10 Best Home Loans in India

The demonetization move announced by the Government of India on November 8, 2016 sent prices plummeting. The demonetization took ~86% of cash out of circulation, wiping out the black money that had inflated prices in the Indian housing market. The move brought home prices down as much as 30% in some of the key markets, like Delhi-NCR. Experts are predicting the property market slowdown to be short-lived, with banks reducing interest rates and the Real Estate Regulation and Development Act 2016 (RERA) getting implemented by the states, says an article in The Hindustan Times. In fact, the increased pressure on property prices may not continue beyond 2017. With prices and interest rates down, this may be just the right time to take a home loan in India.

Best Home Loans in India

Here are ten of the best home loans in India:

SBI has a 25.50% market share in home loans, as per ICRA. As of March 15, 2017, SBI was offering two housing loan schemes.

SBI Home Loan (Term Loan)

2-yrs Fixed Interest Loans up to ₹30 lakhsFloating Rate Loans up to ₹75 lakhsFloating Rate Loans above ₹75 lakhs
For Women8.50% for first two years, floating rate thereafter8.60%8.65%
For Others8.55% for first two years, floating rate thereafter8.65%8.70%

SBI Home Loan (Max Gain)

Floating Rate Loans above ₹20 lakhs and up to ₹75 LakhsFloating Rate Loans above ₹75 Lakhs
For Women8.75%8.95%
For Others8.80%9.00%

HDFC Home Loan

HDFC has a 24.13% market share. One can apply online and get an e-approval.

Up to ₹75 LakhsAbove ₹75 Lakhs
8.50% – 9.00%8.55% – 9.05%

LIC HFL (Housing Finance Loan)

LIC has a 15.83% market share. LIC offers loans under the Pradhan Mantri Awas Yojna.

Loans from ₹10 lakhs up to ₹15 LakhsLoans above ₹15 Lakhs up to ₹20 LakhsLoans above ₹20 Lakhs up to ₹50 Lakhs
For Women8.50%8.55%8.65%
For Others8.55%8.60%8.70%

ICICI Bank Home Loan

ICICI Bank has a 13.10% market share. One can apply for a preapproved home loan.

Loans for up to 30 years
For Women8.65% – 8.80%
For Others8.70% – 8.85%

PNB HFL (Housing Finance Loan)

PNB Housing has a 6.23% market share. One can get a loan for up to 90% of the property value.

Interest Rates8.50% – 9.10%
Loan Tenureup to 30 years

IDBI Home Loan

Interest Rates9.15% – 9.20%
Loan Tenureup to 30 years
Loan AmountFrom ₹5 Lakhs up to ₹10 Crores

IDBI has a 4.67% market share. One can check out the projects that have already been approved by IDBI, for faster loan processing.

Axis Bank Home Loan

Axis Bank has a 4.22% market share. One can get a loan for up to 90% of the property value.

Interest Rates8.65% – 10.50%
Loan Tenureup to 30 years

DHFL Home Loan: Interest rate of 8.60%

Citibank Home Loan: Interest rate of 8.80% – 9.30%

What to Consider When Comparing Home Loans

Apart from the interest rate, the most important factors to consider are:

  • EMIs
  • Tenure
  • Processing fees
  • Percentage of property value covered by loan
  • Prepayment charges
  • Turnaround time of loan approval

The best home loans are those that work for you, according to your needs. Here are some more tips on how to go about getting a home loan and the best home loan rates.

About the author

Mani Karthik

Having lived in the USA, India & Middle East for over a decade, and having worked for big MNC's to startups, I have a lot to share with you. My aim is to help people, by sharing everything I've learned in life through this blog. Come join my pursuit of happiness! Be a smarter, richer, happier person. WhatsApp me at +001-408-489-4785. Subscribe to my YouTube channel here. <3

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MK Bio

Having lived in the USA, India and UAE, I share everything that I’ve learned in life. My aim is to help people by sharing whatever I know, through this blog. Come join my pursuit in becoming a smarter, richer & happier person! Here’s my story so far!