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Get the best home loan online in India at attractive interest rates and lesser EMIs at Paisabazaar.com. Make your dream of purchasing your own home into reality with our quick and hassle free online documentation process with expert advice. Paisabazaar.com helps you to compare and choose housing loan deals from multiple financial institutions . Get a home loan up to Rs. 15 crore.


What is Home Loan?
 

Home loan/Housing Loan is a lump sum amount of money borrowed from any financial or banking institutions to buy a house. Home loan consists of two types of interest rates named as fixed and floating interest rates. As per the chosen interest rate, consumer repays the loan in form of EMIs for the desired tenure.

The ownership of a house is one of the key signs of success among the fast-growing Indian middle class. As the income of the average Indian family increases, there has been a continuous increase in the desire to own a house and this has led to consistent increase in the property prices over the last few years. This is true for not just the big cities but also for smaller cities across India. This unbridled price rise has made it near impossible for the common man to purchase their home through just savings.

This significant gap between the income and the desire to own a house is among the prominent reasons behind the unmatched growth in home loan business in recent years. The effect has been so much so that prospective home buyers now have multiple options to seek a home loan from banks as well as NBFCs.

Apply for home loan with Paisabazaar.com to avail a host of benefits to:

  • Check your eligibility status for the home loan.
  • Calculate the loan amount that you will be eligible for.
  • Calculate your home loan EMI.
  • Get the best home loan quotes based upon your requirements
  • Compare the different home loan products against different parameters
  • Apply for home loan online.

Check, Compare & Pick Best Home Loan with Paisabazaar.com

Paisabazaar.com is an unbiased comparison portal. It allows you to analyse various home loan deals available in the market according to the key data provided by you. You will need to enter some basic information related to your housing loan requirements which includes the purpose for availing the home loan, city where you wish to buy property, loan amount, loan tenure and your employment type. Based on the above mentioned details, we will provide you with the best home loan options that you can avail. We give you the opportunity to compare the best home loans in India against different parameters and choose the one which suits you the best.

Our Home Loan Eligibility Calculator enables you to view the types of home loans you are eligible for and helps you assess your eligibility for home loan online. As all banks and financial institutions have different criteria or specifications, it is important that you first check which ones you qualify for. Our calculator lets you understand the eligibility criteria, repayment options, types of interest rates, etc. eventually helping you in selecting higher loan amounts at lower interest rates, i.e. LMIs.

  • Low Interest Rate - Buying a home is a long-term decision, which makes it important to look for the interest component as the longer the home loan tenure will be, the expensive your home loan will become. Many banks and financial institutions offer reasonable and attractive interest rates, to make home loan affordable for you.
  • Deduction for Interest Paid on Housing Loan - If you are paying EMI for the home loan, it has two components – Interest Payment and Principal Repayment. The interest of the EMI paid for the year can be claimed as a deduction of up to a maximum of Rs 2 lakhs under Section 24 of the Income Tax Act, 1961.
  • Deduction on Principal repayment - The Principal portion of the EMI paid for the year is allowed as deduction under section 80C of the Income Tax Act, 1961. The maximum amount that can be claimed is up to Rs 1.5 lakhs. But to claim this deduction, the house property should not be sold within 5 years of possession.
  • Capital Appreciation - We all are aware of the fact that property prices rise over time, which leads to capital appreciation and becomes one of the major reasons to invest in a property. Not only construction costs, rents over a period of time seem to keep up with inflation as well; making home one of the best investments for the long term.

Additional Benefits of Housing Loan:

Home Loan Interest Rates 2019

Banks Interest Rate Processing Fee
SBI 8.05% onwards 0.35% – 0.50% of the loan amount (Min. of Rs. 2,000;  Max. of Rs. 10,000)
HDFC Bank 8.40% onwards Up to 0.5% of loan amount
ICICI Bank 8.60% onwards 0.5% – 1.00% of loan amount (Min. of Rs. 1,500)
LIC Housing Finance 8.80% onwards As applicable
Axis Bank 8.90% onwards Up to 1% of loan amount (Min. Rs. 10,000)
Kotak Bank 8.60% onwards up to 2% of loan amount.
Karnataka Bank 8.90% onwards Up to 0.5% of loan amount
Yes Bank 9.85% onwards 2% of loan amount (Min. Rs.15,000)
PNB Housing Finance 9.25% onwards Up to 1% of loan amount
IDBI Bank 8.30% onwards 0.50% of loan amount.
Citibank 8.50% onwards Up to Rs. 5000
Bank of Baroda 8.35% onwards 0.25%-0.50% of the loan amount (Min. Rs. 8,500; Max. 15,000)
Canara Bank 8.50% onwards 0.50% of the loan amount (Min. Rs. 1,500; Max. Rs. 10,000)
IDFC Bank up to 10.15% Up to 3% of the loan amount
Syndicate Bank 8.15% onwards Min. Rs. 500 to Max. Rs. 5,000
UCO Bank 8.70% onwards Upto 0.50% of loan amount
Allahabad Bank 8.40% onwards 0.24% - 0.40% of loan amount (Max. Rs. 50,000)

