10 Best Home Loans in India

This Article was fact checked and last updated for accuracy on November 17, 2024 by Mani Karthik

The demonetization move announced by the Government of India on November 8, 2016 sent prices plummeting. The demonetization took ~86% of cash out of circulation, wiping out the black money that had inflated prices in the Indian housing market.

The move brought home prices down as much as 30% in some of the key markets, like Delhi-NCR. Experts are predicting the property market slowdown to be short-lived, with banks reducing interest rates and the Real Estate Regulation and Development Act 2016 (RERA) getting implemented by the states, says an article in The Hindustan Times.

In fact, the increased pressure on property prices may not continue beyond 2017. With prices and interest rates down, this may be just the right time to take a home loan in India.

Best Home Loans in India

Here are ten of the best home loans in India:

SBI has a 25.50% market share in home loans, as per ICRA. As of March 15, 2017, SBI was offering two housing loan schemes.

SBI Home Loan (Term Loan)

	2-yrs Fixed Interest Loans up to ₹30 lakhs	Floating Rate Loans up to ₹75 lakhs	Floating Rate Loans above ₹75 lakhs
For Women	8.50% for first two years, floating rate thereafter	8.60%	8.65%
For Others	8.55% for first two years, floating rate thereafter	8.65%	8.70%

SBI Home Loan (Max Gain)

	Floating Rate Loans above ₹20 lakhs and up to ₹75 Lakhs	Floating Rate Loans above ₹75 Lakhs
For Women	8.75%	8.95%
For Others	8.80%	9.00%

HDFC Home Loan

HDFC has a 24.13% market share. One can apply online and get an e-approval.

Up to ₹75 Lakhs	Above ₹75 Lakhs
8.50% – 9.00%	8.55% – 9.05%

LIC HFL (Housing Finance Loan)

LIC has a 15.83% market share. LIC offers loans under the Pradhan Mantri Awas Yojna.

	Loans from ₹10 lakhs up to ₹15 Lakhs	Loans above ₹15 Lakhs up to ₹20 Lakhs	Loans above ₹20 Lakhs up to ₹50 Lakhs
For Women	8.50%	8.55%	8.65%
For Others	8.55%	8.60%	8.70%

ICICI Bank Home Loan

ICICI Bank has a 13.10% market share. One can apply for a preapproved home loan.

	Loans for up to 30 years
For Women	8.65% – 8.80%
For Others	8.70% – 8.85%

PNB HFL (Housing Finance Loan)

PNB Housing has a 6.23% market share. One can get a loan for up to 90% of the property value.

Interest Rates	8.50% – 9.10%
Loan Tenure	up to 30 years

IDBI Home Loan

Interest Rates	9.15% – 9.20%
Loan Tenure	up to 30 years
Loan Amount	From ₹5 Lakhs up to ₹10 Crores

IDBI has a 4.67% market share. One can check out the projects that have already been approved by IDBI, for faster loan processing.

Axis Bank Home Loan

Axis Bank has a 4.22% market share. One can get a loan for up to 90% of the property value.

Interest Rates	8.65% – 10.50%
Loan Tenure	up to 30 years

DHFL Home Loan: Interest rate of 8.60%

Citibank Home Loan: Interest rate of 8.80% – 9.30%

What to Consider When Comparing Home Loans

Apart from the interest rate, the most important factors to consider are:

• EMIs
• Tenure
• Processing fees
• Percentage of property value covered by loan
• Prepayment charges
• Turnaround time of loan approval

The best home loans are those that work for you, according to your needs. Here are some more tips on how to go about getting a home loan and the best home loan rates.