Home Loan

Last Updated 22nd Jun 2018

Home Loan Details

Loan AmountRs. 10 Lakh to Rs. 10 Cr
Loan Amount as a percent of Property ValueUp to 90%
Interest Rate8.45% onwards. Check Best Offers
Loan TenureUp to 30 Years
Processing FeesUp to 1% of loan amount or Rs. 10,000 whichever is lower
Prepayment ChargesNil charges for floating rates loans

MyLoanCare partners with top banks and home loan companies such as SBI, ICICI Bank, Axis Bank, HDFC, PNB Housing Finance to offer best housing loans against the mortgage of home at cheapest rates in India. Check Best Offers

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Why Housing Loan?

Home loans are loans offered to home buyers to finance purchase of new house or construction or renovation of their existing house against the security of the underlying residential property. For a loan availed at the lowest housing loan interest rate of 8.45% and a maximum tenure of 30 years, lowest EMI is Rs. 765 per lakh of loan amount.
Some of the benefits of taking home loan are:

  • Home loans can be used for new home purchase, house construction, home renovation, home extension and house repairs
  • Housing loans are secured loans and hence, home loan interest rates are lower than unsecured loans.
  • Home loan repayments are in the form of EMIs which allows you to repay your loans based on your repayment capacity
  • These are long tenure loans ranging from 1 years to 30 years
  • Existing house loan customers can also avail best home loan top ups on their existing loans from their current bank or at the time of loan transfer from one bank to another.
  • You have the option to choose fixed rate loans or floating rate loans

Quick Guide on Home Loan

Purpose: House 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. 10 Lakh to Rs. 10 Cr.
  • Loan to Property Value Ratio: Varies from % to 90%.
  • Loan Tenure: Can range from 5 to 30 years.
  • Interest rates: Home loan Interest Rates starting from 8.45%. Special rates for women borrowers.
  • Lowest EMI: Lowest EMI of Rs. 765 per lakh.
  • Processing Fees: Up to 1% of loan amount or Maximum Rs. 10,000.
  • Other Charges: Legal charges, technical charges etc.
  • Documents Required: Address Proof, Identity Proof, Income Documents, Property Documents.

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

Types of Home Loans

Banks and housing loan companies in India offer various types of housing loans to meet borrower specific requirement. Some of the popular types of housing loans are:
New Home Loan:This is the most common loan taken by a borrower to buy a new house/apartment or to construct a home. Banks offer new housing loan for the following purposes:

  • For buying a new flat, apartment or house from a builder
  • For buying a house from another seller
  • For construction of house on an existing plot

Home Improvement Loans: Improvement loan is taken to renovate your existing home against the mortgage of home. The loan can be used for any home improvement purposes such as tiling, flooring, internal and external painting of the house, etc. Existing home loan customers can avail this loan on their existing home as a new loan or as a top up on their existing house loan. Home Improvement Loans are available easily at cheap home loan rates.
Home Extension Loan: This loan is similar to a home improvement loan and can be used to expand your house by adding new space including additional floor, room, balcony, bathroom etc. Like improvement loan, this is also a house mortgage loan that can be availed as a new loan or as a top up on your existing home loan. These loans can be availed at low interest rates similar to that of new home loan
Land Purchase Loan: This loan is taken to purchase a plot for building a house on it. Very few banks offer plot loans. Most of the banks that offer plot loans require the borrower to construct a house on the plot purchased within a period of 2 to 3 years of buying the plot. Plot loans are considered to be riskier compared to other home loans and hence, rate of interest is 1.5-2% higher compared to a house loan
Home Conversion Loan: This loan is offered to existing borrowers who want to transfer their existing housing loan interest benchmark from fixed rate to floating rate or vice – versa. You can also opt for home conversion loan if you have taken a loan before 1st April, 2016 and want to switch your benchmark rate from base rate to MCLR rate in order to change your benchmark market rates. Banks and finance companies charge a conversion fee on the outstanding principal to switch your loan.
NRI Home Loans: These loans are offered to non-resident Indians for buying, constructing or renovating a home in India.
Home Loan Overdraft: Some banks such as SBI and Citibank offer overdraft facility to borrowers along with home loan. Borrowers are provided with an overdraft account in which borrowers can deposit any available surplus amount for any period and reduce their interest liability. This is the best home loan for self employed, businessmen, professionals who have fluctuating fund flow during the year. Interest rate on housing loan overdraft is around 0.15%-0.2% higher than rate of a regular home loan.
Home Loan Top Up: Top up loan is an additional loan amount that you can avail on your existing home loan either from your existing bank or at the time you transfer your housing loan to another bank. The amount of top up loan is capped at the maximum of LTV of your existing home loan. Always do a detailed comparison of home loan top up offers of different banks to check for the best home loan eligibility and lowest home loan interest rate. Interest rate for top up is 0.25% to 1% higher than the regular home loan rate and can be availed for personal use.
Home Loan Balance Transfer: Home loan transfer from one bank to pay off an existing loan. Generally, borrowers look to transfer their loan to get lower interest rate or to get additional top up loan along with home loan amount. You will have to take approval from your existing bank for transferring your loan and apply for home loan with a new bank to get a loan sanction. Customers balance transfer their loans to reduce their interest rate and get lower EMIs.
Pre-approved Home Loans are loans where a bank pre-approves your housing loan before you complete your property transaction based on your credit score, repayment history, current EMI obligations etc. Pre-approved home loan are available at low interest rates and allows you to get a loan as soon as you finalise your property. The validity period of the pre approved loan offer is limited up to 6 months in most of the cases.