Note: Interest Rates offered by banks and NBFCs are as subject to change as per the directives of RBI and lenders discretion

The home loan interest rates are currently based on the MCLR (Marginal Cost of Lending Rate) plus a spread on the MCLR depending upon the lender's risk perception of the applicant. Almost every bank offers a competitive interest rate on housing loan to attract the prospective customers. In the housing loan market, lenders give away a host of home loan offers and deals to gain more customers and profit. However, as a borrower it is best to compare home loan rates of different banks and then finalize the one which suits your needs the best.

Loan providers offer either fixed or floating interest rate on housing loan. Fixed interest rate implies that the home loan interest rate will be fixed and you will need to pay fixed equal instalments over the repayment tenure of the loan. In this case, home loan interest rates do not change with the market fluctuations. The main disadvantage with fixed interest rates is that they are usually 1-2.5 % higher as compared to the floating rate for housing loans. Furthermore, if any time during the loan tenure the home loan interest rates decrease, the fixed interest rate remains unchanged and the borrower continues to pay the same amount every time.

Floating interest rate applied on housing loans changes with the market conditions. The interest rates on home loans on floating interest are calculated according to a base rate plus a floating rate. So, whenever the base rate changes the floating interest rate gets changed with it. The major benefit with floating interest rate loans is that they are cheaper home loans as compared to the house loans with fixed interest rates. The only disadvantage with a floating interest rate home loan is that the monthly instalments are never fixed and are subject to change with time.

When it comes to choosing between fixed and floating interest rates on home loans, a majority of borrowers choose floating interest rates. However, the choice is up to the borrower, whatever suits his/her needs is the best option. Before zeroing in on your choice, it is recommended to compare home loan from different lenders.

Home loan eligibility criteria include the criterion the loan applicant needs to satisfy in order to be eligible for a home loan. Every lender has different home loan eligibility criteria but they judge the loan applicants credibility based on some common factors, such as age, income, work experience and credit history.

Home Loan Eligibility Calculator

Home Loan Eligibility Criteria Salaried Professionals Self-Employed Professionals
Age Criteria 21 Years – 60 Years 24 Years – 65 Years
Employment Min. 2 Years of experience Min. 5 Years of experience
Co-Applicant(s) Not Mandatory – Only Family Members as co-applicants Not Mandatory – Only Family Members as co-applicants
Credit Score 750 or above 750 or above
Max. Loan on Property Value Up to 90% Up to 90%
Max. EMI – Per Income % Up to 65% Up to 65%

Note: The criteria with respect to eligibility for a home loan tend to vary from one lender to another.

Following are some key requirements to be taken into consideration:

Target Group:  Any salaried, self-employed or professional individual of Indian nationality can apply for a home loan.

Age Criteria:  The loan applicant must be aged 21 years or above

Income Criteria: 

  • The applicant needs to have a regular source of income to improve the chances of regular repayment. Having a regular income source helps the loan provider to assess the borrower's repayment capacity.
  • For self-employed individuals, profit earned by you majorly determines the housing loan value you are eligible for.

Employment Experience:  The applicant's professional stability i.e. the work experience of the applicant.

Credit History:  Credit history is another major deciding factor for availing a housing loan. A clean credit history will help in quick loan approval.

Checking your eligibility before applying for a home loan is a better option as it lets you understand your status of eligibility and know where you lack. You can check whether you are eligible for a home loan or not by using Paisabazaar home loan eligibility calculator.

With people becoming more and more open to home loans, loan providers are coming up with better and more attractive home loan offers. With a host of cheaper home loans on offer, it is best to do a home loan comparison first and then make a decision.

Home loan is a relatively broad category and is not limited to only purchasing a house whether new or old. Loan providers are offering Home loans for different purposes according to the changing needs of the customer.

