Most Popular Home Loan Providers in India for 2020

Most Popular Home Loan Providers in India for 2020

November 11, 2020 Off By admin

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,

  1. Fixed Rate Housing Loans
  2. Floating Rate Housing Loans
  3. Home Loans Against Property
  4. Home Loan Balance Transfers
  5. Top-up Housing Loans
  6. 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,

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.