Home Loan Lowest Interest Rate Banks in India

A home is a dwelling place used as a permanent residence for an individual, household or family. Building your home can be one of the most exciting and important dreams one has and a home construction or purchase is probably the biggest financial decision in one's life. This decision has an impact on one's financial life for many years to come.

Now due to home loans offered by many finance companies and bank, it has become comparatively easier to build our own home. Such banks/ home finance companies provide you full assistance in getting loan by their simple procedures.

A Home loan in India is offered by several banks at a lower interest rate starting at 6.40%. These loans allow you to repay them in maximum of 30 Years. Banks offer the best Home loan schemes and you can repay the loan through easy EMIs.

Further, there is also tax benefits in availing home loans. Find below Banks List Providing Home Loan.

Home Loan at lower Interest Rate 08 Feb 2023

BankInterest RateTenureMax. Loan AmountProcessing Fees
City Union Bank 10.25% - 12.75%15 YearsMaximum Rs 25 lakhs1% of the loan amount, subject to minimum Rs 250
Andhra Bank6.40% to 7.30%30 YearsEligibility of loan amount is based on repayment capacityUpto 0.50% of loan amount
Corporation Bank6.40% to 7.30%30 YearsMax. Upto Rs. 5 Crore0.50% of the loan amount, maximum of Rs.15000 including service tax
Union Bank Of India6.40% to 7.30%30 YearsCustomised on the basis of the value of the property and the repayment capacity of the borrower.
For repairs of an existing property - Maximum upto Rs. 30 lakh
0.50% of the loan amount, maximum of Rs.15000 including service tax
Kotak Mahindra Bank 6.5% - 7.25%20 YearsRs. 2,00,000 to Rs. 1,00,00,000Upto 1.25% of Loan amount plus applicable taxes
Uco Bank6.50% to 6.70%30 YearsFor Construction| Purchase| Takeover A|Cs : No upper limit
For Repair| Extension| Renovation : Maximum Rs.25 lakhs (Metro/Urban/Semi-urban) & Rs.7.50 lakhs (Rural)
0.50% of the loan amount, subject to minimum Rs.1,500 and maximum Rs. 15,000
Bank Of India6.50% to 8.35%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment
  • For Individuals: 0.25% of Loan Amount (Min. 1,000 & Max. Rs 20,000)
  • For Firms & Corporate: double that of applicable to individuals
  • For Rural Areas: 75% that of applicable to individuals
Punjab And Sind Bank6.60% to7.35%15 YearsFor construction of house or purchase of house/ flat/ Plot: Need based finance, with no Maximum limit
For repairs / renovation / additions / alterations: Maximum Rs. 20 lakhs.
0.25% of the loan amount plus GST
Yes Bank6.65% to 6.70%25 YearsMaximum Upto Rs. 5 Crore0.5% of the loan amount or Rs 10,000 whichever is higher
Icici Bank 6.70% - 7.55%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment0.50% of the loan amount, subject to maximum Rs 11,800
Indusind Bank6.70% - 8.80%30 YearsLoan amount is subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessmentAs decided by the bank from time to time
Idbi Bank6.75% - 9.30%25 YearsMin. Rs. 5 Lakh to Rs. 10 Crore0.50% of the loan amount, subject to minimum Rs 2,500
State Bank Of India6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
Bharatiya Mahila Bank 6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
State Bank Of Mysore6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
State Bank Of Hyderabad6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
State Bank Of Patiala6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
State Bank Of Travancore6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
State Bank Of Bikaner And Jaipur6.75% to 7.50%30 YearsCustomised, depending upon applicant's income and repaying capacity, age, assets and liabilities, cost of the proposed house|flat etc. Nil
Oriental Bank Of Commerce6.75% to 7.55%480 Months, , including the moratorium period of 18 monthsHousing Loan: No upper ceiling, loan amount depends upon income of individual as well as joint borrower, if any
Home furnishing Loan: Maximum Rs 15 Lakhs (restricted to 30% value of existing house)
0.50% of the Loan Amount, subject to maximum of Rs. 20,000 plus GST
Punjab National Bank6.75% to 7.55%30 Years
  • For Construction| Additions| Purchase of House| Flat: Need based loan, depending upon the project cost and repaying capacity.
  • For purchase of Land| Plot for House Building: Maximum Rs.100 lacs for State Capitals and Metro and Rs. 50 lacs for other centers; (Higher amount may be considered on individual merit of case).
  • For repairs | renovation | alterations: Maximum Rs.25 lakh.
  • Cost of furnishing may be included in the project cost with maximum upto 10% of eligible Housing loan with a maximum upto Rs.5 lakh.
0.50% of loan amount. Maximum Rs.50,000
United Bank Of India6.75% to 7.55%30 Years
  • Location of house/ flat/ property (Metro): Maximum upto 300 lakhs
  • Location of house/ flat/ property (Urban): Maximum upto 100 lakhs
  • Location of house/ flat/ property (Semi-Urban): Maximum upto 45 lakhs
  • Location of house/ flat/ property (Rural): Maximum upto 25 lakhs
0.50% of loan amount. Maximum Rs.50,000
Hdfc Bank6.75% to 7.65%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessmentUpto 0.50% of the loan amount or Rs. 3000 whichever is higher plus applicable taxes
