Which Bank is Best for Home Loan in India

Selecting Which Bank is Best for Home Loan in India is essential to finance your dream home in India. It can take time to decide which of the many options different banks and financial institutions offer best meets your needs.

10 Bank is Best for Home Loan in India Overview

BanksLowest EMI/LakhLowest Interest Rate (p.a.)Processing Fees(exclusive of GST)
Kotak Mahindra BankRs. 7456.50%Up to .50% + statutory dues
Punjab National BankRs. 7486.55%Full waiver of documentation charges and upfront/processing fees from 01-09-2021 to 31-12-2021
Punjab & Sind BankRs. 7546.65%0.15% – 0.25% of the loan amount (Maximum of Rs. 15000 and Minimum of Rs. 1000)
LIC Housing FinanceRs. 7556.66%As applicable
State Bank of IndiaRs. 7576.70%Zero processing fees
Tata Capital Housing FinanceRs. 7576.70%Up to .5% of the total loan amount
HDFC BankRs. 7606.75%Rs.3000 for loans between 17-05-2021 and 30-09-2021
ICICI BankRs. 7606.75%0.50% – 2% of the loan amount or Rs. 1500 (Rs.2000 for Bangalore, Delhi, and Mumbai), whichever is higher
Bajaj FinservRs. 7606.75%Up to 6.00% of the loan amount
Bank of BarodaRs. 7606.75%0.25% – 0.50% of the loan amount (Min. Rs. 8,500 & Max. Rs. 25,000)

What is a Home Loan?

A bank loan or a housing finance company may be required when purchasing or building a home. We refer to this type of loan as a “home loan.” Equated Monthly Installments (EMIs) will be used by the borrower to repay the borrowed amount over time, with a specified interest rate.

How Do Home Loans Work Without Income Proof?

Home loans without income verification function by giving the property’s value more weight than the applicant’s income alone. The market value, location, and condition of the property are among the factors considered in determining the loan amount for these types of loans.

Lenders consider the applicant’s ability to repay debt, creditworthiness, and possible income from the property. With this method, borrowers can obtain a loan based on the value of the property and their overall financial circumstances, even if they have irregular income or find it difficult to produce traditional income documentation.

