Last Updated on 26/02/2022 by Deepak Singla
The expansion of housing and housing financing businesses in India reflects the country’s booming housing sector. In India, the real estate business is the second greatest source of employment. The housing finance market in India has, without a question, undergone extraordinary structural upheaval since its inception.
A housing finance company (HFC) is a type of non-banking financial company (NBFC) that specializes in providing housing loans. The housing finance business in India has seen exceptional expansion from being a government-provided service to private actors entering the housing finance sector, thanks to the growth of large HFCs providing housing loans to home buyers.
Customers can get a home loan from housing finance providers. As you are aware, the cost of real estate is soaring, making it difficult to buy a home without taking out a mortgage. If you want to buy a property, you have several possibilities. You can get a home loan from a bank or a housing financing company. Housing finance serves as a conduit for funding, allowing ambitious homeowners access to the housing market.
Read more: Pradhan Mantri Awas Yojana, Benefits Eligibility
Housing finance in India has progressed from being a solely government-provided business in the 1970s to a highly competitive industry with over 45 housing finance firms providing housing loans of Rs 781,000 million to home buyers across the country.
Here is the list of Top 10 Housing finance companies in India –
10. Housing Development Finance Corporation Limited
Housing Development Finance Corporation Limited (HDFC) is a Mumbai-based Indian financial services organization. It is India’s largest housing finance company. Banking, life and general insurance, asset management, venture capital, real estate, education, deposits, and education loans are all areas where it operates.
It was established in 1977 with the help of India’s business community as India’s first specialized mortgage firm and the flagship of the HDFC group of companies. The Industrial Credit and Investment Corporation of India promoted HDFC (ICICI). Hasmukhbhai Parekh was instrumental in the establishment of this company, which was founded with the primary goal of alleviating India’s housing need.
Individuals and businesses can get housing financing from the corporation for the purchase or development of residential homes. Loans for the acquisition and construction of residential units, land, home repair loans, home extension loans, non-residential premise loans for professionals, and loan against property are among the types of loans given by the organization. Repayment choices include step-up repatriation.
7.9 million Housing loans totaling Rs.5.4 trillion have been serviced by the company. HFC Home Loans offers a powerful distribution network of 588 interconnected locations, so you can rely on them for a quick and painless financing solution for your dream home. The lender is active in Asia, Africa, and Eastern Europe. HDFC HFL Home Loans are provided to both salaried and self-employed people. The cheapest HDFC Housing Home Loan EMI is presently Rs. 659 per lakh, with interest rates starting at 6.90 percent per annum. The loan can be taken out for up to 30 years, and the applicant must be between the ages of 18 and 65. 16.10 percent is the retail prime lending rate.
- Total Revenues: Rs 109,052 Crores
- Profit : $21,013 million
- Market capitalization: 422,652 crores
- 15.95 percent return on investment
- 3 year sales growth :21.60 percent
- The promoter owns 0.00% of the company.
- 2.17 debt-to-equity ratio
- 3.37 price to book value
The HDFC home loan interest rates are listed in the table below –
|Loan Amount||HDFC Home Loan Floating Rate||Rate For Female Borrower|
|Upto 30 Lakh||6.80%||6.75%|
|30 Lakh – 70 Lakh||7.05%||7.00%|
|70 Lakh – 2 Cr||7.05%||7.00%|
|Above 2 Cr||7.15%||7.10%|
Home Loan Products: HDFC offers a variety of home loan products, which are listed below:
- Plot loan TruFixed
- HDFC Home Improvement Loans
- HDFC Home Extension Loan
- HDFC Plot Loans
- HDFC Short Term Bridging Loan
- Rural Housing Finance
- HDFC Reach Home Loans
- HDFC Home Loan Top Up
9. PNB Housing Finance Limited
PNB Housing Finance Limited (PNB Housing) is a National Housing Bank-registered housing finance company (NHB). It was formed under the Companies Act of 1956 and began operations on November 11, 1988. Punjab National Bank promotes PNB Housing (PNB). In November 2016, the Company issued a public offering of equity shares. With effect from November 7, 2016, its equity shares are listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). First Housing loans and loan against property are among the company’s product offerings, and it also has a license to take public deposits.
On March 30, 2019, Punjab National Bank stated that it had reached a deal to sell a 13.01 percent share in PNB Housing Finance to General Atlantic and Varde Partners for 1,851.60 crore.
