A "low interest" loan shouldn't mean you have very little interest in paying it back!
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    Bankbazaar Home Loan

    We found 46 Home Loan

    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    8.6% - 8.95% Floating
    Up to 0.5% (min. ₹5900) One time fee
    5L Min
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.75% Floating
    0.35% (max. 10,000) + applicable tax
    15L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.85% Floating
    0.5% (max. ₹11,800) One time fee
    5L - 10Crs
    3-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free Paperless Approval Option Available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 8.60% Floating
    Up to 0.5% (max. ₹11,800) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 10.05% Floating
    Up to 0.5% One time fee
    2L - 3Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 9.25% Floating
    0.50% (min. ₹10,000) + applicable tax
    12L - 5Crs
    1-20 Years (10 yrs plot loan)
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.35% - 11.75% Fixed/Floating
    0.50% (min. ₹10000) One time fee
    5L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.4% - 8.45% Floating
    10,000 + applicable tax One time fee
    40L - 5Crs
    1 - 25 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    11.5% - 13% Floating
    2% One time fee
    25L - 3Cr
    1-20 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.55% - 8.99% Floating
    ₹5,000 to ₹10,000 + applicable tax One time fee
    20L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    10.67% Floating
    1% One time fee
    5L - 5Crs
    1-30 Years
    Response Time Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.55% - 8.65% Floating
    0.5%
    20L - 10Crs
    1-30 Years
    Response Time Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
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  • Home Loan Reviews