Housing Loan Providers in India

The home loan market in India is very competitive as all top banks in India have a primary focus on providing home loans or housing loans. Leading top home loan banks in India are SBI, Bank of Baroda, ICICI Bank, Citibank, PNB and Axis Bank.
In addition to banks, many specialized home loan companies or housing finance companies also provide housing mortgage. These companies offer loans to all segments of home buyers across all cities in India. Popular house loan companies are HDFC Limited, PNB Housing Finance, India bulls Housing Finance Company and DHFL.
Description of top home loan providers in India has been summarized in the table below.

Home Loan Providers Type of Provider Description Loan Amount
SBIBankLargest and oldest government bank in IndiaRs. 15 Lakh to Rs. 10 Cr
HDFCHousing Finance CompanyLargest and most reputed housing finance companyRs. 15 Lakh to Rs. 10 Cr
ICICI BankBankLargest private sector bank in IndiaRs. 15 Lakh to Rs. 10 Cr
PNB Housing FinanceHousing Finance CompanyLarge government housing finance company in IndiaRs. 15 Lakh to Rs. 10 Cr
Indiabulls Housing FinanceHousing Finance CompanyFast growing housing finance companyRs. 15 Lakh to Rs. 5 Cr
Bank of BarodaBankLarge, trusted government bankRs. 15 Lakh to Rs. 10 Cr

Home loan interest rates of top banks and home loan companies in India are in the range of 8.45% to 11.75%. House loan rates are a function of your income level, property value, repayment capacity as well as your profession and need a thorough comparison to select the best home loan offers.
Click on the link to compare the latest home loan rates of all banks in India

Best Home Loan Schemes

MyLoanCare partner banks launch special housing loan schemes apart from their regular loan schemes for their house loan buyers. Some of the popular home loan schemes are:

SBI Home Loan

  • For Women Borrowers : SBI offers home loan for women borrowers at concessional rate, which is currently the lowest at 8.45%
  • SBI Maxgain : Loans for construction or purchase a house with an overdraft facility. This facility allows an option to deposit available surplus for any period in the overdraft account and reduce overall interest on housing loan. Attractive loan for self employed, businessmen , professionals with uneven flow of income through out the year.

Axis Bank Home Loan

  • Axis Bank Home Loan Top Up : This loan can be taken for the construction of residential or commercial premises and for personal or business related requirements
  • Axis Bank ShubhAarambh Home Loan : New home loan scheme where 4 EMIs can be waived off at the end of the 4th, 8th & 12th year, thus making it an affordable home loan for borrowers. Can be used to buy, construct, renovate and improve your house.

HDFC Home Loan

  • HDFC Reach Home Loans : Home loan of upto Rs. 1 crore with minimal documentation and quick turnaround for buying a new home, constructing a house on plot allocated by any development authority or to transfer your home loan balance to HDFC

Indiabulls Home Loan

Indiabulls offers innovative e-home loan for its borrowers.

  • Indiabulls e-home loans : Easy e loans for purchase of flats, row house, bungalow from developers, existing freehold properties, properties in an existing co operative housing society or apartment owner's association. Loan can also be availed for construction of house on an owned plot, home loan extension or home improvement. The loan comes with IB chat, e-sign, DigiLocker Integration and an easy loan application process which makes it a quick and convenient home loan option for borrowers.

Bank of Baroda Home Loan

Bank of Baroda offers pre approved home loans to customers who are planning to buy a home in the near future.

  • Baroda Pre Approved Home Loan : Pre approved loan that offers a 'in principle' approval from BoB even before the property is purchased by the applicant. The in-principle approval is valid for 4 months from the date of issue.

Citibank Home Loan

  • Citibank Home Credit Loan : Home Loan Credit is an home loan overdraft scheme which allows the borrowers to deposit their surplus savings for any period in the overdraft account and reduce overall interest outgo on their housing loan.
  • Citibank T- Bill Home Loan Scheme : Under this scheme, floating rate home loans are benchmarked to Government T-Bill rate. Any change in the T- Bill rate on the reset date will result in a change in home loan interest rate for existing borrowers without any delay.