Home loan can be of the following types:

  • Home Purchase Loans: As evident by the name, this type of home loan can be availed when buying a new home. You can find the best home loans in India at Paisabazaar and compare home loans against various criterion.
  • Land Purchase Loans/Plot Loans: The land purchase loan may be availed in order to complete the purchase of a plot of land for construction or as an investment. Land purchase loans are just like home loans, the only difference being that this loan is used to purchase a vacant plot. The term, the interest rate and procedure for both home loan and land purchase loan are similar.
  • Home Construction Loans:This type of home loan can be availed for the construction of a house. Such a loan is granted only if you already own a plot of land and plan to start construction of your house on it.
  • Home Improvement Loans: Home improvement loans are increasingly becoming popular as its interest rates are similar to home loans interest rates. These loans can be availed when you are planning to renovate or make repairs to your current home.
  • Home Conversion Loans: If you already own a house with an existing home loan and are planning to purchase a new house, you can opt for a home conversion loan.
  • Home Extension Loans: With time you might feel the need to add more space to your house for varied reasons, such as a growing family. Opt for this home loan type when you plan to increase your living area and extend your existing home.
Types of Home Loan

Paisabazaar.com brings you a free-of-cost home loan EMI calculator so that you can make an informed decision regarding the affordability of your chosen home loan. Additionally, the home loan EMI calculator is an effective tool for comparing different loan options that are available to you. At Paisabazaar.com, you can check your home loan eligibility and also further check and compare home loan deals from several banks at no cost with accurate results.

There are only a few details that you need to fill out in order to get the EMI amount payable – The loan principal, the applicable interest rate and the loan tenure. If done by hand, this calculation takes much longer, but Paisabazaar's home loan EMI calculator provides you with instant results that you can use to make informed decisions regarding the most suitable home loan option for your requirement.

Applying for home loans online or offline requires the borrower to submit a list of documents as demanded by the loan provider. Documents required for home loan vary as per the employment type of the individual, i.e. salaried or self-employed.

   Age Proof

Address Proof Income proof Existing Loans Property Documents
Birth Certificate

Voter's ID

Income Tax Return - Last 3 years

Account statements of current loans

Sale Agreement, Property Plan

Bank's Passbook Driving License Salary Slips-Last 2 months Amortization Schedule Original of the land tax paid receipt and possession certificate
Class 10th Certificate Passport Appointment Letter Account statements of loans where the borrower is a guarantor, etc. Approvals from Local Authorities, etc.
Passport Ration Card, etc. Company ID Card, etc. Approved copy of Building Plan
PAN Card Utility Bills – Water, Gas, Telephone, Electricity Increment or Promotion Letter NOC from Builder/Housing Society

10 Steps involved in the Home Loan Process

Here is the sequence of steps in the home loan process. 

  1. Fill up application form
  2. Documents Submission
  3. Discussion with expert advisor.
  4. Pick best Home Loan deal
  5. Payout Processing Fees
  6. Investigation of property
  7. Loan Sanctioning and offering
  8. Final Documentation
  9. Signature and Acceptance
  10. Loan Disbursement.

Note: Some of the important property papers shall stay with the bank until the home loan is completely repaid.

Steps in home loan process in India

Buying your home is a big investment and requires good amount of financial planning before making the commitment. It is not possible for most of us to buy a home out of our pocket and it isn't a wise decision either.

When buying a home, you should always prefer taking a home loan to make the payments instead of paying money upfront. There are several advantages of taking a home loan instead of paying by cash, which are mentioned below:

Tax Benefits – You can claim deductions on the interest of your home loan under Section 24 of Income Tax Act, 1961 and deductions on principal repayments under Section 80C of Income Tax Act, 1961.

No Funds Lock In – If you pay for your home with your savings, you will end up locking in a huge amount. Instead, you can invest that surplus money in other investments and earn interest on the same, while buying your home by availing a home loan.

Improve your Creditworthiness – A Home loan is a long term commitment for any individual. So, timely repayment of your home loan EMIs will help you with your credit history and leave a positive effect on your credit score. As a result, it will be easier for you to get approvals on future loan and credit card applications.

Factors to consider when choosing the perfect home loan:

  • Loan Disbursal Time: The time for home loan disbursal varies from one bank to another, usually a lender takes anywhere around 10-15 days for loan processing and disbursal. Choose a home loan provider which takes lesser time and does not cause unnecessary delays in home loan processing.
  • Loan Eligibility: Home loan eligibility criteria vary from one lender to another. The usual home loan eligibility of an individual is determined by his age, income, work profile and stability, credit history, etc. It is best to check the eligibility using home loan eligibility calculator to be sure whether you are eligible for the home loan or not.
  • Rate of Interest - Fixed or Floating:  Some home loan providers charge fixed and some floating rate of interest on home loans. Fixed interest rates are considered ideal for shorter tenure loans and floating for longer tenure loans. Some lenders even offer hybrid home loans in which the borrower can enjoy the benefit of both fixed and floating interest rates.
  • Hidden Charges: Loan providers levy a number of additional charges, such as the processing fee, prepayment or foreclosure charge, etc. It is best to read the fine print before making the final choice so that you do not end up feeling pick-pocketed when such charges are levied.
  • Terms and Conditions associated with the home loan: List of terms and conditions pertaining to repayment, prepayment, loan transfer, and many other things related to the home loan should also be taken into account while choosing a home loan.
Housing Loan Fees and Charges
1 Application Fee 8 Franking Fee
2 Processing Fee 9 Notary Fee
3 Technical Valuation Charges 10 Indemnity Cost
4 Administrative Fee 11 CERSAI Charges
5 Balance Transfer Charges 12 Recovery Charges
6 Pre-payment Charges 13 Documentation Fee
7 Legal Fee 14 Loan Tenure Resetting

