Best Banks Offering Home Loans In India

Owning a home is a treasured dream for most people in India, and an assurance of a home loan secures the first step towards their very cherished long-held dream. Whereas banking continues to be at the forefront of the preferred way to get home loans, other Non-Banking Financial Companies (NBFCs) like Bajaj Housing Finance Corporation Ltd have gained prominence and present effective interest rates with considerable easy terms. It would be a very smart financial move for people who may not qualify for traditional bank loans to look at NBFCs.

While this article primarily deals with the top banks offering home loans in India, let us also tell you a bit about NBFCs so you don’t fall short when it comes to accomplishing your dream of being a homeowner.

Why Some Applicants Might Not Qualify for Bank Home Loans

Despite the various available home loan options, some applicants are not eligible for a bank home loan. This is due to a number of reasons, such as:

• Low credit score: In most cases, the bank favors applicants with good credit scores, which range above 750.
• Irregular income: Unpredictable or inadequate income leads to loan rejection.
• High debt-to-income ratio: Applicants with large debt can be disqualified.
• Employment type: Freelancers or self-employed people often have stricter eligibility criteria.
• Property issues: Banks might deny loans if the ownership of the property is ambiguous or if there are any legal disputes over it.

In such scenarios, NBFCs like Bajaj HFC could be the alternative because of their easy-going criteria.

So, if your application for a traditional bank home loan gets rejected, do not lose hope because you can check out other offers, such as BAJAJ HFC home loan offers.

Bajaj HFC, though not a bank, is a prominent NBFC offering attractive home loan options. With competitive interest rates, minimal documentation, and flexible repayment terms, Bajaj HFC caters to a wide range of homebuyers. Key highlights include:

• Loan amount: Up to ₹5 crore, depending on eligibility.
• Interest rates: Starting from as low as 8.60% p.a.*
• Flexible tenure: Up to 30 years.
• Balance transfer: Option for transferring an existing home loan at reduced rates.

Bajaj Housing Finance steps in to bridge the gap between dreaming and owning a home in India with simple eligibility criteria, a long repayment period, and a lower interest rate. Plus, they guarantee quick processing, which means you are that much closer to turning your dream into reality. However, before jumping in and signing any contract, ensure you thoroughly go through the terms of the home loan and also be aware of additional fees, such as prepayment penalties, processing fees, and other charges that might add to the overall cost of your loan.

Other NBFCs worth considering are Cholamandalam Investment & Finance Company Limited, Aditya Birla Finance, LIC Housing Finance, and so on.

If NBFCs are not your preferred way of acquiring a home loan, take a look below at the top banks offering home loans in India.

Top banks offering home loans in India

Here’s a comprehensive list of the best banks in India offering home loans based on interest rates, customer service, and loan features:

State Bank of India (SBI)

• Interest rates: Starting from 8.40% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.35% of the loan amount
• Why choose SBI: With a robust network and attractive schemes like SBI MaxGain, SBI offers personalized home loan solutions.

HDFC Bank

• Interest rates: Starting from 8.45% p.a.*
• Maximum tenure: 30 years
• Processing fee: Up to 0.5% of the loan amount
• Why choose HDFC: Known for fast processing, doorstep service, and customized loan plans.

ICICI Bank

• Interest rates: Starting from 8.50% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.50% of the loan amount
• Why choose ICICI: It offers pre-approved loans, flexible tenure, and hassle-free digital processing.

Axis Bank

• Interest rates: Starting from 8.55% p.a.*
• Maximum tenure: 30 years
• Processing fee: 1% of the loan amount
• Why choose Axis Bank: It has competitive rates, a balance transfer facility, and personalized loan services.

Punjab National Bank (PNB)

• Interest rates: Starting from 8.60% p.a.*
• Maximum tenure: 30 years
• Processing fee: Up to 0.35% of the loan amount
• Why choose PNB: It offers loans for different needs, including home improvement and extension.

Bank of Baroda (BoB)

• Interest rates: Starting from 8.65% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.25% of the loan amount
• Why choose BoB: No prepayment penalties and special schemes for government employees.

Kotak Mahindra Bank

• Interest rates: Starting from 8.70% p.a.*
• Maximum tenure: 20 years
• Processing fee: Up to 0.5% of the loan amount
• Why choose Kotak: Quick loan approvals and minimal documentation.

Canara Bank

• Interest rates: Starting from 8.75% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.50% of the loan amount
• Why choose Canara Bank: Transparent process and special rates for women and senior citizens.

Union Bank of India

• Interest rates: Starting from 8.80% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.50% of the loan amount
• Why choose Union Bank: Zero processing fee for select schemes and attractive interest subsidies under government initiatives.

IDBI Bank

• Interest rates: Starting from 8.85% p.a.*
• Maximum tenure: 30 years
• Processing fee: 0.50% of the loan amount
• Why choose IDBI: It offers personalized home loan packages and faster disbursement.

What factors should you consider before choosing a home loan?

• Interest rates: Compare floating vs. fixed rates.
• Loan tenure: Choose a tenure that balances EMIs and interest outgo.
• Processing fees & other hidden charges: Look beyond the advertised rates.
• Eligibility criteria: Ensure you meet the bank's requirements.
• Customer service: Good service ensures a smooth loan experience.

Summing up

The selection of the right home loan provider is critical for a hassle-free home-buying journey. While banks such as SBI, HDFC, and ICICI are market leaders, there are NBFCs such as Bajaj HFC that offer viable alternatives with competitive rates and flexible terms. Consider your financial goals, compare multiple lenders, and make an informed decision to secure the best home loan deal.

Note: Terms and conditions apply. Interest rates are indicative and subject to change as per bank and NBFC policies.