® 
Max Tenure
5 yrs
Best Rate
7.35%
Processing Fee
10,000₹*
Features
- * Upto 30 years Loan Tenure
- * No Prepayment or Foreclosure charges
- * Funding up to 90%* of the property cost
- * Customized eligibility programs
- * Accessible network & decades of experience
Pricing
- Interest rate – 7.35%
- Processing Fees – 0.25% of loan amount or Rs. 10,000/- (salaried), 0.5% of loan amount or Rs. 10,000/- (self-employed)
Documents Required
- Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority)
- Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority)
- Education Qualifications – Latest Degree
- Latest Salary-slips for 3 months or 3 years Income Tax returns for Self Employed
- Bank Account statement for last 6 months (Salary Account) or 12 months for Self Employed
Max Tenure
15 yrs
Best Rate
12%
Processing Fee
3-5%
Features
- Loan on Cash income
- Past Bureau issues also considered.
- Funding on gram panchayat , B khata , Properties under municipal limits also funded.
- Loan starts at 5 lacs.
Pricing
- Interest Rate: 12 % to 18%
- Processing Fee: 3 - 5%
Documents Required
- Identity proof such as Pan Card, Voters ID Card, Passport.
- Address proof such as electricity bill, ration card.
- Income proof documents, if available.
- Bank pass book or Bank Statements.
- Property documents, if property identified.
Home Loan
Home loans are secured loans that are obtained by an applicant to fund the purchase/construction of a new house. Home loan Interest rates start as low as 8.20%. The repayment tenures are flexible and are up to 30 years. High loan amounts of up to 10 crores can be obtained. Balance transfer facility and special interest rates for women applicants are available. Apply for home loans at CreditMantri. We offer best interest rates and a pool of lenders to choose from. You can also do a free credit score check with us.How to Apply for Home loan on CreditMantri.com
What are the various kinds of home loans?
In India, most banks provide the following types of home loan
Home Purchase Loans
Commonly known as a home loan or housing loan are provided for buying houses or apartments. Banks usually offer 80 to 85% of the market value of the property as a loan. They are available for various tenure periods and with fixed and floating interest rates. This can be used for purchasing new homes or old homes which have entered the real estate market as resale.
This type of loan is provided for the purchase of land or an empty plot for residential activity, construction or investment purpose. This loan cannot be used for buying any agricultural plot of land. Unlike home loans where the loan amount provided is about 80 to 85% of the price of the property, land purchase loans are offered only up to 70% of the cost of the land.
Home Construction Loan
Home construction loans are provided for the sole purpose of constructing a home on an already available piece of land. The land can be an empty plot or demolishing an existing house and building a new one in its place. The loan amount provided for this is normally 85% to 90% of the construction cost.
Home Improvement Loans
These loans help the borrower with all home renovation or improvement work. They are extended towards all construction and renovation work. This could include paint job, new flooring work, plumbing or exterior elevation works are all covered under home improvement loans.
Home expansion loans
These are loans provided to the borrower for expanding their existing home. This includes expanding a single room, adding additional rooms to building a new floor above the existing house. These projects could vary from Rs. 20,000 to more than Rs.10 lakhs based on the project.
Key Home Loan Lenders and Their Key Features
HDFC Home Loans
1. Interest rates starting at 8.65% per annum2. Loans available up to Rs. 10 crores
3. Longer repayment tenure of up to 30 years. Customization available
4. Quick loan sanction within 5 days
5. Available for both salaried and self-employed individuals
6. Facility to transfer outstanding home loan to HDFC
7. Online loans that can be used for buying, constructing, and renovating purposes. End-to-end digital process
8. Hassle-free documentation
9. Home loans available for purchasing row houses, flats, or a bungalow from a private developer in fully approved projects
10. Home loans are available for purchasing properties from MHADA, DDA, etc.
11. Home loans are available for people employed with the army under a special arrangement with AGIF.
Types of HDFC Home Loans Available
1. Hdfc Home loans – Home loans are available for the purchase of a new row house, a flat, or a bungalow from a development authority or developer. It is also used for buying resale properties or construction of a house on a plot of land.
2. House Renovation Loans – This loan can be used to renovate your existing house. You can change the structure, construct another floor or room, etc. using this loan.
3. Plot Loans – This loan can be used to purchase a plot of land, either new or under resale.
4. Short-Term Bridge Loans – This loan is useful when you want to upgrade to a bigger and better house. It helps to bridge the funding gap between buying a new property and selling the old one.
5. Balance Transfer Loans – Transfer your existing housing loan to HDFC to get a better interest rate, longer repayment tenure, and better services.
6. Reach Home Loans – These loans are also available to individuals who work in the unorganized sector. They can use it to buy a new property, renovate an existing property, buy a plot of land, or construct a house.
