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Top 5 Banks for Home Loans in India for 2021

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Home loans assist individuals in realizing their dream of becoming property owners at a young age. You can also secure a loan to gain ownership over secured assets which is beneficial in emergency situations. How cost-effective your housing loan turns out to depend on the bank you choose from to secure a home loan.

The bank offering the lowest rate of interest may not always be the best bank for you. You need to consider several other charges that the lenders impose while sanctioning the loan. This is the reason why selecting the best bank for home loans is highly essential. We bring you this simple guide outlining the best banks to get house loan from in 2021.

5 Best Banks to Apply Home Loans in India

  1. HDFC Bank

Established in 1977, HDFC Bank has helped over 80 lakh people purchase their dream property. With headquarters in Mumbai, this housing finance company provides home loans with hassle-free and minimal documentation. Benefit from pocket-friendly EMI options and flexible repayment tenures. If you are looking for a bank that offers attractive interest rates, a seamless digital application process, and nominal processing fees, then you can consider the home loan solutions offered by HDFC Bank.

Rate of interest for salaried individuals  6.80%-7.30%
Rate of interest for self-employed individuals  6.80%-7.30%
For women 6.75%-7.25%
Maximum tenure 30 years
Processing fees Up to 0.50% of the loan amount or ₹3,000, whichever is higher + applicable taxes

Advantages

  • HDFC is among the first banks to slash rates when RBI announces rate cuts
  • Offers attractive interest rates
  • Offers additional top-up loan of up to ₹50 lacs
  • Special processing fees for government employees & women borrowers
  • Easy home balance transfer
  • Avail top up on existing home loan

Disadvantages

  • Best rates are available to borrowers with a credit score of at least 750. Your home loan eligibility will vary in case of lower credit scores.
  1. ICICI Bank

ICICI Bank is the country’s second-largest private lender in terms of market capitalization. It is a wholly-owned subsidiary and has a network of 5,288 branches across India. The bank provides instant housing loans exclusively for customers who have a salary account with the bank.

Rate of interest for salaried individuals  Up to 35L – 8.65%-8.95%

Up to 35L – 75L – 9.05% – 9.20%

More than 75L – 9.10% – 9.25%

Rate of interest for self-employed individuals  Up to 35L – 8.80%-9.10%

Up to 35L – 75 L – 9.20% – 9.35%

More than 75L – 9.25% – 9.40%

Maximum tenure 30 years
Processing fees Up to 0.50% of the loan amount + applicable taxes

Advantages

  • Exclusive pre-approved offer for select/premium customers
  • Instant online sanction of home loans
  • Home loan sanction within a few clicks
  • No documentation required at the time of loan sanction
  • Special processing offers
  • Exclusive offer for top corporates

Disadvantages

  • As the bank offers a lot of loan products, you can expect a lot of cold call
  1. Kotak Mahindra Bank

This fast-growing private lender, Kotak Mahindra Bank has branches in over 100 cities in India. The bank offers the best interest rates on home loans in the market.

Rate of interest for salaried individuals  6.50% onwards
Rate of interest for self-employed individuals 6.60% onwards
Maximum tenure 30 years
Processing fees Up to 0.50% of the loan amount + applicable taxes

Advantages

  • Instant approval through the Kotak Digi Home loan facility
  • Extended benefits to customers
  • Easy availability

Disadvantages

  • Compared to other banks, you have to make more physical visits to branch for various purposes
  1. Axis Bank

Axis Bank is the leading private sector bank in India that commenced its operations in 1993. It currently operates around 4,500 branches in India and abroad.

Rate of interest for salaried individuals 6.90%-8.40%

 

Rate of interest for self-employed individuals  7%-8.55%
Maximum home loan tenure 30 years
Processing fees Up to 1.0% of the loan amount + applicable taxes, with the minimum amount capped at ₹10,000

Advantages

  • Bank rewards credit-worthy individuals with lowered interest rates
  • Is one of the first banks to offer lower home loan interest rates
  • Loan amount of up to ₹5 crores offered
  • Loans offered at attractive and floating interest rates

Disadvantages

  • The bank didn’t waiver processing fee on home loans online during the pandemic while most banks offered a waiver
  • The processing fee is comparatively higher in comparison to other banks
  1. IndusInd Bank

IndusInd offers home loans in association with HDFC Ltd., which is one of the most trusted housing finance companies. The process of applying and receiving home loans through the bank is secure, seamless, and quick.

Rate of interest for salaried individuals  8%-15%
Rate of interest for self-employed individuals 10.40% onwards
Maximum tenure 30 years
Processing fees Up to 0.75-1.75% of the loan amount + applicable taxes

Advantages

  • Simplified documentation process
  • Balance transfer facility
  • Transparent and no hidden charges

Disadvantages

  • Compared to other banks, you have to make more physical visits to branch for various purposes

Thanks to the slashing of repo rates by the RBI, now is a great time for first-time homebuyers to apply for home loans. With numerous home finance lenders in the market, you are ensured to get competitive rates. Take a look at the different options mentioned above and compare the offers with a simple home loan EMI calculator online to find the best financing company suited to your profile.

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