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In India, home loans are available from banks, housing finance companies and non-banking finance companies. These financial organizations have their own criteria for providing a home loan, and you have to meet them before they can give the loan. The key to choosing the best housing loan for you depends on factors like interest rate, processing fee, repayment tenure, Loan-to-Value ratio and more. You can select any money lending institute that matches your prerequisite terms based on your financial position. Moreover, ensure that you compare the financial institutions with each other before finalizing the home loan.
List of Best Home Loan Lenders in India
1) Navi Home Loans:
Unlike traditional home loan providers, Navi is a non-banking financial institution that gives instant home loans to eligible customers. The interest rate starts at 8.39% per annum with Navi home loans, and they don’t charge any processing fees for the loan. If you qualify, you can get a housing loan for up to INR 5 crores with repayment tenure of a maximum of 30 years. As one of the best home loan lenders in the market, Navi does not charge any additional fees for foreclosing the loan. The application process, documentation and eligibility criteria are straightforward, with everything done online through the Navi App.
2) State Bank of India Home Loans:
State Bank of India (SBI) is the biggest bank in the country, providing the maximum number of home loans. They give home loans at very reasonable interest rates starting from 6.95% annually and can fund you up to 90% of the home cost. This bank even has many different types of home loans for various categories of applicants like government officials, businessmen and salaried employees. Due to their wide reach and number of branches in every part of the country, you can get a home loan anywhere in India. SBI home loans charge very low processing charges and are highly affordable to every class of people.
3) HDFC Bank Home Loans:
As a pioneer in home loans, HDFC bank provides some of the best home loan offers in India. They provide home loans for rural and urban customers at attractive interest rates starting from 8.6% per annum. HDFC even provides loans for home renovations and home extensions at affordable rates of interest. The processing fees they charge start from 0.5%, and the EMI duration can range from 10 to 30 years. Home loans from HDFC bank have a minimum requirement of documentation and the option to choose the type of interest you want to pay.
4) Axis Bank Home Loans:
The interest rates that Axis Bank home loans charges range from 7.75% to 8.55% and are very competitive in the home loan market. You can even opt for a fixed rate of interest with them, it is approximately 12% per year. Furthermore, the loan repayment tenure they provide is a maximum of 30 years, and they also charge a reasonable home purchase loan processing fee of 1% from their customers. In addition, Axis Bank home loans do not charge pre-closure or prepayment charges if you have a floating interest rate on loan, and they usually process the loan within 15 days.
5) ICICI Bank Home Loans:
Home loans provided by ICICI Bank follow a completely online process of loan sanctioning. They provide loans for home purchasing for up to INR 10 crores based on your eligibility. Affordable housing project loans are even available with ICICI Bank for salaried and self-employed individuals wanting to buy or build a house for the first time. The home loan processing charges range from 0.5% to 2%, and the starting interest rate is 7.6% per annum. They also provide a fixed and variable choice of interest rates to their customers on housing loans, and if you select a variable rate, you don’t have to pay a prepayment charge.
6) LIC Housing Finance:
LIC Housing Finance is a subsidiary home loan finance company of the Life Insurance Corporation of India, providing highly affordable housing loans to people. For self-employed individuals, they give a maximum EMI tenure of 20 years, and for salaried individuals, it is for 30 years. Home loans from LIC housing finance are available from 6.9% to 8% yearly interest rates, giving a maximum INR 1 crore loan amount. They even provide home loans to pensioners at affordable rates of interest and charge a nominal fee of 0.25% for processing the loan.
7) Kotak Mahindra Home Loans:
Another bank to opt for a housing loan is Kotak Mahindra Bank, which provides excellent interest rates of 7.5% per annum onwards. Moreover, the bank gives a high loan amount of INR 10 crores to purchase a house with repayment tenures of up to 30 years. When you apply for a housing loan from Kotak Mahindra Bank, the documentation process is significantly less, and you can follow a home loan online apply procedure. They even have an instant home loan processing system with charges ranging from 0.5% to 1% of the loan amount.
8) PNB Housing Finance:
As part of the Punjab National Bank, PNB Housing Finance is a large public sector home loan provider in the country. The loans for housing purposes provided by them have attractive interest rates starting from 7.5% to 9.95% yearly. Their processing charges are also nominal at 1% of the loan amount, and the EMI duration can go up to 30 years, depending on the loan amount and your eligibility. The maximum loan-to-value ratio they provide is up to 90%, and they even have home loans tailored for government employees and defence personnel.
Conclusion
There are many factors that you have to consider before you apply for the best housing loan in the country. There are many options for getting a home loan, and they can vary from traditional banking institutions to money-lending companies that specialize in giving out housing loans. Therefore, you must compare different borrowing options and align them with your financial position and the repayment terms that suit you. Most importantly, a housing loan is a significant financial commitment, and you should choose the best loan provider.
