Top 10 Home Loan Providers In India

By Investoxpert | 02 Dec 2023 | Real Estate

A home loan is a form of financing obtained for the purpose of buying or building a house from any financial organization, including banks and housing finance companies (HFCs), which are collectively referred to as "lenders."

Since this loan must be paid back over a period of typically 10 to 25 years through equal monthly instalments (EMI), the lender grants it based on an evaluation of the borrower's ability to repay the loan as well as certain technical and financial characteristics of the property being purchased through the help of Top Home Loan Providers In India.

What Are The Types Of Lenders Giving Home Loans?

In India, the main providers of house loans are often banks and certain HFCs.

A home loan-only non-banking finance company (HFC) is specialized in home loans. No other banking services, such as receiving deposits, transferring funds, handling payroll, etc., are part of its operations.

Banks include establishments such as Axis Bank, ICICI Bank, State Bank of India (SBI), and so on.

Companies such as LIC Housing Finance, Indiabulls Home Loans, DHFL, and others are examples of HFCs.

Which Are The Top 10 Home Loan Providers In India?

One of the most important considerations when selecting Home Loan Providers In India is the interest rate, which determines the monthly installment amount. In addition, additional elements are taken into account, such as the maximum loan amount eligible, the maximum duration permitted (Link to the page on the ideal home loan tenure), processing fees, and other pertinent costs.

The interest rates are nearly the same for all lenders in India because all banks follow the Reserve Bank of India's (RBI) instructions to give house loans based on the Marginal Cost of Funds based Lending Rate (MCLR).

Yet, even a 0.1% difference in interest rates results in a considerable difference in EMI and, consequently, the total interest payable over a 20-year period, since home loans are often larger in size and have longer terms than auto or personal loans. These interest rates vary depending on the loan amount slab, which is determined by the individual banks.

Similarly, HFCs adhere to the standards established by the National Housing Bank (NHB).

Additionally, lenders do not impose any fines or penalties on borrowers who repay their loans earlier than the agreed-upon term, in accordance with the norms set forth by the RBI and NHB.

Based on their affordability and other pertinent criteria, we have created a list of the top 10 largest Indian lenders offering home loans to salaried and self-employed candidates as of September 17, 2020, in no particular order.

1.State Bank of India: The country's biggest bank, State Bank of India (SBI) was founded in 1955. This public sector bank has more than 24,000 branches both domestically and overseas.

Maximum tenure allowed: 30 years

Processing fees: 0.4% (Min: Rs. 10,000; Max: Rs. 30,000)

Overall affordability: High

2.ICICI Bank: One of India's leading private sector banks is ICICI Bank. With more than 5,000 branches in India and 17 other countries, it is among the biggest banks in the country.

Maximum tenure allowed: 30 years

Processing fees: 0.5% (Min: Rs. 3,000; Max: NA)

Overall affordability: High

3.Bank of Baroda: After merging with Dena Bank and Vijaya Bank in April 2019, Bank of Baroda (BoB) is now the third-biggest public sector bank in India. It is a significant international commercial bank with about 10,000 branches across the globe.

Maximum tenure allowed: 30 years

Processing fees: 0.5% up to Rs. 50 Lacs; 0.25% above Rs. 50 Lacs (Min: Rs. 8,000; Max: Rs. 25,000)

Overall affordability: Moderate

4.Axis Bank: Founded in 1993, Axis Bank is a well-known private sector bank in India. It has about 4,500 branches across India and five other countries in the world.

Maximum tenure allowed: 30 years

Processing fees: 1.0% (Min: Rs. 10,000; Max: NA)

Overall affordability: Moderate

5. LIC: The biggest insurance provider in India, Life Insurance Corporation (LIC), is the parent business of LIC Housing Finance. Via a network of more than 300 offices, it operates in India, Kuwait, and the United Arab Emirates (UAE).

Pensioners can also apply for home loans from LIC Housing Finance.

Maximum tenure allowed: 30 years for Salaried; 20 years for Self Employed

Processing fees: 0.25% up to Rs. 50 Lacs; 0.25% above Rs. 50 Lacs (Min: NA; Max: Rs. 10,000)

Overall affordability: High

6. Indiabulls Home Loans: The Indiabulls Group's Home Finance division, Indiabulls Home Loans, is involved in a number of industries, including consumer finance, real estate, electronics, and pharmaceuticals. Through partnerships and other affiliations with other banks, it provides house loans.

Maximum tenure allowed: 25 years

Processing fees: Up to 2.0%

Overall affordability: Low

7. DHFL: One of the biggest home finance companies in India is Dewan Housing Finance Corporation Limited (DHFL). DHFL does not benefit from a low repo rate like banks do; instead, it bases its lending decisions on the Prime Lending Rate (PLR), an internal benchmark of the business.

Maximum tenure allowed: 25 years

Processing fees: 0.5% (Min: Rs. 2,500; Max: NA)

Overall affordability: Low

8. Union Bank of India: In April 2020, Union Bank of India, a public sector bank in India, amalgamated with Andhra Bank and Corporation Bank. With almost 9,500 locations, it mostly serves customers in India.

Union Bank of India lowered the minimum interest rate for home loans for women from 6.8% to 6.7% in August 2020. Union Bank of India has the most affordable home loans in India as of September 2020.

Maximum tenure allowed: 30 years

Processing fees: 0.5% (Min: NA; Max: Rs. 15,000)

Overall affordability: High

9. PNB Housing Finance: Housing loans are offered by this branch of Punjab National Bank (PNB), the second-largest public sector bank in the nation. PNB Housing Finance, one of the largest HFCs in India, was established in 1988.

Maximum tenure allowed: 30 years

Processing fees: 1.0% (Min: Rs. 3,000; Max: NA)

Overall affordability: Low

PNB Housing Finance's parent business PNB offers home loans based on MCLR and Repo rates, whereas PNB Housing Finance charges interest rates based on PLR comparable to other HFCs. Consequently, PNB charges a minimum interest rate of 7.10–7.70%.

10.HDFC Bank: One of the biggest commercial banks in India is HDFC Bank. It is the second-biggest bank in India and has over 5,300 branches spread across the country.

Maximum tenure allowed: 30 years

Processing fees: 0.5% (Min: Rs. 3,000; Max: NA)

Overall affordability: High

Which Is Best Home Loan Provider In India?

SBI Home Loan. 8.05%-8.55% ...
HDFC Home Loan. 8.60% - 9.50% ...
Axis Bank Home Loan. 7.60% - 8.05% ...
ICICI Home Loan. 8.40% - 9.45% ...
Bank of Baroda Home Loan. 7.45% - 8.80% ...
PNB Home Loan. 8.25% - 11.20% ...
LIC Housing Finance Home Loan. 8.00% - 9.25% ...
Aditya Birla Home Loan. 8.00% - 13.00%

Conclusion

In order to determine which house finance businesses are the finest in 2023, a thorough evaluation of numerous aspects is carried out. These featured affordable interest rates, adjustable loan amounts, quick processing, top-notch customer support, and a solid track record of dependability.

Strict qualifying standards were also taken into account to guarantee ethical lending procedures. These businesses have demonstrated their dedication to offering outstanding financial solutions and assisting clients in realizing their aspirations of becoming homeowners.

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Top 10 Home Loan Providers In India

What Are The Types Of Lenders Giving Home Loans?

Which Are The Top 10 Home Loan Providers In India?

Which Is Best Home Loan Provider In India?

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