Buying a home is a significant milestone in one’s life, and for most people, it is a dream that requires financial assistance in the form of home loans. If you are on the threshold of applying for a home loan in 2023, we have curated a list of the best banks for home loan in 2023 to help you make an informed decision. Keep reading to know the details on the top 10 banks for home loans including their various schemes, home loan interest rates, features, and home loan eligibility.

Top 10 Banks for Home Loan in (Interest Rates in 2023):

Here is a comparison of the top 10 Indian banks offering home loans in 2023, so that you can compare the home loan interest rates:

*Please note that interest rates are subject to change and may vary based on the borrower’s credit profile and loan amount.

HDFC Bank Home Loan

HDFC Bank is one of the most reputed private sector banks in India. They offer a variety of financial products and services including home loans. HDFC home loan caters to the borrower’s specific needs to finance their dream house. HDFC Bank is widely considered as one of the best housing finance companies in India and offers an affordable interest rate starting from 8.40% p.a.

Types of Home loans by HDFC

• HDFC Home Loans
• HDFC Plot Loans
• HDFC Rural Housing Loans
• HDFC NRI Home Loans
• HDFC Home Loan Balance Transfer
• HDFC Home Renovation Loans
• HDFC Top-up Home Loans

Features of HDFC Home Loans

• HDFC bank offers one of the lower EMI option starting from ₹762 per lakh
• Get customised repayment options to suit your specific requirements.
• Easy application process with minimal documentation that saves time and effort.
• Use an online loan account to manage your loan with ease.

SBI Home Loan

State Bank of India (SBI) is a reputable Indian public sector bank. It is counted among the best banks for home loan with low interest rates starting from 8.50% p.a. With a helping hand from SBI Home Loans, more than 30 lakh families have been able to become homeowners.

Types of Home Loans by SBI

• SBI Regular Home Loan
• SBI Balance Transfer of Home Loan
• SBI NRI Home Loan
• SBI Flexipay Home Loan
• SBI Privilege Home Loan
• SBI Shaurya Home Loan
• SBI Pre-Approve Home Loan
• SBI Realty Home Loan
• SBI Home Top-up Loan
• SBI YONO Insta Home Top-up Loan
• SBI Home Loan to Non-salaried Differential Offerings
• SBI Tribal Plus
• SBI Maxgain Home Loan

Features of SBI Home Loans

SBI has various types of home loan products to suit your unique needs. These are:

• For women borrowers, SBI offers a 0.05% interest rate concession.
• SBI exercises complete transparency in the loan process with clear communication to the customers regarding every step of the process.
• They offer assistance in property evaluation and help you choose the right property according to your budget and preferences.

Axis Bank Home Loan

Axis Bank also offers affordable and flexible home loans to turn your dream home into reality. They offer a string of home loan products with competitive interest rates that starts from 9% p.a. Axis Bank Home Loans also offer unique features like EMI waiver.

Types of Home Loans by Axis bank

• Axis Bank Home Loan
• 24×7 Home Loan Top Up
• Shubh Aarambh Home Loan
• Fast Forwards Home Loan
• Asha Home Loan
• Top-up Home Loan
• Super Saver Home Loan
• Power Advantages Home Loans
• QuikPay Home Loan

Features of Axis Bank Home Loans

• Axis Bank Home Loan offers attractive fixed and floating interest rates.
• Get a flexible repayment tenure of up to 30 years.
• In home loan schemes like Fast Forward home Loan, you can enjoy up to 6 EMI waivers.

PNB Home Loan

One of the oldest financial institutions in India, Punjab National Bank (PNB) is a preferred bank thatis considered as one of the best home loan providers in India. The lowest home loan interest rate offered by PNB is 8.60% p.a. They also offer unique schemes with special benefits for government employees.

Types of Home Loans by PNB

• Housing Finance Scheme For Public – Pnb Max-Saver
• PNB Pride Housing Loan For Government Employees
• Housing Loan For Public
• Housing Loan For Public – Pradhan Mantri Awas Yojana – Housing For All
• PNB Gen-Next Housing Finance Scheme For Public

Features of PNB Home Loans

• PNB Home Loans offer flexible interest rates based on your preferences, both floating and fixed.
• Special home loan schemes for government employees.
• PNB Home Loan charges minimal processing fees.
• Zero penalties on prepayment of the loan amount.

