Home Loan

Last Updated 14th Dec 2018

Home Loan Details

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

Interest Rate8.65% onwards Check Best Offers
Maximum Loan AmountUpto 90% of property value
Processing FeesUp to 1% of loan amount or Rs. 10,000 whichever is lower
Loan TenureUp to 30 Years
Lowest EMI Per LakhRs. 780 for 30 years
Prepayment ChargesNil charges for floating rates loans
Apply for Home Loan @ 8.65%*
Rs.
Rs.
+91

Home Loan Interest Rates Comparison in India

BankHome Loan RateProcessing Fee
SBI Home Loan 8.75% Nil Processing Fee till Dec, 2018
HDFC Home Loan 8.80% 0.50%
Min Rs. 3,000 - Max Rs. 10,000
ICICI Bank Home Loan 9.10% 0.50%
Min Rs. 5,000 - Max Rs. 5,000
Axis Bank 8.80% 0.50%
Min Rs. 2,500 - Max Rs. 25,000
PNB Housing Finance 9.00% 1.00%
Min Rs. 10,000 - Max Rs. 10,000
Bank of Baroda 8.65% 0.50%
Min Rs. 7,500 - Max Rs. 20,000
LIC Housing Finance 8.70% 0.50%
Indiabulls 8.80% Min Rs. 1,000 - Max Rs. 5,000
Citibank 8.75% Nil
DBS Bank 9.70% Max Rs. 10,000
DHFL 8.70% 0.50%
Min Rs. 2,500 - Max Rs. 20,000
Kotak Bank 8.90% Max Rs. 10,000
Indian Overseas Bank 8.70% 0.53%
Min Rs. 8,900 - Max Rs. 13,350
HSBC Bank 8.75% 1.00%
Max Rs. 10,000
Edelweiss 10.50% 0.25%
DCB Bank 10.24% 2.00%
Min Rs. 5,000
Yes Bank 9.35% 0.75%
Max Rs. 10,000
Corporation Bank 9.05% 0.50%
Min Rs. 1,000 - Max Rs. 50,000
LT Housing Finance 9.90% 2.00%
Min Rs. 4,999
Bank of Maharashtra 8.75% 0.50%
Union Bank of India 8.80% 0.50%
Max Rs. 15,000
Andhra Bank 8.75% 0.50%
Max Rs. 10,000
South Indian Bank 9.35% 1.00%
Max Rs. 10,000
Standard Chartered Bank 9.25% 1.00%
Min Rs. 5,000 - Max Rs. 10,000
Punjab and Sind Bank 8.80% 0.25%
Min Rs. 1,000 - Max Rs. 15,000
PNB 8.65% 0.50%
Min Rs. 20,000 - Max Rs. 50,000
Lakshmi Vilas Bank 9.90% 0.40%
Min Rs. 10,000 - Max Rs. 20,000
Karnataka Bank 8.70% 0.25%
Min Rs. 250
Indian Bank 8.60% 0.23%
Max Rs. 20,381
GIC Housing Finance 10.25% Min Rs. 2,500
Dena Bank 8.75% 0.50%
IIFL 8.50% 1.00%
Max Rs. 10,000
Central Bank of India 8.60% 0.50%
Max Rs. 20,000
Vijaya Bank 8.55% 0.50%
Min Rs. 1,000 - Max Rs. 20,000
Bank of India 8.85% 0.25%
Min Rs. 1,000 - Max Rs. 20,000
UCO Bank 8.65% 0.50%
Min Rs. 1,500 - Max Rs. 15,000
Allahabad Bank 8.80% 0.40%
Max Rs. 50,000
Reliance Capital 10.00% 1.00%
Min Rs. 3,000 - Max Rs. 6,500
OBC 8.75% 0.50%
Max Rs. 20,000
Jammu And Kashmir Bank 8.85% 0.25%
Min Rs. 500 - Max Rs. 10,000
IDBI Bank 8.65% 0.50%
Min Rs. 2,500
Federal Bank 8.75% 0.50%
Min Rs. 3,000 - Max Rs. 7,500
Dhan Laxmi Bank 9.90% 1.00%
Min Rs. 10,000
IDFC Bank 9.25% Min Rs. 5,000 - Max Rs. 5,000
Canara Bank 8.75% 0.50%
Min Rs. 1,500 - Max Rs. 10,000
United Bank of India 8.65% 0.59%
Min Rs. 1,180 - Max Rs. 11,800
Syndicate Bank 9.90% 0.13%
Min Rs. 500 - Max Rs. 5,000
RBL Bank 10.45% Min Rs. 5,000 - Max Rs. 15,000
Karur Vysya Bank 9.65% Min Rs. 5,000

As per the current rates, Bank of Baroda, PNB, UCO Bank, IDBI Bank, United Bank of India offer the lowest home loan interest rate of 8.65%. These rates can vary depending upon the value of the property and your repayment capacity. Higher the loan amount, higher will be the rate of interest.
After the latest home loan rate revision announced by Bank of Baroda, PNB, UCO Bank, IDBI Bank, United Bank of India in 2018, new home loan interest rates start from 8.65% for home buyers as well as for those who want to transfer their loan from other banks.

