Best Home Loan in India Comparison 2024

Best home loan comparison

Securing your dream home often necessitates a best home loan product, and with numerous banks offering a plethora of home loan products, choosing the right one can be overwhelming. To simplify your decision-making process, we’ve conducted an exhaustive analysis of best home loan offerings from eleven renowned banks in India: State Bank of India (SBI), Bank of India (BOI), IDFC FIRST Bank, Bajaj Finance Limited, Kotak Mahindra Bank, Life Insurance Corporation Housing Finance (LIC HFL), Housing Development Finance Corporation Limited (HDFC), Axis Bank, Bank of Baroda (BOB), ICICI Bank, and Canara Bank.

Home Loan Interest Rates by Top Bank

Interest rates form the foundation of any home loan, significantly influencing the overall cost of your dream home. Below is a comprehensive table displaying the interest rates offered by these banks in India for various applicant categories:

BankGeneral Interest Rate (%) Women Borrower Interest Rate (%)
SBI8.40% p.a. onwards8.35% p.a. onwards
BOI8.45% p.a. onwards8.40% p.a. onwards
IDFC FIRST Bank8.85% p.a. onwards8.80% p.a. onwards
Bajaj Finance8.45% p.a. onwards8.40% p.a. onwards
Kotak Mahindra Bank8.75% p.a. onwards8.70% p.a. onwards
LIC HFL8.45% p.a. onwards8.40% p.a. onwards
HDFC8.45% p.a. onwards*8.40% p.a. onwards
Axis Bank9.00% p.a. onwards8.95% p.a. onwards
BOB8.60% p.a. onwards8.55% p.a. onwards
ICICI Bank8.40% – 9.45%8.35% p.a. onwards
Canara Bank9.25% p.a. onwards9.20% p.a. onwards
Please note that these interest rates are subject to market fluctuations and may vary depending on the specific home loan product.

Home Loan Processing Fees charged by Banks

Processing fees are an essential aspect of home loans in India that borrowers should consider. These fees are charged by banks to cover the administrative costs associated with processing your loan application. Here’s an overview of the processing fees charged by the banks in India we’ve examined:

BankProcessing Fee Range
SBI0.20% – 0.40% of the loan amount (Min. Rs. 2,000 – Max. Rs. 10,000)
BOI0.25% of the loan amount (Min. Rs. 1,000 – Max. Rs. 20,000)
IDFC FIRST BankUp to 1% of the loan amount
Bajaj FinanceUp to 1.50% of the loan amount
Kotak Mahindra BankUp to 2% of the loan amount (Min. Rs. 10,000)
LIC HFL0.25% – 2% of the loan amount (Min. Rs. 4,999 – Max. Rs. 25,000)
HDFCUp to 0.50% of the loan amount or Rs. 3,000, whichever is higher
Axis BankRs. 10,000 to 0.50% of the loan amount, whichever is higher
BOB0.50% of the loan amount (Min. Rs. 7,500 – Max. Rs. 12,500)
ICICI Bank0.50% – 1.00% of the loan amount (Min. Rs. 1,500 – Max. Rs. 5,000)
Canara Bank0.50% of the loan amount (Min. Rs. 1,500)

It’s important to note that processing fees can significantly impact the overall cost of your home loan in India. Therefore, when comparing loan offers, consider not only the interest rates but also the processing fees to make an informed decision.

Key Features of Best Home Loan in India

Each bank adds its unique touch to their home loan offerings with distinctive features. Here’s a glimpse of some standout features:

  • SBI: “SBI MaxGain” home loan allows surplus fund parking in an overdraft account to reduce interest outgo.
  • BOI: Offers a diverse range of options, including home loans tailored for NRIs and senior citizens.
  • IDFC FIRST Bank: Provides flexible repayment options, including the liberty to skip EMIs.
  • Bajaj Finance: Embraces digital convenience with online account management and a 3 EMI holiday feature.
  • Kotak Mahindra Bank: Extensive services at your doorstep and flexible tenures.
  • LIC HFL: Offers joint applications with close relatives, fostering a sense of togetherness.
  • HDFC: Apart from regular home loans, they cater to home improvement, extension, and plot loans.
  • Axis Bank: Encompasses convenient features like doorstep document pickup and balance transfer facilities.
  • BOB: Empowers women borrowers with interest concessions and diverse home loan products.
  • ICICI Bank: Equips borrowers with a top-up loan facility and the choice between fixed and floating interest rates.
  • Canara Bank: Unveils the “Canara Budget” home loan, catering to affordable housing aspirations.

