As per the current rates, SBI offer the lowest home loan interest rate of 8.05%. These rates can vary depending upon the value of the property and your repayment capacity. Higher the loan amount, higher will be the rate of interest.
After the latest home loan rate revision announced by SBI in 2019, new home loan interest rates start from 8.05% for home buyers as well as for those who want to transfer their loan from other banks.
Quick Guide on Home Loan
Purpose : Home loan can be used for purchasing a new house, construction of house on a plot, home improvement, extension and renovation of your existing house.
Key Features :
- Eligibility : Loan available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
- Security : Mortgage of home you are planning to purchase, renovate or construct.
- Loan Amount : In the range of ₹ 1 Lakh to ₹ 15 Cr.
- Loan to Property Value Ratio : Varies from 65% to 90%.
- Loan Tenure : Can range from 5 to 30 years.
- Interest rates : Home loan Interest Rates starting from 8.05%. Special rates for women borrowers.
- Lowest EMI : Lowest EMI of ₹ 737 per lakh.
- Processing Fees : Up to 1% of loan amount or Maximum Rs. 10,000.
- Prepayment Charges : Nil charges on floating rate home loans
- Other Charges : Legal charges, technical charges etc.
- Documents Required : Address Proof, Identity Proof, Income Documents, Property Documents.
Top Home Loan Providers : Banks and Home loan companies such as SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC, PNB Housing, DHFL, Indiabulls Home Finance.
Popular Home Loan offers : Banks offer schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Banks also offer overdraft facility to save interest on house loan. Some of the popular home loan schemes are SBI special rates for women, HDFC Reach, Axis Bank 12 EMIs offer, Bank of Baroda pre-approved loans, Indiabulls e-home loans etc.
Best Bank for Home Loan
MyLoanCare does a detailed comparison of all banks and housing loan companies on parameters of interest rates, processing fees, prepayment charges, lending process and customer service of banks on a regular basis. Based on latest schemes, the following banks should be in your consideration list for getting a house loan.
Best Home Loans in India
||Name of Bank or Home Loan Company
|Cheapest home loan in India at 8.05 - 8.1%
|Lowest EMI ₹ 737 per lakh of home loan for max loan tenure of 30 years
|Lowest Processing Fees of upto ₹ 5,000 on housing loan
||ICICI Bank, IDFC First Bank, Syndicate Bank
|Lowest Processing Fees as a percent of home loan of 0.10%
||Piramal Housing Finance
|Customer Reviews Rating of 3.5 and above
||Axis Bank, ICICI Bank, Citibank, Standard Chartered Bank, Edelweiss, GIC Housing Finance, Reliance Capital, HDFC, PNB Housing Finance, Bank of Baroda, Corporation Bank, IDBI Bank, PNB, SBI, DCB Bank, Federal Bank, Canara Bank, Central Bank of India, United Bank of India, DBS Bank, LT Housing Finance
While, all banks and HFCs in India offer multiple home loan schemes, some new schemes are quite popular in India due to their unique features and special discounted rates. Home Loan Banks like SBI, Axis Bank, Citibank, BoB and finance companies like HDFC, PNB Housing, Indiabulls are currently running many attractive schemes for housing loan borrowers. Some of the popular housing loan schemes have been captured in table below:
The table below summarises the popular types of home loans in India based on their purpose and interest rate.
How can I apply for home loan?
You can apply for loan in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also check and compare best interest rates of all banks online at MyLoanCare and apply for loan.
How can I apply home loan in my city?
Yes, you can apply home loan in your home town provided you have sufficient income to pay the EMIs on time and have good credit history. You can also compare home loan offers for different cities online at MyLoanCare and apply for the loan at lowest rates.
What is the minimum and maximum tenure of house loan?
These are generally taken for a longer period of time. The loan tenure for hosuing loan ranges from 5 years to 30 years.
What is the minimum CIBIL score required for home loan?
CIBIL score ranges from 300 to 900. A score of 650 and above is considered as good credit score to get housing loan. Higher the credit score, higher the chances to get loan approved.
How do I calculate the interest rate on my Home Loan taken some time back? Has it gone up or down?
In case your loan was taken as a fixed rate loan
- Most fixed rate loans would offer fixed interest rate for a period ranging from few months to 15 years. From your sanction letter and loan agreement, check the period for which the interest on your house loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is same as what it was originally taken at
- In case your loan has converted to floating rate, the loan agreement would specify the formula for the same. The formula may be either MCLR base rate plus a given spread (in case of banks) or PLR minus spread (in case of housing finance companies). For MCLR rate plus spread housing loan, just read the spread mentioned in the loan agreement and add it to the current MCLR rate of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective home finance company. You can find the current MCLR rate or PLR of your bank or housing finance company at Current MCLR Base Rate and PLR
What are the property documents required by Banks/HFC?
You will need to submit copies of the following property documents
- Past title chain– Conveyance deed, sales deed, allotment letter, possession letter
- Receipt of advance payment towards purchase of property in case of resale or booking with builder
- Latest property tax receipt
- Copy of approved plan for construction/ extension
Can I apply for housing loan jointly with my spouse?
Yes, you can apply home loan jointly with an earning co-applicant (either be your spouse or your parents). Adding co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.
Does it affect my co-applicant if I default in home loan?
Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.
Can I do balance transfer on house loan?
Yes, if you are getting higher interest rate and paying higher EMI than other banks, then you can opt for housing loan balance transfer and reduce your monthly burden.
Can I take top up on my existing home loan?
Yes, you can avail top up on their running house loan only if you have made timely repayment of EMIs accrued on existing home loan. The interest rate charges on a top up loans are comparatively 0.25 – 1% higher than a housing loan. The loan can be availed with minimal documentation.
Can I get a home loan with a bad credit score?
Yes, you may be eligible for qualifying a home loan even with a low CIBIL score. But, the lenders may charge a higher rate of interest on your loan and may ask you to apply for loan along with a co-applicant to improve your credit worthiness.
What are the tax benefits available on home loans?
Yes, a home loan borrower may avail tax benefit on their home loans both on the principal as well as on the interest rate on home loans:
- Tax exemption on repayment of home loan principal (under section 80C)– The individual is eligible for a maximum annual tax deduction of Rs. 1,50,000 (Rs. 2 lakh for senior citizens).
- Tax benefit on the interest rate for home loan (under section 24):– The individual can avail the tax benefit on the amount of interest paid on their housing loan to the maximum limit of Rs. 2 lakh (Rs. 3 lakh for senior citizens) for a self-occupied property.