To know more details on cost associated with home loan click here

Key Takeaways for Housing from FM Nirmala Sitharaman's Press Conference

14th September 2019 - To tackle the current economic slowdown, the Finance Minister Nirmala Sitharaman announced a few relief measures with a focus on reviving the housing sector. Firstly, the government has planned to relax the current External Commercial Borrowing (ECB) norms to ease the financing of homebuyers who are eligible under Pradhan Mantri Awas Yojana (PMAY) scheme. Secondly, the interest on house building advance will be reduced and linked with 10-year G-Sec bond yield. Lastly, the government will provide financial aid of Rs. 10,000 crore along with investors such as LIC who are expected to contribute approximately the same amount for housing projects which are non-NPA and non-NCLT and are not worth positive in affordable and middle-income category to be set up. The aim of this move is to help real estate developers finish the incomplete units.

Govt. contributes Rs. 20,000 crore to fund stalled housing projects

14th September 2019 -The Union Finance Minister, Nirmala Sitharaman, in her 3rd press conference announced that a “special window will be set to provide last mile funding for housing projects which are non-NPA and non-NCLT projects and are net worth positive in the affordable and middle-income category.” The minister announced that the government will give Rs. 10,000 crore towards the special window. Besides government, other investors such as LIC and Sovereign Funds will also contribute about the same amount for the eligible real estate projects. Through this aid, an estimate of 3.5 lakh of middle-class homebuyers are expected to benefit as the real estate developers will be able to complete their projects that are stuck on account of ‘last mile’ cash shortage.

Bajaj Housing Finance lowers home loan interest rates to 8.6%

9th September 2019 - Bajaj Housing Finance lowered its home loan interest rates from 8.80% to 8.60% for loan amount up to Rs. 30 lakh. Customers planning for home loan balance transfer can also benefit from the revised home loan interest rates. The lending institution offers home loans up to Rs. 3.5 crores and top-up loan for up to Rs. 50 lakh. It is also one of the listed lending partners with Pradhan Mantri Awas Yojana (PMAY).

SBI Home Loan: MCLR comes down to 8.15%

9th September 2019 - State Bank of India (SBI) has announced another cut in its home loan interest rate. After a reduction in Marginal Cost of Funds based Lending Rate (MCLR) by 10 basis points across all tenors, the new rate has come down to 8.15% from the earlier 8.25%. The new rate will be effective from September 10, 2019. However, it is important to note that the existing customers might not be able to immediately enjoy the new lending rate because of their reset clause.

Bank of India to waive loan processing fees for this festive season

8th September 2019 - Bank of India (BoI) has waived loan processing charges and will give home loans at concessional rates. The Bank of India home loan of up to Rs. 30 lakh will be available at 8.35% p.a and above Rs 30 lakh will be linked to the repo rate.

PSB Loans in 59 Minutes: Get home loan approval within 1 hour

5th September 2019 - ‘PSB Loans in 59 Minutes’ has launched in-principle loan approval for home loan and other retail loans. Loan applicants can now get in-principle approval for loans within 59 minutes through 19 public sector banks, which include State Bank of India (SBI), Bank of Baroda (BoB), Punjab National Bank (PNB) and Union Bank of India (UBI). The loans offered range from Rs. 1 lakh to Rs. 5 crore. The platform has advanced algorithms to analyze data points from various sources such as IT returns, bank statements and GST data.

ICICI Bank slashes MCLR by 10 bps

5th September 2019 - ICICI Bank has reduced its Marginal Cost of funds based Lending Rate (MCLR) by 10 basis points (bps) across all tenors. After the rate cut, the 1-year MCLR has fallen to 8.55% and the overnight MCLR has dropped to 8.30%.

RBI makes repo-linked interest rates mandatory

5th September 2019 - The Reserve Bank of India (RBI) has made the linking of home loans to key repo rates or external benchmarks mandatory. The move will come into effect from 1 October 2019. Among RBI's benchmark Repo Rate, the 3-month or 6-month Treasury Yield published by Financial Benchmarks India Pvt. Ltd (FIBIL) or any other benchmark published by FIBIL, banks can choose any one of the external benchmarks to link its loan products. RBI has also allowed banks to decide the spread over the external benchmark rates on the basis of customer’s risk profile. The interest rate under the external benchmark shall be reset at least once in 3 months.

