Everything You Need to Know About Home Loans
Explore the eligibility criteria, application process, and tips to secure the best home loan deal for your dream home.
Quick Approval
Get your loan approved within 24 hours
Low Interest
Competitive rates starting from 8.35%
Flexible Tenure
Choose loan tenure up to 30 years
Secure Process
100% safe and secure application
What is a Home Loan?
A home loan is offered by lenders to individuals to residential property. A significant portion of the cost of the property is covered by a home loan. Borrowers will have to make a down payment and the remaining amount can be cleared in Equated Monthly Installments (EMIs). The tenure of a home loan ranges between 5 years and 30 years.
Top Private Banks For Home Loan
Reliance Capital Home Loan
Interest Rate
9.75% - 13%
Loan Amount
₹7.5L
EMI Per Lakh
2112
Processing Fees
--
Force Closure Fees
--
DCB Home Loan
Interest Rate
9.75% - 15%
Loan Amount
₹5L - ₹10Cr
EMI Per Lakh
2112
Processing Fees
Upto 2% of the loan amount
Force Closure Fees
--
YES Bank Home Loan
Interest Rate
9.4% - 10.25%
Loan Amount
₹10L - ₹10Cr
EMI Per Lakh
2095
Processing Fees
Up to 2%
Force Closure Fees
Prepayment Charges
RBL Home Loan
Interest Rate
9.1% - 11.55%
Loan Amount
₹1L - ₹10Cr
EMI Per Lakh
2081
Processing Fees
Up to 2% of loan amount
Force Closure Fees
- Between 13 to 18 months: 5% of outstanding principal.
- After 18 months: 3% of outstanding principal.
- After 12 regular EMIs: NIL
ICICI Bank Home Loan
Interest Rate
8.85% - 9.1%
Loan Amount
₹3L - ₹75L
EMI Per Lakh
2069
Processing Fees
The processing fee is 0.50% of the loan amount, plus applicable taxes
Force Closure Fees
- NIL for ICICI Home Loans and ICICI Home Improvement Loans with a floating rate of interest.
- 2% on the outstanding principal on full repayment for ICICI Bank Home Loan with a fixed rate of interest.
- 2% on the outstanding principal on full repayment for Top Up Loan if the applicant or co-applicant is Non-Individual.
- 4% on the outstanding amount of loan where the loan is given to Non Individual borrowers or with a fixed rate of interest to Individual borrowers.
Federal Bank Home Loan
Interest Rate
8.8% - 10.25%
Loan Amount
₹15L
EMI Per Lakh
2066
Processing Fees
Up to 3% of loan amount
Force Closure Fees
- Floating Rate Scheme- NIL
- Fixed Rate Scheme (including Byom Loans)- 3%
IDFC FIRST Bank Home Loan
Interest Rate
8.75% - 10.5%
Loan Amount
₹1L - ₹10Cr
EMI Per Lakh
2064
Processing Fees
Up to 3.5% of the loan amount
Force Closure Fees
Foreclosure charges 5% of the loan amount
Deutsche Bank Home Loan
Interest Rate
8.75% - 9.15%
Loan Amount
₹5L - ₹25Cr
EMI Per Lakh
2064
Processing Fees
--
Force Closure Fees
--
HDFC Bank Home Loan
Interest Rate
8.7% - 9.7%
Loan Amount
₹1L - ₹10Cr
EMI Per Lakh
2044
Processing Fees
₹4,999 One time fee
Force Closure Fees
- 4% of the outstanding principal (loan tenure between 13 - 24 months)
- 3% of the outstanding principal (loan tenure between 25 - 36 months)
- 2% of the outstanding principal (loan tenure if over 36 months)
Axis Bank Home Loan
Interest Rate
8.7% - 13.3%
Loan Amount
₹1L - ₹5Cr
EMI Per Lakh
2061
Processing Fees
0.50%(Min ₹10,000)one time fee
Force Closure Fees
0 - 2%
Kotak Bank Home Loan
Interest Rate
8.7% - 9.6%
Loan Amount
₹10L - ₹10Cr
EMI Per Lakh
2061
Processing Fees
Up to 3% of loan amount
Force Closure Fees
0-12 months: Lock-in period 1- 3 years: 4% + GST 3 years onwards: 2% + GST
Housing Development Finance Corporation Home Loan
Interest Rate
8.5% - 9.4%
Loan Amount
₹1L - ₹1Cr
EMI Per Lakh
2052
Processing Fees
Up to Rs 4,999
Force Closure Fees
Pre-closure Charges Allowed if borrower has paid at least 12 EMIs.
For salaried:
- 4% of principal outstanding (13-24 months)
- 3% of principal outstanding (25-36 months)
- 2% of principal outstanding (After 36 months)Part-payment Fees Allowed if borrower has paid at least 12 EMIs.
IndusInd Bank ltd Home Loan
Interest Rate
8.5% - 10.57%
Loan Amount
Up to ₹75L
EMI Per Lakh
2052
Processing Fees
--
Force Closure Fees
--
Karnataka Bank Home Loan
Interest Rate
8.5% - 10.62%
Loan Amount
₹20L - ₹5Cr
EMI Per Lakh
2064
Processing Fees
--
Force Closure Fees
--
LIC Housing Finance Home Loan
Interest Rate
8.5%
Loan Amount
₹1L - ₹15Cr
EMI Per Lakh
2052
Processing Fees
Flat Rs 3,000
Force Closure Fees
- In case of fixed-rate home loan/applicants other than individuals - 2% on the principal repaid.
