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Top Home Loan Schemes & Offers

1. Kotak Mahindra Bank – Best for Low Interest Rate

   • Low interest rates starting from 8.65% p.a.

   • Processing fee of up to 0.50% of the loan amount

   • Loan tenure of up to 20 years

   • Zero prepayment charges

   • Balance transfer with top-up loan available

2. Canara Bank Housing Loan – Best Interest Rate for Women

   • Low interest rates for women starting from 8.85% p.a.

   • Maximum repayment tenure of 30 years

   • Processing fee of up to 0.50% of the loan amount

   • Can be used to purchase or construct a house/flat

   • Zero prepayment charges

3. Axis Bank Home Loan – Best Interest Rate for Salaried Employees

   • Low interest rates starting from 8.60% p.a.

   • Loan amount of up to Rs.5 crore

   • Maximum repayment tenure of 30 years

   • Processing fee of up to 1% of the loan amount

   • No prepayment/foreclosure charges

4. HDFC Reach Home Loans for self-employed professionals

   • Attractive interest rates starting from 8.65% p.a.

   • Flexible repayment tenure of up to 30 years

   • Processing fee of 2% of the loan amount

   • Minimal documentation with minimum income of Rs.2 lakh p.a.

   • Add a woman co-owner for lower interest rates

5. SBI Privilege Home Loan for Government Employees

   • Low interest rates starting from 8.85% p.a.

   • Zero processing fee

   • Loan tenure of up to 30 years

   • Reduced interest rates for women borrowers

   • Interest concession when checkoff is provided

6. HDFC Home Loans for Purchase

   • Low interest rates starting from 8.65% p.a.

   • Flexible loan tenure of up to 30 years

   • Processing fee of up to 0.50% of the loan amount

   • Special arrangement for Indian army employees through partnership with AGIF

   • Legal and technical counseling from experts

   • EMIs starting at just Rs.776 per lakh*

7. DHFL Home Renovation Loan

   • Interest rate starting from 8.75% p.a.

   • Maximum loan tenure of 10 years

   • Processing fee ranging between 0.5% and 1.5%

   • Loan amount of up to 90% of the market value or 100% of the estimated cost of improvement

   • Available for both salaried and self-employed individuals

8. PNB HFL Plot Loan: Best Home Loan for Plot and Construction

   • Attractive rates starting from 8.75% p.a.

   • Flexible loan tenure of up to 30 years

   • Processing fee of up to 0.5% of the loan amount

   • Loan enhancement in case of escalating costs

   • Quick loan application and approval process

9. HDFC Home Loans for Existing Customers: Best Home Loan for Existing Customers

   • Low interest rates starting from 8.65% p.a.

   • Maximum tenure of 30 years

   • Processing fee of 0.5% of the loan amount

   • Quick loan disbursal

   • Can add co-applicant to increase loan amount

   • EMIs starting at just Rs.776 per lakh*

10. SBI Realty Home Loan: Best Home Loan for Land Purchase

    • Low interest rates starting from 9.45% p.a.

    • Maximum tenure of ten years

    • Processing fee of up to 0.35% of the loan amount

    • Maximum loan amount of up to Rs.15 crore

    • Interest rate concession for women borrowers

11. HDFC Home Loans Balance Transfer: Best Home Loan Balance Transfer

    • Interest rates starting from 8.65% p.a.

    • Avail additional top-up loan of up to Rs.50 lakh

    • Loan tenure of up to 30 years

    • Processing fee of up to 0.5% of the loan amount

    • Adding a co-applicant can further maximise the loan amount

    • EMIs starting at just Rs.776 per lakh*

12. SBI Smart Home Top Up Loan: Best Top Up home loan

    • Interest rates starting from 9.25% p.a.

    • Processing fee of Rs.2,000 + GST

    • Overdraft facility for loans above Rs.20 lakh

    • Loan tenure of up to 30 years

    • No prepayment penalty

13. Union Awas Home Loan: Best for Low Credit Score

    • Interest starting from 10.50% p.a. for credit score below 600 for loan of up to Rs.30 lakh

    • Moratorium period of up to 3 years for construction or purchase of home

    • Loan tenure of up to 30 years

    • For agriculturists, quarterly/half-yearly/annual repayments instead of EMI can be availed

    • Open to permanent employees of educational institutions and agriculturists with annual income of up to Rs.48,000 p.a.

14. Swaraj Home Loan: Best Home Loan without Income Proof

    • Interest rates starting from 8.7% p.a.

    • Loan tenure of up to 30 years

    • Maximum loan amount of Rs.2 crore

    • Income proof or bank documents not required if not available

Property Papers:

1. Agreement of Sale (any one):

   • Registered Agreement of Sale

   • Stamped Agreement of Sale

   • Allotment Letter

2. Occupancy Certificate in case the property is a ready-to-move-in property

3. Copy (blueprint) of the Approved Plan and Registered Development agreement of the builder

4. Conveyance Deed in case of a new property

5. Bank account statements indicating all payments made to the seller or builder

Home Loan Fees and Charges

Depending on the type of loan you are applying for, the following charges may be levied:

• Processing fees: This is a one-time non-refundable fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.

