Home loans are one of the preferred financial tools that allows an individual to purchase a plot or a residential property on loan. These loans are offered by banks and Housing Finance Companies (HFCs) at attractive interest rates. Special home loan schemes are offered as well. 

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 Instalments (EMIs). The tenure of a home loan ranges between 5 years and 30 years. 

Bank Name	Interest Rate	Processing Fee	Loan Amount/Tenure
SBI Home Loan	8.50% p.a. – 9.65% p.a.(Floating Rate)	0.35% onwards (min. Rs.2,000; max. Rs.10,000),currently NIL during the campaign period(Processing Fee)	Loan Amount At the discretion of the bank1-30 YearsTenure Range	Enquire
HDFC Home Loans	Special Home Loan Rates for Salaried & Self Employed: 8.75% to 9.65%* p.a., Standard Home Loan Rates for Salaried & Self Employed: 9.40% to 9.95%* p.a.	0.5% or Rs.3,000, whichever is higher(Processing Fee)	Contact the bank for detailsLoan Amount1-30 YearsTenure Range	Apply Now
Union Bank Home Loan	8.35% p.a. to 10.75% (Floating Rate) for salaried and non-salaried individuals, 8.35%	0.50% or ₹15,000 Maximum(Processing Fee)	₹ Contact the bank for detailsLoan Amount1-30 YearsTenure Range	Enquire
PNB Housing Home Loan	8.50% p.a. onwards(Floating Rate)for up to Rs.30 lakh	Up to 0.5% of the loan amount(min 10,000 in both cases, excluding taxes)(Processing Fee)	₹ Up to 90% of the cost of the propertyLoan Amount1-30 YearsTenure Range	Enquire
LIC HFL Home Loan	8.50% p.a.(Floating Rate)for salaried individuals for up to Rs.5 crore 8.75% p.a. for non-salaried individuals for up to Rs.5 crore	For CIBIL >= 725, Rs.50,000/- + GST and For CIBIL < 725, Rs.60,000/- + GSTFor CIBIL >= 725, 0.25% of loan amount subject to maximum of Rs.20,000/- +GSTand For CIBIL < 725, 0.30% of loan amount subject to maximum of Rs.24,000/- +GST(Processing Fee)	₹ 10L -₹ 3CrsLoan Amount5-up to 30 YearsTenure Range	Enquire
Axis Bank Home Loan	8.75% p.a. for salaried and 9.10% p.a. for self-employed(Fixed /Floating Rates)	Up to 1%(Processing Fee)	₹ 10L -₹ 5CrsLoan Amount1-30 YearsTenure Range	Enquire
Aditya Birla Capital Home Loan	8.60% p.a. onwards	Up to 1.00% of the loan amount + applicable tax(Processing Fee)	Contact the bank for detailsLoan Amount1-30 YearsTenure Range	Enquire
Karnataka Bank Home Loan	8.60% – 10.62% p.a.(Floating Rate)	Contact the bank for details(Processing Fee)	Up to ₹ 5CrsLoan Amount1-30 YearsTenure Range	Enquire
IDFC Home Loan	8.85% p.a. onwards for salaried and 8.85% p.a. for self-employed(Floating Rate)	Up to 3%(Processing Fee)	Rs.1 lakh – Rs.5 croreLoan Amount5-30 YearsTenure Range	Enquire
Bank Of Baroda Home Loan	8.40% p.a to 10.60% p.a.(Floating Rate)for both salaried and non-salaried individuals	Contact the bank for information(Processing Fee)	₹ 1L -₹ Up to 10 CroreLoan AmountUp to 30 YearsTenure Range	Enquire
Canara Bank Home Loan	8.40% p.a. to 11.75% p.a. (Floating Rate) for women borrowers 8.55% p.a. to 11.25% p.a. for other borrowers	0.50% (min. Rs.1,500; max. Rs.10,000)(Processing Fee)	Rs.1 lakh – Rs.3 crore -Loan Amount30 YearsTenure Range	Enquire
Kotak Mahindra Bank Home Loan	8.75% p.a. onwards for salaried and non-salaried individuals, respectively	0.5% of the loan amount(Processing Fee)	Loan Amount 10 Lakh to 10 Crore1-20 YearsTenure Range	Enquire
DBS Home Loan	Contact the Bank	₹ 10000+ taxes(Processing Fee)	Up to ₹ 5CrsLoan Amount1 – 25 YearsTenure Range	Enquire
Sundaram Home Finance Limited Home Loan	10.00% p.a. onwards for salaried individuals and 10.50% for non-salaried individuals	Contact the bank for details(Processing Fee)	₹ 1L -₹ 4CrsLoan Amount1-25 YearsTenure Range	Enquire
Bank of Maharashtra Home Loan	8.35% p.a. to 10.90% p.a.	0.25%(One time fee)(Processing Fee)	Loan Amount1 – 30 YearsTenure Range	Enquire

Note:

*All loans are at the sole discretion of HDFC Home Loans.Terms and conditions apply.