Bank Of Baroda6.75% to 7.75%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment
  • Upto Rs 50 lakhs: 0.50% of Loan Amount (Min. 7,500 & Max. Rs 12,500)
  • Above Rs 50 lakhs: 0.25% of Loan Amount (Min. 7,500 & Max. Rs 20,000)
Dena Bank6.75% to 7.75%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment
  • Upto Rs 50 lakhs: 0.50% of Loan Amount (Min. 7,500 & Max. Rs 12,500)
  • Above Rs 50 lakhs: 0.25% of Loan Amount (Min. 7,500 & Max. Rs 20,000)
Vijaya Bank6.75% to 7.75%30 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment
  • Upto Rs 50 lakhs: 0.50% of Loan Amount (Min. 7,500 & Max. Rs 12,500)
  • Above Rs 50 lakhs: 0.25% of Loan Amount (Min. 7,500 & Max. Rs 20,000)
Bank Of Maharashtra6.8% to 8.40%30 YearsFor Metro and Urban area: No Maximum Limit
For Rural areas : Amount of Loan should not exceed Rs.15 lakhs
For Semi-Urban areas: Amount of Loan should not exceed Rs.25 lakhs
Upto 0.50% of loan amount
Central Bank Of India6.85% to 7.30%30 YearsDepending on repayment capacity of borrower and value of property.0.50% of the Loan Amount subject to maximum Rs.20,000
Idfc First Bank6.90%30 YearsLoan amount is subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessmentUpto 0.50% of loan amount
Axis Bank6.90% - 8.55%30 YearsMinimum: Rs. 3 lakhs
Maximum: Customised, varies from person to person
Up to 0.50% of the loan amount subject to maximum Rs.10,000
Canara Bank6.90% to 8.90%30 Years4 years of gross salary to salaried individuals. 4 years' gross annual income to individuals engaged in business or to self-employed persons. Selectively loan upto 5 years' gross salary|income also permitted Rs.15.00 lacs for repairs | renovations.0.50% of Loan Amount (subject to Min Rs 1,500 and Max. Rs 10,000)
Syndicate Bank6.90% to 8.90%30 Years75% of project cost for new constructions / purchase of ready built house / flats. 70% of Project Cost for old house aged more than 5 years.
72 months Gross Salary in case of Salaried Class
6 times of 3 years average income in case of non-salaried class.
0.50% of Loan Amount (subject to Min Rs 1,500 and Max. Rs 10,000)
Indian Overseas Bank7.05% to 7.30%30 Years75% to 90% of the cost of the house|flat excluding Registration and Documentation charges. The amount depends on applicant's age and repayment capacity. Up to 30% of the loan amount given for purchase of plot.0.50% of Loan Amount subject to maximum Rs 25,000
Karur Vysya Bank7.15% to 9.35%25 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment
  • Loans upto Rs 25.00 lakhs: Rs 2,500 + GST
  • Loans between Rs 25.00 lakhs & Rs. 50 lakhs: Rs 5,000 + GST
  • Loans above Rs 50.00 lakhs: Rs 7,500 + GST
Jammu And Kashmir Bank 7.20% to 9.20%15 YearsLoan amount is subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment0.25% of the loan amount with minimum of Rs. 500 and maximum of Rs 10000/- plus applicable service tax. However, 50% waiver in processing charges shall be provided to women borrowers (both for sole/joint borrower).
South Indian Bank7.25% to 10%30 YearsMinimum: Rs 2 lakhs
Maximum: Rs 1,500 lakhs
0.50% of loan amount (Minimum: Rs 5,000 & Maximum: Rs 10,000) + Service Tax
Karnataka Bank 7.50% to 8.85%30 YearsFor Purchase/Construction: Max. Rs 5 Crore
For Renovation,Remodelling,Extension or Repair: Max. Rs 30 Lakhs
0.25% of the loan amount, subject to a minimum of Rs 250
Allahabad Bank7.55% to 7.85%30 YearsMaximum Upto Rs. 5 Crore0.23% on Loan Amount subject to maximum of Rs 20,381
Indian Bank7.55% to 7.85%30 Years60 times of Gross Monthly Income
For Repair or Renovation: Rs. 10 lakhs (Max)
0.23% on Loan Amount subject to maximum of Rs 20,381
Federal Bank7.65% to 7.80%30 YearsMaximum loan amount is Rs. 15 crores0.50% of the Loan amount with a minimum of Rs 3,000 plus tax and maximum of Rs 7,500 plus tax
Dhanalakshmi Bank7.85% to 9.00%20 YearsMaximum loan amount is Rs. 2.5 crores (Rs. 50 lakh for purchase of plot)1% of the Loan Amount, subject to a minimum of Rs.10,000 plus taxes as applicable
The Nainital Bank 7% - 7.60%25 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessment0.50% of the loan amount, subject to minimum Rs 500 & maximum Rs 10,000
Tamilnad Mercantile Bank 8.25%30 Years
  • Metropolitan centres: Upto Rs. 500 Lakhs
  • Non-Metro Centres: Upto Rs 300 Lakhs
  • For Special cases (where IT returns are not available): Maximum Rs 10 Lakhs
  • Renovation: Upto Rs 25 Lakhs
  • Top-up Loans: Maximum of 15% of the original Loan amount or Rs 15 Lakhs, whichever is lower
  • Take-over of Loans from other Banks / FIs: Actual amount outstanding
0.50% of the Limit Sanctioned without any maximum cap plus Taxes as applicable
Dcb Bank 8.25% to 16.00%20 YearsRs.10 lakh to Rs.5 croresUpto 2% of the Loan Amount, subject to a minimum of Rs.5,000 plus taxes as applicable
Catholic Syrian Bank 8.30% - 8.63%20 Years75 % of construction | purchase cost OR Loan Eligibility whichever is lower. Maximum Rs. 1,00,00,0000.50% of loan amount
Bandhan Bank 8.50%-11.75%15 YearsRs. 5,00,000 to Rs. 1,00,00,0001% of the Loan Amount plus taxes as applicable
Minimum Rs. 5,000 plus taxes as applicable
Laxmi Vilas Bank9.70%20 YearsCustomised, subject to market value of the porperty and repayment capacity of the applicant, as per bank's assessmentUpto 1.20% of Loan amount plus applicable taxes