- In the case of a floating home loan: prepayment charges are not applicable.
IDBI Bank Home Loan
Interest Rate
8.45% - 13.45%
Loan Amount
₹10K - ₹50Cr
EMI Per Lakh
2030
Processing Fees
For Dropline OD: 1% of the limit subject to a maximum of Rs 10 lakh.
Force Closure Fees
3% to 4% of the balance loan amount.
HSBC Bank Home loan
Interest Rate
8.45%
Loan Amount
₹3L - ₹30Cr
EMI Per Lakh
2049
Processing Fees
Up to 2% of the disbursed loan amount. Processing fee paid/deducted is non refundable
Force Closure Fees
- 5% within 1 year of tenure,
- 4% within 2 years,
- 3% within 3 years,
- 2 % after 3 years.
CITI Bank Home Loan
Interest Rate
8%
Loan Amount
₹2.1L - ₹10Cr
EMI Per Lakh
2028
Processing Fees
Up to 3% of the borrowed loan amount
Force Closure Fees
Up to 4% of the outstanding principal plus interest for the ongoing month
HDFC Sales Home Loan
Interest Rate
7.55% - 8.05%
Loan Amount
₹5L - ₹10Cr
EMI Per Lakh
2006
Processing Fees
--
Force Closure Fees
--
Home Loan Calculator
Monthly EMI
₹21,696
Total Interest
₹27,07,040
Total Amount
₹52,07,040
Fees & Charges
Home loan processing fees may vary widely based on lenders and credit profiles of loan applicants. Here are the typical fees and charges:
| Particulars | Charges |
|---|---|
| Processing Fee | 1% - 2% of loan amount |
| Foreclosure/Prepayment Charges | For floating rate: Nil For fixed rate: Around 2% - 4% on the principal outstanding |
| Overdue Charges on EMI | 2% per month of the unpaid EMI |
| EMI Bounce Charges | Around ₹ 400 |
| Legal Fee | As per Actuals |
Note: These charges are indicative and may vary from bank to bank. Please check with your preferred lender for exact charges.
Eligibility Criteria
Home loan eligibility differs across lending institutions and home loan schemes. However, a common set of housing loan eligibility criteria is given below:
| Criterion | Requirement |
|---|---|
| Nationality | Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs) |
| Credit Score | Preferably 750 and above |
| Minimum Age | 18 years with some lenders setting the minimum age of 21 years |
| Maximum Age | Usually 70 years at the time of loan maturity with some lenders extending the tenure till 75 years of age |
| Work Experience | At least 2 years (for salaried) |
| Business Continuity | At least 3 years (for self-employed) |
| Minimum Salary | At least Rs. 25,000 per month (varies across lenders & locations) |
| Loan Amount | Up to 85% of property value |
Note: Apart from the above parameters, your home loan eligibility also depends on the property you are buying and the location of the property.
Also Check: Top 10 Tips to Consider before Availing a Home Loan
What tax benefits can I get on a home loan?
House loan borrowers can avail tax benefits under various sections of the Income Tax Act. These home loan tax benefits help borrowers save a substantial amount of money every year. Below are the tax benefits that you can get on your home loan EMI payments:
| Section of Income Tax Act | Nature of Home Loan Tax Deduction | Max. Tax Deductible Amt. |
|---|---|---|
| Section 24(b) | Interest paid | Rs. 2 lakh |
| Section 80C | Principal (including stamp duty and registration fee) | Rs. 1.5 lakh |
Dos & don'ts while applying for a home loan
| Dos | Don'ts |
|---|---|
| Keep your credit score at 750 or above | Apply for home loan without checking your credit score |
| Limit your total EMI obligations within 50% of your net monthly income | Use emergency fund for making higher down payment |
| Compare home loan offers from various lenders | Apply with multiple lenders within a short span |
| Try making larger down payment to reduce LTV ratio | Forgo existing investments for making higher down payment |
| Add a co-applicant for higher loan eligibility | Plan EMI payments without considering the monthly contributions you need to make towards your crucial financial goals |
FAQs on Home Loan
Consumers can avail home loans directly from the banks and HFCs. As many home loan lenders now-a-days facilitate online home loan application processes, consumers can consider applying for their loan through such lender's official websites, mobile apps or internet banking.
Alternatively, consumers can also get a housing loan through various financial marketplaces to fetch home loan offers from multiple lenders from a single platform, depending on the consumers' credit profiles.
Currently, home loan interest rates start from 8.35% p.a. The final interest rate at which the bank or HFC will offer a home loan will depend on various factors like:
- Consumer credit score
- Age
- Employment profile
- Income stability
- Property location
- LTV ratio
Home loan companies offer home loans to all resident and non-resident Indians. They can be salaried or self-employed individuals and professionals.
Home loan lenders determine applicant eligible loan amount based on the EMI/NMI ratio and LTV ratio, which vary as per the lender's policy. To estimate the loan amount you can get based on your income, use the home loan eligibility calculator on the website of various online financial marketplaces like Paisabazaar for maximum loan offers from different lenders.
The property documents required to avail home loans may vary on a case to case basis. The documents for home loans applied for buying a new house will vary from the documents for home loans applied for house construction. For a detailed check on the document list:
- Contact the lender directly
- Visit their website
- Consult with a loan advisor