    • HDFC Limited Home Loan
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      I had taken the home loan from HDFC Ltd. The process went good without any challenges. Even the interest rate is good. I had received excellent customer service and response from HDFC Ltd for my home loan process. I got loan without any hassles.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jul 24, 2017
    • HDFC Limited Home Loan
      "Good deal"
      0.5 5.0/5 "Blown Away!"
      HDFC LTD has been really good in their services and process. I had taken my home loan from them and the documentation were very much normal. The disbursement of funds were done on time and the after loan services are also good. I got a good deal on the interest rate and charges.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jul 24, 2017
    • SBI Home Loan
      "Easy and quick process"
      0.5 5.0/5 "Blown Away!"
      State Bank of India has offered me a home loan as well. The process to get the loan was not much. The documentation was simple and the disbursement happened on time too. The rate of interest and processing charges was also minimal for me. I had no hassles with the after loan services.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jul 23, 2017
    • Bank Bazaar Customer Support
      "Finance on phone Just click and tensions free"
      0.5 4.5/5 "Excellent!"
      It's very easy to contact any bank for any reqirement and also the information about best schemes were also provided. It's also shown our eligiblity. I also got a credit card before 4 2month and now also applied for a home loan Thank all for your response and the Team of Bank Bazar Best Bank service provider of India.
      Was this review helpful? 0
      , vadodara
      Reviewed on Jul 22, 2017
    • Bank Bazaar Customer Support
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      I really appreciate bank bazaar.com, I am filling application online and we have don't face any issue we have completed form very normal and I see the result I am very glad to use the services of bankbazaar.com. Further, I would like to recommend my friend for this site.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 22, 2017
    • Bank Bazaar Customer Support
      "Service"
      0.5 2.5/5 "Just OK"
      Good services, quick response. Hope my requirements will be completed very soon. I suggest everyone to please go through the bankbazar.com for your requirements. Your dreams also will be fullfilled. Thanks to bankbazar.com hip hip hoore!!!
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 20, 2017
    • Bank Bazaar Customer Support
      "Process is so easy and comfortable"
      0.5 4.0/5 "Great!"
      It was a smooth process to apply, rather visiting different bank the experience over here was wonderful.The address and ID proof works amazing also here is no other competitors for bank bazaar and also instant loan application process is amazing. Lets hope for the best service and the result were very much satisfactory.
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Jul 20, 2017
    • Axis Bank Home Loan
      "Very good service"
      0.5 5.0/5 "Blown Away!"
      The axis bank had very good communication in regards to my home loan application. They have disbursed my home loan within 3 days of time. The customer service and the response was good with Axis bank. The required loan amount has been approved and disbursed by axis bank. I am happy with the loan amount. The rate of interest of interest is nominal with the axis bank. I am satisfied with Axis bank service.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • ICICI Bank Home Loan
      "Very Pathetic experience with ICICI HOME LOAN Department"
      0.5 0.5/5 "Unacceptable"
      I had a very Pathetic experience with ICICI HOME LOAN Department as their employees not aware of process to be followed for home loan. They did not consider House Government Proofs. They have their own list according to which all property documents should be arranged. No Responsible employee in Kaushambi Ghaziabad branch. ICICI should take care of this. Same property has been loaned from SBI bank and PNBHFL was also ready to provide loan on same property. Very Bad Service from Kaushambi Ghaziabad Team. Take care if you approach this branch.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Jul 19, 2017
    • Axis Bank Home Loan
      "Worst Customer Service Experience"
      0.5 0.5/5 "Unacceptable"
      The worst possible way to get humiliated is when a Bank of choice for you for the past 6+ years decides that Customer service is for Fools. I was thrown around back and forth and was ignored on around 75+ calls made during a period of the whole of 2 months since my loan got sanctioned and the Bank has no response at all. And after 2 months they come back and say We can't process the loan. Does Axis bank think the customer is taken for granted just because they invested in the eco-system? I am closing the Salary accounts and Credit Cards I hold with the bank as they have lost all goodwill from an ardent customer. So in Axis bank's terms 15 working days = 2 Months in Communication Isolation. Worst Customer Service Experience Ever.
      Was this review helpful? 0
      , cuddalore
      Reviewed on Jul 19, 2017
    • LIC Housing Home Loan
      "HIGH Interest rate and NO service"
      0.5 0.5/5 "Unacceptable"
      After 5 years of fixed rate of interest tenure, without any notification or information LICHFL started charging sky high interest, which nowhere near to market rate. When contacted they asked to pay Rs 1050 and I had to fill and submit manual form, which is added head ache. After that also the rate of interest is quite high than the market rate. Again after one and half year, they are asking to submit manual form to their office and pay Rs 1180, to correct the interest rate. This rate is also quite high than the current market rate. YOU WILL END UP PAYING MORE INTEREST AND CHARGES FOR SURE. I would NOT recommend to take home loan from LICHFL.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 19, 2017
    • Bank Bazaar Customer Support
      "Great Service"
      0.5 4.0/5 "Great!"
      It was a great service provided by you, I could compare loans terms of different banks in a single window. I need not to go any where for applying loan in my busy schedule. I will like to give it excellent, but I have uploaded my bank statements 3 times as I got some error . It would be great if I had received calls with in two hours as promised in the site, other wise it was a great service provided by them.
      Was this review helpful? 0
      , new delhi
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Seemlesss application"
      0.5 3.5/5 "Pretty good"
      I have just managed to fill the application through bankbazaar.com in a span of a few minutes. The address and ID proof works amazing.. Form 16 submission was also pretty quick. Hope for the better service ahead as we move on with the other banking procedures.
      Was this review helpful? 0
      , thane
      Reviewed on Jul 18, 2017
    • Bank Bazaar Customer Support
      "Extraordinary assistance"
      0.5 5.0/5 "Blown Away!"
      I had an impressive conversation with Bank bazaar team and getting instant loan approval. Bankbazaar team is maintaining really a good and consistent workflow for getting the loan approved. I will recommend friends and family to get loans from Bank bazar.com if needed.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 16, 2017
    • IDBI Home Loan
      "Satisfactory service"
      0.5 4.0/5 "Great!"
      IDBI is good, but interest rate is slightly high compared to government sector for the home loan. I had taken the amount of Rs. 15 lakhs for the tenure 20 years, IDBI charged 9.35% for the home loan, and they deducted around 1% as a processing fee.
      Was this review helpful? 0
      , mumbai
      Reviewed on Jul 13, 2017
    • Bank Bazaar Customer Support
      "Userfriendly site"
      0.5 4.0/5 "Great!"
      Bank Bazaar is good in service,which I post the online request for home loan, Bank Bazaar reach me on time and helped on the process. Whatever queries I had earlier it was rectified by Bank Bazaar executives, its a good site to compare and check the various interest rate.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 13, 2017
    • HDFC Limited Home Loan
      "Its Good"
      0.5 4.0/5 "Great!"
      I have directly reached HDFC Ltd for the home loan, their executive are done a good job. Within three days of time, they have approved my housing loan. HDFC Ltd offered me the interest rate around 8.4 % for the principal of Rs.25 lakhs with the tenure of 20 years. I am very happy with HDFC ltd.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Jul 13, 2017
    • Bank Bazaar Customer Support
      "Userfriendly"
      0.5 4.0/5 "Great!"
      Bank Bazaar is quite good, executive is also provided sufficient and satisfactory service. Bank Bazaar is quite good to compare offers in the market and also useful to analyze the best. The website is easy and user friendly I am very fine with that.
      Was this review helpful? 0
      , delhi
      Reviewed on Jul 13, 2017
    • HDFC Limited Home Loan
      "Response part should be improved"
      0.5 2.0/5 "Expected more"
      Hdfc Ltd response is not upto the mark, I have applied for the home loan, I submitted all my documents along with the processing fee of Rs.7800. Even I got sanction letter for the home loan. But still I am not sure about the application status, no one contacted me properly, I am the one calling them and getting the status.
      Was this review helpful? 0
      , delhi
      Reviewed on Jul 13, 2017
    • Bank Bazaar Customer Support
      "Good Responsive Site"
      0.5 3.0/5 "Satisfactory"
      Bank Bazaar is good their representatives are very fast, they helped on the loan process. When I file a loan request, I got instant call, I am very much fine with them. But when I checked home interest rate for the plot it showed some interest rate, it would be great if Bank Bazaar provides exact interest rate and it should match with the rate offered by financial institutions/banks.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jul 13, 2017
    Common Loader Icon

    Home Loan is Rated as "Great!" by 22740 Users

    Fees & Charges

    Promised Interest Rate

    Customer Service

    Responsiveness

    Home Loan BYTES FROM OUR KITCHEN

    You're eligible for a Home Loan if you:

    01
    02
    03
    04

    Are legally adult enough to handle it

    Have still got it

    Get a regular pay check

    Make more than a basic buck


    Your eligibility depends on

    01
    02
    03

    EMI limited to about 50%
    of monthly income

    Loan capped @ 75% - 85% on property value

    EMIs of other loans lower
    your eligibility


    Boost your eligibility by

    01
    02
    03

    Making your spouse a co-applicant

    Choose longer tenure loans of up to 30 years

    Alternatively add your parents as co-applicants


    Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:

    • 1. Photo ID and age proof
    • 2. Signed application form with photograph
    • 3. Processing fee cheque
    • 4. Last 6 months bank statement
    • 5. Documentation for salaried applicants:
      • Last 3 months salary - slips
      • Form 16 or Income Tax Returns
    • 6. Documentation for self-employed applicants:
      • Last 3 years Income Tax Returns with computation of Income
      • Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account

    Home Loan Interest RatesUpdated on 25 Jul 2017

    Home Loan Details
    Interest Rate (Monthly reducing balance) 8.35% to 18%
    Processing Fees Varies with bank
    Loan Tenure 1 Year to 30 Years
    Partial pre-payment Charges Varies with bank
    Pre-closure Chargest Varies with bank

    What is Home Loan or Housing Loan?