Which Bank is Best for Home Loan in India without Income Proof

  1. Bank of Baroda: Bank of Baroda (BoB) offers home loans starting at a competitive rate of 8.40% per annum, extending repayment options for up to 30 years. BoB‘s generous lending approach allows borrowers to access loan amounts up to Rs. 20 Crore, catering to diverse housing requirements.
  • Types of Bank of Baroda Home Loans
  • Baroda Housing Loan: The bank provides a home loan program for buying land, apartments, and houses as well as for constructing new homes and expanding current ones.
  • Baroda Home Loan Takeover Scheme: By moving their outstanding loans to Bank of Baroda at reduced interest rates, borrowers can reduce the cost of interest on their home loans.
  • Home Improvement Loan: This home loan program pays for fixtures and equipment like fans, air conditioners, and water filters, as well as repairs and renovations to the home.
  • Baroda Pre-Approved Home Loan: This home loan facility allows qualified applicants to get approved before choosing a house, apartment, or plot of land. Its validity period is four months.
Bank of Baroda
  1. HDFC Bank: HDFC Bank facilitates home loan approvals even for individuals without regular income documentation, starting from an attractive interest rate of 8.35% per annum. Borrowers have the flexibility to repay the loan over a lengthy period of up to 30 years, with loan amounts available up to Rs. 10 Crore, supporting significant home purchases or construction projects.
  • Types of HDFC Home Loans
  • HDFC Housing Loan: This loan is appropriate for people who want to build or buy a new house.
  • Rural Housing Loans: Agriculturists, dairy farmers, planters, and horticulturists who wish to build or renovate their homes, as well as purchase new or existing residential properties in rural and urban areas, are eligible for this loan.
  • Home Renovation Loan: The loan is intended for homeowners who wish to paint, plaster, tile, and flooring their homes.
  • Top-up Home Loan: Customers of HDFC who require extra money for building a property or for personal or business expenses can apply for this home loan.
  1. SBI Bank: State Bank of India (SBI) offers comprehensive home loan solutions, financing up to 90% of the property cost at an enticing starting interest rate of 8.40% per annum. With extended tenures of up to 30 years, SBI caters to diverse customer segments, including defense personnel, government employees, non-salaried individuals, and others.
  • Types of SBI Bank Home Loans
  • SBI Home Loan: This home loan scheme is intended for the purchase of ready-to-move, under-construction, or resale residential properties, as well as the construction, repair, renovation, and extension of existing properties.
  • SBI Home Loan Balance Transfer: Borrowers of home loans can use the State Bank of India’s balance transfer facility to switch to a lower interest rate on their existing loans.
  • NRI Home Loan: The NRI home loan scheme enables non-resident Indians to buy or build a home in India.
  • Flexipay Home Loan: The home loan allows salaried applicants to pay lower initial EMIs and higher subsequent EMIs while repaying only the interest component during the moratorium period.
SBI Bank
  1. Kotak Bank: Kotak Mahindra Bank provides home loans with an interest rate of 8.75% per annum and a nominal processing fee of 0.55%. Loan terms extend up to 30 years, with loan amounts of up to Rs. 11 Crore.
  • Types of Kotak Bank Home Loans
  • Kotak Housing Loan: This loan is for people who want to buy, build, or renovate their home.
  • Home Loan Balance Transfer: Kotak Mahindra Bank‘s home loan facility enables customers to transfer existing home loans from other financial institutions at lower interest rates.
  • NRI Home Loan: Non-resident Indians (NRIs) can get a home loan under this scheme.
  • NRI Home Improvement Loan: This home loan is for Non-Resident Indians (NRIs) who need funds to cover home renovation or improvement expenses.
Kotak Mahindra Bank
  1. Federal Bank: Federal Bank offers home loans with loan amounts up to Rs. 15 Crore, featuring competitive interest rates starting at 8.80% per annum for terms up to 30 years, ensuring accessibility for diverse applicants.
  • Types of Federal Bank Home Loans
  • Federal Housing Loan: Consumers can purchase, build, repair, renovate, and extend residential properties with this home loan. They can also use it to pay off debt for long-term company employees.
  • Plot Purchase Loan: The purpose of this home loan is to buy a house on the plot.
Federal Bank
  1. Punjab National Bank: Punjab National Bank (PNB) supports homeownership with loans starting at 8.40% per annum, offering tenures up to 30 years. Borrowers can secure up to 90% of the property value, enhancing accessibility for a wide range of homebuyers.
  • Types of Punjab National Bank Home Loans
  • Housing Loan for the Public: This housing loan program can be used to furnish, improve, repair, renovate, or buy a new home. It can also be used to improve an existing property.
  • PNB Max Saver: Under the housing financing scheme, this overdraft facility for home loans can be used for a variety of purposes, except purchasing land or plots.