Home Loan Eligibility

  1. Age Salaried: 21 to 60 years.
  2. Self-employed: 21 to 65 years.
  3. Permanent employees of State/Central Govt., Public Sector Undertakings, Corporations, Private Sector Companies and reputed establishments.
  4. Income Salaried - Minimum net monthly income of ₹ 180000 PM.
  5. Self-employed - Minimum net monthly income of ₹ 180000 PM.
  6. If salaried, number of years in the present job: 2-3 years
  7. If business, number of years in the current business: 3 years

Important Link About Home Loan

Purpose of Home Loan

  • Home Purchase Loan - For the purpose of purchase of a house.
  • Home Construction Loan - For the purpose of self-construction of a residential home.
  • Land Purchase Loans/Plot Loans - For the purpose of purchase of a plot of land for construction or as an investment.
  • Home Extension Loan - For the purpose of add more space to your existing home.
  • Home Improvement Loan - For the purpose of internal or external repairs, waterproofing, electrical works, painting, roofing, plumbing, etc.
  • Residential Plot Loan - For the purchase of a residential plot of land in an urban area, and build your house subsequently.

Types of Home Loan

Sr NoSchemeBrief Description
1Regular Home LoanRegular and most demanding Loan Scheme
2Home Loan as OverdraftHome Loan is taken as Overdraft
3Home Top-Up LoanBorrow amount over and above home loan amount
4Balance Transfer of Home LoanTransfer home loan from other institution
5NRI Home LoanNRIs and PIOs can get home loan
6Flexipay Home LoanExclusively designed for salaried to get higher loan
7Privilege Home LoanExclusively designed for government employees
8Home Improvement LoanFor furnishing houses or flats at very low interest rate
9Pre-Approved Home Loan (PAL)Sanction of loan limit before finalizing property
10Realty Home LoanExclusively to purchase a plot for construction
11Bridge Home LoanUpgrade home
12Reverse Mortgage LoanLoan against mortgage of residential property
13CRE (Commercial Real Estate) Home LoanLoan to customers who own at least 2 houses
14Pradhan Mantri Awas Yojana (PMAY)Subsidised home loan for eligible urban beneficiaries
15Step Up Home LoanOffers higher loan amount as compared to your actual loan eligibility
16Fixed Home Loan 24/36 monthsFixed interest rate for first 2/3 years