Bajaj Finance Home Loan
1. Interest rates starting at 8.30%
2. Loans available up to Rs. 5 crores
3. Longer repayment tenure of up to 30 years. Customization available
4. Quick loan sanction within 48 hours
5. No foreclosure or prepayment charges
6. Minimal documentation and hassle-free processing
7. Facility to transfer outstanding home loan to Bajaj Finance with an additional top-up of 1 crore available
8. Available for both salaried and self-employed individuals.
Types of Bajaj Housing Finance Home Loans Available
1. Home Loan Balance Transfer – You can transfer your existing home loan balance to Bajaj Finance and enjoy competitive interest rates, longer tenure, a top-up loan, and much more.
2. Top-up Loan – You can avail of a top-up loan over and above your home loan and use it for paying medical bills, wedding expenses, education costs, or for any other reason.
3. Pradhan Mantri Awas Yojna – Upon approval, enjoy a 6.5% subsidy on the interest rates under the Pradhan Mantri Awas Yojna.
4. Joint Home Loan – You can apply for a joint home loan with your spouse, parent, or sibling. Makes the loan more affordable and increases the chances of loan approval as well. Also, you can share the payment responsibility.
5. Women’s Home Loan – Special home loans for women at a competitive rate making it highly attractive for women home loan seekers.
6. Home Construction Loan – This loan can be used to cover the costs of constructing a loan on a piece of hand. A top-up loan is also available to cover the furnishing cost once the house is constructed.
7. Plot for Purchase - Use this loan to buy a plot of land.
8. Home Loan for Bank/private/government employees and advocates – Home loans are available at competitive interest rates for professionals offering adequate financing.
PNB Housing Finance Home Loan
1. Interest rates start at 8.75% for salaried and 8.99% for self-employed individuals.
2. Loans available up to Rs. 2 crores.
3. Longer repayment tenure of up to 30 years. Customization available
4. Quick loan sanction within 48 hours.
5. Home Loans that can be used for buying, constructing, and renovating purposes.
6. PNB provides home loans that cover up to 90% of the total value thus making home buying a very affordable process.
7. Low processing fee at 0.5%
8. Personalized doorstep services and post-loan approval and disbursement services. End-to-end digital process.
Types of PNB Home Loans Available
1. Home Construction Loan – This loan can be used to fund the construction of a property on a plot of land. You can also obtain a top-up loan to finance additional construction costs.
2. Home Extension Loan – You can use this loan to fund the construction of an additional room or floor.
3. Home Improvement Loan – This loan covers the cost of an already existing house, repairs, paintwork, water-proofing, flooring & tiling, electrical and plumbing work, woodwork, false ceiling, etc.
4. Plot Loan – This loan can be used to finance the purchase of a plot of land. PNB Housing Loan will finance up to 70-75% of the plot value. The repayment tenure is between 10-15 years. The interest rates will be higher than usual home loans.
5. Loans for NRIs – Loans for NRIs are available to persons of Indian Origin (PIO) and Non-Resident Indians (NRIs). They can use it for the construction, purchase, renovation, and repair of residential properties in India.
Canara Bank Home Loan
1. Interest rates starting at 8.80%
2. Loans available up to Rs. 3 crores
3. Longer repayment tenure of up to 30 years. Customization available
4. Quick loan disbursement
5. Up to 60% of house value can be provided as a loan
6. Home improvement loans have a ceiling of 15 lakhs
7. Mortgage of a house/flat is needed for the loan.
Types of Canara Bank Home Loans Available
1. Housing Loan – This loan can be used for the purchase/construction of a house.
2. Home Improvement Loan – This loan can be used to furnish a house. E.g., buying a refrigerator, furniture items, fans, air-conditioners, etc.
3. Canara Site Loans – This loan can be used for the purchase of residential sites from any body constituted by the government of India for the sale of residential sites. Authorities like HUDA, DDA, etc., and colonies approved by RERA and government-approved projects fall in this category.
4. Canara Home Loan Plus – Those in the age bracket of 18-70 years with an existing home loan, having an excellent repayment record are eligible to apply for this loan.
5. Housing Loan to Agriculturists - This loan is available for persons involved in poultry, and dairy activity, horticulturists, planters, etc.
6. Housing-cum-Solar loan – This loan can be used for the purchase of RoofTop Solar Photovoltaic (PV) system on the top of the roof of the house
7. Canara Home Loan Super Gain – Used for the purchase of a flat/house/plot of land. Extension/renovation/repair/construction etc.
8. Canara Kuteer – Housing Loan Scheme – Construction/Acquisition/purchase of old/new dwelling units. Used for acquiring a site and building a house thereon.