    A home loan or housing loan is an amount borrowed by individuals for a fixed tenure from financial institutions to buy, construct, repair or renovate a residential property. Lenders charge an interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount.

    Home loan or housing loan is one of the most popular products offered by banks and NBFCs to customers. Home loan is also the largest selling banking product and the one that ensures the longest banking relationship with the lender. Owning a home of your own is generally an obvious as well as a major decision in a person’s life. However, the cost of construction or purchase of property is quite high and this is where home loans play a major, almost indispensable role for majority of home buyers. Home or housing loans are advances made to borrowers who require funds to purchase houses/flats/land. They can also be availed of for construction, extension and renovation of houses. Lenders can be banking or non-banking financial institutions.

    Why Home Loan:

    In the last few years, real estate has been one of the most lucrative investment options for investors. No matter how profitable it sounds, the rising stature of real estate as an investment option has led to soaring prices of property in the country. Both land and buildings have become extremely expensive for customers to buy. This has led to a surge in the number of home loans that are applied for each day.

    • Even though rising prices of real estate is one reason for borrowers availing home loans, another major reason behind this is that property transactions are generally hefty as compared to other day to day financial transactions. As such, it is not at all necessary that the buyer will have the entire property cost available with him or her, at the time of buying property. This is where home loans step in and bridge the gap between property seller and buyer.
    • Banks chip in to pay on behalf of property buyer in return for a particular rate of interest. The general rule is 80-20 which means that banks offer only 80% of the value of home to customers and the rest 20% is to be borne by the property buyer. This serves as a win-win situation for both banks and property buyers, since, banks are able to make profits by loaning out money while buyers are able to assimilate the entire cost of property and pay it back over a fixed period of time.
    • Home loans are eligible for certain income tax exemptions which can be used to save up on the amount of income tax that an individual pays every financial year. Under section 24 of the Income Tax Act, tax benefit can be claimed on up to Rs.1.5 lakh out of the interest component of your home loan. In case you are staying in the house bought on loan, then you can claim a maximum exemption of Rs.1 lakh on the principal amount of the home loan too.

    Why to Apply for a Home Loan on BankBazaar.com?

    BankBazaar is India’s leading portal for financial services where different home loan offers from various banks can be compared at one place and applied for without having to visit any lending institution. Here’s what users can do:

    • Define loan parameters to receive free quotes, instantaneously, in an easy-to-understand manner.
    • Compare offers to identify the right lender to deal with.
    • Make real-time home loan comparisons to find the lowest rates in the market. At BankBazaar, interest rates are constantly monitored and updated to reflect the latest changes made by financiers.
    • Avail exclusive discounts and deals for huge savings through BankBazaar’s active collaboration with leading financial institutions and banks.
    • Check home loan eligibility online using BankBazaar’s home loan eligibility calculator and get immediate e-approvals.
    • Determine repayment amount as well as schedule using BankBazaar’s home loan EMI calculator which also provides amortization tables.
    • Browse user reviews to gain insights on service provided by various institutions.
    • Apply online for the chosen home loan product directly through the BankBazaar website.
    • Receive end to end guidance from a dedicated customer care team for smoother processing leading to quick disbursal of money.
    • Get regular status updates via emails and SMS for easy processing of your home loan.

    How to Apply for Home Loan on BankBazaar.com?

    Step 1 – As the first step, the applicant of the fill up the home loan eligibility form that is available online. This must contain all the data required to process the home loan application.

    After submission, the home loan tool checks automatically for the applicant’s eligibility and displays personalised home loan eligible options.

    Step 2 – As the second step, the user can choose to compare different home loan options offered on the page and then apply for the one that suits him/her the best.

    Step 3 – The final step in this process is receiving the immediate e-approval from Bankbazaar after successfully submitting the home loan application online.

    How to Use Bankbazaar Home Loan EMI Calculator?

    The Home Loan EMI calculator offered by Bankbazaar is an easy-to-use tool that is available online.

    • There are two sliders in the home loan tool – Loan Amount and Tenure.
    • All you need to do is choose the desired loan amount and select the tenure of the home loan, respectively, on these sliders.
    • The minimum tenure for a home loan stands at 6 months and the maximum tenure stands at 30 years.
    • You can also choose the rate of interest and processing fee that will be associated with your home loan amount.
    • There is an option for choosing pre-payment on this tool. Choose ‘Yes’ or ‘No’ as per your needs.
    • After you enter all the required boxes, click on calculate.

    The monthly amount to be paid by you will be displayed below the ‘Calculate’ button. A pie chart is also presented along with the data for your better understanding of the home loan and the associated charges (interest and processing fee).

    Types of Home Loans:

    Depending upon the type of property being purchased and the quantum of loan being availed, home loans can be classified into the following different types. In India, banks and NBFCs generally offer home loans under any one of the following listed variants of housing loans.

    • Home Purchase Loans

      As the name itself indicates, home purchase loans are specifically given for purchase of flats or homes. These are the most popular type of home loan and are availed by most home loan borrowers. Almost all banks and Non-Banking Financial Corporations offer home purchase loans.

    • Home Loan for Construction

      Home loan for construction is offered to customers who want cash to construct their own house on an existing piece of land. The catch is that the land for construction should have been bought within a year of availing the loan for the cost of land to be counted as part of this loan. In case the land was bought earlier than one year, then the cost of land is excluded from the loan amount. The formalities for construction loan are slightly different than those for regular home loans. The loan applicant needs to give a lump-sum construction cost estimate to the lending entity and thereafter the lender evaluates and decides to sanction or reject the loan.

