India’s housing finance market has grown significantly, with various Housing Finance Companies (HFCs) playing a critical role in helping people achieve their dream of owning a home.
These HFCs offer home loans at competitive interest rates with varying loan terms to suit different income groups. In this blog, we explore the top 10 HFCs in India that stand out for their offerings, customer service, and also financial strength.
LIC Housing Finance
Incorporated in 1989, LIC Housing Finance Ltd. (LICHFL) is one of India’s largest Housing Finance Companies. It focuses on providing long-term financing for individuals to purchase or construct homes.
Additionally, it offers loans for property renovation and business needs, along with financing options for professionals such as doctors and builders. LICHFL also extends loans to developers for constructing residential units.
The company went public in 1994 and is listed on NSE and BSE. LICHFL’s extensive portfolio and market reach make it a leading player in the housing finance industry.
| Category | Highlights |
|---|---|
| Loan Amount | Rs. 10 lakhs – Rs. 3 Crore |
| Tenure | 30 years |
| Interest Rates | 8.50% p.a. onwards |
ICICI Home Finance
ICICI Home Finance Company Limited, a subsidiary of ICICI Bank, focuses on making homeownership accessible for millions of Indians. The company also offers a broad spectrum of home loans, including home improvement loans and construction finance for developers.
ICICI Home Finance is known for its comprehensive loan products and reliable customer service. With over 215 standalone branches, it provides quick loan approval and disbursal services. Moreover, its fixed deposit products are rated highly by CRISIL, ICRA, and CARE, making it a trusted financial institution in the home loan sector.
| Category | Highlights |
|---|---|
| Loan Amount | Rs. 3 Lakhs – Rs. 5 Crore |
| Tenure | 30 years |
| Interest Rates | 9.30% p.a. onwards |
PNB HFC
Established in 1988, PNB Housing Finance is a trusted name in the housing finance industry with decades of experience. It also offers a wide range of housing finance products, including home loans, loans for non-residential premises, and construction loans.
The company has a vast network of branches across India and was the first HFC to issue green bonds to IFC in 2016. PNB Housing is also known for its transparent loan processing and focus on simplifying the home loan journey for customers.
| Category | Highlights |
|---|---|
| Loan Amount | Up to Rs. 5 Crore |
| Tenure | 30 years |
| Interest Rates | 8.50% p.a. onwards |
Tata Capital HFC
Tata Capital Housing Finance Limited (TCHFL) is a subsidiary of Tata Capital Limited and a prominent player in the housing finance sector. The company offers loans for home purchase, construction, land purchase, and also home improvements, along with project finance for developers.
Backed by the Tata Group, TCHFL is also known for its wide product range and customer-centric approach.
| Category | Highlights |
|---|---|
| Loan Amount | Up to Rs. 5 Crore |
| Tenure | 30 years |
| Interest Rates | 8.75% p.a. onwards |
Edelweiss Housing Finance Limited
Formerly known as Edelweiss Housing Finance, Nido Home Finance provides a range of home loans, loans against property, and plot construction loans. It caters to salaried and self-employed individuals across more than 800 talukas in India.
Known for its affordable housing loan solutions, Nido Home Finance also aims to make homeownership a reality for many Indians by offering flexible, customer-centric loan products. Its expertise in housing finance has been consistently recognized through various awards.
| Category | Highlights |
|---|---|
| Loan Amount | Up to Rs. 25 lakhs |
| Tenure | 30 years |
| Interest Rates | 8.20% p.a. onwards |
Aditya Birla Housing Finance Limited (ABHFL)
Aditya Birla Housing Finance Ltd. (ABHFL), a subsidiary of Aditya Birla Capital, began operations in 2014 and has grown rapidly to manage assets worth over ₹20,399 crore by mid-2024.
The company provides home loans, loans against property, and developer finance. Also, with 138 branches across India, ABHFL is committed to expanding its presence and offering innovative financial solutions. And, it holds top-tier credit ratings from ICRA and India Ratings, highlighting its financial stability and trusted market presence.
| Category | Highlights |
|---|---|
| Loan Amount | Rs. 5 Lakhs to Rs. 1 Crore |
| Tenure | 30 years |
| Interest Rates | 8.60% p.a. onwards |
Piramal Capital & Housing Finance
Piramal Capital & Housing Finance Ltd. (PCHFL), a subsidiary of Piramal Enterprises, offers a variety of retail and wholesale financial services, including home loans, structured debt, and construction finance.
Moreover, PCHFL’s unique approach integrates real estate and corporate finance solutions, providing flexible funding options for individuals, developers, and businesses.
| Category | Highlights |
|---|---|
| Loan Amount | Rs. 5 lakhs – Rs. 2 Crore |
| Tenure | 30 years |
| Interest Rates | 9.50% p.a. onwards |
Indiabulls Housing Finance Ltd.