Indiashelter Home Loan
1. Interest rate between 13% to 20%
2. Repayment tenure up to 20 years
3. Loan approval within 5 days
4. Loan amount varies between Rs. 5 lakhs to Rs. 50 lakhs
5. Fixed rate of interest available
6. Hassle-free loans with minimum documentation.
ICICI Bank Home Loan
1. Interest rate starting from 8.75%
2. Repayment tenure up to 30 years
3. Loan approval within 5 days
4. Loan amount varies between Rs.1 lakhs to Rs. 10 crores
5. Hassle-free loans with minimum documentation
6. Home loan balance transfer facility available.
Types of ICICI Home Loans Available
1. Home Loan – Used for the purchase/construction of a new house.
2. Express Home Loans – Avail home loans on a fast-track basis. A completely digital process with quick processing time.
3. Land Loan – This loan can be used to purchase land or a plot.
4. Extra Home Loan – This feature allows you to extend the repayment period to 67 years. The home loan amount in this case has to be increased by 20%. This facility has to be mortgaged by a mortgage guarantee.
5. NRI Home Loan – This loan is available for NRIs for the purchase or construction of a property in India.
6. Instant Home Loan – Pre-approved – This is a pre-approved loan available to customers having savings accounts with ICICI bank.
7. Pratham Home Loans – Applicants can avail of loans for home improvement, balance transfer, Non-residential premises loan, and a home loan.
8. Pradhan Mantri Awas Yojna – Minimum household income needed to apply for this loan is Rs. 18 lakhs. Avail a rebate of 6.5% on the normal interest rate under this scheme.
IDFC Bank Home Loan
1. Interest rate starting at 8.75%
2. Repayment tenure up to 20 years
3. Loan amount up to Rs. 10 crores
4. Home loan balance transfer facility available
5. Top-up loan available up to the same amount as the balance transfer
6. Minimal documentation.
Types of IDFC Home Loans Available
1. IDFC First Housing Loan – This loan can be availed for the purchase or renovation of a house.
2. IDFC First Suvidha Shakti – This is a loan available under the micro-housing loan scheme for women to bring improvement to their homes in areas like water availability, sanitation, renovation, etc.
3. IDFC FASTTRACK Home Loan Balance Transfer – This facility allows individuals to transfer their outstanding existing home loan to IDFC. It allows them to avail of a lower interest rate. Individuals can also enjoy a top-up loan to meet additional fund requirements.
Kotak Bank Home Loan
1. Interest rates starting at 8.65%
2. Repayment tenure up to 20 years
3. Loan amount up to Rs. 10 crores
4. Home loan balance transfer facility available
5. Doorstep services available
6. Minimum documentation.
Types of Kotak Home Loans Available
1. Home Loan Balance Transfer – You can transfer your outstanding home loan from another bank to Kotak and enjoy lower interest rates.
2. Kotak Housing Loan – This loan is provided for the purchase/construction of a new house.
3. Home Improvement Loan – This loan can be used to renovate or make improvements to an existing home.
4. NRI Home Loan – This loan is meant for the housing finance requirements of NRIs.
5. NRI Home Improvement Loan – This loan can be used by NRIs to cover expenses related to home renovation.
SBI Home Loan
1. Interest rates starting at 8.75%
2. Repayment tenure up to 30 years
3. Loan amount up to Rs. 2 crores
4. Home loan available as an overdraft
5. No prepayment penalty
6. Interest concession for women applicants.
Types of SBI Home Loans Available
1. SBI Regular Home Loan – Can be used for the purchase/construction of a property.
2. SBI Balance Transfer Home Loan – Switch your existing outstanding home loan to SBI to enjoy a lower rate of interest.
3. SBI NRI Home Loan – Loans for NRIs to invest in properties in India.
4. SBI Flexipay Home Loan – This loan is exclusively available for salaried applicants. They can choose to pay only the interest amount during the moratorium period and then pay moderated EMIs.
5. SBI Privilege Home Loan - This loan is specifically designed for government employees. The loan amount is calculated by taking into consideration the income, age, assets, liabilities, the value of the house, etc.
6. SBI Shaurya Home Loan – This loan is designed only for defence personnel. It offers a lower rate of interest along with added benefits.
7. SBI Pre-approved Home Loan – This is a pre-approved home loan that enables the applicants to plan their buying decision confidently.
8. SBI Realty Home Loan – This loan can be used to purchase a plot for the construction of a dwelling unit. The maximum loan available is Rs. 15 crores with a repayment tenure of 10 years.
9. SBI Home Top-Up Loan – This loan can be taken over and above an existing SBI home loan to fund additional finance requirements.
10. SBI Smart Home Top-Up Loan – This loan can be availed to meet any urgent requirements like education costs, marriage expenses, medical bills, furnishing of the house, etc.
