TOP 10 LENDERS FOR HOME LOAN IN INDIA – 2023
When it comes to purchasing a home, a home loan can be a crucial financial tool that helps turn your dream into reality. In India, a plethora of lenders/banks offer home loan options to cater to the various needs and preferences of potential homeowners. With numerous choices at hand, it becomes vital to pinpoint the optimal home loan in India that aligns with individual financial requirements and presents advantageous conditions. This determination holds the potential to substantially influence the total expenses of owning a home, encompassing elements like interest rates, processing fees, and additional charges linked to the loan.
TOP 10 LENDERS FOR HOME LOANS
Here is a list of top home loan lenders in India for the year 2023:
| SR.NO. | LENDERS | INTEREST RATE (per annum) | PROCESSING FEE |
| 1 | Aditya Birla Capital | 8.80% – 14.75% | 1% of the loan amount + Taxes |
| 2 | ICICI Bank | 9.00% – 10.05% | 0.50%of the loan amount + Taxes |
| 3 | Axis Bank | 8.75% – 9.15% | 1% of the loan amount |
| 4 | HDFC Bank | 8.50% – 9.15% | 0.5% or Rs. 3000 whichever is higher |
| 5 | SBI Bank | 8.50% – 10.15% | 0.35% – 0.50%* |
| 6 | Punjab National Bank | 8.75% – 14.50% | 1% of the loan amount + Taxes |
| 7 | Bank of Baroda | 8.60% – 10.60% | 0.25% – 0.50% |
| 8 | Kotak Mahindra Bank | 8.75% – 9.60% | 0.50% – 1.00% of the loan amount + Taxes |
| 9 | TATA Capital | 8.70% onwards | 0.50% + Taxes |
| 10 | Union Bank of India | 8.50% – 10.95% | 0.50% + Taxes |
(Interest Rates as of 14th August 2023
The figures in the table are subject to potential alterations. Kindly verify these details with the relevant lender prior to initiating your loan application.)
THE TOP PICKS
1. ADITYA BIRLA CAPITAL
Aditya Birla Capital stands out in the realm of home loans due to its provision of appealing interest rates for loan tenures extending up to 30 years. Furthermore, their loan processing is characterized by swiftness and transparency, complemented by minimal prepayment fees for floating interest rates. To add to its merits, the institution also extends doorstep services for added convenience.
Types of Aditya Birla Capital Home Loans:
- Home Loan
- Home Extension Loan
- Home Improvement Loan
- Plot and Home Construction Loan
- Home Construction Loan
- Aditya Birla PMAY and Affordable Housing
2. ICICI BANK
ICICI Bank is renowned for its straightforward documentation process, prompt approvals, and competitively low-interest rates. Their offerings encompass loans for home purchase, construction, renovation, and top-up home loans. Interest calculations are based on a declining monthly balance, whereby the principal is established at the end of each month, influencing the subsequent interest calculation. By making a partial payment today, the interest accrued on your loan will decrease starting from the 1st day of the ensuing month.
Types of ICICI Bank Home Loans:
- ICICI Housing Loan
- Instant Home Loan
- Express Home Loans
- Extra Home Loan
- Pre-Approved (Instant) Balance Transfer
- Balance Transfer and Top-up
- Pratham Home Loans
- Land Loan
- NRI Home Loan
- Insta Home Loan Overdraft
- Insta Top-up Loan
3. AXIS BANK
Axis Bank offers home loans starting at Rs. 3 lakh, covering house purchase, construction, and top-up loans. Their home loans feature 10- to 30-year terms with floating and fixed interest rates. High-value loan clients enjoy EMI Holidays, including a 6-month EMI break after 10 and 15 years for Fast Forward Home Loan borrowers, subject to consistent payment history.
Types of Axis Bank Home Loans:
- Axis Bank Housing Loan
- QuikPay Home Loan
- Shubh Aarambh Home Loan
- Fast Forward Home Loan
- Asha Home Loan
- Super Saver Home Loan
- Power Advantage Home Loan
- Axis Bank Happy Ending Home Loan
- Top-Up Home Loan
4. HDFC BANK
HDFC is renowned for meticulous property document verification. Benefit from door-to-door consultations with HDFC loan experts or apply online and submit documents. Competitive interest rates accompany HDFC home loans, which are suitable for various purposes like home purchase, land acquisition, construction, home improvement, and property expansion.
