Best Bank For Home Loan In India

1. SBI Bank – SBI Home Loan

The first one on our list of best banks for home loans in India is the SBI Bank Home Loan. Due to its pedigree, SBI is the top choice for home loan seekers. It offers low-interest rates for home loans, Lower processing fees, special women offers, offers for government employees, etc. making it an ideal choice for borrowers. This page provides all the relevant information about SBI home loans, which will help you make a wise decision. The interest rate offered by SBI for home loans is 7.35%.

SBI Home Loan- Eligibility Criteria

Documents required by Salaried Borrower

• Application form with photograph
• Processing fee cheque
• Copy of Identity & copy of residence proof
• Copy of last three months salary slip
• Copy of Form 16
• Copy of Last six months bank salaried credit statements

Documents required by Self-employed Borrower

• Application form with photograph
• Processing fee cheque
• Identity & residence proof
• Business profile
• Copy of education qualifications certificate
• Copy of proof of business existence
• Copy of last three years profit/loss & balance sheet
• Last 6 months bank statements

2. Bank of Baroda – Bank of Baroda Home Loan

The next on our list of best banks for home loans in India is Bank of Baroda home loans. Home loans offered by the Bank of Baroda can be used for purchasing homes and plots; and for home construction and renovation. The starting rate of 6.85% per annum is one of the lowest in India. The loan tenure goes up to 30 years, and the processing fee ranges only between 0.25% and 0.75%. Both salaried and self-employed individuals can avail of these loans. As per an RBI notification, from October 1, 2019, all retail and MSME loans should be linked to the repo rate. The repo linked home loan rate is lower and is expected to fall in the future further. Hence a person who has an MCLR linked home loan account should switch to get lower rates. Bank of Baroda allows a liberal maxim tenure of 30 years for its home loans. However, a caveat being that loan tenure cannot go beyond retirement age or completion of 65 years of age, whichever happens, earlier?

Advantages

This scheme resembles an overdraft loan facility. Two integrated accounts-a, savings and a home loan account are opened. Interest is charged only on the amount used, and the rest of the loan account does not carry any interest charges. Funds can be withdrawn from the savings account anytime, and also interest burden is lowered.

Features & Offerings

• Offers many home loan schemes for customers
• Offers loan as high as Rs. 10 crore
• Offers a tenure up to 30 years
• Offers to avail free accident insurance along with the home loan
• There are no prepayment charges on floating rate home loans
• Offers top-up loan facility of up to 5 times during the loan tenure
• Provides a free credit card and a concession of 0.25% on car loans
• Offers multiple loan repayment options

Documents Required

• Passport size photographs
• Duly filled in the loan application form
• Copy of Address Proof (Passport, Driving License, Ration Card, Aadhaar Card, Voter’s ID Card, etc.)
• Copy of Age proof (Birth Certificate, PAN card, Aadhaar Card, Voter’s ID Card, Passport, Driving License, etc.)
• A copy of the approved plan
• A copy of the sanction letter from the local civic authority
• Two guarantor(s) and their income proof
• Bank passbook statements of the past two years
• Salaried applicants: latest salary slip/statement showing all deductions
• Self-employed applicants: CA-certified copies of Balance Sheets and Profit and Loss Accounts, Advance Tax Challans (for both company/firm and personal account) for the last three years, Memorandum/Articles of Association for Companies, Partnership Deeds for Firms, and a brief Profile of your Company/Firm and I-Tax acknowledgments.

In case of purchase from a Builder

• A copy of the registration receipt
• A copy of the agreement for sale
• A copy of the sanctioned plan
• A copy of the sanction letter of the competent authorities
• A copy of the ULC order
• Copy of receipts of payments already made
• No Objection Certificate (NOC) from builders (format provided by the bank)

In the case of Direct Allotment in a Co-operative Housing Society

• NOC from society in our format
• Possession letter in original
• Copy of allotment letter
• Copy of certificate, society registration certificate
• A copy of the sale/lease deed in favor of the society

In Case of Resale

• Copy of registration receipts
• A copy of all previous vendors agreements duly stamped NOC from the builder (in the format provided by the bank

Status Check

You can check the status on the official website of the Bank of Baroda. Additionally, you can talk to your relationship manager. Ensure that you keep home loan application ID, mobile number, and date of birth ready.

