Akash Jha
For most people, owning a home is one of the most significant accomplishments they will ever achieve, yet it is also a costly endeavor. Giving such a dream life demands a lot of work on the buyer’s part, and the only way to fit the home into their budget is to take out a Home Loan.
A home loan or housing loan is a sum of money borrowed from a bank or other lending institution. Depending on the loan’s terms, the borrower must repay the loan total plus interest in Easy Monthly Instalments, or EMIs, over a period of 10 to 30 years.
The 10 Best Home Loans and Interest Rates in the Indian Market for 2023 are reviewed here to help you make your home-buying decision so that you may choose the best Home Loan in India for yourself.
Top Home Loan Banks
Following are some of the best home loan in India 2023, along with the respective housing loan interest and processing fees-
| S.No. | Bank Name | Interest Rate | Processing Fees |
| 1. | SBI Home Loan | 8.05%-8.55% | 0.35% of the loan amount and a maximum of INR 10,000 +GST. |
| 2. | HDFC Home Loan | 8.60% – 9.50% | Up to 0.50% of the loan amount or INR 3,000, whichever is higher, plus applicable taxes. |
| 3. | Axis Bank Home Loan | 7.60% – 8.05% | Up to 1% of the Loan amount subject to a minimum of INR 10,000
Upfront processing fee of INR 2,500 + GST. |
| 4. | ICICI Home Loan | 8.40% – 9.45% | Up to 1.00% of the loan amount + GST. |
| 5. | Bank of Baroda Home Loan | 7.45% – 8.80% | Up to 0.50% of the loan amount or a maximum of INR 7,500 + GST. |
| 6. | PNB Home Loan | 8.25% – 11.20% | 0.35% of the loan amount, subject to a minimum and maximum of INR 2,500 and INR 15,000, respectively. |
| 7. | LIC Housing Finance Home Loan | 8.00% – 9.25% | Up to 1.0% of the loan amount + applicable GST. |
| 8. | Aditya Birla Home Loan | 8.00% – 13.00% | Up to 1.0% of the loan amount + applicable GST. |
| 9. | Citibank Home Loan | 6.50% – 7.40% | Up to 0.40% of the loan amount + GST. |
| 10. | Bajaj Housing Finance Home Loan | 7.70% – 14.00% | Up to 1.0% of the loan amount + applicable GST. |
Factors to Consider While Applying for a Home Loan
The following are the key factors to take into account when applying for a Home Loan-
- Total EMI Amount
You will make monthly payments for your borrowing until the debt is paid off. Each EMI includes both principle and interest. As a result, your principal repayment will rise with each EMI, while your interest payments will fall over time.
- Duration
Check the time it will take to repay the loan. You can select a period that works for you based on the nature of your expected revenue.
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- Rate of Interest
In exchange for money lending services, the bank or financial institution charges interest. The interest rate is determined by the principal amount, and you will return the loan.
- Initial Payment or Down Payment
A down payment is a sum of money that you give on your own. You should put down as much money as feasible to reduce the debt without putting your finances in jeopardy. The lesser the loan amount, the lower the interest rate.
Many banks, subject to qualification, will lend you 100% of the property’s value. Nonetheless, it is preferable to put down at least 10% to 20% to prevent incurring excessive interest and to ensure a realistic repayment schedule.
- Mortgage Insurance
Home loan insurance, also known as loan cover term assurance, is a form of insurance coverage that provides financial protection to your family in the case of your untimely death.
If something bad happens, the insurance provider will repay the loan balance used to obtain the insurance. This ensures that the financial burden of overdue dues does not fall on your family. Furthermore, in order to avoid defaults in the event of an unexpected incident, many banks and home financing companies need consumers to purchase a loan cover word guarantee plan.
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- Additional Fees
In addition to the EMIs, banks may charge borrowers administrative, processing, or service costs at the time of loan application. Before asking for a loan, go over these with the lender.
Check to see if these are regular costs or one-time expenses; if the latter, adjust your monthly budget to account for them alongside your EMIs.
Best Bank for Home Loan in India: Overview
1) SBI Home Loan
SBI Home Loan is often regarded as the top bank in India for home loans. The State Bank of India offers some of the most appealing and finest home loan interest rates in India, with rates starting at 8.55% p.a.
