The market is full of such home loan schemes by banks or other loan companies. Although there are various listed features and benefits provided by different companies for home loans, Different interest ratios, processing fees, schemes for women and non-working women, tax rebates, help, and different procedures In this article, we are going to discuss the Best Banks for Home Loans.
But first, let’s talk about the factors you should take into account before selecting the Best bank for home loans in India.
1. Interest rate
The interest rate is the most crucial element because even a small 0.5% difference in the interest rate on lakhs of rupees can have a significant impact.
2. Processing Fees on Home loan
As processing fees, the bank will charge a set amount or a percentage of the loan value. The processing fee is just for processing your application; it cannot guarantee loan approval or disbursements.
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3. Legal Fees For Home Loan
Legal costs can be assessed by a few banks when checking property documents.
4. Pre-closure charges For Home Loan
A few banks include a restriction that prevents you from pre-closing your loan or requires you to pay additional fees if you want to do it.
5. Insurance Cover
You can also get insurance to protect your mortgage. It must be noted that purchasing insurance is not necessary.
To clarify briefly, you should think about the following factors when deciding which bank is best for a home loan:
11 of the best banks for home loans in India in 2023
State Bank of India Home Loan
SBI Home Financing is a government-authorized bank in India that offers various home financing schemes for its customers.
Such as YONO Insta home top-up loans, home loans to non-salaried persons, SBI tribal Plus, SBI bridge home loans, top-up home loans, Privilege home loans, and many others.
Along with various home loan benefits such as tax benefits on home loans, dedicated customer support, a 0.5% interest rate for female customers, and flexible repayment options, Strict property evaluation.
SBI Bank charges 8.50% interest on home loans along with a 0.35 to 0.50% processing fee to provide the facility of a loan to its customers.
| Parameters | Loan Details |
| Fixed Interest Rate | None |
| Floating Interest Rate | 9.15%–9.65% |
| MaxGain interest rate (overdraft loan interest rate) | 0.35% of the loan amount |
| Processing Fees | 0.35% of loan amount |
| Maximum Tenure | 3 years to 30 years |
| Pre-closure Fee | Nil |
| LTV | Up to 90% |
| Part-Payment Charges | Nil |
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Advantages
- Detailed property evaluation
- charge disclosure
- Interest rates for the daily-reducing balance
Drawbacks
- lengthy approval procedure
ICICI Bank Home Loan
ICICI bank is considered the 2nd largest bank in India as per its capitalization.
ICICI Bank Home Loan provides various home loan schemes to its customers, including ICICI Housing Loans, Instant Home Loans, Express Home Loans, Extra Home Loans, Land Lone, NRI Home Loans, and many more.
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It provides the extra benefit of low interest on loans to non-working women, and easy loan processing for every customer, along with the fact that they do not charge extra for the door-to-door service.
The processing fee to avail of this loan is 10,000 rs and the interest rate is approx. 8.75%
| Parameters | Loan Details |
| Interest Rate | 9.65%–10.05% |
| Processing Fees | 0.50%–2% of the loan amount |
| Maximum Tenure | 30 years |
| Pre-payment Charges | Nil for floating rate loans2% for fixed-rate loans. |
| LTV | up to 90% |
| Late-Payment Charges | 2% per month |
Advantages
- can co-borrow with a female spouse who is not employed and benefit from lower interest rates.
- Quick loan processing
- The provision of services at your door is free of charge.
Drawbacks
- Even if you have made enough part payments, a raised EMI cannot be decreased.
HDFC Bank Home Loans
HDFC is a well-known bank in the financing sector, as it offers various loan schemes for different products to its customers. Along with it
provides various schemes of home loans such as Union Awas, Union home smart save, Pradhan mantri awas yojana, and Union Ashiyana personal loan scheme.
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The bank offers multiple payment methods for repayment of your bank loan.
| Parameters | Loan Details |
| Floating Interest Rate | 8.70%–9.85% |
| Processing Fees | 0.50% Loan amount |
| Maximum Tenure | 30 years |
| Pre-payment | Nil for floating Pay home loans 2% in case of fixed-rate or combination rate loan |
| LTV | 90% for loan values less than Rs. 30 lakhs80% for loan values of 30–75 lakhs75% for loans above Rs. 75 lakhs |
| Delayed payment of EMI | 24% per annum |
Advantages
- Highly transparent fees
- Many options for repaying loans are available
Drawbacks
- Re-appraising a loan with HDFC can cost up to Rs. 2,000.
