Popular Housing Loan Schemes in India

Home Loan

Having your own home is one of the biggest dreams for anyone. These dreams are now easy to fulfil by choosing the best housing loan scheme with lower home loan interest rates. But you have to research hard and compare the interest rates of lots of banks and HFCs (Housing Financial Corporations). But what exactly is a home loan?

A home loan is an option that helps you buy an apartment, house, or flat of your choice at a suitable location. You can also take a house loan for renovations, construction, extension, and repair of an existing home. The applicant has to repay the entire home loan amount within the selected tenure and as per the fixed or floating interest rate in the form of

Home Loan Eligibility

Read the factors given below to know the home loan eligibility criteria:

• The resident must be Indian or NRI (Non-Reliable Indian).
• The minimum age of the home loan applicant must be 21 years old at least.
• The maximum age of home loan applicants at the time of loan maturity varies between 60 years to 70 years.
• If NRI, then you must have 6 months minimum and 2 years maximum work experience is mandatory.
• The CIBIL score must be 750 or more.
• The loan amount is variable as per your overall loan applicant profile.
• The minimum income or salary varies as per the employment type. For a salaried person, the minimum monthly salary must be between Rs. 20,000 and Rs. 30,000.

Required Documents for processing

To get the best housing loan scheme, one has to submit the documents mentioned below.

• Identity proof – Aadhar Card, PAN Card, Driving Licence, Voter ID (any one of them)
• Address Proof – Electricity, gas, mobile or water bill, PAN card, Voter card, Aadhar card, DL Driving Licence (any one of them)
• PAN card is mandatory.
• Last two months salary slip or bank statement for a salaried person.
• Last fiscal year ITR returns, document for business proof running for the last 5 years.
• Property legal documents.

Best Housing Loan Schemes

Enjoy the best home loan offers after comparing the best home loan rates revised in 2023 from the below-mentioned table:

Loan Rate Revisions

Loan rate revisions are a change in premium rates applicable to existing policies. And, when you apply for a housing loan scheme according to your home loan eligibility, ensure to review the tenure lenders use to reset their rates. Mostly the loan rate revision takes place when the RBI makes changes in its repo rates.

When you avail housing loans and choose the floating rate of interest, count on the lender who instantly reflects the interest rate on the best home loan scheme on EMIs in a minimum period. Further, it is difficult to select the best home loan scheme from several existing lenders. However, it is tough to choose someone. Therefore, you should check all the factors to get the best housing schemes. Here is a rundown of popular home loan schemes you should look into:

Best Home Loan Schemes with Lowest Interest Rate

Here are some of the best housing loan schemes from the best banks and HFCs (Housing Finance Corporations).

SBI Bridge Home Loan Scheme

Features and Benefits

• You can apply for a minimum of INR 20 lakh to INR 20 crore loan.
• There are no prepayment charges.
• There are no hidden charges.
• SBI BBridge home loan scheme offers competitive rates.
• The repayment tenure is 2 years.

Current Interest Rates and Fees

• During the first year, the interest rate is 9.50% p.a. and in the second year 10.50% p.a.
• 35% is the processing fee of the total loan amount excluding the applicable taxes.

Eligibility Criteria for Housing Loan Scheme

• The loan is available for Indian residents only.
• The minimum age to apply for this loan is 21 years. However, the maximum age at the time of loan maturity is 70 years.

Canara Bank Housing Loan for Women

Features and Benefits

• There are no prepayment charges.
• The maximum loan repayment tenure is 30 years.
• Women can avail of some tax benefits as well.

Current Interest Rates and Fees

• The interest rate is 8.35% to 8.55% p.a.
• The processing fee is 0.50%. The minimum amount is Rs. 1500 and the maximum amount is Rs. 10,000.

Eligibility Criteria for Home Loan Scheme

• The minimum age is 21 years and the maximum age is 70 years.
• The residents must be Indian or NRI.

HDFC Reach Home Loan

Features and Benefits

• Loans are customizable as per the applicant’s needs.
• A top-up loan facility is available.
• For a salaried person, the minimum salary is Rs. 10,000. For the self-employed, it must be Rs. 2 lakh per month.
• There are no hidden charges when you take the loan.
• HDFC Reach Home Loan is available against property for up to INR 50 lakh.

Current Interest Rate and Fees

• 75% p.a. up to 15% p.a is the current interest rate.
• 2% is the processing fee of the principal loan amount.

Eligibility Criteria for Housing Loan Scheme

• The eligibility criteria for the housing loan scheme is a minimum age of 21 years and a maximum age of 65 years.
• The resident must be Indian or an NRI.
• The minimum monthly income must be Rs. 15,000.
• The co-applicant must have a minimum monthly income of Rs. 10,000.

SBI Joint Home Loan

Features and Benefits

• The lowest home loan interest rate is INR 703 for 30 years for every lakh.
• They offer lower interest rates for female applicants.
• Easily avail maximum tax benefit.
• The minimum income to avail the loan is Rs. 25,000.
• The co-applicant can claim the tax benefit as well.
• Only 6 people can join as co-applicant for a home loan.

Current Interest Rate and Fees

• The current interest rate is 7.15% p.a onwards.
• The processing fee is 0.40% of the loan amount along with GST. The minimum amount is Rs. 10,000 plus GST and the maximum amount is Rs. 30,000 plus GST.