Indian Bank links home loan to repo rate to cut MCLR by 15 bps

2nd September 2019 - Indian Bank has reduced its Marginal Cost of funds based Lending Rates (MCLR) by 15 basis points (bps). The 1-year MCLR has been reduced to 8.45% from 8.60%. The revised rates will be effective from 3rd September 2019. The bank has also linked its home loan with Repo Based Lending Rate (RBLR), which is fixed at 8.20% from 1 September 2019. The interest rate on the new Indian Bank home loan product will get revised automatically when the rate changes. The RBLR linked home loan products will be effective from 4th September 2019.

Central Bank of India to offer repo-linked interest rate on loans

1st September 2019 - Central Bank of India will be offering repo-linked interest rate (RLIR) on home loan with immediate effect. Besides the new customers, the existing CBI home loan borrowers will also be given an option to switch over to the new repo-linked interest rate at a fee.

Union Bank of India slashes MCLR from September 1

31st August 2019 - Union Bank of India has reduced its Marginal Cost of Funds-based Lending Rate (MCLR) by up to 15 basis points (bps) across all tenors. The rate cut is effective from September 1. The bank’s 1-year MCLR is reduced to 8.35% from 8.50%. The MCLR for overnight tenor is down to 7.95% from 8.10%. The MCLR for one month tenor is cut to 8% from 8.10%. The bank also offers 3-month and 6-month MCLR at 8.10% and 8.20%, respectively. Earlier this month, the bank also introduced Repo Linked Lending Rate (RLLR) for new home loans. For home loans above Rs. 30 lakh to Rs. 75 lakh, the bank is levying 8.25% RLLR. The bank will also continue to offer home loan linked to MCLR to its customers.

Bank of India introduces repo-based interest rate for home loan

31st August 2019 - Bank of India (BoI) has announced to introduce repo-based interest rate for home loans. The repo-liked home loan product will be available to customers from September 1 and would be formally launched at the bank's 114th Foundation Day, which falls on 7th September 2019. The bank has fixed RLLR at 8.20%. The RLLR linked Bank of India home loan interest rates start from 8.50% p.a.

SBI launches ‘Home Loan on Wheels’ initiative

31st August 2019 - To educate people about new home loan product, which is linked to Repo linked Lending Rate (RLLR), the State Bank of India has planned a new initiative – Home Loan on Wheels. Under this initiative, a van will drive around Chennai and provide information on bank’s home loan products customized to suit the needs of different segments of customers.

Government’s Urban Affordable Housing scheme inches closer to target

31st August 2019 - Pradhan Mantri Awas Yojana - Urban (PMAY-U) is nearing its target of meeting the ‘Housing for All’ aim in urban areas. Under the scheme, which is to be completed by 2022, has sanctioned over 88 lakh houses till now. A total of 2.99 lakh houses have been sanctioned as part of 865 proposals from 10 states. With the approval of above fresh proposals, cumulative sanctions of houses under PMAY-U is now 88.16 lakh against a validated demand of 1.12 crore.

Government merges 10 banks into 4

30th August 2019 - The government after 6 months of consideration decided to merge ten public sector banks into four. After the merger, the total number of state-owned entities will decrease from 27 (as in the year 2017) to 12. One of the reasons behind the merger is to create banks that can compete globally. The Punjab National Bank (PNB), Canara Bank, Union Bank of India and Indian Bank will serve as anchor banks. The Oriental Bank of Commerce and the United Bank of India will merge into PNB. The Andhra Bank and Corporation Bank will merge into the Union Bank of India. Syndicate Bank will merge with Canara Bank. And Allahabad Bank will merge with Indian Bank.

IDBI Bank launches repo-linked home loans from 8.30% p.a.

30th August 2019 - IDBI Bank has launched repo-linked home loan product, Suvidha Plus Home Loan. The product will be available to customers with effect from September 10. The loan product will be offered to new customers having god credit score and minimum income of Rs. 6 lakh p.a. IDBI Home loans up to Rs 75 lakh with tenure of up to 35 years will be offered at interest rate of 8.30% p.a. onwards. Under the new home loan scheme, the bank will also offer balance transfer with top-up facility with zero processing fees.

Government is planning to move from Awas Yojana to Parivar Yojana

29th August 2019 - Union Minister for Housing and Urban Affairs, Hardeep Singh Puri, said that the government will be soon transitioning from Pradhan Mantri Awas Yojana to Pradhan Mantri Parivar Yojana. Under the scheme, a family will get access to all the schemes that are connected with Pradhan Mantri Awas Yojana-Urban (PMAY-U). A whole combination of Ujjwala for LPG connection, water conservation, tree plantation, solar and waste management will be made available to the PMAY (U) beneficiaries.