  • PNB Pride Housing Loan for Government Employees: Permanent employees of the state, the federal government, members of the armed forces, and paramilitaries can apply for these home loans.
  • PNB Gen-Next Housing Finance Scheme for Public: The home loan program is designed for the next generation of salaried borrowers, which includes IT professionals under 40 and PSB/PSU/government sector employees.
Punjab National Bank
  1. ICICI Bank: ICICI Bank provides home loans from 8.75% per annum onwards, with flexible terms of up to 30 years, accommodating various financial situations. Loan amounts can reach up to Rs. 10 Crore, making it an attractive option for a wide range of homebuyers.
  • Types of ICICI Bank Home Loans
  • Extra Home Loan: The home loan scheme increases the loan amount and repayment period by 20% for applicants aged up to 67, and is backed by a mortgage guarantee, improving repayment capacity.
  • Pre-approved (Instant) Balance Transfer: ICICI Bank offers a pre-approved instant home loan balance transfer facility to existing customers who want to transfer their existing home loans from other banks or HFCs at a lower interest rate.
  • Balance Transfer and Top-up: This home loan allows for the transfer of existing loans from other banks or NBFCs to ICICI Bank at lower interest rates, providing additional funding options for professional or personal needs.
  • Pratham Home Loans: This home loan scheme is available to salaried and self-employed individuals with a monthly salary of at least Rs. 10,500 and at least 5 years of business experience in affordable housing properties.
  1. Union Bank of India: Union Bank of India features home loans at an attractive 8.40% interest rate, coupled with a processing fee of 0.55% (up to a maximum of Rs. 15,500) and GST benefits. Additionally, the bank extends specific benefits to women applicants.
  • Types of Union Bank of India Home Loans
  • Union Home Loan: The bank provides a home loan with a balance transfer option for building a new home, remodeling an old one, or buying a plot of land.
  • Union Awas: Customers in rural or semi-urban areas who wish to build or purchase a home, as well as those who need to renovate or extend their current residences, are the target audience for this home loan program.
  • Union Home-Smart Save: With this home loan facility, the borrower’s savings or current bank account overdraft is linked to their home loan account. By depositing or withdrawing money at any moment, borrowers can pay back their loans and avoid paying interest.
  • Pradhan Mantri Awas Yojna (PMAY): This mortgage program is intended for lower- and middle-class, economically disadvantaged populations.
Union Bank of India
  1. Bajaj Housing Finance Home Loan: Bajaj Housing Finance presents a range of home loan options with interest rates spanning from 8.55% to 15.10%, processing fees up to 7.15% for 30-year terms, and loan amounts covering up to 90% of the property’s value.
  • Types of Bajaj Housing Finance Home Loan
  • Bajaj Housing Finance Home Loan: Through the home loan program, people can buy, build, repair, renovate, and expand a home.
  • Home Loan for Doctors: The doctor-specific home loan program offers customized support for refinancing current loans at reduced interest rates or for buying a new residence.
  • Top-up Loan: Through home loan balance transfers, this loan facility enables people to borrow more money from their current home loans and use the proceeds for non-speculative uses.
  1. IDFC First Bank: IDFC First Bank provides home loans with competitive interest rates starting at 8.80%, processing fees up to 3.10%, and flexible repayment terms of up to 30 years, supporting individuals in achieving their homeownership goals.
  • Types of IDFC First Bank Home Loans
  • IDFC First Housing Loan: This home loan is designed for people who wish to purchase, construct, or remodel their current residences.
  • IDFC First Suvidha Shakti: Women can finance home renovations, water connections, and sanitation by using the micro-housing loan program.
  • IDFC FASTRACK Home Loan Balance Transfer: Existing home loan borrowers can reduce their interest costs by transferring outstanding balances at reduced rates with IDFC First Bank’s balance transfer facility. Additionally, it offers top-up home loans for extra money.
IDFC first bank

FAQ of Which Bank is Best for Home Loan in India

Q1. What is the interest rate on a house loan?

A. The cost of borrowing money to finance the purchase of a home is represented by the home loan interest rate, also known as the mortgage interest rate, which is usually expressed as an annual percentage rate (APR).

Q2. What role do home loans play in India?

A. In India, home loans are essential because they enable many people to become homeowners by offering financial support. Home loans, which are available from banks like HDFC, SBI, and others, are essential to fulfilling the Indian dream of owning a home.

Q3. How is the interest rate on a house loan calculated?

A. Use an EMI calculator or formula and enter the loan amount, repayment schedule, and interest rate to determine the total interest payable on a home loan. EMI = [P x r x (1+r)^n]/[(1+r)^n-1] is the formula used to divide the principal by the interest rate and the number of payments.

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