As of December 31, 2018, PNB HFL’s shareholding pattern consisted of 32.7 percent PNB BANK (PROMOTER/Parent) and 32.3 percent Quality investment holding (QIH), with the remainder made up of FII, public, mutual fund firms, corporate organizations, and others.
As of March 31, 2018, the organization had a presence in more than 60 sites across India, thanks to a network of 84 branches and 36 outreach offices. New Delhi, Bengaluru, Chandigarh, Chennai, Noida, Jaipur, Dehradun, Lucknow, Kolkata, Cochin, Coimbatore, Mumbai, Thane, Pune, Ahmedabad, Indore, and Hyderabad are among the company’s 21 hubs that support branch operations.
The company’s Direct Sales Team (DST) channel provides doorstep assistance for its products. Apart from DST, the company gets its Home Loan and Loan against Property business from Direct Marketing Associates (DMA) and Digital Medium. Fixed Deposits can also be obtained through the Broker Network, in addition to the direct channel.
The loans have interest rates as low as 7.50 percent per annum. Both Indians and non-resident Indians are eligible to apply. You can apply for a loan either online or offline, depending on your preference. The Home Loan is available in amounts ranging from Rs 20 lakh to Rs 20 crore. PNB Unnati Home Loan is a house finance initiative for low-income people. To apply for a PNB HFL Home Loan, the consumer must be at least 21 years old.
- 8,623 crore rupees in total sales
- Profit: $1,348 million
- Market capitalization: $7,298 million.
- 15.45 percent return on investment
- Growth in sales over three years: 40.49 percent
- Promoter ownership: 32.66 percent
- Debt-to-equity ratio: 6.76
- 0.91 price to book value
PNB Housing Finance Interest Rates on Home Loans are listed below –
|Loan Amount||PNBHFL Home Loan Floating Rate|
|Upto 30 Lakh||7.35%|
|30 Lakh – 50 Lakh||7.35%|
|50 Lakh – 1.50 Cr||7.70%|
|Above 1.50 Cr||7.70%|
Products for Home Loans: The following are the various home loan products offered by PNB Housing Finance:
- Residential Plot Loans
- Unnati Home Loan
3. LIC Housing Finance Company Limited
LIC Housing Finance Limited (LIC HFL) is one of India’s leading housing finance and mortgage loan organizations, with its headquarters in Mumbai. LIC HFL is a wholly owned subsidiary of LIC. The company’s main goal is to provide long-term financing to individuals for the purchase or building of residential houses or flats; it also provides funding for the repair and refurbishment of existing flats and homes.
The NBFC also offers existing property financing for commercial and personal requirements, as well as loans to professionals for the acquisition or building of clinics, nursing homes, diagnostic centres, office space, and equipment. The company is well-known for providing long-term financing to people who are in the business of building houses or flats for people to live in.
The company was established on June 19, 1989, in accordance with the Companies Act of 1956. It was founded in 1994 and is marketed by the Life Insurance Corporation of India. In 2004, the first global depository receipt (GDR) was issued.
The Company’s authorized capital is Rs.1500 million (Rs.150 crore), with a paid-up capital of Rs.1009.9 million (Rs.100.99 crore). The company is registered with the National Housing Bank and is listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange Limited (BSE), with its shares only being traded in Demat format. The Luxembourg Stock Exchange is where the GDRs are traded.
The maximum loan term available is 30 years, or until the borrower reaches 60 years of age at the time of repayment. Home loans from LIC HFL start at 6.90 percent. The loan amount ranges from Rs. 20 lakh to Rs. 5 crore. 0.25 percent of the loan amount is charged as a processing fee with 273 marketing offices across India, one of the most extensive marketing networks in the industry.
To serve Non Resident Indians in the GCC countries of Bahrain, Dubai, Kuwait, Qatar, and Saudi Arabia, the company has established Representative Offices in Dubai and Kuwait. The Company now boasts a proud membership of over 26 lakh responsible home owners.