PNB and Allahabad Bank launch repo rate-linked retail loans

28th August 2019 - After SBI, Punjab National Bank (PNB) and Allahabad Bank have linked their home loans to repo rate. Under PNB’s repo rate-linked new home loan scheme, PNB Advantage, the interest rate will be 0.25% less than the existing MCLR-linked home loan interest rates. Allahabad Bank benchmarks loans up to Rs. 75 lakh with the EBLR (External Benchmark Linked Rate) with repo rate one of its constituents.

Bank of Baroda links its home loan product to the repo rate

12th August 2019 - After SBI linked its home loan product to the repo rate, it’s Bank of Baroda (BoB) who will follow suit. The bank has announced a new home loan product linked to the Reserve Bank of India (RBI) repo rate. BoB customers planning to apply for a home loan will now have a choice between MCLR-linked interest rate or repo rate linked interest rate. The BOB MCLR-linked home loan rates start at 8.45% and repo rate-linked home loan rates start at 8.35%.

Allahabad bank slashes MCLR by 15-20 bps

10th August 2019 - After 35 basis points (bps) policy rate cut by the Reserve Bank of India (RBI), Allahabad Bank reduced its Marginal Cost of Funds based Lending Rate (MCLR) across all tenors by 15 to 20 bps. The changed MCLR is said to be effective from August 14.

UCO bank reduces MCLR by 15-20 bps

10th August 2019 - Post policy rate cut by 35 basis points (bps), UCO Bank has slashed its Marginal Cost of Funds based Lending Rate (MCLR) by 15 bps across all tenors. After the cut, the bank’s 1-yr MCLR is reduced to 8.50% from 8.65%. This reduced the lowest uco bank home loan rates to 8.50%.

SC approves homebuyer’s status as financial creditors

9th August 2019 -Supreme Court upheld the validity of an amendment to the Insolvency and Bankruptcy Code (IBC), giving homebuyers the right to take legal recourse against developers under three key laws – RERA, Consumer Protection Act and IBC. A homebuyer can now start corporate insolvency resolution proceedings before the National Company Law Tribunal (NCLT). They will be treated on par with banks and institutional creditors.

Andhra bank cuts MCLR by 25 basis points

9th August 2019 - Andhra bank has cut its Marginal Cost of Funds based Lending rate (MCLR) by 25 basis points (bps) across all tenors. The bank also announced in its press release that soon it would link its deposit and loan products with repo rate. After the rate cut, the 1-yr MCLR will be 7.95% .

Syndicate bank reduces MCLR by 24 basis points

9th August 2019 -Syndicate Bank cuts its Marginal Cost of Funds based Lending Rate (MCLR) by 25 basis points (bps). The rate reduction will be across all tenor and effective from 12 August. Post the rate cut, the bank’s 1-year MCLR will change to 8.35% from 8.60%. The bank has also decided to link its loans to Repo Linked Lending Rate (RLLR).

SBI cuts home loan rates soon after RBI policy rate cut

7th August 2019 - Soon after RBI’s announcement on policy rate cut by 35 basis points (bps), SBI slashed its Marginal Cost of funds based Lending Rate (MCLR). For the fourth time this year, the bank has reduced its MCLR by 15 bps across all tenors. The revised sbi home loan rates will be effective from 10 August 2019. Post the rate cut, MCLR linked home loans are now cheaper by 35 bps since 10 April 2019. Currently the bank’s 1-year MCLR is 8.25% p.a.

RBI cuts Repo Rate by 35 bps

7th August 2019 - The Reserve Bank of India (RBI), in its 3rd bi-monthly policy review of the financial year, cuts repo rate by 35 basis points (bps). For the fourth time in a row, the Reserve Bank of India has slashed the rates. The policy repo rate currently stands at 5.40%. Before this, RBI had cut the policy rate by a total of 75 bps in February, April and June (each by 25 bps). The central bank has maintained its accommodative stance on the policy.

RBI bars NBFCs from levying prepayment charges

2nd Aug 2019 - The Reserve Bank of India (RBI) has barred Non-banking Finance Companies (NBFCs) from levying prepayment penalties or foreclosure charges on floating rate term loans. In a recently released notification, the central bank further added that the rule is applicable to any floating rate term loan sanctioned for the purposes other than business to individual borrowers with or without co-applicants. When these directions are applicable has not been revealed by the central bank.

SBI's repo-linked home loan rates decrease to 8.05% from Sep 1

1st Aug 2019 - From Sep 1, 2019, the home loan interest rate of the State Bank of India has reduced from 8.40% to 8.05% p.a. SBI's RLLR has dropped from 8.00% to 7.65%. The bank is the first to link its term loans to the Reserve Bank of India's (RBI) repo rate in July (2019). The new rate will be applicable to all existing and new repo-rate linked loan customers of the SBI.