Home Loan Products by Banks in India

To gain a deeper understanding, let’s categorize the types of home loan products offered by these banks:

BankHome Loan Products Offered
SBIRegular Home Loan, SBI MaxGain, NRI Home Loan, Flexipay
BOIStar Diamond Home Loan, Star Smart Home Loan, NRI Home Loan
IDFC FIRST BankHome Loans for Salaried, Home Loans for Self-employed, NRI Home Loans
Bajaj FinanceHome Loan, Home Loan Balance Transfer
Kotak Mahindra BankHome Loan, Home Improvement Loan, Home Loan Transfer, Pradhan Mantri Awas Yojana
LIC HFLHome Loan, Griha Siddhi (for women), NRI Home Loans
HDFCRegular Home Loan, Home Improvement Loan, Home Extension Loan, Plot Loans
Axis BankAxis Empower (for women), Asha Home Loan (for low-income), Shubh Aarambh (for first-time buyers)
BOBBaroda Home Loan, Baroda Home Improvement Loan, Baroda Home Extension Loan
ICICI BankHome Loan, Pradhan Mantri Awas Yojana, Top-Up Loan
Canara BankCanara Budget, Canara Home Loan, Canara Home Improvement Loan

Credit Scores Requirements to avail Home Loan in India

In the context of home loans in India, credit scores are of paramount importance. Lenders typically evaluate your Credit Information Bureau India Limited (CIBIL) score. While each bank might have slight variations in requirements, a general benchmark is a credit score of 650 or higher. However, some banks may consider applicants with slightly lower scores, depending on factors like income stability and repayment potential.

Document Requirements

When applying for a home loan in India, you’ll need to provide certain documents to the bank as part of the application process. These documents typically include:

  • Proof of Identity (Aadhar card, Passport, PAN card, etc.)
  • Proof of Address (Utility bills, Aadhar card, Voter ID, etc.)
  • Income Proof (Salary slips, IT returns, bank statements, etc.)
  • Property-related documents (Title deed, sale agreement, property tax receipts, etc.)
  • Passport-size photographs
  • Duly filled application form

Eligibility Criteria

Eligibility criteria vary among banks and are influenced by factors such as age, income, employment stability, and credit score. Below, we’ve summarized the key eligibility criteria for each bank:

BankAge (Min – Max Years)Minimum Income (Per Annum)Employment StabilityCo-applicant Requirement
SBI18 – 70 (65 for NRIs)Not specifiedSalaried: 2 years in the current job, Self-employed: 5 years in the same line of businessCo-applicant mandatory for all
BOI21 – 70Not specifiedSalaried: Confirmed employment. Self-employed: IT assesses for the last 2 yearsCo-applicant mandatory for all
IDFC FIRST Bank23 – 65Not specifiedNot specifiedNot specified
Bajaj Finance25 – 62Salaried: Rs. 30,000 (Tier 1), Rs. 20,000 (Tier 2) Self-employed: Rs. 6,00,000Salaried: 2 years, Self-employed: 5 yearsNot specified
Kotak Mahindra Bank21 – 65Not specifiedSalaried: 1 year in the current job, Self-employed: 3 years in the same line of businessCo-applicant mandatory for all
LIC HFL21 – 60Salaried: Rs. 1,80,000 Self-employed: Rs. 2,00,000Not specifiedNot specified
HDFC21 – 65Not specifiedSalaried: 1 year in the current job, Self-employed: 3 years in the same line of businessCo-applicant mandatory for all
Axis Bank21 – 60Not specifiedSalaried: 1 year in the current job, Self-employed: 3 years in the same line of businessNot specified
BOB21 – 70Not specifiedNot specifiedNot specified
ICICI Bank21 – 60Salaried: Rs. 1,20,000 Self-employed: Rs. 2,00,000Salaried: 2 years in the current job, Self-employed: IT assesses for the last 2 yearsCo-applicant mandatory for all
Canara Bank21 – 70Not specifiedSalaried: Confirmed employment. Self-employed: IT assesses for the last 2 yearsNot specified

How to Apply for Home Loan at Top Bank in India

The home loan application process may seem labyrinthine, but it’s, in fact, a series of systematic steps:

  1. Conduct Research: Begin by scrutinising and comparing home loan products from various banks. This will help you pinpoint the one aligning best with your requirements.
  2. Check Eligibility: Most banks offer online eligibility calculators that furnish an initial assessment of your eligibility for the loan.
  3. Document Collection: Gather the requisite documents as stipulated by the bank’s guidelines.
  4. Visit the Bank: Either physically visit the bank branch or opt for the online application process via the bank’s official website.
  5. Application Submission: Submit your filled-out application form along with the essential documents.
  6. Processing: The bank embarks on reviewing your application and documents, which may also include property valuation.
  7. Approval: Upon successful evaluation, the bank issues a sanction letter.
  8. Loan Disbursement: After you fulfill all conditions and sign the agreement, the bank disburses the loan amount.
  9. Commence Repayment: The repayment phase kicks in, with the repayment structure based on equated monthly instalments (EMIs).

Or

Contact the CreditDharma team to receive expert advice on home loans, understand and compare various loan products, and find the best home loan product to suit your needs.

In conclusion, the path to homeownership is laden with choices, and selecting the right home loan in India is a pivotal one. Take into account factors like interest rates, unique features, eligibility criteria, documentation requirements, and processing fees before making your decision. Consulting with a financial advisor or the bank’s representatives is always advisable. Armed with this extensive comparison, you’re now primed to embark on your journey towards owning your dream home.

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