- 18,917 crore rupees in revenue
- Profit: $2,681 million
- 21,919 crores in market capitalization
- 15.89% return on investment
- Growth in sales over three years: 11.67 percent
- Promoter ownership: 40.31 percent
- Debt-to-equity ratio: 9.77
- 1.27 price to book value
The table below shows the different LIC home loan interest rates according on the amount of the loan:
|Loan Amount||LIC Housing Finance Home Loan Floating Rate|
|Upto 50 Lakh||6.90%|
|50 Lakh -1 Cr||6.90%|
|1 Cr – 3 Cr||6.90%|
|Above 3 Cr||6.90%|
4. Indiabulls Housing Finance Limited
Indiabulls Housing Finance Limited, located in Gurugram, Haryana, India, is a mortgage lender. The National Housing Bank regulates it as India’s second largest housing finance company. It is part of Sameer Gehlaut’s Indiabulls group and accounts for over 80% of the company’s revenue.
Indiabulls Housing Finance’s board of directors approved a merger with Lakshmi Vilas Bank, a private sector bank, on April 5, 2019. Shareholders of Indiabulls will own 90.5 percent of the merged firm, which will be known as Indiabulls Lakshmi Vilas Bank, while LVB will own the remaining 9.5 percent. For the first nine months of the year, the combined business will have a net worth of 19,472 crore and a loan book of 1,23,393 crore.
In 2016, Indiabulls Housing Finance announced a $100 million investment in innovative technology platforms, making it the first mortgage company in India to complete end-to-end digitization of loan sanctions. The company partnered with the Centre for Development of Advanced Computing and the Unique Identification Authority of India to provide e-signing using PAN and Aadhar numbers.
In 2015, Indiabulls Housing Finance paid £66 million for a 40% stake in London-based OakNorth Bank, making it the bank’s largest shareholder. OakNorth Bank was created by serial entrepreneur Rishi Khosla and specializes in lending to small businesses. A branch office of Indiabulls is also located in Dubai, United Arab Emirates. It offers loans to non-resident Indians in the UAE who want to buy property in India. The company employs about 8,100 people, with more than half of them working in customer service and sales.
It has flexible repayment structure with 8.99%. The rate of interest will vary as per customer profile, valuation of property, loan amount, tenor etc. The processing fee is up to 2% of the loan amount. To qualify for an Indiabulls Home Loan, the borrower must be between the ages of 21 and 65.
- Rupees 15,997 in total sales
- 3,503 million dollars in profit
- 12,923 crores in market capitalization
- Return on investment (ROI): 26.53 percent
- Growth in sales over three years: 22.67 percent
- The promoter owns 21.52 percent of the company.
- Debt-to-equity ratio: 5.33
- 0.76 price to book value
The following table shows the various indiabulls home loan interest rates dependent on the loan amount:
|Loan Amount||Indiabulls Home Loan Floating Rate|
|Upto 30 Lakh||9.25%|
|30 Lakh – 75 Lakh||9.50%|
|75 Lakh – 1 Cr||9.99%|
|Above 1 Cr||9.99%|
Home Loan Products: home loan products as offered by Indiabulls are mentioned below:
- Indiabulls e-home loans
5. India Infoline Holding Company Limited
IIFL Holdings Limited (previously India Infoline Limited), sometimes known as IIFL or India Infoline, is a Mumbai-based diversified financial services firm. Nirmal Jain is the founder of the organisation. Prem Watsa, a Canadian investor, General Atlantic, a private equity firm, and CDC Group, the UK government’s private equity arm, all support IIFL and its group firms. In terms of market capitalization, IIFL is among India’s top seven financial conglomerates and the leading independent financial services firm. The group’s chairman is Nirmal Jain, while the group’s managing director and co-promoter is R Venkataraman.
The Indian dotcom business had a downturn in 2001. Sustaining became difficult during this time. The company then decided to partner with ICICI Prudential, a renowned life insurance firm, to utilize its distribution network and become India’s first corporate representative for insurance.
Today, IIFL Holdings Limited is India’s largest integrated financial services company, with a diverse range of operations including non-banking and housing finance, wealth and asset management, broking, financial product distribution, investment banking, institutional equities, and real estate and property advisory services.
IIFL offers house loans with rates as low as 8.45% for terms up to 30 years. On the home loan, it additionally charges a processing fee of up to 1.25 percent. Borrowers must be at least 18 years old to qualify for a home loan.
The table below shows the various home loan interest rates dependent on the amount of the IIFL home loan:
|Loan Amount||IIFL Home Loan Floating Rate|
|Upto 28 Lakh||8.45%|
|28 Lakh – 75 Lakh||8.45%|
|75 Lakh – 2 Cr||8.45%|
|Above 2 Cr||8.45%|
Types of home loan products as provided by IIFL are mentioned below:
- New Home Loan
- Swaraj Home Loan
- Home Improvement Loan
- NRI Home Loan
- Balance Transfer
6. TATA Capital Home Finance Company Pvt. Ltd
Tata Capital Limited is an Indian financial and investment services company. The company is headquartered in Mumbai and has over 100 locations throughout the country. Consumer loans, wealth management, business finance, and infrastructure finance are among the services provided by the company.