11. SBI YONO Insta Top-Up Loan – This loan can be taken by pre-approved customers over the YONO app.
12. SBI Home Loan to Non-Salaried – Differential Offerings – This loan is only available for non-salaried individuals with different offerings.
13. SBI Tribal Plus – This loan is specifically designed for tribal/hilly areas. This loan can be used for the construction/purchase/renovation of a house.
14. SBI Reverse Mortgage Loan – This loan is particularly beneficial for senior citizens with no extra source of income. The bank pays the borrower in lieu of the property kept as a mortgage. The borrower is not expected to return the loan during their lifetime.
Eligibility Criteria for Home Loans by Key Lenders
Lenders | Salaried Age (in years) | Salaried Income | Self-Employed Age (in years) | Self-Employed Income | Nationality |
HDFC | 21-65 | Rs.10,000 p.m. | 21-65 | Rs. 2 lakhs p.a. | Resident Indian |
Bajaj Finance | 23-62 | Rs. 30,000 to Rs. 50,000 p.m. | 25-70 | Rs. 30,000 to Rs. 40,000 p.m. | Resident Indian |
PNB Housing | 21-70 | Rs. 15,000 | 21-70 | Not Available | Indian/NRI |
Canara Bank | 18-70 | Not Available | 18-70 | Not Available | Indian/NRI |
Indiashelter | Not Available | Not Available | Not Available | Not Available | Not Available |
ICICI | 21-60 | Rs. 25,000 | 21-60 | Rs. 25,000 | Resident Indian |
IDFC | 21-60 | Rs. 1 lakh per annum | 23-70 | Rs. 1.5 lakh per annum | Resident and non-resident Indians |
Kotak | 18-60 | Rs. 15,000 | 18-65 | Rs. 15,000 | Resident Indian/NRI |
SBI | 18-70 | Not Available | 18-70 | Not Available | Resident Indian/NRI |
Documentation for Home Loans by Key Lenders
Lenders | Identity Proof | Residence Proof | Income Proof | Property documents |
HDFC | PAN Card or Form 60/Passport/Voter ID/Aadhaar card/driving license | Passport/driving license/Voter ID, Aadhaar card | Salary slips for the last 3 months/Bank statements for the last 6 months/From-16 and IT returns | Title deeds/Agreement copy/Receipt of initial payment |
Bajaj Finance | Passport/Voter ID/Aadhaar card/driving license/PAN Card | Electricity bill/Bank statement/Telephone bill/Passbook/Passport | Employee ID Cards/Salary slips for last 3 months/Bank statements for last 6 months/Form 16 | Original sale deed/NOC from society/allotment -possession letter |
PNB Housing | Pan Card/Passport/certificate from statutory authority | Passport/driving license/Voter ID, Aadhaar card/Telephone Bill/Ration Card/ | Salary slips for last 3 months/Bank statements for last 6 months/From-16 & IT returns/proof of business existence | Allotment letter/Builder buyer agreement/Payment receipt/Sale deed/Possession certificate/NOC from builder or society/Approved map |
Canara Bank | Passport/Voter ID/Aadhaar card/driving license/PAN Card/ 2 Passport size photographs | Bank Statement/Ration Card/Telephone Bill/Electricity bill/letter from employer | Certificate of employer/Salary slips for last 3 months/Bank statements for last 6 months/Form 16 for last 3 years/Balance sheet and P&L account | Sale deed/Approved plan copy/valuation report/Allotment letter/Legal Scrutiny report/Sale agreement |
Indiashelter | Voter ID/Aadhaar card/driving license/PAN Card | Passport/Voter ID/Aadhaar card/driving license/PAN Card/Birth Certificate/10th or 12th passing certificate | IT Returns/Salary slips for last 3 months/LIC Policy/FD or RD/loan account details/savings or investment details | Property documents |
ICICI | Passport/Voter ID/Aadhaar card/driving license/PAN Card | Telephone bill/Electricity bill | Salary slips for last 3 months/Bank statements for last 6 months/From-16 & IT returns/proof of business existence | Property tax receipt/Proof of business address/assets and liabilities statement |
IDFC | Passport/Voter ID/Aadhaar card/driving license/PAN Card/Job Card/National Population Register | Passport/Voter ID/Aadhaar card/driving license/PAN Card/Job Card/National Population Register | Salary slips for last 3 months/Bank statements for last 6 months/From-16 & IT returns/Balance sheet and P&L/GST returns/Credit card statement/Repayment track | Sale deed/Allotment/Possession letter/NOC from society/Chain Title agreement |
Kotak | Passport/Voter ID/Aadhaar card/driving license/PAN Card | Passport/driving license/Voter ID, Aadhaar card/Telephone Bill/Ration Card/ | Salary slips for last 3 months/Bank statements for last 6 months/From-16 & IT returns/Balance sheet and P&L/GST returns/Credit card statement/Repayment track/Power of attorney | All property documents with sanctioned map |
SBI | Passport/Voter ID/Aadhaar card/driving license/PAN Card | Telephone bill/Electricity bill/Gas bill/Water bill/Passport/Aadhaar card/driving license | Salary slips for last 3 months/Bank statements for last 6 months/From-16 & IT returns/proof of business existence | Occupancy certificate/Agreement for sale/Share certificate/Approved Plan Copy/Payment Receipts/permission for construction. |
Documents required for NRIs for the Application to a Home Loan
1. Proof of Identity and Residence –
a) Mandatory Documents - Valid Passport/PAN card/Form 60b) Officially Valid Documents – Passport/Driving License/Voter ID Card/Aadhaar Card/Letter issued by Foreign Embassy/Work or social permit/Green card/Social security card, etc.