    • Plot Loans

      Plot loans are loans offered by banks for purchase of land or plot. These loans are not necessarily offered by all banks or NBFCs.

    • Home Extension/Renovation Loans

      Home loans for extension or renovation of home are offered to those home loan borrowers who already have a house but are looking for further construction or renovation on their existing piece of property. For example, addition of an extra room or renovating a staircase etc.

    • Home Conversion Loan

      If you have already taken a home loan for purchasing a house, but wish to shift to another house, then you can opt for a home conversion loan. It will help you in transferring the current loan to your new house.

    • Balance Transfer Home Loan

      Individuals can use the balance transfer option to transfer their home loan from one bank to another. Most people choose this option to avail better interest rates.

    • NRI Home Loan

      NRI Home Loans are specially designed for Non-Resident Indians (NRI) who wish to purchase a residential property in India. The requirements and procedure of availing this loan is different from the regular home loans.

    • Stamp Duty Loans

      Stamp Duty Loans are offered by banks to cover the stamp duty charges, which is incurred while purchasing a property.

    • Bridged Loans

      Existing homeowners who want to buy a new house can apply for a Bridged Loan, which will fund the new house. Generally, the tenure of this loan is below 2 years and it requires the borrowers to mortgage the new property with the lender until the loan is repaid.

    Features of Home Loan:

    Some of the most prominent features of home loans are outlined below.

    • Home Loans are secured advances.
    • This means that home loans are offered in turn for a security deposited by the loan borrower. Collateral is usually the property that is being funded. Existing property can also be put up as security.
    • Interest rates are flexible being either Fixed, Floating or a combination of fixed and floating. The Indian government has come up with the new marginal cost of funds based lending rate or MCLR which is to be used by banks to decide the rate of interest at which they can lend money to a home loan applicant. Earlier base rate used to be the rate based on which banks used to decide their lending rate. MCLR is a more flexible rate which takes into account a lot of factors like funding composition and strategies. MCLR will be reset by banks after every specific interval of time. For example, if a bank decides to reset their MCLR annually then your home loan rate will get reset after every one year.
    • Home loan interest rates are lower when compared to unsecured personal advances. Unsecured personal loans have a higher risk ratio associated to them since the bank does not have any security deposit to fall back on in case of a loan default. Hence, these loans are charged a higher rate of interest as compared to home loans which expect the borrower to deposit some kind of collateral as security.
    • The advance can be used to fund property for residential or investment purposes.
    • Whether you need a house to stay in or for investment purposes, home loan can be availed from a bank of your choice.
    • Amounts offered are higher than under other types of loans; up to 85% of the property value.
    • Considering the cost of buying property as compared to any other commodity, the loan amount offered and sanctioned is substantial as compared to other types of loans. Hence, the loan tenures offered for home loans are also longer than those for other types of loans.
    • Repayments are made in EMIs (Equated Monthly Installments).
    • Since, the amounts sanctioned towards home loans are usually huge and the tenure also is long, the repayment of home loans is done in equal monthly installments.
    • Pre-payments are allowed, to reduce liability.
    • Pre-payment of home loan is allowed by all banks, private and public. Earlier, some banks used to charge pre-payment fees for earlier than stipulated repayment of home loan amount. However, these days most public and private banks let borrowers pay off their home loan as and when convenient. Most banks have stopped charging any pre-payment charges for the same.
    • They are long-term in nature; tenors usually vary between 5 - 30 years
    • Since the loan quantum for home loans is generally greater than all other types of loans, the repayment period also is longer than that for any other loan type.
    • Non-interest charges include processing fees, pre-payment charges, inspection fees, documentation fees etc. Apart from the interest charged on home loan amount, there also are various charges that are levied while the loan sanction process is underway. These charges are communicated to loan applicants at the time of application.
    • Co-applicants/joint-applicants are allowed.
    • Home loans allow for joint loan applications. Since the loan quantum is high and the tax benefit also is good, banks allow for co-application or joint application of home loans.
    • They qualify for tax benefits as per provisions of the IT Act, 1961 and hence, make for a good investment option.

    Home loan Interest Rates:

    Interest rate charged on any home loan scheme is one of the primary features. The rate of interest is what generally helps a customer decide in favor of or against a home loan scheme or lending entity. Fixed rate of interest and floating rate of interest are the two types of interest rates that banks normally ask customers to choose from at the time of home loan application. There are banks that give their home loan customers the flexibility to switch from one type of interest rate to another. Click here for Latest: Home Loan Interest Rates

    Home Loan Eligibility:

    Home loans are secured advances and therefore the eligibility criteria for these loans is laid out differently by different banks. Here are some of the most important factors that feed into determining home loan eligibility criteria for almost all banks in India.

    • Age: The minimum age at the time of application should be 21 years. Repayments have to be completed before the age of 60 or 65.
    • Employment: Ability to service interest charges, as reflected in the borrower’s earning capacity, is important. Borrowers should:
      • Be salaried employees or self-employed persons (professional/non-professional)
      • Have been in employment/business for at least 3 years of which current employment should account for at least 1 year.
    • Income: A minimum income varying between Rs.5 - 7 lakhs would be required. This depends on the nature of employment i.e. salaried or self-employed.
    • Residence: At least one year of stay at the current residence is required to display stability with respect to employment as well as financial. This is an indirect indicator but is taken into account by almost all banks while calculating home loan eligibility.
    • Credit Rating: A good credit score is required (a score of 750-900 from CIBIL is considered good). Besides this, a healthy financial background is vital for approval and to determine the interest rate and loan amount.
    • Parallel debt channels: While sanctioning home loan to customers, banks also look into the current credit standing of the loan applicant. If a borrower has other home loans, personal loans or car loans in-progress then the lending entity calculates the loan quantum eligibility accordingly. Banks do this to make sure that the loan applicant is able to pay the minimum monthly installment towards his/her home loan.

