home loan interest rates that they offer:

Banks/NBFCsHome Loan Interest Rate
HDFC8.75% - 9.65%
LIC HFL8.50%
SBI8.50% - 10.05%
ICICI8.75%
Kotak Bank8.70%

Which Type of Home Loan is Best in India?

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Home loan can be needed for multiple scenarios like loan against property in Kerala, loan against power of attorney property in Kerala, and many more. So, there is no particular best home loan for all but it will depend on the exact requirement of the customer to decide which type of home loan can best cater to their requirements.

What is the maximum home loan amount that I can get in Kerala?

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You can get Rs 10 Crore home loan maximum in Kerala. If you still need more loan then you can do so after a brief interaction with the bank through which you want your loan to be serviced or disbursed. Normally banks don’t have any problem till they see that your credit score is up to the mark and your credit report is credit worthy.

How long does it Take to Get a Home Loan in Kerala?

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It takes anything between 7 to 21 days in order to get a home loan in Kerala.

What is the Lowest Interest Rate on a Home Loan in Kerala?

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The lowest home loan interest rate in Kerala is 8.50%. Currently, it is offered by HDFC.

What is the Minimum Income requirement to get a Home Loan in Kerala?

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If your monthly salary is more than Rs 25000 then you can get a home loan in Kerala.

How to get Home Loan in Kerala?

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Why only Kerala, you can apply for a home loan from anywhere in India using our website MyMoneyMantra.com or you can directly visit the link https://www.mymoneymantra.com/home-loans and fill the form with your exact requirements.

Which Bank gives fastest Home Loan?

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All banks take almost similar time in disbursing your home loan amount. It takes from 7 to 21 days to get your home loan amount.

Can we get 100% loan for home?

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No, You can never get 100% home loan on your dream home. At least you have to pay around 20-30% as down payment at the time of booking on the home.

How much down payment for home in Kerala?

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Normally to buy a new home, a down payment of 10% of the total cost of the property is required. But it is always advisable to go for a minimum home loan amount by paying around 20% to 30% as down payment to the builder.

Can I get home loan on residential plot?

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Plot loans are available for only a residential plot unlike home loans which are available on all properties. The maximum Loan to Value (LTV) when it comes to plot loans is stipulated at 70%. For home loans, the LTV can go up to 90% in some cases.

Can I prepay my home loan?

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Yes, you can prepay your home loan easily by paying a nominal fee as prescribed by the respective bank in case any.

What is the difference between Home loan and Mortgage Loan?

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It must be made clear that even Home Loans are a type of mortgage loan; wherein the property you seek a loan is considered a collateral for the sanction.

Can home loan tenure be increased?

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Yes, they can be increased if there is any room for doing so. Home loans have a long tenure of 15 years and above. During it you will encounter many interest-rate cycles. “Borrowers can either opt for the tenure increase option or the EMI increase option with the consent of the lender. Opting for tenure increase will result in higher interest cost than the EMI increase option.

Is ITR compulsory for home loan?

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If you are self-employed then yes your income tax returns will be needed to avail a home loan.

How to apply for a top up home loan in ICICI?

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You can now apply for Top-Up on your existing Home Loan and use the funds to fulfill a host of requirements such as home renovation, marriage expenses, business expansion, funding of your child’s higher education or any other personal need with a combination of overdraft facilities.

What’s more, if you have an existing Home Loan with ICICI bank then applying for a Top-Up loan gets simpler, hassle- free and with minimal documentation.

Can I get home loan with 50000 salary?

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Yes, you can get a home loan with a Rs 50000 salary.

Can I get home loan if my salary is 15000?

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No, you cannot get a home loan with a salary of Rs 15000.

What is the EMI for 20 lakhs home loan?

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The EMI for a Rs 20 lakh home loan at an interest rate of 8.50% p.a. For a tenure of 30 years is Rs 15,258.

Which home loan is best for govt employees?

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Any bank or financial institution that gives a special home loan interest rate to government employees is best for govt employees.

What is the EMI for 25 lakhs home loan for 15 years?

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Rs. 24,618 is the EMI that you have to pay for a home loan of Rs 25 lakhs for a tenure of 15 yrs.

What is the eligibility criteria for availing a home loan in Thrissur, Kerala?

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 Below are the requirements that will allow you to have your dream home in Kerala:

  • Applicant’s nationality: Indian Resident, PIO, NRI
  • Age- 21 years up to 70 years at the time of loan maturity
  • Work experience: At least 3 years for salaried and self-employed
  • Applicant’s job profile: Salaried (government and corporate professionals)/Self-Employed Non-Professionals (contractor, trader, commission agent)/Self-Employed Professionals (Doctors, CS, lawyers, CA, architect, consultant, engineer
  • CIBIL/Credit score should be 750 and above for increased chances of availing home loan and at lower interest rates

What is fixed rate home loan offered by banks?

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The fixed home loan rate in Kerala starts from 8.50% and can go on to be 9.10% in some cases depending upon the credit score of the home loan applicant.

What is the EMI for 20 lakhs home loan?

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The EMI for a Rs 20 lakh home loan at 8.60% p.a. For a tenure of 20 years id Rs 17,483.