Types of HDFC Bank Home Loans:
- Union Home Loan
- Union Awas
- Union Home-Smart Save
- Pradhan Mantri Awas Yojna (PMAY)
- Union Ashiyana Personal Loan Scheme
- Union Ashiyana Overdraft Scheme
5. STATE BANK OF INDIA
SBI employs an exceptionally rigorous property verification process, ensuring authenticity and minimizing future legal complications. Home loan options encompass construction, renovation, and top-up loans. SBI’s home loan interest rates are notably competitive. Daily, the principal is recalculated, influencing interest computation, allowing partial payments to decrease the following day’s interest expense. The bank extends specialized home loan products for defense personnel, government employees, non-salaried individuals, ‘green’ home buyers, and residents of hilly/tribal regions. SBI home loan benefits encompass interest rate reductions for women borrowers, overdraft and balance transfer facilities, step-up loans, and more.
Types of SBI Home Loans:
- SBI Home Loan
- SBI Home Loan Balance Transfer
- NRI Home Loan
- Flexipay Home Loan
- Privilege Home Loan
- Shaurya Home Loan
- Pre-approved Home Loan
- Realty Home Loan
- Top-up Home Loan
- SBI Bridge Home Loan
- YONO Insta Home Top-up Loan
- Home Loan to Non-Salaried- Differential Offerings
- SBI Tribal Plus
6. PUNJAB NATIONAL BANK
Punjab National Bank stands out with its competitive home loan interest rates, positioning it among the finest choices for home loans in India. Experience swift and straightforward loan approval and disbursal procedures. In the case of building a home, PNB allows loan increments to accommodate rising construction costs.
Types of PNB Home Loans:
- Housing Loan for Public
- PNB Max Saver
- PNB Pride Housing Loan for Government Employees
- PNB Gen-Next Housing Finance Scheme for Public
7. BANK OF BARODA
Following the amalgamation with Dena Bank and Vijaya Bank in April 2019, Bank of Baroda, headquartered in Vadodara, emerged as India’s third-largest bank, trailing only SBI. It offers premier home loan solutions. Established in 1908 under the patronage of the Maharaja of Baroda, the bank, along with 13 other prominent commercial banks in India, was nationalized on July 19, 1969. Presently, it boasts a vast network of over 9,688 branches across India and around the world.
Types of BOB Home Loans:
- Baroda Housing Loan
- Baroda Home Loan Advantage
- Baroda Home Loan Takeover Scheme
- Home Improvement Loan
- Baroda Pre-Approved Home Loan
- Baroda Top-up Loan
- Pradhan Mantri Awas Yojna
8. KOTAK MAHINDRA BANK
Under the leadership of Uday Kotak, the banking group operates a network of over 100 branches across India and is an ascending force among private lenders. Kotak Mahindra currently offers the market’s most competitive home loan interest rates. As of 2023, it ranks as India’s fourth-largest private-sector bank based on assets and market capitalization. With a widespread presence of 1,780 branches and 2,963 ATMs, the bank is renowned for its attractively low interest rates, solidifying its position as one of India’s prime options for home loans.
Types of Kotak Mahindra Bank Home Loans:
- Kotak Housing Loan
- Home Loan Balance Transfer
- Home Improvement Loan
- NRI Home Loan
- NRI Home Improvement Loan
9. TATA CAPITAL
Tata Capital is among the best home loan lenders and offers home loans with budget-friendly interest rates, specifically customized for hassle-free home purchases or construction. These loans provide the freedom to select your preferred loan amount, tenure, and EMIs to suit your unique needs. Furthermore, Tata Capital streamlines the process by requiring minimal documentation, ensuring swift and instant loan approval.
Types of TATA Capital Home Loans:
- Home Extension Loan
- Affordable Housing Loan
- Home Loan Overdraft
- Home Loan for Self-Construction
- Home Balance Transfer
- Home Loan Top-Up
- TATA Capital Home Loan for Government Employees
- TATA Capital Home Loan for Self-Employed
- TATA Capital Home Loan for Women
10. UNION BANK OF INDIA
Union Bank offers a range of loans encompassing purchases of both old and new residential properties, plots, construction, and renovations, all without requiring additional top-ups. Additionally, the bank provides the option for house loans to complete residential units that are still under construction. Notably, the cost of acquiring a solar power panel during the process of purchasing or building a house is also covered within Union Bank’s home loan offerings.
Types of Union Bank Home Loans:
- Union Home Loan
- Union Awas
- Union Home-Smart Save
- Pradhan Mantri Awas Yojna (PMAY)
- Union Ashiyana Personal Loan Scheme
- Union Ashiyana Overdraft Scheme
CONCLUSION
Lenders follow varying criteria, necessitating a thorough analysis before embarking on a home loan application in India. Choose a home loan that aligns with your specific needs, repayment capacity, and financial flow. It’s essential to ensure that lenders transparently outline the covered expenses under the loan. Generally, registration and stamp duty fees, annual maintenance charges, and clubhouse fees are not financed by lenders. Therefore, finding a lender that funds your required amount while providing straightforward approval and repayment options is of utmost importance.
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