2. Proof of Income –
a) Appointment letter/Offer letter/Employment contractb) Last 3 months’ salary slips specifying name, date of joining, passport number, designation, salary, etc.
c) Last 6 months’ bank statement specifying salary
d) Last 6 months’ bank statements of the NRE/NRO account in India
e) Credit Bureau Report.
Home Loan Fees and Charges by Top Lenders
Fees and Charges for Home Loans
Lenders | Processing Fee | Late Payment Fee | Check Dishonour charges | Prepayment charges |
HDFC | 0.50% of the loan amount or Rs.3,000, whichever is higher | 24% per annum | Rs. 300 | Up to 2% of the amount being prepaid |
Bajaj Finance | 0.50% to 7% | 2% | Actuals incurred to recover the loan | NIL |
PNB Housing | 0.50% | Not Available | Up to Rs. 1,000 | Up to 3% of the amount being prepaid |
Canara Bank | 0.5% - Minimum Rs. 1500 and maximum Rs.15,000 | Not Available | Not Available | NIL |
Indiashelter | 2%-3% | Not Available | Not Available | Up to 6.5% of the amount being prepaid |
ICICI | 0.50%-2% or Rs.3,000, whichever is higher | Rs. 500 + taxes | Rs.500 | Up to 4% |
IDFC | Up to 3% | Up to 2% or Rs. 300, whichever is higher | Rs. 400 + GST | Not Available |
Kotak | 0.5% + taxes | Not Available | Rs. 500 + taxes | Up to 3% of the amount being prepaid |
SBI | 0.35% + taxes | 2% | Rs. 500 + GST | NIL |
Types of Interest Rates on Home Loans
1. Fixed Interest Rate – A fixed interest rate remains the same throughout the tenure of the loan. This gives you the benefit of planning your outflows in advance and doesn’t change with increasing market interest rates.
a) Advantages – No uncertain increase in EMIs. You can plan well your outflows for the next few years.
b) Disadvantages – You might not be able to reap the benefits of changing market rates if it goes down.
2. Floating Interest Rate – This type of interest rate is linked to the market interest rate. It can go up and down during the tenure of the loan.
a) Advantages – A decreased market rate will help you decrease your monthly outflow.
b) Disadvantages – Your outflow keeps changing and there can be an unexpectedly increased outflow of money because of an increase in interest rates.
Home Loan EMI Calculator
The three things that you need to calculate Home Loan EMI are – Interest rate, Loan amount, and loan tenure.
You can easily calculate the EMI on your home loan by using CreditMantri Home Loan EMI Calculator.Will I Qualify for a Home Loan? What do Lenders Look for?
Lenders look at multiple factors before approving a loan. Below are the most important ones –
1. Credit Score – Lenders would like a credit score of 750+ for the loan to be approved quickly. They also look for a clean repayment history.
2. Credit Report – The lenders like to analyze the credit report to see patterns of repayment in the past, credit management discipline, loan defaults, debt obligations, etc. They consider your previous and current financial discipline as a benchmark for the future.
3. Employment Status and Salary – Lenders would like to approve a loan for someone with a stable job and a regular flow of income. Since home loans are usually long-term loans, lenders want to make sure there is consistent financial stability.
4. Full Property Documentation and Clean Title Deed – Lenders want to make sure that the house being held as collateral has all the legal papers in place. They want to avoid all complications in a worst-case situation.
Credit Scores and their Impact on Home Loans
A higher credit score can help to get an attractive rate of interest on your home loan. Generally, a credit score above 750 is considered good enough. A lower score does not give the lender enough confidence in the capability of the borrower to repay the loan.
Can I get a Home Loan with a Bad Credit Score?
It can be a little difficult to get a home loan with a bad credit score. Lenders generally look for a score higher than 750 in the applicant’s profile. Most of the lenders will also reject the application.However, some lenders may be willing to approve a loan with a high rate of interest. They may also want to put forth additional terms and conditions.