ICICI Bank Home Loan

ICICI Bank is a renowned name in the private sector finance industry and a trusted home loan provider in India. It has a wide range of home loan products to suit your purpose. You can avail a home loan from ICICI Bank at an interest rate starting from 8.90% p.a.

Types of Home Loans by ICICI Bank

• ICICI Bank Home Loan
• ICICI Bank Land Loan
• ICICI Bank Express Home Loan
• ICICI Bank Extra Home Loan
• ICICI Bank NRI Home Loan
• ICICI Bank Home Loan Overdraft
• ICICI Bank 30 Year Home Loan
• ICICI Bank Money Saver
• ICICI Bank Home Improvement Loan
• ICICI Bank Home Loan Top-up
• ICICI Bank Pradhan Mantri Awas Yojna
• ICICI Bank Step Up Home Loan

Features of ICICI Bank Home Loans

• ICICI Bank Home Loan programs offer longer tenure with affordable EMIs.
• You can get a fixed interest for 10 years with an ICICI Bank home loan, followed by fixed or floating interest rates.
• Get an ICICI Bank home loan top-up of up to 100% of the original loan amount.
• ICICI Bank Home Loans can be sanctioned before finalising the property.

Union Bank Home Loan

Union Bank which is also a well-known bank in India offers home loans at affordable rates. Union Bank of India offers a home loan interest starting from 8.50% p.a. along with a processing fee of 0.5% of the loan amount and other taxes.

Types of Home Loans by Union Bank

• Union Home
• Union Awas
• Loan for Purchase of Plot
• Builder Tie-ups (Approved Projects)
• Union Smart Save
• Union Rooftop Solar

Features of Union Bank Home Loans

• Union Bank Home Loan has an easy-to-meet eligibility criteria.
• Union Bank has a simple and quick application process with minimum hassle.
• Get a flexible repayment tenure for your Union Bank home loan of up to 30 years.

Kotak Mahindra Bank Home Loan

In India, Kotak Mahindra Bank offers housing loan interest rates starting at 8.75% p.a. With an EMI of ₹822 per lakh, this interest rate enables you to finance your mortgage affordably. Choose the right home loan type for your particular need.

Types of Home Loans by Kotak Mahindra Bank Home Loan

• Home Purchase Loan
• Home Improvement Loan
• Home Construction Loan
• House Conversion Loan
• Bridge Loan

Features of Kotak Mahindra Bank Home Loans

• Kotak Mahindra Bank offers home loans at attractive interest rates that are linked to RBI’s repo rates.
• All digital applicants can get 50% off on all digital applications for home loans.
• Get customizable repayment tenure as per your need that extends to up to 25 years.

IDFC Bank Home Loan

IDFC First Bank is one of the most trusted banks in India for their financial products. IDFC First Bank ensures that you find the perfect home loan for your dream home. With competitive interest rates, starting from just 8.85% p.a., you can turn your homeownership aspirations into reality with IDFC First Bank’s unwavering support.

Types of Home Loans by IDFC Bank

• IDFC First Housing Loan
• IDFC First Suvidha Shakti
• IDFC FASTRACK Home Loan Balance Transfer

Features of IDFC Bank Home Loans

• Get a home loan amount of up to ₹5 crore and a flexible tenure of 30 years.
• Get customised loans with less paperwork for a hassle-free loan process.
• Avail home loan top-up of up to 100% of the loan amount.

Canara Bank Home Loan

Canara Bank is a government owned commercial bank. It is known for its reliable and customer-oriented services. Canara Bank Home Loan offers a range of flexible and affordable options with interest rates starting from 8.85% p.a. The bank ensures that aspiring homeowners can realise their dreams with ease and convenience.