    Documents Required for Home Loan:

    Documents to be submitted differ according to the eligibility requirements. The following, however, are commonly requested for from all the applicants:

    The application form which has to be signed and affixed with the specified number and size of photographs.

    Proof of identity (Copy of Passport/Voter ID/PAN Card/Driving License).

    Proof of address (Copy of latest Electricity Bill/Telephone Bill/Property Tax Receipt/Voter ID/Passport).

    Last 6 months’ Pass Book/Bank Account Statement.

    Business proof in case of non-salaried individuals.

    Statement of Personal assets and liabilities.

    Identification of signatures from present bankers.

    Documents Requested from Guarantors:

    • Identity and address proof.
    • 2 passport sized photos.
    • Proof of business.
    • Statement of Personal assets and liabilities.
    • Identification of signatures from his/her present bankers.

    Additional Documents Requested from Salaried Applicants:

    • Salary certificate from the employer (original).
    • Copy of ITR or Form 16 for last 2 years.

    Additional Documents Requested from Non-Salaried/Self-Employed/Professionals/Other IT Assesses:

    • Copy of challans proving that Advance Income Tax has been paid.
    • Copy of ITR/Assessment Orders of 3 years.

    Top Banks That Offer Home Loan in India:

    India has a long list of both private and public sector banks that offer home loans. The main confusion which plagues most first-time home loan applicants is which bank to apply with. There are pros and cons applicable to every bank. Public sector banks are more stable and less likely to go bankrupt in the long run than private sector banks. Alternatively, private sector banks offer smoother customer service and processing time as compared to public sector banks.

    One of the most popular strategies that customers employ is to avail home loan from the bank where their salary account or savings account is hosted. This eases out the approval process a bit since all the KYC details and financial data is already available with the lending bank.

    Various surveys have come up with a list of most popular banks for home loans in India. However, the 5 names which are always present in these lists are:

    • State Bank of India
    • ICICI Bank
    • LIC Housing Finance
    • HDFC Bank
    • Axis Bank

    While SBI is the most trusted brand because of its public holding, HDFC despite being a private lender is popular since it is basically aimed at offering housing finance to customers in India. Most customers look for an established brand name before zeroing down on a particular bank name. The main reason for this is home loan as a product is a long-term offering and it is wise to choose a bank that has been around for some time and one that has a substantial customer base.

    Apart from banks, there are several NBFCs or Non-banking financial companies which offer home loans to customers. These companies too, offer home loan to customers. The biggest differentiating factor is that the eligibility guidelines for NBFCs are slightly flexible than those of banks. Also, the loan amount sanctioned by an NBFC is generally greater than that sanctioned by any bank, public or private. Top NBFCs that offer housing finance to customers in India are India bulls Housing Finance, Dewan Housing Finance, Reliance Capital, Shriram Transport Finance, Muthoot Finance, LIC Housing Finance.

    Fees and Charges Applicable to Home Loans:

    Apart from the rate of interest that is charged on home loan products, there are various fees and charges that are applicable to housing finance offered by different banks. These charges may differ in value from one bank to another, however, the types of charges remains the same for almost all banks.

    • Processing Fee:

      Banks generally charge a fee for processing your home loan request. These charges vary with different banks. This fee is non-refundable and is either a specific percentage of the loan amount or a fixed amount of money. There are times when banks are willing to negotiate on the processing charges and lower this fee or waive it off completely depending upon certain terms and conditions.

    • Late payment charges:

      Late payment charges are levied by almost all banks when a loan borrower is late in paying loan installment. There are times when financial crunch or some other financial liability or plain oversight might result in non-payment of home loan installment on time. This results in a late payment fee being levied by the bank.

    • Pre-payment charges:

      Most banks have stopped charging any kind of fee for pre-closure of home loans. However, some banks still charge some percentage of home loan balance as pre-payment charges. This fee is typically levied when any home loan customer repays his/her home loan prior to the stipulated home loan tenure.

    • Conversion charges:

      Typically, home loans are offered by banks either on a fixed interest rate or on a floating rate of interest. The customer does have a choice of switching between these two rates. Every time a customer applies for switching from fixed rate to floating or vice versa, conversion charges are levied by the bank. These charges are some specific percentage of the principal outstanding amount.

    • Legal Fee:

      Legal fee is charged in order to pay the lawyer who does the task of verification of property that is being bought with the loan amount. Most banks do not have in-house lawyers and as such pay fees and recover it from home loan customers.

    • Administrative Fee:

      Some banks charge administrative fee separately from the processing charges. This fee is levied to pay for the administrative cost that the bank incurs for processing of home loan application. Broadly speaking, administrative fee is levied by banks to compensate for the back-end administrative processes that are performed while processing of home loan applications.

    • Statement of account:

      One copy of home loan statement is provided by the bank free of cost, more than that is chargeable. This fee is generally specific to the bank and hence varies from one bank to another.

    Online Application of Home Loan:

    The days of running from pillar to post to submit just one loan application form are over. Online home loan platforms like BankBazaar are the latest fad. You no longer need to perform the age-old task of going to each financier, finding out what offers are available, collating the information, calculating EMIs , submitting the required documents and following up on applications. The easiest way is to go online and compare various home loan offers in the market and then make a list of your chosen lenders. This saves a lot of time and effort of home loan borrowers as well as financial institutions.

    With technology leading the way in almost every sector, online information gathering and application of home loans is gaining momentum. Online application is a time-saving and convenient way to apply for loans and is fast becoming the preferred mode of choice for many loan borrowers.