Kotak Mahindra home loans
The Kotak Mahindra Bank is recognized as India’s third largest private sector bank and provides various home loan schemes, such as
Kotak housing loans, home loan balance transfers, and home improvement loans NRI home loan NRI home improvement loans
Along with various benefits of taking a loan from Kotak Mahindra, It works on a very simple procedure of providing home loans, low return rates, 8.85% interest, and 0.50% processing fee.
Axis Bank Home Loan
Axis Bank also has a good ratio of clients for home loans, as it provides Axis Bank housing loans, Quickpay home loans, Subh Arambh home loans, Fast Forward home loans, Asha home loans, top-up home loans, Power Advantage home loans, and many more.
The major benefit of taking a home loan from Axis Bank is that they provide a loan of an amount less than 3 lakh rupees, along with various services such as good customer support, a flexible and floating rate of the mortgage, a doorstep process of documentation, and other services.
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Home loans from Axis Bank are available with adjustable and fixed interest rates and a maximum term of 30 years.
Axis Bank gives up to a 6-month EMI holiday for one of its house loan products, Fast Forward house Loans, upon completion of the loan’s 10-year term and another 6-month holiday upon completion of the loan’s 15-year tenure, providing that the borrower’s repayment history is spotless.
| Parameters | Loan Details |
| Fixed Interest Rate | 14% for all cases. |
| Floating Interest Rate | 8.75%–9.15% |
| Processing Fees | The higher of 1% of the loan amount or Rs. 10,000 |
| Maximum Tenure | 30 years |
| Pre-closure Charges | 90% for loan values less than Rs. 30 lakhs80% for loan values greater than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lahks. |
| LTV | 90% for loan values less than Rs. 30 lakhs80% for loan values more than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lakhs. |
| Penal interest rate | 2% per month |
Advantages
- loans starting from as little as one lakh rupees
- Home loans with both fixed and floating rates
Drawbacks
- Fees for the release of statements, repricing, issuing of document copies, retrieving documents, and issuing of interest certificates.
PNB Housing Finance Home Loan
PNB Bank is the second-largest bank in India, It provides various home loan loans, such as housing loans for the public, PNB Max Saver loans, PNB Pride housing loans only for government employees and the public, and PNB Gen Next housing.
| 1% of the loan amount. Minimum fees: Rs. 10,000 If the loan is approved, then PNBHF keeps all the fees. If the loan is not approved, PNBHF retains Rs. 3,000 per property. | Loan details |
| Floating Interest Rate | Loan amount up to Rs. 35 lakh: 7.35% to 9.45%Loam amount greater than Rs. 35 lakh: 7.70% to 9.60% |
| Processing Fees | 1% of the loan amount. Minimum fees: Rs. 10,000 If the loan is approved, then PNBHF keeps all the fees. In case the loan is not approved, PNBHF retains Rs. 3,000 per property. |
| Maximum Tenure | 30 years |
| Pre-payment Charges | Nil for floating rate loans |
| LTV | 1% of the loan amount. Minimum fees: Rs. 10,000 If the loan is approved, then PNBHF keeps all the fees. If the loan is not approved, PNBHF retains Rs. 3,000 per property. |
| Late-Payment Charges | 2% per month |
Advantages
- If you take out a loan to build a house, you can ask to have the loan amount increased if the cost of building increases.
Drawbacks
- Application processing is too slow.
Bank of Baroda housing loan
The Bank of Baroda ranks as India’s third largest bank and provides various home loans to its users, such as the Baroda housing loan, Baroda home loan advantage, Baroda home loan takeover scheme, home improvement loan, PM Aawaas Yojna, and many more. The benefit of taking a home loan from the Bank of Baroda is that there are multiple methods to repay your loan, and it is no hidden charges.
