Best Bank for Home Loan in India

HDFC Bank Home Loan

• HDFC Bank Home Loan interest rate varies from 8.75% for salaried, self-employed individuals engaged in professional, as well as non-professional services. 
• HDFC Bank offers a home loan of up to Rs 10 crore. The quantum of home loan approval is subjective to the earnings, credit score and other qualifying factors including age of the applicant, etc. 
• Documents required for HDFC Bank Home Loan include a valid proof of identity, an address proof, bank statements, salary slips, Form-16, copy of allotment letter, proof of own contribution/ down payment for home, etc. 

PNB Housing Home Loan

• PNB Housing Home Loan interest rate begins from 8.50% p.a. for salaried customers and from 8.80% p.a. for self-employed professionals. PNB Housing Finance being a state-run housing financier offers home loans at competitive interest rates and low processing fees. 
• With attractive interest rates, financing up to 90% of the property value, extended repayment tenures of up to 30 years, a home loan borrower can get easy funding subject to the eligibility according to age, credit score and other guiding factors including income, existing debt, etc.
• Documents required for PNB Housing Home Loan include an address proof, proof of identity and an age proof. For verifying the income, salaried customers can showcase the last three months of salary slips, while self-employed furnish income proof for business and ITR. 

HSBC Home Loan

• HSBC Home Loan interest rate starts from 8.50% p.a. for home loan balance transfer, while 8.75% p.a. and 8.85% p.a. is the starting rate for salaried and self-employed professionals, respectively. 
• With HSBC, you can get a home loan anywhere between Rs 3 lakh and Rs 60 crore. The upper limit of home loan remains dynamic as it can vary according to income, repayment behaviour, the credit score etc. HSBC has a loan repayment tenure of up to 25 years for salaried borrowers and up to 20 years for self-employed professionals. 
• The home loans of up to Rs 60 crore are only available for existing HSBC top tier customers for purchasing properties in suburbs of Mumbai, Delhi and Bengaluru, while a home loan of up to Rs 20 crore is available for purchasing property in Pune, Hyderabad and Chennai. 

L&T Finance Home Loan

• L&T Finance Home Loan interest rate starts from 8.65% for salaried customers and 8.75% self-employed professionals. With L&T Finance, you can get a home loan from Rs 20 lakh to Rs 10 crore for a maximum repayment tenure of up to 25 years. 
• Documents required for L&T Finance Home Loan are a proof of address, an identity proof, a proof verifying the age and income documents including 1 year bank statement of the salary account and 3 months of salary slips. Self-employed professionals are required to submit 2 years P&L statements alongside separate ITRs for personal and business. 
• L&T Finance offers a completely digitised process for home loans right from application to disbursals, while the housing financier also allots a dedicated relationship manager who assists during the home loan journey.

Bajaj Housing Finance Home Loan

• Bajaj Housing Finance Home Loan interest rates begin from {{BAJAJ_HOUSING_FINANCE_HL_INTEREST_RATE}} for salaried, as well as self-employed professionals, while the lender has flexible set-up for repayment as tenures can stretch up to 32 years. 
• A home loan borrower can get a loan amount of up to Rs 5 crore and a top-up loan of up to Rs 1 crore with quick documentation and approval processes. The disbursal time can be as low as 48 hours. 
• Bajaj Housing Finance has customized repayment options for under-construction properties and the facility of dual interest rates under which you can enjoy fixed interest rates for the first 3 years and after that the interest rate mechanisms shifts to floating rates. 

SBI Home Loan

• SBI Home Loan interest rates start from 8.50% - 10.05% with home loan amounts of up to Rs 15 crore. SBI Home Loans have low processing fee, while a customer can avail a home loan of up to 1.2 times of the property value. 
• State Bank of India has the facility of moderated EMIs for the initial set of years under which a borrower can choose to repay the interest only component during the moratorium period, while you can also opt for step-up EMIs with which your repayment will increase year-after-year. These tactics could effectively lessen the EMI burden and the overall interest component. 
• Interestingly, SBI doesn’t levy prepayment charges if a customer wishes to prepay the home loan before the maturity with repayment tenure stretching up to 30 years. 

Tata Capital Home Loan

• Tata Capital Home Loan interest rate commences from 8.75% for salaried, while the minimum home loan interest rate is 8.85% for self-employed professionals with home loans of up to Rs 7.5 crore. The maximum permissible repayment tenure for Tata Capital Home Loan can go up to 30 years. 
• The processing fee for Tata Capital Home Loans can go up to 3% of the loan amount, while Tata Capital don’t levy any prepayment or foreclosure charges if a borrower wishes to close the home loan earlier than the designated repayment tenure. 
• Application form, identity, age, address proofs, last 6 months of bank statements, 3 months salary slips, Form 16, proof of business existence and last 3 years of CA-approved P&L statements of business are some of the common documents required to apply for a home loan from Tata Capital. 

