Housing Loan

A home/housing loan, also known as a mortgage, is an amount of money borrowed by an individual, usually from banks and companies that lend money. The borrower has to pay back the loan amount with interest in Easy Monthly Instalments or EMI's over a period of time that can vary between 10-30 years depending on the nature of the loan.

There are different kinds of home loans options that are made to suit each unique situation. You can take home loans to buy properties that are either commercial or personal in nature.

Here are some of the different kinds of home loans you can take.

  • 1. Home Purchase Loan - You can buy any house or home that is within your budget
  • 2. Construction Home Loan – You can use this loan to cover the costs of building a house
  • 3. Land Purchase Loan - You can use this loan to buy a piece of land
  • 4. Home Improvement Loan – You can use this loan to renovate and improve your house
  • 5. Home Repair Loan – Pay for the cost of repair and restoration of your home
  • 6. Home Extension Loan – Increase the amount of built up space at your home using this loan.
  • 1

    TAX SAVING THROUGH HOME LOANS

    Interest charged on home loans is tax deductible, meaning you can claim the expenses when you are filing income tax.

  • 2

    WHAT HAPPENS IF YOU CANNOT REPAY THE LOAN?

    When you take out a home loan, the bank or financial institution accepts the property you are purchasing as a security. This means that it retains the legal right to the property in the event of non-payment.

IMPORTANT FACTORS TO CONSIDER WHEN APPLYING FOR A HOME LOAN

  • 1

    Principal

    This is the amount of money you will be borrowing from the bank or financial institution.

  • 2

    Duration

    How long you will be paying back the loan. Depending on the nature of your expected income, you can select a period that suits you.

  • 3

    Interest

    The bank or financial institution charges interest in exchange for its money lending services. The rate of interest is dependent on the amount of the principal and the duration for which you will be repaying the loan.

  • 4

    EMI Amount

    You will be paying monthly instalments for the duration of your borrowing, until the end of the loan period. Each EMI is a combination of principal + interest. With each EMI, you will be paying back more of the principal and costs of interest will gradually reduce.

Current Home Loan Interest Rates India

Lenders Lowest Interest Rate EMI/Lakh** Processing Fees (exclusive of GST)
Kotak Mahindra Bank 6.65%* Rs. 642 Zero processing fees till 31.03.2021
State Bank of India 6.70%* Rs. 645 Zero processing fees till 31.03.2021
HDFC Bank 0.067 Rs. 645 Up to 0.5% of loan amount or Rs. 3,000, whichever is higher
ICICI Bank 6.70%* Rs. 645 Up to 2% of loan amount or Rs. 20,000, whichever is higher
Bank of Baroda 6.75% Rs. 648 0.25% – 0.50% of loan amount (Min. Rs. 8,500 & Max. Rs. 25,000)
Union Bank of India 6.80% Rs. 652 0.50% of the loan amount (Max. Rs. 15,000)
Punjab National Bank 6.80% Rs. 652 Full waiver of upfront / processing fees and documentation charges during PNB New Year Bonanza-2021 from 01.01.2021 to 31.03.2021
Central Bank of India 6.85% Rs. 655 0.50% of loan amount (Max. Rs. 20,000)
Axis Bank 6.90% Rs. 659 Up to 1% of the loan amount (Min. Rs. 10,000)
Bajaj Finserv 6.90% Rs. 659 For salaried individuals: Up to 0.80% of loan amount



For self-employed individuals: Up to 1.20% of loan amount
Canara Bank 6.90% Rs. 659 0.50% (Min. Rs. 1,500; Max. Rs. 10,000)
LIC Housing Finance 6.90% Rs. 659 As applicable
Punjab & Sind Bank 6.90% Rs. 659 Full waiver on processing charges during festival season
Tata Capital Housing Finance 6.90% Rs. 659 0.20% – 0.50% of loan amount
UCO Bank 6.90% Rs. 659 0.5% of the loan amount (Min. Rs. 1,500; Max. Rs. 15,000)
IDBI Bank 6.90% Rs. 659 For Inward Balance Transfer and PMAY Cases: Nil



For Other Home Loan Cases:



Up to Rs. 35 lakh: Rs. 3,500 to Rs. 7,500



Above Rs. 35 lakhs and up to Rs. 75 lakh: Rs. 6,000 to Rs. 10,000



Above Rs. 75 lakh and up to Rs. 125 lakh: Rs. 10,000 to Rs. 16,000



Above Rs. 125 lakh: Rs. 10,000 to Rs. 20,000
Bank of India 6.95% Rs. 661 Nil processing fees till 31.03.2021
IDFC First Bank 7.00% Rs. 665 Up to Rs. 10,000 (additional premium is charged based on risk profile)
Indian Overseas Bank 7.05% Rs. 669 Up to 0.50% of loan amount (Max. Rs. 25,000)
PNB Housing Finance 7.35% Rs. 688 Up to 1% of loan amount (Min. Rs. 10,000)
Federal Bank 7.65% Rs. 709 0.50% of loan amount (Min. Rs. 10,000; Max. Rs. 45,000)
Standard Chartered Bank 7.99% Rs. 733 0.50% to 1% of loan amount
Fullerton Grihashakti 7.99% Rs. 737 Up to 3% of loan amount
Karnataka Bank 8.06% Rs. 738 Up to 0.25% of loan amount
IIFL 8.45% Rs. 765 Up to 2% of loan amount
Indiabulls Housing Finance 8.65% Rs. 779 Up to 2% of loan amount
DHFL 8.75% Rs. 786 Salaried/Self Employed Professional – 0.5% of loan amount (Min. Rs. 2,500)



Self Employed Non Professional – Net PAT: 0.5%, Others: 1.0% of loan amount
YES Bank 8.95% Rs. 801 2% of loan amount or Rs. 10,000, whichever is higher
Aditya Birla Housing Finance Ltd. 9.00% Rs. 805 Up to 1% of loan amount
India Shelter Finance Corp. Ltd. 12.00% Rs. 1,106 2% – 3% of loan amount