Quick Guide on Home Loan

Purpose : Home loan can be used for purchasing a new house, construction of house on a plot, home improvement, extension and renovation of your existing house.

Key Features :

  • Eligibility : Loan available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
  • Security : Mortgage of home you are planning to purchase, renovate or construct.
  • Loan Amount : In the range of Rs. 1 Lakh to Rs. 15 Cr.
  • Loan to Property Value Ratio : Varies from 65% to 90%.
  • Loan Tenure : Can range from 5 to 30 years.
  • Interest rates : Home loan Interest Rates starting from 8.65%. Special rates for women borrowers.
  • Lowest EMI : Lowest EMI of Rs. 780 per lakh.
  • Processing Fees : Up to 1% of loan amount or Maximum Rs. 10,000.
  • Prepayment Charges : Nil charges on floating rate home loans
  • Other Charges : Legal charges, technical charges etc.
  • Documents Required : Address Proof, Identity Proof, Income Documents, Property Documents.

Top Home Loan Providers : Banks and Home loan companies such as SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC, PNB Housing, DHFL, Indiabulls Home Finance.

Popular Home Loan offers : Banks offer schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Banks also offer overdraft facility to save interest on house loan. Some of the popular home loan schemes are SBI special rates for women, HDFC Reach, Axis Bank 12 EMIs offer, Bank of Baroda pre-approved loans, Indiabulls e-home loans etc.

Best Bank for Home Loan

MyLoanCare does a detailed comparison of all banks and housing loan companies on parameters of interest rates, processing fees, prepayment charges, lending process and customer service of banks on a regular basis. Based on latest schemes, the following banks should be in your consideration list for getting a house loan.

Best Home Loans in India
Bank with Name of Bank or Home Loan Company
Cheapest home loan in India at 8.65 - 8.7%Bank of Baroda, LIC Housing Finance, DHFL, Indian Overseas Bank, PNB, Karnataka Bank, UCO Bank, IDBI Bank, United Bank of India
Lowest EMI Rs. 780 per lakh of home loan for max loan tenure of 30 yearsBank of Baroda, PNB, UCO Bank, IDBI Bank, United Bank of India
Lowest Processing Fees of upto Rs. 5,000 on housing loanICICI Bank, Indiabulls, IDFC Bank, Syndicate Bank
Lowest Processing Fees as a percent of home loan of 0.13%Syndicate Bank
Customer Reviews Rating of 3.5 and aboveAxis Bank, ICICI Bank, Citibank, Standard Chartered Bank, DHFL, GIC Housing Finance, Reliance Capital, HDFC, PNB Housing Finance, Bank of Baroda, IDBI Bank, PNB, SBI, DCB Bank, Canara Bank, Central Bank of India, DBS Bank, IDFC Bank, LT Housing Finance

Tips to get Best Home Loan

How to Get Best Home Loan Rates in India

It has never been easier to get a housing loan, as today you can do online loan comparison based on interest rates, other loan terms and conditions of all banks before choosing the right loan offer.

Step 1 : Check loan EMI and calculate eligibility

As you decide to take a home loan, always estimate your loan amount eligibility to know the loan amount you will be eligible for and can apply for. Also calculate the monthly EMI that you can comfortably service given your net take home salary and other existing fixed obligations including rent and EMIs on other existing loans, if any. Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio and other factors. EMI is dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably service, shortlist the banks which offer you maximum loan amount to meet your requirements.

Step 2 : Check property approval status and legal documents

If you are buying a property from builder, then check for the banks which have approved the projects you have shortlisted. For resale property, check the approved map plans and ensure that all property registration papers for the complete chain from the first owner to current owner are in place. Shortlist the banks which lend on your chosen property.

Step 3 : Decide on type of home loan interest rate offers

As you narrow down the list of banks in Step 2 and 3, you need to conduct an interest rate on home loan comparison of the loan offers of various banks. Some of the interest rate offers that needs to be checked are:

  • Choice between fixed and floating rates - Fixed rates come at a slightly higher rate of interest compared to floating rate loans and interest rate remains constant during the tenure of home loan. In floating rate loan, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. Majority of housing loans in India today are floating rate loans as it allows the borrowers to get home loan interest rate in line with the current interest rates.
  • Decide if you need a home saver loan - This is a loan with overdraft facility which allows you to deposit surplus amount in your home loan overdraft account as and when available, allowing you to reduce your overall interest amount. This loan is highly recommended for salaried individuals with high bonuses and self employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loan is slightly higher than that of a regular housing loan interest rate.
  • You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you loan at low rate of interest. You will however need to pay a mortgage guarantee fee to the bank.
  • Check and compare the current home loan interest rates of the banks on various types of loan products and take an informed decision.
Step 4 : Compare shortlisted banks