    Points to Watch Out for While Choosing a Home Loan:

    Buying a house can be one of the most important financial decisions of an individual’s life and as such there are a host of things that one needs to be careful about while availing home loan.

    Listed below are some of the most prominent points that should be kept in mind when one is looking to obtain housing finance.

    • Perform thorough research:

      The first and foremost point which marks the beginning of any home loan application is finding about various home loan schemes in the market and the various banks and lending institutes that are running those. A thorough research will give not just specific details about different loan schemes but will also help you understand the various pros and cons that lenders might have.

    • Learn About Interest Rates:

      For any home loan borrower, there are two types of interest rates that they can choose from. These are fixed and variable interest rates. Choosing one of these and knowing why to choose it is a major step that determines your home loan repayments installments and the overall interest amount that you pay towards your home loan.

    • Find Out the Various Fees and Charges:

      Different banks charge different amounts as loan processing charges. Apart from this there are various other types of fees and charges that banks levy from their customers. Checking on these charges can help you save quite a bit of money when applying for home loan.

    • Check Your CIBIL Score:

      Home loans are huge financial liabilities and as such banks make sure that you have the necessary financial capability to repay the same. This is why credit scores of loan applicants pay a huge role in deciding the home loan eligibility. Applicants with a mediocre or a poor credit score may end up with their home loan application being denied or with a higher rate of interest being charged.

    • Understand Pre-Closure Terms and Conditions:

      Certain banks allow free pre-closure of home loans while other charge a specific pre-payment fee. Depending upon your preference, you should find out all about pre-closure terms and conditions and then apply for home loan with the bank of your choice.

    • Read the Fine Print Carefully:

      Home loan is a huge as well as long financial liability. Hence, reading everything that is listed in the home loan document that you sign is a primary step. Most home loan applicants get their loan agreement reviewed by a private lawyer so as to ensure that all terms and conditions listed in the document are in-line with their understanding of the financial product.

      Generally, a host of tiny but crucial information is listed in the fine print that comes along with your loan document. Reading through the full document is crucial to you not feeling cheated at any point of time, later.

    • Understand Your Financial Stand:

      Availing a home loan scheme that suits your financial stand and zeroing in on a house that is well-aligned with financial capacity is a sure way to ensure a comfortable loan tenure. There are times when customers make the mistake of buying a property that is way too expensive for their pocket. At other times, customers may end up availing a loan that has installments which are too high for them to pay. Any such situation will lead to delayed repayments and thereby a higher final amount being paid to the bank as interest and fees.

    Super Duper Deals: Apply for Home Loan from BankBazaar & Get Rs.5000 Amazon Gift Voucher

    Amazing Deals on Home Loans: Get Rs.5,000 Amazon Gift Voucher when you apply for a Home Loan from BankBazaar

    BankBazaar is offering amazing deals on Home Loan applications. Use BankBazaar’s website to browse through a broad range of Home Loan offers from various banks and select the best deal to get Rs.5,000 Amazon Gift Voucher.

    How to Participate in the Deal

    • When you are viewing the Home Loan offers on BankBazaar’s website, apply for a Home Loan (marked with the badge Rs.5,000 Amazon voucher) between 1st July, 2017 and 31st July, 2017.
    • If the Home Loan is approved and disbursed on or before 15th September, 2017, then you will receive an Amazon gift voucher worth Rs.5,000.
    • The Amazon Gift voucher will be sent to your email ID used for availing the Home Loan offer.
    • You can use the voucher on Amazon's website or the mobile app for purchase of any item.

    How to use the Amazon Gift Voucher

    • You can log in to Amazon's website or use the mobile app to redeem the voucher.
    • Once you add the product(s) to the cart, you will need to proceed to checkout. On the checkout page, use the code mentioned in the voucher to redeem the value of the gift voucher.
    • It is essential to ensure that the gift voucher is used before the expiry.
    • The terms and conditions for the usage of Amazon Gift Voucher can be found on Amazon's website and on the mobile app as well.

    Important Points to Note

    • The customer is required to follow the redemption process of the voucher as directed by Amazon's terms and conditions. The usage of gift vouchers is solely governed by the terms and conditions mentioned by Amazon.
    • The products redeemed using the gift voucher will follow the shipment and tracking options based on Amazon's terms and conditions. BankBazaar is not liable for shipping, quality, or any other aspect of the product.
    • Once the offer period expires, no voucher requests on Home Loan products will be honored or entertained.
    • The Amazon Gift Voucher is provided only for Home Loans availed during the promotion period.
    • An individual needs to be a minimum of 18 years of age and above to be eligible for the gift voucher offer.
    • The disbursal of the Home Loan will depend on your eligibility factors and is at sole discretion of the partner bank.
    • BankBazaar will not be liable for lost or damaged voucher after it has been issued. The customers do not have the option to cancel or replace a gift voucher that is already issued to them.
    • The offer is valid only for one application of Home Loan for each applicant. The Amazon Gift Vouchers are offered from 1st July, 2017 to 31st July, 2017.
    • There is no provision for cash alternative against the Amazon Gift Voucher.
    • The customer cannot resell, exchange or trade the voucher for anything else.
    • The voucher can be used only once.