Disadvantages of Applying for a Home Loan with a Bad Credit Score
If your application gets rejected several times because of a bad credit score, it will keep bringing your already bad credit score further down. In case the application is approved, the lender will put forth conditions like a higher rate of interest, shorter repayment period, smaller loan amount, etc.Application Process for a Home Loan
Home Loan Application via CreditMantri
Follow the below steps to apply.1. Choose the lender of your choice
2. Click on “Check Eligibility”. If you want to know more about the lender, click “Know more”.
3. Fill in details like email ID, Mobile number, Residence city, Employment type, Residence pin code, and info about any loans that you may have
4. Tick all checkboxes for agreement terms.
5. Click on “Submit”
6. Enter the OTP received on your registered mobile number.
7. Proceed with the rest of the application and your application will be processed in no time.
Offline Application Process for a Home Loan
You can walk into the bank branches with the necessary documents. The staff will help you with the form filling, documentation, and the rest of the process.Online Application Process for a Home Loan
You can log in to the website of your preferred lender. Go to their “Home Loan” page and apply for the home loan of your choice.Things to Know Before you Apply for a Home Loan
Finding the right home loan can be as time-consuming as finding the right home. A little bit of preparation can help make this task easier. Below are some points to keep in mind before you apply for a home loan –
1. Start saving for a down payment – Although most of the funds required to buy a home are funded by the bank, you will still need to pay at least 10% of the value of the house as a down payment. Make sure you have saved enough to pay for the down payment.
2. Check your credit score – Having a good credit score (750+) makes it easier to get a home loan. Check your credit score and make sure there are no discrepancies in your report. Getting the discrepancies sorted can bring your credit score up.
3. Calculate your expected EMI – Use an EMI calculator to estimate the monthly EMI payment. You will know whether you can afford the EMI. You can also adjust the loan tenure to make it more affordable.
4. Find the loan that suits your requirements – Whether the loan is for the purchase or renovation of a home, choose a loan that specifically caters to your requirements.
5. Choose the type of interest rate – Whether the interest rate should be fixed or floating, choose according to your comfort level and estimation.
6. Respond to the lender within time – Be very prompt in completing the home loan application. Sometimes the lender may ask for additional details which can delay the approval of the home loan.
7. Read the loan documents carefully – Make sure you have read all terms and conditions put forward by the lender. Look for any additional/hidden charges and account for those in your calculation.
8. Check if you have a pre-qualified loan – Pre-qualified loans generally offer a lower interest rate and are processed very quickly. They need minimum documentation and may offer special benefits.
How to Choose the Best Home Loan?
Choosing a home loan can be an overwhelming decision because of the number of home loan products available. However, keep in mind the following factors while choosing a home loan.
1. Rate of Interest
2. Loan Repayment Tenure
3. Loan Amount
4. Use of loan
5. Additional Fees and Charges
6. Availability of Top-up Loan
7. Special Rates for Women
8. Prepayment Penalty
Key Features of a Home Loan
1. A home loan is a secured loan
2. It is used to finance the purchase/construction of a new house
3. It can also be used to make repairs, reconstruct, or renovate an existing house
4. It required an initial down payment
5. Lenders usually fund 75%-90% of the cost of the home
6. They offer economic interest rates
7. They have long repayment tenors with flexible payment options
8. They can have fixed or floating rates of interest
9. A home loan requires the property to be kept as a mortgage with the lender until the loan is fully repaid.
10. The lender holds the title to the property until the entire loan is paid off along with the interest.
Home Loan FAQs
1. What is a home loan and how does it work?
A home loan is a credit facility offered by banks and NBFCs to individuals looking to purchase a house or land, or who want to construct a house on their plot, or for home renovation and repair needs. Applicants can get up to 85% of the project cost as a home loan which will be repaid in EMIs over repayment tenures of up to 30 years. Current interest rates are starting from 6.90% and can go up to 12% based on your eligibility.
2. Which bank is best for home loans?
There are many factors that determine the best bank for you. At present, SBI seems like a good option given the low-interest rate and competitive processing charges and other fees related to your home loan application. You should assess a bank based on the interest rate, loan amount, repayment options and other benefits you get along with your home loan.
3. What is the maximum home loan that I can get?
One can get up to 85% of the house cost for the purchase of new or pre-owned homes. For the construction of a house, you can get up to 75% of the project cost. For home renovations and home repairs, you can get up to 80% of the project cost as a loan. In the current market, you can get home loans of up to Rs.10 crores, based on your eligibility.
4. What are the different types of home loans available in India?
There are various kinds of home loans available depending on your specific housing needs. Some of the popular types of home loans include
- Standard home loan
- Plot loan/land loan
- Top-up home loan
- Home construction loan
- Home renovation loan
- Special home loans for
- Women
- Differently-abled individuals
- Employees of central and state government
- Home loan balance transfer
- Home loans under the Pradhan Mantri Awas Yojana
5. How long it takes to get a home loan sanctioned?
Home loans require a lot of documents to be scrutinized before sanctioning the loan. One can expect their home loan to be sanctioned within 30 days from the date of submitting all the relevant documents.
