Home Loan

Home Loan

Banks and Housing Finance Companies (HFCs) offer home loans of up to 75% to 90% of the property’s value depending on the credit profiles of their loan applicant, subject to the caps on the LTV ratios set by the lenders and the RBI. The tenures of these loans can go up to 30 years. At Paisabazaar.com, we help you compare housing loan interest rates and other features offered by top banks and HFCs and apply online for the best option available on your credit profile.

Home Loan Details
Interest RateStarting from 8.35% p.a.
Loan AmountVaries on case-to-case basis
LTV RatioUp to 90% of the property value
TenureUp to 30 years with some lenders extending till 40 years
Processing Fees1% to 2% of the loan amount (may vary across lenders)

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Home Loan Interest Rates

Home loan interest rates offered to the applicants would depend on their credit scores, monthly income, loan amount, LTV ratio, job profile, employer’s profile, etc. Interest rates, loan amount, tenure and processing fees can vary widely across lenders depending on their cost of funds and credit risk assessment of their loan applicants.

Thus, allows you to compare home loan offers by its 20+ partner banks and HFCs based on your monthly income, repayment capacity, credit score, occupation profile, employer’s profile and other applicable eligibility criteria.

Home Loan offered by Top Banks & HFCs in India

Here are the interest rates on home loans offered by top banks and HFCs.

Name of LenderInterest Rate (p.a.)
State Bank of India8.50% – 9.85%
HDFC Bank8.70% onwards
ICICI Bank8.75% onwards
Bank of Baroda8.40% – 10.90%
Punjab National Bank8.40% – 10.25%
Axis Bank8.75% – 13.30%
Kotak Mahindra Bank8.75% onwards
LIC Housing Finance8.50% – 10.75%
Federal Bank8.80% onwards
IDFC First Bank8.85% onwards
PNB Housing Finance8.50% – 14.50%
Tata Capital Housing Finance8.75% onwards
L&T Finance Limited8.65% onwards
Standard Chartered Bank8.95% onwards
Godrej Housing Finance8.55% onwards

Note: Interest rates as of 1 October 2024

Home Loan EMI Calculator

Home loan EMI calculator helps individuals calculate their monthly loan payments in no time. It helps consumers to also determine the interest cost and total amount payable against various combinations of interest rates, loan amounts and tenures. By using this online calculator, consumers can also ascertain the best possible loan tenure after considering their repayment capacity.

Home Loan Eligibility Criteria

Home loan eligibility differs across lending institutions and home loan schemes. However, a common set of housing loan eligibility criteria is given below:

  • Nationality: Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)
  • Credit Score: Preferably 750 and above
  • Minimum Age: 18 years with some lenders setting the minimum age of 21 years
  • Maximum Age: Usually 70 years at the time of loan maturity with some lenders extending the tenure till 75 years of age
  • Work Experience: At least 2 years (for salaried)
  • Business Continuity: At least 3 years (for self-employed)
  • Minimum Salary: At least Rs. 25,000 per month (varies across lenders & locations)
  • Loan Amount: Up to 90% of property value

Note: Apart from the above parameters, your home loan eligibility also depends on the property you are buying and the location of the property.

Also Check: Top 10 Tips to Consider before Availing a Home Loan

Documents Required for Home Loan

Lenders require documents from their home loan applicants as a proof to establish their identity, place of residence, income and repayment capacity. These documents may vary across lenders based on the individual credit profile, property type, home loan type, etc. Given below are the key home loan documents that an applicant will need to furnish when applying for the loan.

  • Identity Proof Documents: Copy of any one (PAN Card, Passport, Aadhaar Card, Voter’s ID Card, and Driving License)
  • Age Proof Documents: Copy of any one (Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Mark-sheet, Bank Passbook, and Driving License)
  • Address Proof Documents: Copy of anyone (Bank Passbook, Voter’s ID, Ration Card. Passport, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Receipt
  • Income Proof Documents for Salaried: Copy of Form 16, Latest Payslips, IT returns (ITR) of past 3 years, Investment Proofs (if any).
  • Income Documents for Self Employed: Business License Details, Proof of Business Address, ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm
  • Property-related Documents: NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter, and an approved copy of the building plan.

Home Loan Documents for NRI Applicants

Proof of Identity: Passport with VISA stamps / PIO Card

Proof of Address: Government document mentioning the current overseas address

Proof of Income Documents for Salaried: Salary Certificate/ Latest Pay slips (in English); Latest bank statements showing salary credits NRE / NRO account (if any); Work Permit/ Employment Contract / Appointment Letter / Offer Letter (Duly attested by employer/ Consulate / foreign office / embassy in case it is in any other language); Form P60/P45 and latest employment contract (for salaried).

Income Documents for Self-Employed: Latest ITR, Bank Statements of Overseas Account and Balance Sheets and P&L Accounts audited or certified by a C.A.; a copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy; Business License & Address Proof / License of Professional Practice (for Doctors, Consultants, etc.); Registration Certificate of Establishment (For Shops, Factories & Other Establishments).

Property Documents:

  • Original title deeds tracing the title of the property
  • Encumbrance Certificate
  • Agreement for sale/ sale deed/ detailed cost estimate from the Architect/ Engineer for property to be purchased/ constructed/ extended/ improved
  • A copy of approved drawings of proposed construction/ purchase/ extension
  • Receipts for payments made for buying the dwelling unit
  • ULC clearance/ conversion order, etc.
  • Receipts for investing the margin money through normal banking channels from the NRE /NRO account(s) in India
  • Latest tax paid receipt
  • Allotment letter from the co-operative society/ association of apartment owners

Other Documents:

  • If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year

Note: The above list is indicative and your lender might ask for additional documents.