Top Housing Loan Schemes & Offers

• Kotak Mahindra Bank – Best for Low-Interest Rate
  • Low-interest rates start from 8.75% p.a. onwards for salaried and self-employed individuals, respectively.
  • Processing fee of up to 0.50% of the loan amount
  • Loan tenure of up to 20 years
  • Zero prepayment charges
  • Balance transfer with top-up loan available
• Canara Bank Housing Loan – Best Interest Rate for Women
  • Low-interest rates for women starting from 8.40% p.a. to 11.75% p.a. (Floating Rate).
  • Maximum repayment tenure of 30 years or up to 70 years.
  • Processing fee of up to 0.50% of the loan amount
  • It Can be used to purchase or construct a house/flat
  • Zero prepayment charges
• Axis Bank Home Loan – Best Interest Rate for Salaried Employees
  • Low-interest rates starting from 8.75% p.a.
  • Loan amounts of up to Rs.5 crore
  • Maximum repayment tenure of 30 years
  • Processing fee of up to 1% of the loan amount
  • No prepayment/foreclosure charges
• HDFC Reach Home Loans for self-employed professionals
  • Attractive interest rates start from 8.75% to 9.65% p.a. and 9.40% to 9.95%* p.a.
  • Flexible repayment tenure of up to 30 years
  • Processing fee of 2% of the loan amount
  • Minimal documentation with minimum income of Rs.2 lakh p.a.
  • Add a woman co-owner for lower interest rates
• SBI Privilege Home Loan for Government Employees
  • Low interest rates starting from 8.50% to 9.65% p.a.
  • Zero processing fee
  • Loan tenure of up to 30 years
  • Reduced interest rates for women borrowers
  • Interest concession when checkoff is provided
• PNB HFL Plot Loan – Best Home Loan for Plot and Construction
  • Attractive rates starting from 9.50% p.a.
  • Flexible loan tenure of up to 30 years
  • Processing fee of up to 0.5% of the loan amount
  • Loan enhancement in case of escalating costs
  • Quick loan application and approval process
• SBI Realty Home Loan – Best Home Loan for Land Purchase
  • Low-interest rates starting from 8.60% p.a.
  • The Maximum tenure of ten years
  • Processing fee of up to 0.35% of the loan amount
  • Maximum loan amount of up to Rs.15 crore
  • Interest rate concession for women borrowers
• SBI Smart Home Top-Up Loan – Best Top Up home loan
  • Interest rates starting from 8.80% p.a. to 11.30% p.a.
  • Processing fee of Rs.2,000 + GST (Minimum) to Rs.10,000 + GST (Maximum)
  • Overdraft facility for loans above Rs.20 lakh
  • Loan tenure of up to 30 years
  • No prepayment penalty
• Union Awas Home Loan – Best for Low Credit Score
  • Interest starts from 10.75% p.a. for credit scores below 600 for loans of up to Rs.30 lakh
  • Moratorium period of up to 3 years for construction or purchase of a home
  • Loan tenure of up to 30 years
  • For agriculturists, quarterly/half-yearly/annual repayments instead of EMI can be availed
  • Open to permanent employees of educational institutions and agriculturists with a yearly income of up to Rs.48,000 p.a.

Courtesy To: Bankbazaar

Process to Apply for a Home Loan 

The process that must be followed to apply for a home loan is mentioned below: 

• Check Eligibility – Ensure that meet the eligibility criteria to avail a home loan. You can check on the lender’s official website about the eligibility criteria. Basic details such as your name, date of birth, employment details, income details, etc., will need to be provided to check the eligibility criteria. 
• Choose the Tenure and Loan Amount – Next, the amount of loan that you are availing must be selected. The repayment tenure must be chosen as well. 
• Submit the Application – Next, the completely filled out application must be submitted. 
• Documents – Next, the relevant documents must be submitted. 
• Loan Sanction –  Once the verification process has been completed, the loan will be sanctioned. The sanction letter will be provided and the loan amount will be deposited in the bank account.  

Benefits of Availing a Home Loan

Some of the main benefits of availing a home loan are mentioned below: 

• Rent need not be Paid – Since the rent in many cities is high, availing a home loan will ensure that no rent needs to be paid. 
• Capital Appreciation – Over time, the value of the property will increase. 
• Long Repayment Tenure – Lenders may offer home loans with a repayment tenure of up to 30 years. This will ensure that the EMIs will be low. 
• Easier to Buy a Home – Since the down payment is low and the remaining amount can be paid in EMIs, it is earlier to purchase a house. 
• Balance Transfer – You can transfer the balance to another lender in case they offer home loans at lower interest rates. 
• Prepayment Charges  – No prepayment charges will be levied in the case of a home loan. 
• Tax Benefits – Tax benefits can be availed in case you opt for a home loan. 

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Types of Home Loans in India

Banks in India provide different types of housing finance options for various purposes. Here’s a list of the prominent types of housing loans in India based on a study of products offered by some of the top banks: 

• New Home Loans – New Home Loans are offered to eligible customers looking to purchase a house or property for the first time. 
• Pre-Approved Home Loan – Banks offer pre-approved home loans to eligible borrowers once their creditworthiness, income and financial position are considered considerable for an in-principal approval of the loan. 
• Home Purchase Loans – Home purchase loans are given explicitly to borrowers looking to purchase a house or flat. 
• Home Loan for Construction – A home loan is offered to customers looking to construct their own house on existing land. 
• Plot Loans – Plot loans are offered to customers looking to purchase a piece of land or plot to construct a house. 
• Home Loan Top Up – Home Loan Top Up is a facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the existing home loan. 
• Home Extension/Renovation Loans – Home loans for the extension or renovation of homes are offered to borrowers who wish to renovate/extend their existing house/property. 
• Balance Transfer Home Loan – Individuals can use the balance transfer option to transfer their home loan from one bank to another. Most people choose this option to avail themselves of better interest rates. 
• Home Conversion Loan – Suitable for those looking to purchase and move to another property when they have already bought a house with a home loan. 
• Home Improvement Loan – These loans are sanctioned to those looking to repair/improve/renovate an already existing property. 
• Home Loans for NRIs – These home loans cater to the housing needs of NRIs in the country. They also include PIOs and OCIs. 

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Home Loan Eligibility

The following is the list of eligibility criteria

Documents Required for Home Loan

About Post Author

Lynn Jackson

aware@srvibes.com

http://www.srvibes.com

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