The Reserve Bank of India (RBI) has designated the company as a Systematically Important Deposit Accepting Non-Banking Financial Company. Commercial finance, investment banking, consumer loans, private equity, treasury advising, and credit cards are among the services offered by Tata Capital. TCFSL, a completely owned company, serves corporate, retail, and institutional customers.
It provides Indian residents with home loans up to Rs 5 crore and NRI applicants with loans up to Rs 10 crore. The Home Loans are custom-made to meet the demands of the consumer. The Home Loan can be used to purchase a plot of land for the building of a new home or apartment, or to extend or improve an existing property. Tata Housing Home Loans are accessible at as low as 7.50 percent p.a. for a limited time. The final interest rate will be determined by your profile. The processing cost has also been reduced, and it is now only 0.20 percent of the sanctioned amount. With Tata Capital, you can get a loan for up to 30 years.
The following table shows the various Tata Capital home loan interest rates dependent on the loan amount:
|Loan Amount||Tata Capital Home Loan Rate|
|Upto 30 Lakh||6.90%|
|30 Lakh – 75 Lakh||6.90%|
|75 Lakh – 50 Lakh||6.90%|
|Above 50 Lakh||6.90%|
Products for Home Loans: The following are the various home loan products offered by Tata Capital:
- New Home Loan
- Home Expansion Loan
- Balance Transfer
7. Piramal Housing Finance Company Limited
PCHFL is another well-known HFC that may help you finance your dream home with ease. The Piramal Group is a multi-billion dollar worldwide corporation with interests in healthcare, life sciences, drug research, healthcare information management, financial services, and real estate.
Piramal Capital and Housing Finance Limited offers funding up to 90% of the property value to salaried individuals, self-employed individuals, and non-individual businesses. The interest rates on home loans are tied to the Retail Prime Lending Rate (RPLR) and fluctuate in response to changes in the RPLR. Piramal Capital & Housing Finance Interest Rates start at 9.75 percent per annum, while Retail Prime Lending Rates start at 16.55 percent per annum (effective from January 2020). On a home loan with a maximum term of 30 years, it also charges a processing fee of up to 0.10 percent. Borrowers must be at least 23 years old to qualify for a house loan.
The following table shows the different Piramal house loan interest rates dependent on the loan amount:
|Loan Amount||Piramal Housing Home Loan Floating Rate|
|Upto 50 Lakh||9.00%|
|50 Lakh – 75 Lakh||9.00%|
|75 Lakh – 30 Lakh||9.00%|
|Above 30 Lakh||9.00%|
Products for Home Loans: The following are some of the home loan options offered by Piramal Housing Finance :
- Home Purchase Loan
- Home Construction Loan
8. General Insurance Company (GIC) Housing Finance Limited
GIC Housing Finance Limited was founded on the 12th of December 1989 as GIC Grih Vitta Limited. The name was changed to its current name on November 16, 1993, when a new Certificate of Incorporation was obtained. GICHFL’s principal activity is issuing housing loans to people and persons/entities involved in the construction of residential houses/flats. GICHFL has always felt that its success and expansion are contingent on adhering to fair and ethical lending policies that benefit customers while also generating income for its stockholders.
General Insurance Corporation of India and its former subsidiaries, National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited, and United India Insurance Company Limited, are all shareholders in the company.
GICHFL has 75 offices across the country, each with a robust marketing team and Sales Associates to support them (SAs). It has partnered with builders to give individual borrowers with financing.
They provides several benefits like wide range of home loan products, free property insurance, free accidental death Insurance, life Insurance cover, Competitive interest rate, Balance transfer facility, upto 30 years of repayment. The current GIC Housing Finance housing loan interest rate starts at 7.45 percent per year. The real return on a home loan is calculated based on the loan amount, the borrower’s income profile, repayment capability, liabilities, and credit score.
GIC Housing Finance offers a house loan at an interest rate of 10.25 percent. On its home loan, it also charges a processing fee of up to Min 2,500 and It charges 2% of processing fee. Applicants for a house loan from GIC Housing Finance must be between the ages of 21 and 60 for salaried candidates and 65 for self-employed applicants.