    BankBazaar's Home Loan Participating Banks Include:

    The Amazon Gift Vouchers will be offered for a Home Loan that is applied through BankBazaar's website for any of the following participating banks:

    • Dena Bank
    • DBS Bank
    • Indiabulls
    • State Bank of India
    • HDFC Limited
    • PNB Housing Finance Limited
    • Aditya Birla Housing Finance Limited
    • Sundaram BNP Paribas Home Finance Limited
    • ICICI Bank
    • Au-Housing Finance Limited
    • Gruh Finance Limited
    • India Shelter Finance Corporation
    • Aspire Home Finance Corporation Limited
    • Federal Bank
    • State Bank of India
    • Yes Bank
    • Axis Bank
    • J&K Bank
    • Oriental Bank of Commerce
    • Tata Capital Limited
    • Reliance Home Finance Limited

    Disclaimer: BankBazaar reserves the right to modify, add or discontinue the offer without any prior notice.

    Home Loan FAQs:

    1. When do I make my home loan application?

      There is no particular right time for making your home loan application. As soon as you have figured out your budget and zeroed down on the property that you want to buy, you should apply for home finance.

    2. Is visiting the lending bank compulsory to avail home finance?

      Yes, mostly. Although a lot of loan processing work has been shifted to online platforms, still a loan applicant is required to visit the lending bank branch at least once to formally close the loan processing formalities. Many private banks have started sending their representatives to borrowers’ place to get documents and forms signed and verified.

    3. Will the lending bank provide the entire cost of the property that I wish to buy?

      No. Generally, banks only lend 80% of the cost of your property. The rest 20% is to be borne by the loan borrower. However, to ease out the process for customers, most banks have broken up this ration into 10-80-10 so that at the time of availing the loan, customers are only required to pay 10% of the total cost and the rest is paid by the bank.

    4. When does the repayment period start?

      Repayment of loan starts after the entire home loan is disbursed to the borrower. In case of under-construction properties banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, customers are free to either repay the principal and interest amount both or just the interest amount or none at all.

    5. Can loan repayment be made ahead of schedule?

      Yes. All banks allow pre-payment of home loans. Some banks charge a pre-payment fee for that while others do not.

    6. Do I have the right to choose between base rate and MCLR for my home loan request?

      Current home loan borrowers who have a running home loan account can choose to continue with base rate or switch to MCLR. New home loan borrowers need to avail the new MCLR rates which are subject to change every set interval of time as mandated by the RBI.

    7. How long does it take for home loan to get sanctioned?

      Your home loan will get sanctioned as soon as all the required documents are submitted and verified successfully. This may take anywhere between 10 to 30 days.

    8. Do I get to avail tax benefits on home loan?

      Yes. Home loans are a great instrument to avail tax benefit. This is offered to both the interest and principal components of home finance. Under section 24(1) interest repayment of Rs.1,50,000 is eligible for exemption and on the same housing loan a principal amount of Rs.1,00,000 is eligible for exemption from tax.

    9. Is taking a home loan a smart investment move?

      Any kind of property is considered an asset and hence buying a property is considered as a wise decision. Also, real estate prices have been appreciating on an annual basis. If you are confident that your income is sufficient to cover you for a long term liability like home loan then you can surely avail one to buy a property.

    10. What is meant by EMI?

      EMI stands for Equated Monthly Installments. An EMI is made up of two components, principal and interest. Any loan availed by a borrower is repaid in EMIs over the loan tenure.

    11. What collateral do I need to furnish as security?

      Since home loan is a huge loan amount and the tenure also is long, hence, almost all banks ask borrowers to furnish some collateral as security against the loan. This include the papers of property for which loan is being sought, some other property papers, any fixed deposit schemes or insurance schemes etc. that are on the loan borrower’s name.

    12. Can I apply jointly for a home loan with my spouse? Will both our incomes be considered for loan quantum?

      Yes. You can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.

    13. What documents do I need to submit to avail home loan in India?

      Generally, all banks ask for proof of address, proof of identity, bank account statements and salary details from home loan borrowers. This list may differ a bit from one bank to another.

    14. How can I make EMI payments against my home loan?

      Home loan EMI payments can be made to the bank either by using offline channels like cheque, demand draft and cash or by availing the net banking facility that all banks offer to their home loan customers. Post dated cheques and Standing Instructions are another popular way to make EMI payments.

    15. If I deposit my property documents as security with the bank, when will I get those back?

      Any property document that you submit as security collateral is returned to you only once the entire home loan amount is repaid and the home loan on your name is closed.

    16. Can I avail home finance for renovation or construction of house?

      Yes. Home loans are offered under various sub-heads. Housing finance for renovation of property or construction of house is also offered by all major banks in the country.

    17. Can I switch from fixed to floating rate of interest and vice versa during the tenure of my home loan?

      Yes. Most banks allow switching between fixed and floating rates. However, customers may be charged a particular fee for the same.



    Read Home Loan news or Enjoy it on the go Google Play

    • Bank’s PAN details are essential for tax benefits on home loans

      PAN is an important document to take advantage of the tax benefits available on home loans. In order to be eligible for tax benefits, salaried individuals are required to obtain and furnish the bank’s PAN number. Though it might turn out to be a difficult task, an individual can get in touch with their bank (home loan lender) to obtain the PAN number. The tax benefits are available on the principal repaid and also on the interest paid towards the home loan. The taxpayer is required to furnish the name, address, and PAN of the lender in order to carry out the tax benefit formalities.

      21st July 2017

    • 535 housing loans are sanctioned under the Vajpayee and Ambedkar housing scheme

      535 out of 1,344 loan applications are sanctioned under the Vajpayee and Ambedkar housing scheme by Minister for Labour and district in charge Santosh Lad. Under this scheme, the beneficiaries who have their own site can start the construction process with the initial seed money which is 50% of the loan value and the balance will be disbursed in different phases throughout the construction. The government has also appealed to the beneficiaries to utilize this amount for the right purpose. The government is also planning on sanctioning more loan applications in the coming days.