Eligibility Criteria for Home Loan Scheme

• The eligible age is minimum of 18 years and a maximum of 70 years.
• The nationality of the citizen must be Indian resident and non-resident India.

ICICI Bank Extra Home Loan Scheme

Features and Benefits

• ICICI Bank Extra Home Loan Scheme is available to buyers residing in cities like Greater Mumbai, National Capital Region (NCR), Bengaluru, and Surat.
• Applicants must be salaried or self-employed.
• The maximum loan repayment tenure is 30 years.
• The highest age of repayment of the loan is 67 years.
• The highest age at the time of taking a loan must be 48 years.
• The maximum loan amount available is 75 lakh or 80% of the value of the property or whichever is higher.
• You can have at least 20% extra loan amount
• With this home loan scheme the affordability is improved and longer repayment tenure.

Current Interest Rate and Fees

• The interest rate is 7.60% p.a. onwards.
• 50% – 2% of the loan amount is the processing fee.

Eligibility Criteria for Housing Loan Scheme

• Any middle-aged salaried individuals can take extra loans till 48 years of age. However, any young salaried individuals can take extra loans till 37 years of age.

NRI Home Loan – Axis Bank

Features and Benefits

• There are no prepayment charges.
• Low processing fee and charges.
• The loan repayment tenure is 25 years.
• You can avail yourself up to 75% of the cost of your property as per the market norms.

Current Interest Rate and Fees

• The rate of interest starts from 8.35% p.a.
• The processing charges are 1% of the loan amount and additional charges of applicable services and taxes. The minimum amount is INR 10,000.

Eligibility Criteria for Housing Loan Scheme

• The resident must be Indian or NRI or PIO with an Indian passport.
• The minimum age is 24 years old.
• The maximum age is 60 years old at the loan maturity time.
• The applicant must have a minimum 6 months to maximum 2 years of work experience overseas.

Axis bank home loan for Salaried Employees

Features and Benefits

A home loan balance transfer is available.

No prepayment charges with a floating rate of interest.

Special benefits for premium customers.

The maximum tenure is 30 years.

Reduce your EMIs whenever required.

Current Interest Rate and Fees

• One of the lowest home loan interest rates starts from 6.90% p.a. on floating and 12% p.a. on fixed-rate loans.
• 1% is the processing fee on the loan amount where the minimum is INR 10,000.

Eligibility Criteria for Home Loan Scheme

• The minimum age is 21 years and the maximum age is 57 years.
• The citizen must be Indian or Non-reliable Indian.
• This best home loan scheme is available for either a salaried person or a self-employed person.

PNB Home Loan Scheme

Features and Benefits

• The maximum tenure is 30 years.
• Women get benefits from the interest rate.
• Offer several types of home loans.
• A home loan amount within 3 months.

Current Interest Rate and Fees

• The best home loan rates of PNB start from 6.75% p.a
• The processing fee is 0.35% of the loan amount. Here the minimum amount is Rs.2,500 and the maximum amount is Rs.15,000 excluding documentation charges.

Eligibility Criteria for Housing Loan Scheme

• Loan is available to both individuals and joint owners.
• The minimum age is 18 years whereas the maximum age is 70 years at the time of loan maturity.
• Must have a steady source of income.

DHFL Home Renovation Loan

Features and Benefits

• Maximum tenure is 30 years.
• The minimum EMI is INR 787 for every lakh.
• 100% finance is possible for the renovation of the entire home.
• No prepayment charges once you paid in the initial 6 months after the disbursal of the loan amount.

Current Interest Rate and Fees

• The starting interest rate is 8.75% p.a.
• The chargeable processing fee is Rs.2,500 without taxes and documentation fees.

Eligibility Criteria for Home Loan Scheme

• Must be an Indian resident or NRI.
• The maximum age for a salaried person is 65 years and for self-employed, it is 70 years.

Union Bank of India Home Loan Scheme:

Features and Benefits

• The Loan to Value ratio available is 80% to 90%.
• 30 years long tenure.
• Lowest EMI of INR 659 for every lakh.
• Eligibility depends upon the market value of your property.
• Tailored home loan schemes.
• Smart Save Option for maximum interest saving on Home Loan OD product.
• You can pay off your EMI after 12 to 36 months from the loan date as per your profile and loan scheme.

Current Interest Rate and Fees

• The current interest rate starts from 6.90% p.a.
• The processing fee is 0.50% of the loan amount (maximum up to Rs. 15,000) and GST.

Eligibility Criteria for Home Loan Scheme

• The applicant must be an Indian resident or a Non-reliable Indian.
• The minimum age is 18 years and the maximum age is 75 years.
• Eligible for Joint home loan and individual home loan.

Processing Fees And Home Loan Prepayment Terms

The basic processing fee for every bank is 0.5% of the principal loan amount which tends to vary depending on the bank you choose with the best home loan offers. However, when it comes to loan prepayments terms they also vary. If you prepay the housing loan after six months from the date the loan was issued, you will get a choice to prepay 25% of loan amount. However, if you prepay more than 25% you have to give a prepayment penalty.  Most banks and HFCs (Housing Finance Corporations) charge up to 1% to 2% of the loan amount but this value is variable depending on the bank’s discretion.