The following table shows the various GIC home loan interest rates dependent on the loan amount:
|Loan Amount||GIC Housing Finance Home Loan Floating Rate|
|Upto 25 Lakh||10.25%|
|25 Lakh – 75 Lakh||10.25%|
|75 Lakh – 1.50 Cr||10.25%|
|Above 1.50 Cr||10.25%|
Products for Home Loans: The following are some of the home loan packages offered by GIC Housing Finance:
- Individual Housing Loans
- Composite Housing Loans
- Repairs and Renovation Loans
- Home Extension Loans
- Pradhan Mantri Awas Yojana
9. Sundaram Home Finance Company Limited
Sundaram Finance Limited, situated in Chennai, is an Indian financial and investment services firm. Consumer loans, wealth management, commercial finance, investment banking, private equity, treasury advising, credit cards, and infrastructure finance are some of the services provided by the organization.
In 1954, Sundaram Finance Limited was founded. The Reserve Bank of India (RBI) has designated the company as a Systematically Important Deposit Accepting Non-Banking Financial Company. The company has a market valuation of 26,000 crore and operates through over 640 locations across the country as of December 2017.
Sundaram Finance demerged its non-financial investments in the automotive and manufacturing industries into Sundaram Finance Holdings Limited in 2017–18. (SFHL). Sundaram Clayton, Turbo Energy, Wheels India, Brakes India, and Axles India are among the TVS Group enterprises in which SFHL has a minority investment.
Sundaram House Finance offers home loans with interest rates as low as 6.95 percent and processing fees as low as NIL. Borrowers must be at least 21 years old to qualify for a Sundaram home loan.
Sundaram house loan interest rates vary depending on the loan amount, as shown in the table below:
|Loan Amount||Home Loan Rate|
|Upto 30 Lakh||6.95%|
|30 Lakh – 75 Lakh||7.00%|
|75 Lakh – 2 Cr||7.00%|
|Above 2 Cr||7.00%|
Products for Home Loans: The following are the various home loan options offered by Sundaram Home Finance:
- Home Purchase Loan
- Home Extension Loan
- Home Improvement Loan
10. Larsen & Toubro (L&T) Housing Finance Company Ltd.
L&T Finance Holdings Limited’s subsidiary L&T Housing Finance Limited (LTHFL) is a completely owned subsidiary of L&T Finance Holdings Limited. It was founded as Weizmann Homes Limited on August 31, 1994, under the Companies Act of 1956. (No. 1 of1956). Under the National Housing Bank Act of 1987, it is registered as a housing finance firm with the National Housing Bank. Mr. Dinanath Dubhashi is the Managing Director & CEO of L&T Finance Holdings Ltd. (LTFH).
L&T Housing Finance Limited provides a wide range of housing finance products to salaried and self-employed consumers, mostly in the medium and premium segments, including house loans, home enhancement loans, loan against property, balance transfer, and top-up loans. Real estate developers and builders have access to a wide range of construction financing options.
In India, L&T Housing Finance Ltd. offers rapid and easy home loans. You can expect unrivalled quality and openness throughout the house loan process, as well as a handholding experience that will last till your aspirations are achieved at a speedier pace.
Individuals must be Indian residents in order to use the service. They are classified as salaried employees, self-employed professionals, and business owners. The age limit should be higher than 22 at the start of the loan and lower than 65 when the loan matures. Other sources of income, such as rent and co-applicant income, might be added to boost eligibility. Thy charges 2% as loan processing fee in addition with service taxes.
L&T Housing Finance provides home loans with a maximum term of 30 years. Home Loans are available in amounts ranging from Rs 3 lakh to Rs 10 crore, with favourable interest rates. The customer can choose between a fixed and a fluctuating rate of interest. The loan can be used to finance up to 90% of the property’s value.
The following table shows the various L T finance house loan interest rates based on the loan amount:
|Loan Amount||L And T Finance Home Loan Floating Rate|
|Upto 30 Lakh||7.70%|
|30 Lakh – 75 Lakh||7.70%|
|75 Lakh – 3 Cr||7.70%|
|Above 3 Cr||7.70%|
Products for Home Loans: The following are some of the home loan packages offered by LT Housing Finance:
- Home Purchase Loan
- Home Extension Loan
- Home Improvement Loan
- Home Construction Loan
- Composite Loan