6. What are some parameters to decide home loan eligibility?
Here are some parameters that determine your home loan eligibility:
- Your credit score
- Your credit report
- Employment status and salary
- Existing loans and liabilities
- Clean title deed and complete documentation of the property
7. Does having a personal loan affect home loan eligibility?
Existing loans and liabilities is a factor while determining your home loan eligibility. When you have an existing personal loan, the bank will calculate your repayment capacity based on your income to debt ratio. Therefore, if your personal loan EMI takes up a considerable portion of your monthly income, you may have difficulty in getting the desired home loan amount.
8. How to apply for a home loan?
Applicants apply for a home loan at their nearest bank branch. They will be required to submit a detailed application form along with all the required documents. These days, home loan applications are done online too. Most banks allow you to submit a preliminary application form online on their official website. Once you submit this application, a representative from the bank will get in touch with you for further formalities. You can check your eligibility and apply for a home loan by signing up with CreditMantri. It is quick, simple and above all, free. CreditMantri matches your credit and demographic profile to the lender's lending criteria and presents you a shortlist of only those lenders willing to lend to you based on your unique credit profile. In effect, we pre-screen your application to make sure you are likely to qualify as per the lender’s credit criteria. Hence the chances of your loan application getting approved are higher.
9. What is the maximum home loan amount that a borrower can get in India?
The maximum loan amount that a borrower can get depends on several factors like credit score, credit report, income profile, age of the applicant, other debts, etc. You can check the home loan amount that you’re eligible for using our home loan eligibility calculator.
10. Can I get 2 home loans at the same time?
There is no restriction on the number of home loans that a borrower can get at the same time. However, the borrower has to be very careful and go for a second home loan only after assessing his/her repayment capacity. Multiple loans can pave the way to debt, if not handled correctly.
11. When is my home loan EMI due?
The home loan EMI is fixed on a specific date each month. This date will be communicated to you by the lender at the time of loan disbursal.
12. What is the minimum period for a home loan?
The minimum tenure for home loans in India is 5 years. The maximum tenure is 30 years. The shorter the tenure, the lower will be the total interests you pay to the lender.
13. Can I get a home loan up to 100% value of the property?
No. Lenders do not sanction home loans up to 100% of the property’s value. The maximum loan amount you can get from the lender is up to 90% of the property’s value.
14. Which bank is best for a home loan?
Again it depends on your credit profile and your relationship with the bank. At CreditMantri, we make it easy to locate the best bank for your home loan. Use our home loan eligibility calculator to shortlist the best home loan offers matched to your credit profile.
15. Can I repay my home loan early?
Yes. You can repay your home loan ahead of the repayment schedule and it’s highly recommended that you do so. You can opt to foreclose the outstanding amount in one shot or opt for smaller part-payments as and when possible.
16. Can I apply for a home loan jointly with my friend?
No. Joint applicants have to be related and belong to your immediate family. So, the lender doesn’t approve joint home loan applications with a friend or acquaintance.
17. Who can I include as a joint applicant on my home loan?
Your immediate family members like a parent, spouse or children can be included as a co-applicant on your home loan application.
18. What is the maximum number of co-applicants that I can include on my home loan application?
In India, the maximum number of joint applicants in a home loan application is fixed at six. Also, note that each member included in the application must be an immediate family member.
19. Should I apply for a home loan at a private or public-sector bank?
Ideally, you should look for a bank, NBFC or HFC that offers you the lowest interest rates. CreditMantri makes it easy to compare loan offers from different lenders to help you zero in on the best home loan deal for you.
20. Why should I apply for a home loan with CreditMantri?
When you apply for a home loan with CreditMantri, you enjoy several benefits like:
- Hassle-free online loan application
- The best home loan offers for you matched to your credit profile
- Compare home loan offers quickly
- Choice of multiple lenders - you get to choose the right lender who offers you the best deal
To put it in simple terms, applying for a home loan with CreditMantri makes the entire process seamless and less time-consuming.
Latest & Update Home Loan News
Do You Want to Buy A House This Diwali? Here are Offers From Top Banks on Home Loans10 Nov 2023
Diwali is here and many top banks and HFCs like State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, LIC Housing Finance, and others have come up with festive offers on home loans. SBI offers home loans starting at the interest rat...