In addition to interest rates, banks also charge many other fees on home loans. Along with interest rates, you should check other associated costs with a your loan which include prepayment charges, processing fee, insurance premium and other charges offered by the shortlisted banks. You should calculate all inclusive costs on home loan to be able to further shortlist the banks and reduce your choice to 2-3 banks.
You can take the help of loan advisors of online marketplaces like myloancare.in to be able to get details on home loan rates of all banks and take an informed decision.

Step 5 : Select the bank based on other service related parameters

Finally as you decide to take the loan, also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, transparency in the loan process. You also need to understand the trends and changes in MCLR rates over a period of time. Last but not the least, read reviews of existing customers on banks on their services, interest rates and transparency to take your decision to borrow from a bank.

Home Loan Schemes

While, all banks and HFCs in India offer multiple home loan schemes, some new schemes are quite popular in India due to their unique features and special discounted rates. Home Loan Banks like SBI, Axis Bank, Citibank, BoB and finance companies like HDFC, PNB Housing, Indiabulls are currently running many attractive schemes for housing loan borrowers. Some of the popular housing loan schemes have been captured in table below:

Bank Scheme Features
SBIFor Women BorrowersLoan is offered at concessional rate starting @ 8.75%.
Maxgain Home loan with overdraft facility @ 8.80%
Axis Bank Home Loan Top UpLoan to get additional loan amount. Interest rate of top up loan starts @ 8.80%
ShubhAarambh Home Loan Avail 12 EMI waiver offer at 8.85%
HDFC HDFC Reach Home loan with less documentation starting @ 9.95%
Indiabulls Indiabulls e-Home Loan Apply loan online @ 8.80% and get facilities like IB chat, e-sign, DigiLocker integration
Bank of Baroda Pre-approved Home Loan Loan pre-approved by the bank @ 8.65% before the property is purchased by the applicant with a validity of 4 months
Citibank Home Credit Loan Home loan with overdraft scheme @ 8.85%
Citibank T-Bill Home Loan Innovative scheme in which floating rate home loans are benchmarked to 91 days Govt. T-Bill rate, thus making them completely transparent

Types of Home Loans

The table below summarises the popular types of home loans in India based on their purpose and interest rate.

Home LoanPurpose
New Home LoanTo buy a new flat, apartment or house from a builder or seller.Also includes loan for construction of house on an existing plot.
Home Improvement Loan To renovate your existing home like tiling, flooring, painting etc.
Home Extension LoanTo expand the house by adding new space like floor, room, balcony etc.
Land Purchase LoanTo purchase a plot and build a house. Interest rates are 1.5-2% higher than a home loan, with prespecified time limit for construction
Home Conversion LoanScheme to allow borrowers to transfer their existing loan from fixed rate to floating rate or vice-versa A conversion fee is levied on the outstanding principal to switch your loan.
NRI Home LoansHome Loan for Non Resident Indians to buy, construct or renovate a home in India.
Home Loan OverdraftBorrowers can add surplus funds in an overdraft account for any period to reduce interest liability. Interest rates are 0.15-0.2% higher than regular housing loan.
Home Loan Top UpTo borrow additional amount on existing home loan from same bank or at the time of balance transfer up to a percentage of property value. Interest rates are 0.25-1% higher than regular housing loan.
Home Loan Balance TransferTo transfer your home loan from to another bank offering lower interest rate to save interest and to get top up loan
Pre-approved Home LoanLoans that are approved even before youcomplete property transaction based on credit history, current EMI obligations etc.Interest rates are low and pre-approved offer is valid up to 6 months

List of Documents for Home Loan Application

Documents required Salaried Self Employed
Application FormSigned with photographsSigned with photographs
Identity ProofPAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-cardPAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-card
Certificate and Proof of Business ExistencePAN, Sales tax/ Excise/ VAT/ Service tax registration, Copy of partnership deed, Trade license, Certificate of practice, Registration certificate issued by RBI, SEBI
Address ProofPassport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ Bank statement (not more than 3 months old) Bank statement, Utility bill, Registry copy, Lease or rent agreement, TAN allotment letter
Income ProofForm 16, Latest 6 months salary slip, Last 6 months bank statementLast 2 years ITR, Last 6 months bank statement
Age ProofPAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate PAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate
Property DocumentsPast title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extensionPast title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Compare Home Loan Processing Fees and Other Charges

  • Home Loan processing fees -Most banks charge processing fees of up to Rs. 10,000 or up to 1% on house loans, whichever is higher. To get lowest fee, comparison of home loan rates, offers and cashback, apply online through MyLoanCare.
  • Home Loan prepayment and foreclosure -Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your loan partially before time, it is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to upto 5%. So, check carefully if the low rate of interest you are getting comes with high prepayment or foreclosure charges. Note that some home loans cannot be repaid before time.
  • Special interest rates for specified category of borrowers -Banks launch attractive schemes with low interest home loans on housing loans on a regular basis, especially for women borrowers. Hence, always check for home loan offers from multiple banks to get the cheapest rates.
  • Other Charges -Bank charges legal and technical fee from the borrower which are explained at the time of loan application and sanction.