HDFC decreases prime lending rates by 10 bps from Aug 1

1st Aug 2019 - HDFC reduces prime lending rates on home loans by 10 bps. For women borrowers, the lending institution has reduced an extra 5 bps in each category of loans. The rate cut is effective from August 1, 2019, and is applicable for all existing HDFC home loan customers. After the rate cut, the HDFC home loan rate will be 8.60% onwards.

Additional Tax Benefit on Home Loan Interest Paid for Affordable Housing

5th July 2019 - In the Union Budget 2019, the Finance Minister announced an additional tax deduction of Rs. 1.5 lakh on the interest paid on home loans. The tax benefit is only applicable for affordable housing loans amounting upto Rs. 45 lakh. Homebuyers can avail the benefit till March 2020.

Budget 2019: Govt. Aims to Construct 1.95 Crore Houses Under PMAY by 2022

5th July 2019 - Presenting the Union Budget 2019, the Finance Minister announced that the government aims to build 1.95 crore houses under Pradhan Mantri Awas Yojana (PMAY) Scheme from FY20-22. These houses will be given to beneficiaries with facilities such as LPG, electricity and toilets.

Q. Can I get a home loan for the entire property value?
Ans - No. Banks usually keep a 20% margin when providing individuals with a home loan. This means that the lender may agree to provide you with 80% of the property value as a home loan, while you will have to shell out the rest 20% by yourself. In some cases, the lender can agree to provide you with up to 90% of the property value as a home loan.

Q. Are there any tax benefits of a home loan?
Ans - Yes. Both the loan principal amount and the interest paid towards loan repayments provide tax benefits under Section 80C and Section 24 of the IT Act respectively.

Q. Who can co-sign a home loan with me? Can my friend co-sign a home loan for a flat?
Ans - Your family members like father, mother, siblings, etc. can co-sign a home loan with you. Other than that your spouse or adult children can also be co-signatories in case you are applying for a home loan. In India, as per existing rules, your friend cannot co-sign a loan as he/she is not a blood relative or otherwise related to you.

Q. How many people can co-sign a home loan with me?
Ans - At present, up to 7 people can co-sign a home with the primary applicant. However, all of them need to be blood- relatives of the family member.

Q. Are there any prepayment charges in case of a home loan?
Ans - In case of a floating rate home loan, lenders don't charge a pre-payment penalty as per RBI directives however a penalty may be applied in case of prepayment of a fixed-rate home loan. You can visit the Home Loan FAQs page for additional details on home loans.

Q. How home loan EMI is calculated?
Ans - Equated Monthly Instalment (EMI) is the amount that you repay each month against your home loan principal amount and its interest amount. So, while calculating the home loan EMI, both the principal amount and the accrued interest on the loan is taken into consideration.

Q. How to use Home Loan EMI calculator?
Ans - Home loan EMI calculator is an effective tool for comparing different loan options which are available to you from different banks and financial institutions. You can use the home loan EMI calculator on Paisabazaar to calculate the EMI which you will have to pay for your home loan. Paisabazaar's home loan EMI calculator will provide you instant results to help you take an informed decision. You only need to provide few details like loan amount, interest rate and tenure of the home loan. You can check your EMI by following the below-mentioned steps:

  • There are three sliders in the EMI calculator – Loan Amount, Rate of Interest and Tenure
  • All you need to do is choose the desired loan amount, rate of interest and tenure of the home loan, respectively, on the sliders
  • After you adjust these sliders, Paisabazaar.com will display your monthly EMI amount.

Q. What are the important points to remember while choosing a home loan?
Ans - Home loan is a long term obligation to fulfil. One should always stay aware and keep in mind the following points while choosing a home loan in India online:

  • Factors Affecting Eligibility Criteria
  • Negotiate the Interest Rate
  • Check hidden cost while comparing different lenders like processing fees, foreclosure charges, prepayment costs, valuation costs etc.
  • Compare different lenders to get the best home loan at affordable rates
  • Longer the tenure – Costlier the Home Loan
  • Choose floating rate of interest over fixed interest rate
  • Read all the terms and conditions carefully
  • Check your credit score. People with low credit score may face loan rejection or if it is accepted, it may come with a higher rate of interest.

All of the above stated points hold true if you are wondering how to choose the right home loan.