A loan tenure extension option of up to 30 years ensures an easy repayment period. These loans have a processing fee of 0.35 percent of the loan amount (minimum Rs. 2,000; maximum Rs. 10,000) plus applicable taxes.
Female borrowers on SBI Home Loans are also eligible for a 0.05% interest decrease. Because there are no additional costs and no prepayment penalties, they are one of the most popular housing loan products in the country.
2) HDFC Home Loan
HDFC house Loans offers cheap house loans with interest rates starting at 8.60% per year to those who qualify. This is yet another of India’s greatest home loan companies.
The EMI for loans with periods of up to 30 years begins at Rs. 762 per lakh. The processing cost for these housing loans will not exceed Rs. 3,000 (plus applicable taxes) for employed individuals and Rs. (plus applicable taxes) for jobless individuals.
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3) Axis Bank Home Loan
Axis Bank Home Loan is one of the best home loan banks. Axis Bank offers housing loan choices to qualifying consumers, with interest rates starting at 6.90% p.a. on floating-rate loans and 12% p.a. on fixed-rate loans.
The tenure of floating-rate loans can be extended to 30 years, while fixed-rate loans can be extended to 20 years. Furthermore, a processing fee of up to 1% of the loan amount (minimum of Rs. 10,000) may be imposed, of which Rs. 2,500 plus GST must be paid in advance at the time of loan application login.
4) ICICI Home Loan
Housing loans are provided from ICICI Bank to suitable borrowers at competitive interest rates starting at 8.60% p.a., with loan durations of 30 years and simple repayment alternatives. Furthermore, they lack processing fees on floating-rate loans, which vary from 0% to 0.50% of the loan amount (plus relevant taxes).
Furthermore, ICICI collaborates with the PMAY Scheme, giving homebuyers an edge when purchasing. It is regarded as one of the top banks for housing loans.
5) Bank of Baroda Home Loan
Bank of Baroda house loans have some of the finest home loan rates in India, starting at 7.95% p.a. and continuing up to 30 years with simple repayment options. Furthermore, the bank provides loans up to Rs. 10 crores, with processing fees as low as 0.25 percent of the loan amount.
For house loans with adjustable interest rates, there are no prepayment penalties. One of its significant advantages is the ability of the Bank of Baroda house loan to be topped up up to five times during the loan term.
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6) PNB Home Loan
Punjab National Bank offers many home loan schemes with a maximum loan amount of Rs. 1 crore at affordable rates starting at 7.75% p.a.
The repayment duration may be extended to a maximum of 30 years at your option. There is a processing fee of 0.35 percent of the loan amount plus GST. PNB’s PMAY program provides lower rates to EWS, LIG, and MIG applicants.
7) LIC Housing Finance Home Loan
LIC Housing Finance Limited offers inexpensive house loan choices ranging from Rs. 1 lakh to Rs. 15 crores, with flexible 30-year periods and reasonable interest rates starting at 6.90% p.a. The processing charge might range from 0.5% of the loan amount plus GST, depending on the conditions.
FIC HFL delivers the best housing loan solutions for NRIs and retirees at low interest rates.
8) Aditya Birla Home Loan
Aditya Birla Housing Finance offers home loans with processing fees as low as 1% of the loan amount and interest rates ranging from 9.00% to 12.50% p.a.
Loan sums ranging from 75% to 90% of the property’s value are available for loan repayment terms of up to 30 years. Furthermore, there are no prepayment penalties for house loans with adjustable rates.
9) Citibank Home Loan
Citibank provides low-interest house loans with rates starting at 6.50% per annum for amounts up to Rs. 10 crores. You can prolong the period to 25 years for more affordable payments. Furthermore, Citibank’s home financing programs allow you to acquire financing for up to 80% of the entire cost of the property.
10) Bajaj Housing Finance Home Loan
Bajaj Housing Finance is a major provider of house loans in India. It provides house loans with favorable interest rates ranging from 7.70% to 14.00%. Its processing fees range from 0.0% to 1.0% of the loan amount, plus applicable GST. It is one of the most well-known home loan firms in India.
Also read :- Best Personal Loans in India 2023
Conclusion
Consider that not every loan program is ideal for every borrower after learning about the best banks to select from and the best lenders for home loans.
Before applying for a home loan in India, you should carefully study the requirements, which vary depending on the individual or bank. As a result, you should select a house loan based on your loan needs, repayment capacity, and cash flow.