• Prepayment charges: Prepayment penalty is the fee you will have to pay the lender if you plan on repaying your home loan before the completion of the loan tenure.

• Conversion fees: Some banks also charge a conversion fee when you decide to switch to a different loan scheme in order to lower the interest rate associated with your current scheme.

• Cheque dishonour charges: The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonoured due to reasons such as insufficient funds in the borrower’s account.

• Fees on account of external opinion: In some cases, you might want to consult an external expert such as a lawyer or a valuator for his/her opinion on the loan. This fee should be paid directly to the concerned person and not the lending institution.

• Home insurance: The premium should be paid directly to the concerned company during the term to ensure that the insurance policy is running during the home loan tenure.

• Default charges: Loan providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.

• Incidental charges: This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly instalments on time.

• Statutory/regulatory charges: The fee includes all charges associated with Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and stamp duty. You can visit www.cersai.org.in to know more about these charges.

• Photocopy of documents: The fee is payable to the bank if you require a photocopy of your home loan documents for any personal needs.

• Change in loan term: Some banks also charge a nominal fee if you wish to change the tenure associated with your loan.

Before you Apply for a Home Loan

Types of Home Loans in India

Banks in India provide different types of housing finance options for different purposes. Here’s a list of the prominent types of housing loans in India, based on a study of products offered by some of the top banks:

1. New Home Loans: New Home Loans are offered to eligible customers who are looking to purchase a house or property for the first time.

2. Pre-approved Home Loan: Pre-approved home loans are offered by banks to eligible borrowers once his/her creditworthiness, income and financial position are taken into considerable for an in-principal approval of the loan.

3. Home Purchase Loans: Home purchase loans are specifically given to borrowers looking to purchase a house or flat.

4. Home Loan for Construction: Home loan for construction is offered to customers who are looking to construct their own house on an existing piece of land.

5. Plot Loans: Plot loans are loans offered to customers looking to purchase a piece of land or plot for the purpose of constructing a house on it.

6. Home Loan Top Up: Home Loan Top Up is a facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the existing home loan.

7. Home Extension/Renovation Loans: Home loans for extension or renovation of home are offered to borrowers who wish to renovate/extend their existing house/property.

8. 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.

What to do if your home loan application is rejected?

You can always re-apply for a home loan if your first loan application was rejected by the lender. However, there are a few aspects you must consider before doing so.

Credit score: Since housing loans are generally long-term retail loans, lenders look into the applicant’s repayment capacity before approving or rejecting a loan application. Your credit score plays a major role in deciding your repayment capacity against a loan.

If you have a poor score on your credit report, chances of your loan application being rejected are high. The unsatisfactory credit score gauges your creditworthiness which banks and financial institutions consider before processing your loan application. Hence, it is advised to go through your credit score and credit report before you apply for a loan.

In case you have a poor credit score, consider improving your score by making your debt repayments on time before you reapply for a housing loan again. If you do not know what your current score is, you can get your credit score along with the credit report on BankBazaar.

Loan Amount: Since purchasing/constructing a home is a one-time investment, we often tend to overlook the financial costs involved in it. Banks and financial institutions fix the maximum loan amount you are eligible for by taking your present monthly income. There is a high chance your application was rejected because of the loan amount you have applied for.

If the loan amount applied for exceeds your eligible loan amount, the lender can decide to reject your application. In such cases, you can consider increasing the down payment on your home loan to bring down the loan amount.

Other Ongoing Loans: Banks can also choose to reject your home loan application if you have too many other ongoing loans. Since home loan lenders see to it that not more than 50% of your monthly income is being contributed to your loan repayments, any other ongoing long-term loans can result in your application being rejected.

Having too many ongoing loans will not only impact your personal finances but also your repayment capacity. Hence, it is advised to clear the ongoing loans, if any, before you apply for a housing loan.

Co-applicant: There can be instances where applications are rejected due to low income. In such cases, you can consider adding a co-applicant such as a member of your immediate family. This will increase the maximum amount you are eligible for as the income and creditworthiness of the co-applicant will also be taken into account while deciding your eligibility.

Employment: In some cases, the employment of the applicant can act as the deciding factor on whether the loan application is being approved or rejected by the lender. Your application can be rejected if the lender learns that you have been switching between jobs frequently.

Unstable employment can sometimes prove to have a negative impact on your loan application. On the other hand, stable employment with a recognised institution on your application can have a positive impact.

In case your housing loan application was rejected, and you have only been working with the current employer for a short period of time. You can consider giving it some more time before re-applying for another one.

Documentation: Housing loans include a lot of documentation such as identity proof, residential proof, bank account statements, income tax returns, income proofs, property papers, documents approved by concerned authorities, etc. Your loan lender can reject your loan application even if one of the required documents are not submitted.

You can always consult the banks’ customer relationship executives to assist you with proper loan documentation.