Q. What are the reasons for home loan rejection?
Ans - Factors that can play a crucial role in home loan rejection are mentioned below:

  • Bad or low credit score
  • Incorrect personal details in credit report
  • Rejection of loan by other banks
  • Unstable income
  • Age factor
  • Location of the property
  • Poor repayment capabilities

Q. How to avoid home loan rejection?
Ans - The below mentioned steps can prove to be beneficial to avoid home loan rejection:

  • Credit Score: It is advisable to maintain a credit score of 750 and above to have a good chance of your application being approved. Banks & Financial Institutions rely on credit score before approving your home loan to check your credibility and loan repayment history. So, you should always maintain your credit score to avoid home loan rejection.
  • Insufficient Income: Banks and financial institutions look into your monthly income to see if you will be able to repay your equated monthly instalments (EMIs) or not. It is always advisable to take a home loan with EMI not more than 40% of your monthly income. Lenders have certain minimum income and employment requirements which play an important role in the loan-approval process. Make sure that you meet all the requirements before you apply for a home loan.
  • Too many applications for home loan in a short span of time: If you apply for a home loan from different lenders, it indicates banks and financial institutions that you are short of credit and need to apply to several sources to fill the gap. Lenders think that you will not be able to repay your loan, which leads to rejection of your home loan application.
  • Existing loan portfolio: Currently, if you have a number of loans to repay, then your lender might think that you will not be able to take on another EMI on your existing income, which will lead to your home loan rejection. So, it is better to apply for a home loan once you have paid off a few of your other loans to reduce your EMI burden.

Q. Can NRIs take home loan?
Ans - Yes, NRI can apply for home loan. for more details visit NRI home loan page.

Q. How to track home loan application status?
Ans - To check your home loan application status, you can call at our customer care number 18002088877 or mail us at care@paisabazaar.com with your home loan reference number.

Have more queries visit our home loan FAQs page.

Home Loan Provider

Home Loan Interest rate

Processing Fee

HDFC Ltd.

8.40% onwards

Up to 0.5% of loan amount

State Bank of India

8.05% onwards

0.35% – 0.50% of the loan amount (Min. of Rs. 2,000;  Max. of Rs. 10,000)

LIC Housing Finance Ltd.

8.80% onwards

As applicable

IDFC Bank

up to 10.15%

Up to 3% of the loan amount

CitiBank

8.50% onwards

Up to Rs. 5000

DBS Bank

up to 9.50% 

Up to Rs. 10,000

Kotak Mahindra Bank

8.60% onwards

Up to 2% of loan amount

Karnataka Bank

8.90% onwards

Up to 0.5% of loan amount

ICICI Bank

8.60% onwards

0.5% – 1.00% of loan amount (Min. of Rs. 1,500)

PNB Housing Finance Ltd.

9.25% onwards

Up to 1% of loan amount

Axis Bank

8.90% onwards

Up to 1% of loan amount (Min. Rs. 10,000)

IDBI Bank

8.30% onwards

0.50% of loan amount

Tata Capital

9.25% onwards

0.50% of loan amount

Bank of India

8.50% onwards

8.65% onwards (Min. 1000 and Max. Rs. 20,000)

Syndicate Bank

8.15% onwards

Min. Rs. 500 to Max. Rs. 5,000

Canara Bank

8.50% onwards

0.50% of the loan amount (Min. Rs. 1,500; Max. Rs. 10,000)

United Bank of India

8.15% onwards

0.59% of loan amount (Min. Rs.1,180; Max. Rs.11,800)

IIFL

10.25% onwards

Rs 3000 to 0.75% of the loan amount

Standard Chartered Bank

9.41% onwards

Up to 1% of the loan amount

YES Bank

9.85% onwards

2% of loan amount (Min. Rs.15,000)

*The interest rates provided above are of key Banks and Housing Companies Operating in India, indicative and liable to change periodically.

*Figures mentioned in the above table are subject to change without prior information.

The final interest rate charged by the bank to the customer would be based on various other factors at the discretion of the lender.

The variation in Home Loan Interest rates may occur on the basis of key factors such as applicant's credit score, prior lender-borrower relationship and the loan amount applied for.

Home Loan
4.7 / 5 (658 Reviews)

Home Loan

PaisabazaarGood loan schemes
4/5

HDFC Bank Home Loan

HDFC bank has good loan schemes with decent interest rates and are a saviour.


Posted on: Jun 22 , 2019
PaisabazaarThappa
5/5

Jammu Kashmir Bank Home Loan

To,the bank manager ,sir mane home loan.chahiye kiunki Mera home barish ki bja se gir raha ha


Posted on: Jun 17 , 2019
PaisabazaarMaximum loan tenure
5/5

Punjab National Bank Home Loan

I got a 30 year tenure to clear my liability with ease at PNB.


Posted on: May 27 , 2019
PaisabazaarMinimum loan tenure
5/5

Punjab National Bank Home Loan

I applied for a minimum tenure of 5 years for my PNB home loan.


Posted on: May 27 , 2019
PaisabazaarMaximum loan amount
5/5

Punjab National Bank Home Loan

I needed 10 crores for my dream home and got the PNB loan approved.


Posted on: May 27 , 2019
PaisabazaarMinimum loan amount
5/5

Punjab National Bank Home Loan

I applied for a minimum loan of 10 lakhs at PNB and got it approved.


Posted on: May 27 , 2019