Indiabulls Housing Finance, now known as Sammaan Capital Ltd., focuses on affordable housing loans for individuals and businesses. It has a significant nationwide presence with over 200 branches and a balance sheet size of ₹0.73 trillion as of 2024.
The company offers competitively priced home loans, working capital for SMEs, and loans against property, making it a versatile option for both homebuyers and small businesses. Moreover, its AA rating from CRISIL and ICRA adds to its credibility in the housing finance market.
| Category | Highlights |
|---|---|
| Loan Amount | Up to Rs. 5 Crore |
| Tenure | 30 years |
| Interest Rates | 8.75% p.a. onwards |
Shriram Housing Finance Ltd.
Shriram Housing Finance Ltd. (SHFL), part of the Shriram Group, focuses on providing home loans and loans against property for individuals and developers. SHFL also emphasizes affordable housing and aims to assist customers in fulfilling their dream of homeownership.
The company is registered with the National Housing Bank and has a robust presence across India, ensuring reliable financial services backed by the Shriram Group’s decades of experience in finance and real estate.
| Category | Highlights |
|---|---|
| Loan Amount | Rs. 1 Lakh – Rs. 10 Crore |
| Tenure | 25 years |
| Interest Rates | 9.50% p.a. onwards |
Bajaj Housing Finance Limited
Bajaj Housing Finance Ltd., a subsidiary of Bajaj Finance, offers a diverse range of loan products, including home loans, loans against property, and construction finance. It caters to individual homebuyers and corporate entities, providing long-term loans at competitive rates.
Recognized as an ‘Upper-Layer NBFC’ by the RBI, Bajaj Housing Finance is one of India’s most trusted financial institutions, also known for its strong customer base and focus on digital loan processes. The company is rated AAA/Stable by CRISIL and India Ratings for its financial stability.
| Category | Highlights |
|---|---|
| Loan Amount | Up to Rs. 5 Crore |
| Tenure | 40 years |
| Interest Rates | 8.50% p.a. onwards |
Summary
| Housing Finance Company | Loan Amount | Tenure | Interest Rates |
|---|---|---|---|
| LIC Housing Finance | ₹10 lakhs – ₹3 Crore | 30 years | 8.50% p.a. onwards |
| ICICI Home Finance | ₹3 lakhs – ₹5 Crore | 30 years | 9.30% p.a. onwards |
| PNB Housing Finance | Up to ₹5 Crore | 30 years | 8.50% p.a. onwards |
| Tata Capital Housing Finance | Up to ₹5 Crore | 30 years | 8.75% p.a. onwards |
| Nido Home Finance(formerly Edelweiss) | Up to ₹25 lakhs | 30 years | 8.20% p.a. onwards |
| Aditya Birla Housing Finance | ₹5 lakhs – ₹1 Crore | 30 years | 8.60% p.a. onwards |
| Piramal Capital & Housing Finance | ₹5 lakhs – ₹2 Crore | 30 years | 9.50% p.a. onwards |
| Sammaan Capital Ltd.(formerly Indiabulls Housing Finance) | Up to ₹5 Crore | 30 years | 8.75% p.a. onwards |
| Shriram Housing Finance | ₹1 lakh – ₹10 Crore | 25 years | 9.50% p.a. onwards |
| Bajaj Housing Finance | Up to ₹5 Crore | 40 years | 8.50% p.a. onwards |
Conclusion
Navigating the myriad of housing finance options can be overwhelming, but understanding the offerings of top companies can simplify your journey toward homeownership. The housing finance companies listed above provide a range of loan amounts, competitive interest rates, and flexible tenures to cater to various financial needs and goals.
Also, for personalized advice and to explore the best home loan options tailored to your specific requirements, consider reaching out to Credit Dharma. Their team of experts is dedicated to helping you make informed decisions, ensuring that your path to owning a home is as straightforward and rewarding as possible.
Frequently Asked Questions
An HFC is a specialized financial institution that provides home loans and related services to individuals and businesses for the purchase, construction, or renovation of residential properties. They focus primarily on housing finance, making homeownership more accessible.
While both HFCs and banks offer home loans, HFCs specialize exclusively in housing finance and often provide more flexible loan options, competitive interest rates, and may have less stringent eligibility criteria compared to traditional banks.
Key factors include the interest rates offered, loan amount eligibility, repayment tenure, processing fees, customer service quality, loan approval time, and the HFC’s reputation and credibility in the market.
HFCs offer both fixed and floating interest rate options. A fixed rate remains constant throughout the loan tenure, while a floating rate can fluctuate based on market conditions and changes in the lending rates set by regulatory authorities.
Yes, HFCs provide home loans to both salaried and self-employed individuals. They assess income stability, credit history, and repayment capacity to determine eligibility, often offering tailored solutions for self-employed applicants.
Most HFCs offer loan tenures up to 30 years, with some extending up to 40 years, depending on the applicant’s age, loan amount, and repayment capacity. Longer tenures can reduce monthly EMIs but may increase the total interest payable.
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