      20th July 2017

    • Now, repay home loans with cash

      The Income Tax department has recently made an announcement stating that those who are paying their home loans can do so through cash in installments of Rs.2 lakh each without any hassles.

      Payments in this regard can be made to banks and other financial institutions such as housing finance companies or other non-banking financial companies. All payments made in cash for this purpose will fall under Section 269 ST.

      The government had earlier banned cash transactions above Rs.3 lakh at the Union Budget this year. It was declared that such transactions were illegal.

      10th July 2017

    • No cut but few changes in home loan rates

      Borrowers of Housing loans are soon expected to see a drop in their EMIs, even as the Reserve Bank of India cut down on risk-weight provisions for home loans beginning now this Wednesday. This move is estimated to cause lending institutions to lower home loan rates. The RBI also cut down the standard asset provisioning on home loans, saying that it had decided to maintain lower risk weights on specific categories of home loans in lieu of robust performances of the portfolio of home-loan and low delinquencies. Meanwhile, provisions for standard assets have been lowered by 15 basis points from 0.40% to 0.25%. The RBI released a circular which stated that the importance of the housing sector as being considered for its forward and backward connections to the economy, and this it has decided to lower the risk weight on specific sections of housing loans sanctioned on and after today as a countercyclical measure. For loans over Rs 75 lakh with a Loan-To-Value (LTV) ratio of over 75 per cent, the weight of risk has been lowered by 25 per cent to 50 per cent. Likewise, for loans ranging from Rs 30 lakh to Rs 75 lakh carrying an LTV ratio of more than 80 per cent, the weight of risk has been lowered to to 35 per cent. It is to be noted that LTV stands for the highest loan amount that a bank can lend proportionate to the price of property.

      15th June 2017

    • 23% growth in affordable home loans

      Affordable housing loans at the cost Rs 10 lakh or less has seen a high growth rate of about 23% compounded annual growth rate (CAGR) in the last five years.

      The delinquency rate is also under control and is standing at around 1% at present. Also, the average ticket size of loans has been decreasing from Rs 4.8 lakh to Rs 4.1 lakh. In the last five years, accounts opened have also been growing at a stable rate.

      As many as 3.5 million bank accounts were opened in the last five years and in 2016 loans worth Rs 30,400 were sanctioned. States with the highest number of loan accounts were reported to be Tamil Nadu, Andhra Pradesh, Gujarat, Madhya Pradesh and Maharashtra.

      16th May 2017

    • Home loans have grown by 23% in the last five years

      The recent report from TransUnion Cibil report reveals that the growth of home loans have reached new heights. With a growth of 23% in the last five years, most home loan financing companies are sanctioning more home loan applications each day. The report also mentions the applications for affordable home loans have reached 3.5 million figure. Moreover, the government has also introduced an interest subsidy on home loans for the middle-income age group. These factors are adding to the growth of realty sector in India. The home loan financing institutions are expecting more positive changes that will improve the overall growth of the realty sector.

      10th May 2017

    • Government subsidy on HL

      An announcement has been made by the Indian government for the home loans which is attracting several prospective property purchasers. No upper limit has been set for the cost price. However, the maximum subsidy that can be availed has been capped at an amount of Rs 2.20 lakh. The subsidy also depends on the interest rate that has been offered with the home loan. Additionally, conditions of family structure and employment ensure the fact that only the people who need the subsidy get to enjoy the advantage.

      Since this particular home loan scheme comes with a subsidy from the government, the borrower must only go to a lender who has been authorized by the government for processing such loans. In case the borrower gets the loan amount from a lender who has not been scheduled by the Government of India, he/she will not receive any subsidy.

      The borrower must remember that this particular scheme can be used for both under construction properties and ready properties. However, the purchaser must look into several important aspects before he/she chooses the property. All the documents (statutory) must be in place in case of ready properties. The taxes paid to the government must be up to date and there should not be any pending litigation.

      9th May 2017

    • CIBIL Score Helps Get Home Loans Easily

      CIBIL Score is helping many people in getting home loans easily. Based on the credit/CIBIL score and history, home loan seekers can find the best scheme that is available to them. People can check their scores on the CIBIL website easily. On the website itself, they will get an option to apply for loans. The credit score also helps people to negotiate their home loan interest rates. The rate differs depending on the tenure, loan amount, age and income of the applicant, bank, etc.

      26th April 2017

    • Things to consider before buying a home

      If you are planning to a buy a home, there are various factors that you should consider before finalizing on a house. Starting from the property and builder checks to the availability of a pre-approved home loan, and more, you will need to make sure that the property or house you are choosing is indeed what you have been promised by the developer or the builder. Choosing a property in an appropriate location that is at a close proximity from the hospitals, schools, colleges, offices, etc. plays an important role as well. After all, you are going to be living in that house for many years to come. It is always advisable to compare various properties to zero down on a house that suits your requirements. You will also need to make sure that the developer or builder you are choosing is reputed and known for an excellent track record. You can choose to get in touch with your bank to obtain the list of the pre-approved property so you can conveniently choose a house that meets your requirements. Typically, the properties that are eligible for a pre-approved house loan have already gone through checks by the bank.

      22nd April 2017

    • Housing Finance Companies likely to come up with more women-centric products

      Apparently, housing finance companies are going to come up with more women-centric products to cater to their female customers.

      As of the present, there are a few such products in the market, wherein banks offer a slightly lower interest rate on home loan offers.

      However, some people aren’t satisfied with the type of products available right now and are urging HFCs to come up with more niche products that specifically cater to women of all income groups.

      Indian housing finance industry, which is currently worth over $18 billion has already come up with a few products and, according to analysts, there’s a chance that more are more innovative products are likely to be designed for working-class women.

      18th April 2017


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