3. Axis Bank – Axis Bank Home Loan

Third, on our list is the Axis Bank Home Loan. The interest rate charged by Axis Bank on its home loan products ranges from 8.40% pa on floating rate loans to 12% pa on fixed-rate loans. The maximum tenure in the case of fixed-rate loans is 20 years and in the case of floating rate loans is 30 years. Up to 1% of the loan amount can be charged as processing fees with a minimum of Rs.10,000.

Various types of housing loan plans available –

• QuikPay Home Loans
• Axis Bank Home Loan
• Empower Home Loan
• Power Advantage Home Loans
• Fast Forward Home Loan
• Super Saver Home Loan
• Top-Up Home Loan
• Asha Home Loan
• Shubh Aarambh Home Loan
• Housing finance schemes for salaried and self-employed NRIs.

Documents Required

• Passport size photograph
• Birth certificate
• Processing fee cheques
• Income proof
• Proof of identity
• Address proof
• Loan agreement document
• Property documents
• Own contribution proof
• Sanction letter

4. Union Bank – Union Bank of India Home Loan

The fourth on our list is the Union Bank. Union Bank of India offers very competitive rates starting at 7.30%. The maximum tenure goes up to 30 years. Up to 80% of the loan amount can be financed up to a maxim of Rs.25 lacs. There is no prepayment penalty in floating-rate loans .0.5% of the sanctioned amount is plus GST is charged as processing fees.

Documents Required

Identity Proof (any one of the following)

• Aadhaar Card
• Driving Licence
• Voter ID
• Valid Passport
• PAN Card

Proof of Residence (any one of the following)

• Driving Licence
• Passport
• Copy of electricity bill/ telephone bill
• Aadhaar Card
• Voter ID

Property Documents

• Title Deed
• Allotment letter
• Advance money receipt

Copy of income proofs

• Bank account statements for the last 12 months
• Income Tax Return for the last one year

3 passport-sized photographs

• Proof of outgoing loans, if any
• Processing fee cheque in favor of the bank
• Duly filled loan application form

5. HDFC Bank – HDFC Ltd Home Loan

Fifth on the list is the HDFC Bank. If you are looking for the best bank for a home loan with the lowest interest rate, you can stop your hunt at HDFC bank. It offers home loans at an interest rate starting from 6.95%. HDFC Ltd has about 51 lac customers and is the largest private lender of home loans in India. Along with affordable interest rates, it offers low EMI and processing charges. The company reaches over 2,400 towns and India’s cities with an extensive distribution network of 378 interconnected offices. HDFC Ltd Home Loan Interest Rate

Features & Offerings

• The maximum loan amount you can get is up to 90% of the cost of the property.
• You can select between a Fixed Rate or Floating Rate.
• It offers easy repayment options of up to 30 years.

Eligibility & Documents Required

• 2 Passport Size photograph
• Loan application form
• Processing Fee cheque
• Copy of Identity Proof
• Copy of Residence Proof
• Copy of Latest Salary Slip (Salaried Individuals)
• Salaried Employee: Copy of Form 16 / ITR and Copy of last 6 months bank statement
• Self Employed – Professionals/Businessmen: Last 3 Year profit/loss & balance sheet and last 3 years income tax returns

6. LIC Housing

Sixth on the list is LIC Housing. This firm counts among the top housing finance companies in India. It offers low-interest rates, minimum processing fees, and minimum documentation. Trends from search engines show that LIC housing is the most searched HFC in India in the last 6 months. You can visit the company website to know more benefits and features.

Documents Required by Salaried

• Passport size photographs
• Processing fee cheque
• Application form
• Form 16
• Identity & residence proof
• Latest 3 months salary slip
• Last 6 months salaried bank statements

Documents Required by Self Employed

• Application form with photograph.
• Processing fee cheque
• Identity & residence proof
• Education qualifications certificate & proof of business existence
• Business profile
• Last 3 years profit/loss & balance sheet
• Last 6 months bank statements

7. ICICI Bank – ICICI Home Loan

Seventh on the list is the popular ICICI Bank. It is the 4th largest bank in India for home loan disbursals. ICICI Bank offers Home Loan for the following purposes –

