Home Loan in Kerala
To get your dream home in Kerala, you can get a home loan from banks and financial institutions like HDFC, SBI, PNB Housing Finance, IIFL, Aadhar Housing Finance, and Indiabulls Housing Finance. The home loan interest rate starts at 8.50%, while the processing fees are nominal, starting at 0.25% + GST.
Compare Home Loan Interest Rates Offered by Various Banks & HFCs in Kerala
Compare various banks and housing loan interest rates that they are offering for different requirements.
| Name of Lender | Interest Rate |
|---|---|
| SBI | 10.25% - 11.80% |
| HDFC Bank | 8.55% - 13.00% |
| LIC Housing Finance | 9.70% - 11.55% |
| ICICI Bank | 10.60% - 12.25% |
| Kotak Mahindra Bank | 9.50% onwards |
| Punjab National Bank | 9% - 13.40% |
| Bank of Baroda | 9.85% - 14.75% |
| Union Bank of India | 9.55% - 11.35% |
| IDFC First Bank | 9.50% onwards |
| L&T Housing Finance | 9.60% |
| Bajaj Housing Finance | 9% - 12% |
| Godrej Housing Finance | 8.39% -10.99% |
| Tata Capital | 9% - 17% |
| Federal Bank | 10% onwards |
Home Loan Interest Rates in Kerala
Housing Loan Interest Rate in Kerala and neighbouring areas starts from 7.35%:
| Parameters | Details |
|---|---|
| Interest Rate | 7.35% |
| Processing Fee | 0% to 1.25 % of the loan amount |
| Tenure/ Repayment | 1-30 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 that 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 8.25% 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 required amount of the 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 Slab | Interest Rates (% p.a.) |
| For All Loans* | 8.50% to 9.15% |
| Standard Home Loan Rates for Salaried & Self-Employed | |
| Loan Slab | Interest 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 of more than 800 and who are salaried.
Bajaj Housing Finance Kerala
Bajaj Housing Finance offers attractive Home Loan interest rates starting at 7.49% - 17.00% 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, the Aadhar Housing Finance home loan interest rate is one of the good options.
| Customer Type | Home Loan Interest Rate* |
|---|---|
| Salaried - Home Loan | 11.75% - 16.50% |
| Self-Employed - Home Loan | 12.75% to 17.00% |
| Loan against Property | 15.00% 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 Loans | Interest Rate |
|---|---|
| Rate of Interest | 8.80% to 14.75% |
Sundaram Home Finance Kerala
With 6 types of home loan schemes, the home loan interest rate at Sundaram Home Finance in Kerala starts from 8.65% p.a.
| Details | Interest Rate/ Fees |
|---|---|
| For general customer | 8.65% |
| For women customers | 8.65% |
| Processing Fee | Maximum upto 0.50% + GST |
IIFL Home Loan in Kerala
IIFL Home Loans progressively works towards facilitating affordable home loans to first-time homebuyers in 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 their choice. The home loan interest rate at Indiabulls Housing Finance in Kerala starts from 8.75% p.a.
SBI Home Loan Kerala
State Bank of India is one of the premier banks of India, and so getting a home loan in Kerala is very easy with SBI. The cheapest SBI home loan interest rate in Kerala is 7.50% - 8.45% and the maximum tenure for which a home loan can be availed is 30 years. The loan disbursement process can take up to 3 weeks in the SBI housing loan in 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's 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.