Read moreDiwali is here and many top banks and HFCs like State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, LIC Housing Finance, and others have come up with festive offers on home loans. SBI offers home loans starting at the interest rate of 8.4% per annum as part of the festive offers. SBI top up home loans start at 8.9% per annum under the festival special campaign. HDFC Bank home loan interest rates start from 8.35% per annum, which is the cheapest among banks. Further, you can get as much as 50% off on processing fees. Punjab National Bank is giving home loans starting at an interest rate of 8.4% under the Diwali Dhamaka 2023' festival offer. There is also a complete waiver on processing fee and documentation charges on all variants of home loans. For Canara Bank, interest rates for home loans start from 8.4% per annum. Also, the processing charges and documentation charges are nil. Bank of Baroda interest rates on home loans start from 8.4% p.a. under the Festivanza offers. With LIC Housing Finance, interest rates for home loans begin from 8.4% for new applicants for home loans up to Rs. 2 crores and having CIBILTM score of 750 and above. PNB Housing Finance interest rates start from 8.5% per annum. Further, customers can take loans of up to 90% of the property value. Here is a table showing the summary of interest rates and offers from top banks for Diwali.
Union Bank of India Announces A 100% Waiver on Processing Charges for Home, Auto Loans 23 Aug 2023
Union Bank of India has decided to offer a 100% waiver on processing charges for home loans/four and two-wheeler loans. All new customers with credit scores of 700 and above will be eligible for this waiver. This offer is valid for the period between...
Read moreUnion Bank of India has decided to offer a 100% waiver on processing charges for home loans/four and two-wheeler loans. All new customers with credit scores of 700 and above will be eligible for this waiver. This offer is valid for the period between 16th August 2023 to 15th November 2023 (Including both ). This waiver is also extended for the transfer of housing loans from other banks and financial institutions. This move comes as a relief to its customers.
Comparing Latest Home Loan Interest Rates of SBI Bank Versus HDFC Bank24 Jul 2023
The interest rates charged by banks and other financial lending institutions vary based on several factors. However, the interest rates start at almost 8% per annum. SBI home loans range from Rs. 5 lakhs to Rs. 10 crores, and the rate of interest sta...
Read moreThe interest rates charged by banks and other financial lending institutions vary based on several factors. However, the interest rates start at almost 8% per annum. SBI home loans range from Rs. 5 lakhs to Rs. 10 crores, and the rate of interest starts at 8.7% per annum. The loan can be obtained for a maximum term of 30 years. State Bank of India charges 0.35 percent of the total loan amount along with applicable taxes or a minimum of Rs. 5000 for processing the loan. HDFC Bank offers loan amounts upto Rs. 10 crores, and the interest rates are starting from 8.4% per annum. The loan tenure is upto 30 years. HDFC levies a processing fee of up to 0.50 percent of the loan amount or Rs 3,000 (whichever is higher).
These Banks Offer Cheapest Home Loan Interest Rates29 Jun 2023
Banks like The State Bank of India, Kotak Mahindra Bank, Punjab National Bank, and Central Bank of India are offering home loans with cheap interest rates. You can avail the cheapest housing loan at an interest rate as low as 8.5 percent. The lowest ...
Read moreBanks like The State Bank of India, Kotak Mahindra Bank, Punjab National Bank, and Central Bank of India are offering home loans with cheap interest rates. You can avail the cheapest housing loan at an interest rate as low as 8.5 percent. The lowest interest rate that one can get from Bajaj Finance is 8.6 percent. The interest rate from the company can go up to 15 percent, depending on various factors, including your credit score. Central Bank of India offers home loans at an interest rate of 8.35% to 9.35%. Punjab National Bank offers home loans starting from 8.75% up to 11.25%. HDFC Bank offers home loans starting at 8.5%. Home loans from Axis Bank are available at 8.75% to 9.15 per cent. Home loan interest rates from The United Bank of India begin at 8.7 percent. Home loans from Kotak Mahindra Bank start at an interest rate of 8.85% and go up to 9.4%. IDFC First Bank gives home loans starting from 8.85 per cent.
Banks Offer Incentives To Women Borrowers For Home Loans27 Apr 2023
SBI, HDFC, Canara Bank, and Union Bank of India are a few of the banks that offer incentives to women looking for home loans. SBI provides a 5 basis point discount to female applicants for home loans. Based on the credit score and loan amount, the in...
Read moreSBI, HDFC, Canara Bank, and Union Bank of India are a few of the banks that offer incentives to women looking for home loans. SBI provides a 5 basis point discount to female applicants for home loans. Based on the credit score and loan amount, the interest rate varies from 9.15% to 10.15%. HDFC provides female borrowers with a discount of 5 basis points from 8.95% to 9.85% based on credit score and loan amount. Canara Bank offers home loan interest rates starting from 8.85%. Female applicants who are both owners and co-owners of the proposed housing property and borrowers/co-borrowers on the loan are eligible for a 0.05% interest rate reduction from Union Bank of India.
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