• Home Loan: If you want to purchase a new home
• Home Improvement Loan: If you want to do a makeover or reconstruct for improvement.
• EMI Under Construction: This helps you make EMI payments for a partly sanctioned loan for an under-construction project.
• Balance Transfer: It allows you to transfer your running loan from another Bank
• Top-Up Loan: It offers additional funding against the security of your property

Features & Benefits of ICICI Bank Home Loan

• There are no charges on part pre-payment
• The bank offers a Top-Up facility on existing Home Loan.
• Offers tenure up to 30 years
• Sanction approval without having selected a property
• You get free Personal Accident Insurance policies.
• You get insurance options for your home loan.
• Give you doorstep delivery of home loan papers.

Documents Required for Salaried

• Application form with photograph
• Processing fee cheque
• Identity & residence proof
• Latest salary slip
• Form 16
• Last 6 months bank statements

Documents Required for Self Employed

• Application form with photograph
• Profile of the Business
• Identity & residence proof
• Proof of business existence
• Last 3years ITR
• Last 6 months bank statements
• Processing fee cheque

8. Punjab National Bank – PNB Housing Finance

The eighth on the list is PNB Bank. This firm is a subsidiary of Punjab National Bank, the second-largest PSU bank in India. It has a track record of 24 years and is one of India’s most seasoned housing finance companies. It provides to individuals as well as corporate houses. Purchase, repair, construction, and up-gradation of houses are covered in its home loan schemes.

Features

• It offers up to 90% funding on the property cost.
• You can opt for more loan amounts if the cost of the project increases.
• It offers customized eligibility programs to work out your loan amount.
• Offers fast loan approvals
• Gives you doorstep services

Eligibility Criteria

• You can be either a salaried employee or a self-employed professional/ non-professional.
• You must not be more than 60 years of age if you are a salaried employee.
• You must not be more than 65 years if you are a self-employed professional/ non-professional

Documents Required

• Passport size photograph
• Processing Fee Cheque in favor of ‘PNB Housing Finance Ltd.’
• Duly filled loan Application Form
• Copy of Age Proof
• Copy of Address Proof
• Copy of Education qualifications
• Copy of Latest Salary Slips 3 months / Certificate & Proof of business existence along with Business Profile
• Copy of Form 16 for the last 2 years
• Copy of Last 3 years Income Tax returns (self and business)
• Copy of Profit & Loss Account & Balance Sheets
• Photocopy of Title Documents of the Property
• Copy of Approved Plan

9. IDBI Bank – IDBI Home Loan

Ninth on our list is the IDBI Bank. It offers easy repayment options with a maximum tenure of up to 30 years. The interest rate starts at 8.25% pa, and the loan amount goes up to Rs.10 crores. For PMAY cases and inward balance transfers, IDBI waives off the processing fees. The bank levies 0 foreclosure charges and provides various options as per your needs.

10. DHFL Bank – DHFL Housing Home Loan

The last on this list is the DHFL Bank. The rate of interest in DHFL home loans starts from 8.75% pa. Plot loans, construction loans, and loans against property are available. It runs various special offers like Ghar jaisa loan, aao India ghar banaayei, NRI assistance, etc. DHFL provides a hassle-free loan sanction process.

Features & Offerings

• It provides a home loan to Corporate bodies and individuals
• It offers flexible pre-payment options
• Offers loan sanctioned up to 90% of the property cost

Eligibility Criteria

Documents Required by Salaried Individuals

• Loan Application Form
• Copy of Property Documents with Map
• Residence Proof and Identification Proof
• Income Proof, Last 3 months Salary slip or Salary Certificate, If Salary is above 10000 per month than Latest Form 16
• Bank statement of the last 12 months

Documents Required by Self Employed

• Copy of Property Documents with Map
• Residence Proof, Identification Proof, Business Proof
• Copy of Brief Business Profile on the company’s letterhead
• Copy of Partnership deed Details of Contract
• Copy of Shop & Establishment License / VAT Registration or any other mandatory license / registration
• Form 16 /Tax deduction certificate
• Copy of last 3 years Income Tax Returns
• Copy of last 3 Years Balance Sheet and Profit & Loss Account of the firm duly attested by a Chartered Accountant
• Bank Statement for the last 1 year
• Copy of Advance Tax paid / self-assessment tax paid Challan