Home Loan Interest Rate for Salaried & Self-Employed Individuals in Kerala
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.35% |
| Home Loan (Balance Transfer) | 8.30%* to 14.00%* |
| Top Up | 9.20%* to 15.00%* |
Interest Rate For Salaried Individuals in Kerala
| Type | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|
| Floating Rate | Repo Rate + 2.70% to Repo Rate + 3.05% | 8.60% - 8.95% p.a. |
| Fixed Rate | All Loan Amounts | 14% p.a. |
Home Loan Interest Rate For Self-Employed Individuals in Kerala
| Loan Type | Effective ROI (p.a.) |
|---|---|
| Home Loan | 7.35% |
| Home Loan (Balance Transfer) | 8.90%* to 14.00%* |
| Top Up | 9.40%* to 15.00%* |
Interest Rate For Self-Employed Individuals in Kerala
| Type | Repo Rate + Spread | Effective Rate of Interest |
|---|---|---|
| Floating Rate | Repo Rate + 2.80% to Repo Rate + 3.15% | 8.70% - 9.05% p.a. |
| Fixed Rate | All Loan Amounts | 14% p.a. |
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 Loan | Purpose of Home Loan |
|---|---|
| Home Loan | This type of loan is taken to purchase residential property like flats and apartments. |
| Loan against Property | Get a loan by pledging your property to the bank. |
| Home improvement Loan | This loan is taken for house renovation related activities like painting, wiring revamp etc. |
| Home Extension Loan | This type of loan is taken to extend an already existing loan. For example to build a floor, room and balcony. |
| Land purchase Loan | This type of loan is taken to purchase a land. The construction of property should be completed within a fixed timeline. |
| House construction Loan | This type of loan is taken to construct a house. |
| Home Loan Balance Transfer | Home 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 Loan | This 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-ups | This is given as an extra loan on your existing home loan. |
| Home loans for NRI | This type of home loan is suitable for people who live outside India but are willing to construct a house in India. |
| Home Loan Overdraft | Home loan overdraft allows borrowers to get more loan amount linked to their savings and current account. |
Features & Benefits of Home Loan in Kerala
A Home Loan is a secured loan where the bank keeps possession of your home papers till the repayment is made. Let’s have a glance at some features of home loans in Kerala:
- Home loans in Kerala are usually offered at a minimum interest rate of 7.35% p.a.
- Tenures may be up to 30 years.
- LTV ratio: 80%-90% of the cost of the 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
Eligibility Criteria of Home Loans in Kerala
To be eligible for a home loan in Kerala, there are some requirements. Let’s see what those requirements are 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 a home loan and at lower interest rates
Documents Required for Home Loan in Kerala
Below is 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, and Original NOC.
Additional Home Loan Documents for Self-Employed Applicants
- Business profile
- Recent Form 26AS
- Income Proof: ITR with income computation for the past 3 years
- Memorandum and Articles of Association of the company
- Balance sheet and profit & loss account statement for the last 3 years
- Current account statement of a business entity
- Savings account statement of an individual for the past 6 months
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 Lender | Interest Rate |
|---|---|
| LIC Housing Finance | 8.50% |
| HDFC Ltd. | 7.90% - 9.00% |
| Tata Capital Housing Finance | 7.99% |
| Bajaj Housing Finance | 7.49% - 17.00% |
| PNB Housing Finance | 8.25% |
| Repco Home Finance | 9.50% onwards |
| GIC Housing Finance | 8.10% onwards |
| Indiabulls Housing Finance | 8.75% |
| Aditya Birla Capital | 8.80% to 14.75% |
| ICICI Home Finance | 8.00% |
| Home First Finance | 8.00% - 17.50% |
| Godrej Housing Finance | 8.55% – 8.99% |
| L&T Housing Finance | 8.65% |
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
The lowest home loan interest rate in Kerala is 7.35%. 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/NBFCs | Home Loan Interest Rate |
|---|---|
| HDFC | 7.90% - 9.00% |
| LIC HFL | 8.50% |
| SBI | 7.50% - 8.45% |
| ICICI | 8.00% |
| Kotak Bank | 8.20% |
A home loan can be needed for multiple scenarios, like a loan against property in Kerala, a loan against power of attorney property in Kerala, and many more. So, there is no particular best home loan for everyone, but it will depend on the exact requirements of the customer to decide which type of home loan can best cater to their needs.
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.
It takes anything between 7 to 21 days in order to get a home loan in Kerala.
The lowest home loan interest rate in Kerala is 7.35%. Currently, it is offered by HDFC.
If your monthly salary is more than Rs 25000 then you can get a home loan in Kerala.
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.
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.
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.
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% asa down payment to the builder.
Plot loans are available for only a residential plot, unlike home loan,s 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.
Yes, you can prepay your home loan easily by paying a nominal fee as prescribed by the respective bank in case any.
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.
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.
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 a home loan and at lower interest rates
Reshma Rawat is a passionate writer, with a decade of experience in writing for a variety of domains (finance, technology, lifestyle, e-commerce, real estate, etc.). Currently, she is working as Assistant Manager - Content @MyMoneyMantra, and writes blogs & webpages on financial products (loans, credit cards, insurance, financial policies by government, mutual funds, etc.
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