Bank of Baroda Home Loan

• Bank of Baroda Home Loan has a competitively lower interest rate starting from 8.40% - 10.60% for salaried, as well as self-employed professionals. A home loan borrower can avail a maximum loan amount of up to Rs 20 crore for a repayment tenure stretching up to 30 years. 
• Bank of Baroda has both fixed-rate and floating-rate home loans for all individuals. Bank of Baroda has placed an upper ceiling on the maximum loan amount as a home loan of Rs 20 crore is available for properties in Mumbai only, while borrowers looking to purchase property in Hyderabad, New Delhi NCR and Bengaluru can get a maximum loan of up to Rs 7.5 crore. 
• Bank of Baroda offers a concession of 0.05% on home loan interest rate for women borrowers and 0.10% for Gen Z & millennials. The lender also has several options under which home loan borrowers can avail a loan at NIL processing fee. 

LIC Housing Finance Home Loan

• LIC Housing Finance Home Loan interest rate begins from 8.50% for salaried borrowers, while self-employed borrowers can get a home loan with interest rate starting from 8.75%. 
• LIC Housing Finance don’t levy any prepayment or foreclosure charges if the borrower wishes to repay the home loan earlier than the set repayment tenure. A borrower can get a home loan of up to Rs 15 crore for a maximum repayment period of 30 years. You can opt for takeover or home loan balance transfer of existing loans 
• As far as documents are concerned, LIC Housing Finance demands a PAN card, Aadhaar card and a proof of residence, while a passport is required for NRIs. income verification is done through salary slips, Form 16 and bank statements for the last 6 to 12 months. Self-employed professionals are required to furnish last 3 years income tax returns along with company financials. 

Aditya Birla Home Loan

• Aditya Birla Housing Finance offers home loans from interest rates starting from 8.80% to 14.75% without any prepayment/foreclosure charges for repayment tenures extending up to 30 years. 
• ABHFL has capped the age limit for salaried borrowers at 60 years, while self-employed professionals can qualify for a home loan up to a maximum age of 70 years. 
• Aditya Birla Housing Finance demands a proof of identity, proof of address, alongwith Form 16, last 3 month salary slips for income verification of salaried customers and CA-certified IT returns of last 2 years for self-employed, while last 6 months bank statement is common for both type of borrowers.

Credit Score

Your credit score is the best indicator that can amplify your eligibility for a higher home loan amount as it is a comprehensive measure computed on the basis of credit mix, missed repayments (if any), credit utilisation ratio, age of credit, repayment behaviour, etc.

A credit score in the prime range, ideally above 750 is considered good, while a credit score above 800 can materially uplift your chances of getting a higher home loan amount at preferential interest rates, flexible terms of repayment. You should always evaluate your credit score before applying for a home loan as it can tell the real picture, whether you should apply for a loan immediately, or wait for a few quarters to improve it to enhance your chances of getting a better loan. 

Income

Income is the second-most important determinant for banks and housing financiers to assess your eligibility for a home loan as a higher income directly translates into a higher loan amount. Income levels, status of employment and nature of jobs can collectively push the eligibility for a better home loan. Individuals with relatively higher income but little damaged credit scores can also qualify for a better loan but it doesn’t happen vice-versa.

Debt to Income Ratio

The current burden of debt can drastically decrease your chances of even getting an approval for a home loan if 70-80% of your income is being exhausted in repaying existing loans and EMIs.

An ideal debt to income ratio stands at 40%, while a ratio below 25% could be even better as it can allow a lender to extend fresh credit of a higher amount. If you’re already repaying 2-3 EMIs then you should wait for your income to increase or up to a period where 1 or 2 EMIs terminate. This way, you’ll be better positioned to service a bigger home loan EMI. 

Downpayment

Restricting to the bare minimum down payment can be a loss-making decision, especially if you can offer a higher amount. Paying the maximum portion of house price in cash can effectively lower your home loan, and therefore, the total interest outgo.

On the other hand, you should be very careful while choosing an ideal repayment tenure and a loan amount as both of these will guide the EMIs for a stretch of 15-20 years. Home loan EMIs should be kept well within your repaying capacities, unless you’ll end up borrowing extra funds it home loan repayment exceeds your net income.