Top 4 Home Loan Providers in India

For the majority of individuals, purchasing a home entails securing a home loan from a trustworthy lender. Typically, banks are the preferred choice, closely followed by reputable financial institutions. However, with numerous home loan providers, applicants often struggle to select the most suitable option. To ease the decision-making process, we have provided concise information about the top four home loan providers in India.

Here is a list of some of the top home loan providers which will help applicants gain clarity and confidence in choosing the ideal match for their needs.

• State Bank of India

As the largest and one of the oldest public sector banks in India, State Bank is the best institution for availing a home loan. The bank is known for offering the lowest home loan interest rates compared to other lenders. This is because the interest is charged on everyday reducing balance, which is recalculated at the end of each day.  Moreover, the bank follows a stringent property verification process to minimise the risk of legal hassles in the future.

The bank offers a floating interest rate ranging between 9.15 and 9.65%. It charges a processing fee of 0.35% of the loan amount with a minimum limit of Rs 2000 and a maximum limit of Rs 10000. The loan is offered for a minimum period of 3 years and a maximum period of 30 years. The bank does not have any pre-closure or part-payment charges for the loan.

• ICICI Bank

ICICI Bank is one of the biggest private sector banks in India and offers home loans for properties up to 10 crores. The interest charged by the bank is calculated for the monthly reducing balance calculated on the last Friday of each month. The bank also offers a special discount on the interest rate in case the first applicant is a woman, even if she is non-working. The bank is preferred for its simple documentation process and speedy loan approval.

ICICI Bank charges an interest rate of 9.65 to 10.05% and charges a processing fee of 0.50 to 2% of the loan amount or Rs 3000, whichever is more. The bank offers the loan for a maximum tenure of 30 years and levies a 2% charge on prepayment of the loan. The borrowers are also required to pay a 2% charge every month on late payments of EMIs.

• HDFC Ltd

HDFC is one of the fastest-growing private sector banks in India and is considered to be one of the best banks to get a home loan from. The bank offers door-step consultation services from its in-house home loan experts. The bank also follows a stringent documentation verification process and is known for its competitive interest rates. The best aspect of availing home loan from HDFC Ltd is that it offers a wide choice of repayment options to borrowers, making the bank their preferred choice.

The HDFC  Bank offers a floating interest rate ranging between 8.70 and 9.85% and charges a processing fee of 0.50% of the loan amount. The loan is offered for a maximum tenure of 30 years, and the bank charges 2% on the pre-payment of fixed-rate and combination-rate loans. The borrowers also need to pay a penalty of 24% per annum on the late payment of EMIs.

• Axis Bank

As one of the most prominent private sector banks in India, Axis Bank is renowned for offering home loans for amounts as small as 1 lakh. The bank offers both fixed and floating interest rate facilities on its home loan with a maximum tenure of 30 years. The bank also offers a Fast Forward home loan option where the borrowers can get relief for up to 6 months from payment of EMIs after the completion of 10 years and then again after the completion of 15 years. However, this option of available only for borrowers with a clean repayment track record.

Axis Bank offers home loans at a fixed interest rate of 14% and the floating interest rate of 8.75 to 9.15%. The maximum loan tenure is 30 years, and the bank charges a processing fee of 1% of the loan amount or Rs 10000, whichever is higher. The pre-closure charges on the fixed interest rate are 2%, and the penalty for late EMIs is 2% per month.

Conclusion

In addition to the above home loan providers, other nationalised and private banks, as well as financial institutions, also offer home loans with varied terms and conditions to match the borrower's needs.