Types of Home Loans by Canara Bank

• Canara Bank Housing Loan
• Canara Kuteer Scheme
• Agriculturist’s Housing Loan
• NRI Home Loans from Canara Bank
• Canara Bank Home Loan Plus
• Canara Bank Plot Loan
• Home Improvement Loan
• Super Gain Home Loan Scheme
• Pradhan Mantri Awas Yojna

Features of Canara Bank Home Loans

• Canara Bank requires no guarantor while applying for home Loan.
• Canara Bank Home Loan allows prepayment facility.
• Get quick approval and a flexible repayment tenure of up to 30 years.

Bank of Baroda

Bank of Baroda is a renowned home loan provider in India. Their affordable interest rates start from just 8.70% p.a. They charge a minimal processing fee of 0.5% of the loan amount, in addition to applicable taxes. Bank of Baroda is known for its customer-centric approach, ensuring a seamless and hassle-free home loan application process.

Types of Home Loans by Bank of Baroda

• Baroda Home Loan
• Baroda Home Loan Advantage
• Baroda Home Loan Takeover Scheme
• Bank of Baroda Home Improvement Loan
• Bank of Baroda Pre-Approved Home Loan
• Baroda Top-up Loan
• Baroda Home Suvidha Personal Loan
• Credit Risk Guarantee Fund Scheme for Low Income Housing

Features of Bank of Baroda Home Loans

• Bank of Baroda home loans are quick and affordable.
• You can avail a huge home loan amount of 20 crores.
• Bank of Baroda offers special schemes to provide credit risk guarantee to EWS/LIG borrowers.

Eligibility Criteria for Home Loan:

Before you apply for a home loan, it is essential to understand the eligibility criteria set by banks. While specific criteria may vary from one bank to another, some common factors include:

Age: Most banks require the borrower to be at least 21 years old at the time of loan application and not more than 65 years old at loan maturity.

Income: A steady source of income is necessary to qualify for a home loan. Banks usually consider the applicant’s income and employment stability.

Credit Score: A good credit score is crucial for loan approval. A higher credit score signifies better creditworthiness and increases the chances of loan approval.

Employment Status: The applicant should have a stable job or business, with a minimum work experience requirement, usually ranging from 1 to 3 years.

Property Documents: The property an applicant intends to purchase should have clear and marketable titles to be eligible for a home loan.

Features and Benefits of Home Loan

Home loans come with several features and benefits that make them an attractive option for aspiring homeowners. Here are some of the key features and benefits:

High Loan Amount: Banks offer substantial loan amounts to help you finance a significant portion of your property’s cost.

Flexible Tenure: Home loans come with flexible repayment tenures, typically ranging from 5 to 30 years, making it easier for borrowers to manage their EMIs.

Attractive Interest Rates: Banks offer competitive interest rates on home loans, making it cost-effective in the long run.

Tax Benefits: Home loan borrowers can avail tax benefits on both principal and interest repayments under the Income Tax Act.

Balance Transfer Facility: Banks allow you to transfer your existing home loan to another bank offering better interest rates or terms, providing potential cost savings.

Conclusion

Choosing the perfect home loan lender is a crucial decision if you’re planning to build your dream abode. The above explained banks stand among the best banks for home loans in India. However, it’s essential to compare various banks, their interest rates, processing fees, and other charges to find the best deal that aligns with your financial goals. Assess your financial capabilities, repayment capacity, and the total cost of the loan over its tenure. Remember, investing time in research and making an informed decision will lay a strong foundation for your journey towards becoming a proud homeowner.

FAQs

Q. What are the factors to consider when choosing a bank for a home loan?
A. Interest rates, loan terms, fees, customer service and other benefits are some of the factors that one should consider before choosing a bank for a home loan.

Q. Which banks offer the lowest interest rates on home loans?
A. Read the above blog to find the top 10 banks for home loans with the best interest rates. The interest rate also depends on the borrowers income, credit score and other factors.

Q. What documents are required to apply for a home loan?
A. To apply for a home loan, you will need to provide the bank with proof of identity, residence, income, property,bank statements and photographs.

Q. Can I negotiate the terms and interest rates with the bank?
A. Yes, you can negotiate the terms and interest rates with the bank.

Q. Can I apply for a home loan jointly with a family member?
A. Yes, you can apply for a home loan jointly with a family member or close relative such as your spouse, sibling, parent, son or unmarried daughter.