Frequently Asked Questions on Housing Loan

How can I apply for home loan?

You can apply for loan in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also check and compare best interest rates of all banks online at MyLoanCare and apply for loan.

How can I apply home loan in my city?

Yes, you can apply home loan in your home town provided you have sufficient income to pay the EMIs on time and have good credit history. You can also compare home loan offers for different cities online at MyLoanCare and apply for the loan at lowest rates.

What is the minimum and maximum tenure of house loan?

These are generally taken for a longer period of time. The loan tenure for hosuing loan ranges from 5 years to 30 years.

What is the minimum CIBIL score required for home loan?

CIBIL score ranges from 300 to 900. A score of 650 and above is considered as good credit score to get housing loan. Higher the credit score, higher the chances to get loan application approved.

How do I calculate the interest rate on my Home Loan taken some time back? Has it gone up or down?

In case your loan was taken as a fixed rate loan

  • Most fixed rate loans would offer fixed interest rate for a period ranging from few months to 15 years. From your sanction letter and loan agreement, check the period for which the interest on your house loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is same as what it was originally taken at
  • In case your loan has converted to floating rate, the loan agreement would specify the formula for the same. The formula may be either MCLR base rate plus a given spread (in case of banks) or PLR minus spread (in case of housing finance companies). For MCLR rate plus spread housing loan, just read the spread mentioned in the loan agreement and add it to the current MCLR rate of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective home finance company. You can find the current MCLR rate or PLR of your bank or housing finance company at Current MCLR Base Rate and PLR
What are the property documents required by Banks/HFC?

You will need to submit copies of the following property documents

  • Past title chain– Conveyance deed, sales deed, allotment letter, possession letter
  • Receipt of advance payment towards purchase of property in case of resale or booking with builder
  • Latest property tax receipt
  • Copy of approved plan for construction/ extension
Can I apply for housing loan jointly with my spouse?

Yes, you can apply jointly with an earning co-applicant (either be your spouse or your parents). Adding co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

Does it affect my co-applicant if I default in home loan?

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

Can I do balance transfer on house loan?

Yes, if you are getting higher interest rate and paying higher EMI than other banks, then you can opt for housing loan balance transfer and reduce your monthly burden.

Can I take top up on my existing home loan?

Yes, you can avail top up on their running house loan only if you have made timely repayment of EMIs accrued on existing home loan. The interest rate charges on a top up loans are comparatively 0.25 – 1% higher than a housing loan. The loan can be availed with minimal documentation.

Can I get a home loan with a bad credit score?

Yes, you may be eligible for qualifying a home loan even with a low CIBIL score. But, the lenders may charge a higher rate of interest on your loan and may ask you to apply for loan along with a co-applicant to improve your credit worthiness.

What are the tax benefits available on home loans?

Yes, a home loan borrower may avail tax benefit on their home loans both on the principal as well as on the interest rate on home loans:

  • Tax exemption on repayment of home loan principal (under section 80C)– The individual is eligible for a maximum annual tax deduction of Rs. 1,50,000 (Rs. 2 lakh for senior citizens).
  • Tax benefit on the interest rate for home loan (under section 24):– The individual can avail the tax benefit on the amount of interest paid on their housing loan to the maximum limit of Rs. 2 lakh (Rs. 3 lakh for senior citizens) for a self-occupied property.
Why MyLoanCare???

Nowadays, almost all banks offer attractive schemes on Home Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Home Loan rates. MyLoanCare helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cashbacks and refer and earn benefits.

Home Loan News - Dec 2018
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. MyLoanCare is an independent professional service provider and is not related to the government or government bodies or any regulator or any credit information bureau in any way. Information carried at this website is not and should not be construed as an offer or solicitation or invitation to borrow or lend. The Company does not undertake any liability with respect to the correctness of the content, information and calculations. Information is subject to change without notice. By submitting your query or using any tools or calculators, you authorize MyLoanCare to share your information with lender(s), consent for such lender(s) to access your credit information report and contact you regarding your query overriding your number being in National Do Not Call Registry. This is a free service and no charges are payable by the borrower to MyLoanCare. The Company may receive remuneration from lenders for services provided to them.