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The interest rate of a bank or Baroda is approx., 8.05% and the processing charge is 0.25% to 0.50%
| Particulars | Loan details |
| Fixed Interest Rate | Not offered |
| Floating Interest Rate | 6.85% – 8.70% |
| Processing Fees | For loans up to Rs. 50 lakh processing fee- 0.50% of the loan amount. Minimum – Rs. 8,500 and Maximum – Rs. 15,000 For loans above Rs. 50 lakh processing fee- 0.25% of the loan amount. Minimum – Rs. 8,500 and Maximum – Rs. 25,000 |
| Maximum Tenure | 30 years |
| Pre-closure Charges | Nil |
| LTV | 90% for loan of less than Rs. 30 lakhs80% for loans of more than 30 lakhs and up to Rs. 75 lakhs75% for loans of value more than Rs. 75 lakhs |
| Part-Payment Charges | Nil |
LIC Housing Finance Home Loan
LIC Is a well-known mortgage financing lending organization in India, which provide various loan, and insurance facility to its users. LIC provides various schemes for house loans such as LIC housing loans for purchase, LIC housing loans for construction, LIC housing loans for extension, repair, and renovation, and plot purchase.
LIC doesn’t cost any extra amount as a fee for the pre-payment of the loan amount. The loan interest rate is low approx. 8.45%
| 90% for loan values less than Rs. 30 lakhs80% for loan values more than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lakhs. | Loan details |
| Fixed Interest Rate | 10.05% to 10.15% |
| Floating Interest Rate | 6.90% – 7.90% |
| Processing Fees | Rs. 10,000 for loans up to 50 LakhsRs. 15,000 for loans above Rs. 50 Lakhs |
| Maximum Tenure | 30 years |
| 90% for loan values less than Rs. 30 lakhs80% for loan value more than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lakhs. | Nil |
| LTV | 90% for loan values less than Rs. 30 lakhs80% for loan values more than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lakhs. |
| Late Payment Charges | 90% for loan values less than Rs. 30 lakhs80% for loan values more than 30 lakhs to Rs. 75 lakhs75% for loans above Rs. 75 lakhs. |
Advantages
- Lower interest rates, including fixed and floating.
- Prepayment fees are not applied.
Drawbacks
- Slow clearance and more processing times.
Union Bank of India Home Loan
Union home loan financing bank helps the users to provide various such schemes under which they can get home loan schemes as per their requirement. The schemes are Union home loan, union home smart save, Pradhan mantri yojana for home loans, and many more.
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The bank charges an interest rate of 7.90% per annum along with 0.50% with GST as a processing fee charge.
| Particulars | Loan details |
| Fixed Interest Rate | Up to Rs. 30 lakhs – 11.40 %Rs. 30 to 50 lakh – 12.40 %Rs. 50 lakh to Rs. 2 Crore – 12.65% |
| Floating Interest Rate | Home Loan up to Rs. 30 lakh – 8.60% to 10.25%Home Loan above Rs. 30 lakh – 8.60% to 10.45% |
| Processing Fees | 0.50% of the loan amount. Maximum of Rs. 15,000 |
| Maximum Tenure | 30 years |
| Pre-closure Charges | Up to Rs. 30 lakhs – 11.40 %Rs. 30 to 50 lakh – 12.40%Rs. 50 lakh to Rs. 2 Crore – 12.65% |
| LTV | 90% for loan value less than Rs. 30 lakhs80% for loan value more than 30 lakhs |
| Part-Payment Charges | Nil |
Citi Bank Home Loan
Citi Bank provides home loans to its customers and charges an interest rate of 8.45% per annum. The processing amount for availing this loan is approx.
5000 or more as GST taxes. And an extra charge as a booking fee of 0.40%
Yes Bank Home Loan
The bank takes an interest of 9.85 onwards Although it also takes 2% of the loan amount or 10,000 as a processing fee for applying for a house loan from Yes Bank.
Factors to consider while applying for a home loan in India
There are some key factors for applying for a Home Loan In India
- Total EMI Amount
- Loan Duration
- Rate of interest on home loan
- Down payment loan
- Mortgage Insurance Premium
- Processing or service fees for a home loan
Final words
These are some of India’s well-knowing bank that provides the facility of home loan to help you in fulfilling the dream of your own house.
Frequently Asked Questions ⁉️
