5 Best Banks for Home Loans in India
By Anupama Deshpande | July 17, 2023
When it comes to purchasing a home, most people rely on home loans to fulfill their dreams. With numerous banks offering home loan products in India, it can be challenging to choose the right lender. To help you make an informed decision, we have compiled a comparative analysis of the best 5 banks for home loans in India. Now the question is how to choose best bank for home loan? so here key information on interest rates, processing fees, loan amounts, and tenure offered by 5 best banks has been provided:
Table showcasing 5 Best Banks for Home Loans
| Bank | Interest Rate | Processing Fee | Loan Amount | Tenure |
|---|---|---|---|---|
| State Bank of India | 9.10% to 9.65% | 0.35% of loan amount (Rs 2,000-Rs 10,000) | Up to 90% of property value | Up to 30 years |
| HDFC Bank | 8.50% to 9.60% | Up to 0.50% of loan amount | Up to 90% of property value | Up to 30 years |
| ICICI Bank | 9.25% to 10.05% | Up to 1% of loan amount | As per applicant's eligibility | Up to 30 years |
| Bank of Baroda | 8.60% to 10.60% | Up to 0.50% of loan amount (Rs 7,500-Rs 20,000) | Up to Rs. 20 crore | Up to 30 years |
| Kotak Mahindra Bank | 8.75% to 9.60% | Up to 1.25% of the loan amount | Up to 90% of property value | Up to 25 years |
Above interest rates are updated as on 14.07.2023.
Suggested reading How Does Home Loan Disbursement Process Work?
State Bank of India:
Applying for a home loan from State Bank of India (SBI) comes with several compelling reasons. Firstly, SBI is one of the largest and most trusted banks in India, ensuring credibility and reliability. Secondly, SBI offers competitive interest rates, making the home loan more affordable in the long run. Thirdly, the bank provides flexible repayment options and longer tenures, easing the burden on borrowers. Additionally, SBI offers various schemes and benefits for different categories of borrowers, including women, senior citizens, and government employees. Lastly, SBI's extensive branch network and digital services ensure convenient access and seamless loan processing which makes it one of the top banks for home loan in india.
- Eligibility: Age to be between 18 and 70 years
- Documents Required: Duly filled application form with 3 passport sized photographs, ID Proof, Address Proof, Bank account statement for last 6 months, Income Proof, Property Papers
- Margin Requirement: 10% to 20% of loan amount
HDFC Bank:
With a strong presence in the housing finance sector, HDFC Bank provides competitive interest rates, flexible repayment options, and a hassle-free application process. Their wide range of home loan products caters to different needs, whether it's purchasing a new house, constructing a home, or renovating an existing property. HDFC Bank also provides personalized customer service, quick loan disbursal, and convenient online account management. With a trusted reputation and customer-centric approach, HDFC Bank is a reliable option for those seeking a home loan in India as it is one of the best bank for home loan in India.
- Eligibility: Age to be between 21 and 65 years
- Documents Required: Duly filled application form with 3 passport sized photographs, ID Proof, Address Proof, Bank account statement for last 6 months, Income Proof, Property Papers
- Margin Requirement: Up to 10% of loan amount
Must Read What is Home Loan Insurance and its Tax Implication?
ICICI Bank:
ICICI Bank's customer-centric approach ensures a smooth and hassle-free loan application process, supported by efficient customer service. ICICI Bank also provides additional benefits such as doorstep document pickup, personalized guidance, and convenient online account management. With their commitment to customer satisfaction and a wide range of home loan products, ICICI Bank is a trusted partner for fulfilling your dream of owning a home. With a strong reputation and presence in the banking industry, ICICI Bank offers competitive interest rates, flexible repayment options, and attractive loan amounts.
- Eligibility: Age to be between 21 and 70 years
- Documents Required: Duly filled application form with 3 passport sized photographs, ID Proof, Address Proof, Bank account statement for last 6 months, Income Proof, Property Papers
- Margin Requirement: Up to 10% of loan amount
Bank of Baroda:
Bank of Baroda's transparent loan processing and minimal documentation make the application process hassle-free. Moreover, borrowers can benefit from personalized assistance and dedicated customer service. Bank of Baroda's commitment to customer satisfaction, coupled with its reliable reputation, makes it a reliable choice for those seeking a home loan.
- Eligibility: Age to be between 21 and 70 years
- Documents Required: Duly filled application form with 3 passport sized photographs, ID Proof, Address Proof, Bank account statement for last 6 months, Income Proof, Property Papers
- Margin Requirement: 10% to 25% of loan amount
Kotak Mahindra Bank:
With a strong presence in the banking industry and a commitment to customer satisfaction, Kotak Mahindra Bank is a trusted partner for fulfilling your dream of owning a home. They offer competitive interest rates, flexible repayment options, and a hassle-free application process. Additionally, they provide personalized customer service and transparent loan terms.
- Eligibility: Age to be between 18 and 65 years
- Documents Required: Duly filled application form with 3 passport sized photographs, ID Proof, Address Proof, Bank account statement for last 6 months, Income Proof, Property Papers
- Margin Requirement: Up to 10% of loan amount
Must Read 4 Major Disadvantages of Pre-Approved Home Loan
Wrap-up
Choosing the right bank for a home loan is crucial for a smooth borrowing experience. The best bank for a home loan depends on individual preferences and requirements. The comparative analysis of interest rates, processing fees, loan amounts, and tenure provided by these 5 banks can serve as a useful starting point for making an informed decision and it also helps us to know which bank is best for home loan with low interest?
It is advisable to thoroughly research and compare various factors, such as customer service, prepayment charges, and additional benefits, before finalizing a home loan provider. Additionally, borrowers should evaluate their financial situation, credit score, and repayment capacity to select the most suitable bank for their specific needs.
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Anupama is a Co-Founder of CodeForBanks.com. She is an MBA (Finance) and Chartered Financial Analyst (CFA). She also carries a Fellowship degree in Life Insurance Sector and is a Master of Computer Application (MCA). She is an expert in Finance Field with an experience of over 18 years on different managerial positions in finance industry including Stock Market, Depository and Mutual Fund Sectors. Apart from that she has remained for few years in the field of marketing as well. Her suggestions and advice for investments have been very useful to many people.Her vast interest & expertise in the field of finance have encouraged her to write the articles so that others can also get benefitted out of them. She never loses any opportunity to learn and be creative. She is a valuable asset for CodeForBanks.com & important resource to all those around her.