top 10 best home loans banks list in india

10 Best Banks for Home Loan in India 2020

Home-Loan

Last Updated on 14/09/2020 by NM Staff

A home loan is financial assistance taken from a bank or NFBC so that you can fulfil your dream of buying a house.

Before you finalize a bank for availing a home loan, you must consider factors like the interest rates they offer, processing fee, LTV ratio, prepayment, pre-closure charges, and other charges, etc.

You need to research extensively because every lender and every loan product might not be suitable for your needs. You need to take your loan amount requirement, repayment capacity, cash flow, etc. into consideration before finalizing a home loan.

If you are looking for a home loan, then this article is for you. In this blog, We have shared details about the 10 Best Banks for Home Loan in India 2020.

Bank NameFixed Interest RateFloating Interest RateProcessing FeePre-Closure ChargesPart-payment ChargesLoan AmountTenure
ICICI Bank Home Loan9.9% – 10.25%9.15% – 9.6%0.50% – 1.00% of the loan amount or INR 1,500, whichever is higherNil (Floating Rate Loans) 2% (Fixed Rate Loans)Nil.INR 5 lakhs to INR 10 crores3 to 30 years
State Bank of India Home Loan8.7% – 9.1%Up to INR 10,000NilNil1 to 30 years
HDFC Bank Home Loan9.3% – 10.05%8.8% – 9.55%0.50% or INR 3000, whichever is higherNil (If Paid from own sources) 2% (If refinanced)NilINR 5 lakhs to INR 10 crores1 to 30 years
Axis Bank Home Loan0.128.85% – 9.1%Up to INR 10,000Nil (Floating Rate Loans) 2% (Fixed Rate Loans)2% for fixed-rate home loansINR 5 lakhs to INR 10 crores1 to 30 years
Dewan Housing Finance Ltd. (DHFL)9.0% – 11%INR 5,000 to INR 20,000 (depends on the loan amount)Rs. 5,000 + GSTPart-payment restricted for the first 6 months. No charges for part payment then onwards.Up to INR 30 lakhs or above* (90% of the property value)Up to 25 years
Indiabulls Home Finance9.25% – 11.2%8.8% – 11%0.5% -1% for home loans above INR 30 lakhs and INR 10,000 for the restNil (Floating Rate Loans) For fixed rate:
1.      Nil (If Paid from own sources)
2.      2% (If refinanced)
NilINR 2 lakhs to INR 3 crores1 to 30 years
LIC Housing Finance Home Loan8.7% – 9.05%0.5% of the loan up to a maximum of INR 10,000NilNilINR 30 lakhs to INR 5 crores5 to 30 years
PNB Housing Finance8.99% – 11.5%9.5% – 12.0%0.35% of the loan amount (minimum of INR 2,500 and maximum INR 15,000)Nil (Floating Rate Loans)NilINR 8 lakhs (minimum)1 to 30 years
Bank of Baroda Home Loan8.65% – 11.25%INR 7,500 (Fixed)NilNilINR 1 lakh to INR 2 crores30 years
Aditya Birla Capital Home Loan9.0% – 12.5%INR 5,000 to INR 10,000 (depends on the loan amount)Nil (Floating Rate Loans) 2% (Fixed Rate Loans)NilINR 20 lakhs to INR 10 crores1 to 30 years

Table: Details of 10 best banks for a home loan in India 2020

 Top 10 Banks For Home Loan in India 2020

1. ICICI Bank

Famed for simple and easy documentation process, fast approvals and best interest rates.

Interest Calculation Process: Interest is charged on your monthly reducing balance, which means that a part of the principal paid now will lead to a lesser interest paid with effect from the 1st of next month.

Unique Offer: If the first applicant of the house loan is a woman, then a special reduction is given on the interest rate. You could also make a non-working, female partner as the first applicant to avail lower rate of interest.

You can keep your interest rate fixed for the starting 24 or 36 months if you have opted for a floating rate home loan.

Pros:

  • You can make your non-working female partner as a co-borrower and avail decreased rates of interest
  • The processing of loans is quick.
  • The processing fee for the loan amount is lower.
  • Door-step services for free.

Cons:

  • If your EMI increases once, then you cannot decrease it even if you have made plenty of part-payments

You may also like: Personal Loan Interest Rates

 2. State Bank of India

You can get only floating rate home loans from SBI besides the SBI Maxgain loan. They also charge interest on daily reducing balance.