To get a detailed understanding of these schemes, Please check our home loan Interest Rates page

How to get the best Home Loan?

  • Do not fall for marketing gimmicks - It is common for loan agents and DSA’s to lure customers by quoting a lower rate of interest knowing very well that the final rate will be higher. Always check with authorized representatives and get the rates in writing before giving your documents for processing.
  • Do not apply with multiple banks for your home finance needs - Remember that every loan application is recorded in your CIBIL report. Too many home loan applications at the same time can hurt your chances of getting a loan and even lead to an increase in rate of interest. Multiple applications signal desperation to get loan on the part of the customer.
  • Your salary bank may not offer the cheapest home loan - In case you are salaried and you may have got “pre-approved home loan” offer from your bank by email. Typically, these may not be the lowest interest rate offers in the market. Always check and compare offers of all leading banks online before applying.
  • Do not apply for loan amount more than what you are eligible for - Use online home loan eligibility calculator to estimate how much loan amount you are likely to be eligible for. Apply for a loan amount that is either less than or upto that to get the best rate of interest. Applying for an amount higher than your eligibility may lead to rejection of your loan application.

What are the documents required to get a house loan?

Three sets of documents are required to submit by the borrower to bank to get a housing loan in India.

  • KYC Documents: PAN Card/ Aadhaar Card/ Passport/ Driving License for Identity proof and Address proof. Office address proof is also required for self employed businessmen
  • Income Documents: For salaried, 6 months salary slip, Form 16, 6 months bank statement and for self employed, ITR of last 2 years, 6 months bank statement and business existence proof
  • Property Documents: Registered sale deed for ready property, builder buyer agreement, allotment letter for under construction property, post sale deed chain, latest house tax return

To know more about documents required for housing loan, click on the link below

MyLoanCare tracks the latest home loan trends for its customers to update them on rate cuts and new housing loan schemes as announced by banks on a regular basis. Watch out this section for current home loan trends 2018 in India.

  • The government has increased the carpet area of houses eligible for the Credit Linked Subsidy Scheme under the Pradhan Mantri Awas Yojana (PMAY) for the middle income group beneficiaries. In the MIG-1 category of CLSS, the carpet area has been increased from the existing 120 square metre to up to 160 square metre. In case of MIG-2 category, the carpet area has been raised up to 200 square metre from the existing 150 square metre. The change in carpet area will help MIG category borrowers to avail interest subsidy for bigger houses.
  • HDFC LTD has slashed its home loan rates. The floating rates of Home Loan have gone from 8.55% to 8.45%, a drop of 10bps in the under Rs. 30 Lakh ticket for self- employed. For the higher ticket sizes, the new floating rates are in the range of 8.50% to 8.60% across salaried and self employed categories. The new rates will stand effective from April 25, 2018.
  • One of the leading private lenders, Axis Bank has hiked its lending rates across Shubhaarambh, Fast Forward, Super Saver and Empower categories of Home Loans. The minimum and maximum rates across categories have been increased by 5 bps to 8.40% - 9.25%.
  • SBI, the largest lender of the country has slashed its home loan rates to up 8.35% for loans up to Rs. 30 Lakh for female borrowers. Under the Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS), home buyers will also get an interest subsidy of Rs. 2.67 lakh.
  • Following the lead of major banks, Bank of Baroda has also hiked its home loan rate. The new rates, up by 15 bps from 8.30% to now 8.45%, stand effective from April 7. The MCLR has also gone up by 10 bps from the earlier rate of 8.30% to 8.40%.

Which bank is best for home loan?

HDFC, Axis Bank, SBI, Bank of Baroda, Bank of India, Central Bank of India, HSBC Bank, IDBI Bank, Indian Overseas Bank, LIC Housing Finance, United Bank of India, IIFL, Citibank are best banks for home loan based on their current home loan rates as they offer low interest rate of 8.45%.
Best Banks for taking home loans based on processing fees are:
Syndicate Bank charges the lowest processing fees of 0.13% as a % of loan amount. IDFC Bank caps the processing fees to a maximum of Rs. 2,500 irrespective of the loan amount.

How do I get a Home Loan?

MyLoanCare works closely with its partner banks to make the process of comparing and getting loan from banks easy and convenient to its borrowers. All you need to do is to fill an online home loan application form with your loan requirements and basic personal, income and property details to get best bank offers for you. You can select the banks that meet all your requirements. Post this, the selected partner banks representative and MyLoanCare executives will work closely with you to complete the document collection, loan sanction and loan disbursal process. Our customer reviews are a testimony to MyLoanCare’s commitment to deliver superior customer service and experience.

Compare Home Loan offers for different cities in India
Home Loan News - Jun 2018
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