Top Home loans in India 2023

Are you planning to buy your dream house in India? Whether it is your first home or an upgrade, finding the right housing loan can make all the difference. With so many options available, it can be overwhelming to choose the best one that suits your needs and budget. That’s why we’ve compiled a list of top home loans in India for 2023! From competitive interest rates to flexible repayment terms, these loans offer everything you need to turn your homeownership dreams into reality. So let’s dive in and explore the options together!

Best Home loan Banks

The following are some of the best home loans in India for 2023, along with their interest rates 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 10,000Upfront 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.

Best Home loans and their interest rates

Factors to consider before applying for Home Loans

The following are the most important considerations when applying for a home loan:

Total EMI Amount

You will make monthly payments for your borrowing until the loan is paid off. Each EMI includes both principal 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 you to repay the loan. Based on the nature of your expected income, you can select a period that works for you.

Interest Rates

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 repay the loan.

Down Payment or Initial Payment

A down payment is a sum of money that you contribute on your own. You should put down as much money as possible to reduce the loan without putting your finances in jeopardy. The smaller 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 best to put down at least 10% to 20% to avoid paying excessive interest and to ensure a manageable repayment schedule.

Mortgage Insurance

Home loan insurance, also known as loan cover term assurance, is a type of insurance policy that provides financial security to your family in the event of your untimely death.

If something bad happens, the insurance provider will repay the loan balance used to purchase the insurance. This ensures that the financial burden of unpaid dues does not fall on your family. Furthermore, in order to avoid defaults in the event of an unfortunate event, many banks and housing finance companies require customers to purchase a loan cover word guarantee plan.

Additional Charges

In addition to the EMIs, banks may charge borrowers administrative, processing, or service fees at the time of loan application. Before applying for a loan, go over these with the lender.

Check to see if they are monthly fees or one-time charges; if the latter, adjust your monthly budget to account for them alongside your EMIs.

Home Loans – Overview

SBI Home loan

SBI Home Loan is widely regarded as the best bank in India for home loans. The State Bank of India offers some of the most appealing and best 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 reduction. Because there are no additional fees and no prepayment penalties, they are one of the most popular housing loan products in the country.

HDFC Home loan

HDFC Home Loans provides affordable home loans to those who qualify, with interest rates starting at 8.60% per year. This is yet another of India’s top home loan providers.

The EMI for loans with terms of up to 30 years starts at Rs. 762 per lakh. The processing fee for these housing loans will not exceed Rs. 3,000 (plus applicable taxes) for employed individuals and Rs. 3,000 (plus applicable taxes) for unemployed individuals (plus applicable taxes).

Axis Bank home loan

Axis Bank Home Loan is one of the best home loan banks. It offers housing loan options to eligible customers, 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 charged, of which Rs. 2,500 plus GST must be paid in advance at the time of loan application login.

ICICI Home loan

ICICI Bank offers housing loans to qualified borrowers at competitive interest rates beginning at 8.60% p.a., with loan terms of 30 years and simple repayment options. Furthermore, they do not have floating-rate loan processing fees, which range from 0% to 0.50% of the loan amount (plus applicable taxes).

ICICI also works with the PMAY Scheme, giving homebuyers an advantage when making a purchase. It is regarded as one of the best banks for home loans.

Bank of Baroda Home loan

Bank of Baroda home loans have some of the best home loan rates in India, with terms ranging from 7.95% p.a. to 30 years and simple repayment options. Furthermore, the bank provides loans up to Rs. 10 crores, and processing fees for Bank of Baroda housing loans are as low as 0.25 percent of the loan amount.

Prepayment penalties are not imposed by the bank on home loans with floating interest rates. One of its key advantages is the ability to top up the Bank of Baroda home loan up to five times during the loan term.

PNB Home loan

Punjab National Bank offers several home loan schemes with a maximum loan amount of Rs. 1 crore at affordable rates starting at 7.75% p.a.

You have the option of extending the repayment period to 30 years (maximum). There is a processing fee of 0.35 percent of the loan amount plus GST. PNB’s PMAY programme provides discounted rates to EWS, LIG, and MIG applicants.

LIC Housing Finance home loan

The affordable home loan options from LIC Housing Finance Limited range from Rs. 1 lakh to Rs. 15 crores, with flexible 30-year terms and attractive interest rates starting at 6.90% p.a. The processing fee can range from 0.5% to 0.5% of the loan amount plus GST, depending on the circumstances.

FIC HFL offers the best housing loan programmes at competitive interest rates for NRIs and retirees.

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 amounts 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 home loans with floating rates.

Citi Bank Home loan

Citibank provides low-interest home loans with rates starting at 6.50% per annum for amounts up to Rs. 10 crores. You can extend the term to 25 years for more manageable repayment. Furthermore, Citibank’s home financing programmes allow you to receive financing for up to 80% of the total cost of the property.

Bajaj Housing Finance Home loan

Bajaj Housing Finance is a major provider of home loans in India. It provides home loans with attractive 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 providers in India.

The Bottom Line

Consider that not every loan programme is suitable for every borrower after learning about the best banks to choose from and the best lenders for home loans.

Before applying for a home loan in India, you should carefully consider the requirements, which vary depending on the individual or bank. As a result, you should select a home loan based on your loan needs, repayment capacity, and cash flow.