Unique Offer: SBI offers an SBI MaxGain Home Loan (Overdraft facility). Here, the loan is offered against the surplus cash you have in your Savings Account. Hence, t he interest paid will be reduced since the account balance becomes the principal component.

Pros:

  • The assessment of the property is stringent.
  • Charges are transparent.
  • There is no pre-payment penalty.
  • Interest rates are attractive
  • Interest is calculated on your daily-reducing loan amount.

Cons:

  • Approval of the loan is slow

You may also like: A Comprehensive Home Loan Guide

3. HDFC Bank Home Loan

HDFC is well known for its stringent verification of the property, door-step services, easy application procedure, and competitive interest rates.

Unique Offer: They don’t have any fixed-rate home loan services. Instead, they offer a “TruFixed” home loan wherein you can keep the interest rate fixed for the initial 24 months.

Pros:

  • Transparent charges
  • Multiple loan repayment options available.

Cons:

  • None

You may also like: Bank Merger In India: Check Benefits & Bank Mergers List

 4. Axis Bank

Axis Bank offers home loans at competitive interest rates but the processing fees remain fixed regardless of the principal loan amount.

Unique Offer: They offer Fast Forward Home Loans wherein you get up to 6 months EMI holiday upon completion of 10 years loan tenure and yet another 6 months upon completion of 15 years. But your repayment track record needs to be clean.

Pros:

  • Loans as low as INR 3 lakhs are also issued

Cons:

  • There are several charges such as those for the credit report, document retrieval,, etc.

 5. Dewan Housing Finance (DHFL)

DHFL has one of the least complicated and fastest loan disbursals. They calculate the interest on a monthly-reducing basis and they offer home loans on floating rates only.

Pros:

  • Easier to get a loan for properties that do not carry clear titles.

Cons:

  • You cannot get top-up loans.
  • The property verification procedure is not quite stringent.

6. Indiabulls Home Finance

Indiabulls offers a dual-rate loan known as “Fixed and Floating Rate Loans” wherein the interest rate is fixed for the initial 2 years of your loan repayment tenure. They are your best option if you want to buy properties with incomplete documentation or an unclear inheritance path.

Unique Offer: They offer an innovative product called eHome Loans where the entire loan procedure is automated.

Pros:

  • They have an eHome loan product that is advantageous for those who don’t have enough time for loan formalities and visiting the bank branch.
  • The loan amount will fund 90% of the property value if it happens to be less than 30 lakhs.

Cons:

  • The application procedure is slow and the customer service is not quite up to the mark.

7. LIC Housing Finance

LIC provides loans for house purchases, construction and home extension too. You can also avail top-up loans on certain conditions and the interest is calculated on a monthly reducing basis.

Pros:

  • Extremely low-interest rates
  • There are no pre-closure and prepayment charges.

Cons:

  • The entire loan application, approval and disbursement procedure is done manually.
  • They don’t provide the option to generate a statement online or see the loan details online.

8. Punjab National Bank Housing Finance

PNB Housing Finance offers a wide range of loans on the purchase, construction, extension, and improvement of loans. But, they don’t offer top-up loans.

Unique Offer: You could also ask for enhancement of your sanctioned loan if the cost of home construction increases.

Pros:

  • If you take up a loan for home construction, then you can ask for increasing the loan amount if your cost of construction increases.

Cons:

  • The loan processing is slow.
  • Don’t offer top-up loans

9 Bank of Baroda

Bank of Baroda offers home loans at low-interest rates and your loan will get approved before you have finalized your home.

Unique Offer: They have a product called Home Loan advantage and through this, you can store your savings in a savings account linked to your loan account. The amount in the savings account is treated as paid principal and your outgoing interest will, as a result, reduce.

Pros:

  • You can receive a free credit card and a concession of 0.25% for car loans. They also offer free accident insurance with each home loan.
  • Loan amount as low as INR 2 lakhs can be issued.

Cons:

  • The application procedure is slow.

10. Aditya Birla Capital

They are reputed for speedy loan application processing and low-interest rates. But, they do not offer top-up loans. Also, you can avail of doorstep services, in case you cannot visit the branch.

Pros:

  • They provide low-interest rates and doorstep services.
  • No pre-payment charges.
  • You can also avail of the Balance Transfer Option.

Cons:

  • They don’t offer top-up loans.

1 thought on “10 Best Banks for Home Loan in India 2020

Comments are closed.