Most Popular Home Loan Providers in India for 2020
November 11, 2020
As per a report issued by the Financial Express in 2011, 3.3% of the Urban Population in India avails for Home Loans. Home Loans are one of the many categories that people opt for when they need to buy a property. Even if you have to purchase a property, Home Loans provides you with benefits owing to tax cut-offs.
- Benefit of liquidity
In layman terms, when you are out of money, you are helpless and end up taking financial aid in the form of a Personal/ Collateralized Loans, which may cost you a higher interest, in comparison to the interest amount of Home Loans.
- Verification led by banks
Before the banks offer you loans, they lead a way for strict protocols and guidelines, further reducing the risk. Your documents are verified, along with the title and legal clearances. On the contrary, using your own finances for your future home is a green flag, only if you are assured finances will not impact your future financial needs.
Now, Home Loans fall under different categories – Salaried and Self Employed individuals.
Below are the banks providing Home Loans for Salaried Individuals,
| Bank | RLLR | Minimum Interest Rate | Maximum Interest Rate |
| Union Bank of India | 6.80 | 6.70% | 7.15% |
| Canara Bank | 6.85 | 6.90% | 8.90% |
| ICICI Bank | 6.95 | 6.90% | 7.95% |
| SBI Term Loan | 6.65 | 6.95% | 7.45% |
Below are the banks providing Home Loans for Self employed Individuals,
| Bank | RLLR | Minimum Interest Rate | Maximum Interest Rate |
| Union Bank of India | 6.80 | 6.85% | 7.15% |
| Bank of Baroda | 7.00 | 7.00% | 8.35% |
| IDFC First Bank | 7.00 | 7.00% | 8.00% |
| Kotak Mahindra Bank | 7.40 | 7.05% | 7.30% |
Under the same, Home Loans have different rates and types,
- Fixed Rate Housing Loans
- Floating Rate Housing Loans
- Home Loans Against Property
- Home Loan Balance Transfers
- Top-up Housing Loans
- Home Renovation Loans
Owing to Fixed Rate Housing Loans,
| Banks | Interest Rate |
| Citibank | 8.75% |
| IndiaBulls | 9.25% |
| HDFC Home Loan | 9.35% |
| Axis Bank | 12.00% |
Floating Rate Housing Loans,
| Banks | Lowest Rate of Interest | Est. Monthly Pay |
| LIC Housing Finance | 8.50% | INR 24, 157 |
| Aditya Birla Capital | 8.55% | INR 24, 258 |
| Allahabad Bank | 8.60% | INR 24, 359 |
| Dena Bank | 8.60% | INR 24, 359 |
Home Loans Against Property,
| Banks | Range of Interest Rates |
| DCB Bank | 8.70% – 20.60% |
| HDFC Home Loan | 9.65% – 11.65% |
| IDBI Bank | 10.20% – 10.85% |
| SBI Home Loan | 10.35% – 11.80% |
Home Loan Balance Transfers,
| Banks | Interest Rates |
| SBI Home Loan | 8.70% |
| Bajaj Finserv | 8.85% |
| HDFC Home Loan | 9.35% |
| IIFL | 9.50% |
Top-up Housing Loans,
| Banks | Interest Rates |
| HDFC Home Loan | 8.85% |
| SBI Home Loan | 8.95% |
| ICICI Bank | 9.00% |
| Citibank | 9.25% |
Home Renovation Loans,
| Banks | Range of Interest Rates |
| Dena Bank | 8.65% – 8.75% |
| Bank of Baroda | 8.65% – 9.65% |
| Karnataka Bank | 8.70% – 9.00% |
| IOB | 8.90% – 9.05% |
With the above listed banks and Interest Rates, Why choose the SBI Home Loan and HDFC Home loans?
The HDFC Home Loan provides an EMI starting from INR 6.59 Lakh and an Interest Rate from 6.90%. Their Home Loans have been customized for salaried individuals, since they offer a significant attractive Rates of Interest and a longer tenure.
The HDFC Home Loan comes with added benefits like – expert legal and technical counselling, special arrangement with AGIF, for those employed in the Indian Army, among many others.
Documentation required for HDFC Home Loans:
- KYC documents
- Proof of Income
- Property Papers
- Other documents for Home Loan (Last 6 month bank statement, Passport size photograph of the applicant, Employment contract, Cheque for the Processing Fee and a contribution proof)
Extending a helping hand to almost 30 Lakh families in India, the SBI Home Loan provides a lower Rate of Interest, lower processing fee, no hidden charges/ prepayment penalty, with a repayment tenure of 30 years.
Documentation required for the SBI Home Loan:
- KYC documents
- Property Papers
- Account Statement
- Income Proof for Salaried Candidate
- Income Proof for Non-Salaried Candidate
Let us have a comparative analysis between the HDFC Home Loan and SBI Home Loan,
| Banks | HDFC | SBI |
| Rate of Interest | 8.00% onwards | 7.90% onwards |
| Tenure | Upto 30 years | Upto 30 years |
| Amount | Depends on the applicant’s profile & other factors | Upto 10 Crore |
| Processing Fee | 0.5% of the Loan amount | Upto 1% per annum |
| Cheque Bounce Charge | INR 200 per instance | INR 500 per instance |
| Cheque Instrument Swap Charge | INR 200 per instance | INR 500 per instance |
| Prepayment and Foreclosure Charges | NA | NA |
Choose amongst the best and make a wise choice to turn your dream home into reality.
