Pre-approved Home Loan

In pre-approved home loans, banks and HFCs offer an in-principle approval to eligible customers before the finalization of the residential property. Lenders usually offer such loans to their existing customers on the basis of their income, credit history, employer’s profile, etc. Such loans usually have quicker disbursal and may also be available at lower interest rates.

Key Features & Benefits of Pre-Approved Home Loan

Lower Interest Rates: Pre-approved loans are usually offered to individuals with a good credit profile. Hence, such pre-approved individuals have higher chances of availing home loans at lower interest rates. Some of the factors considered while offering pre-approved home loans include the applicant’s income, credit score, employment type, employer’s profile, outstanding loan repayment obligations, etc.

As the home loan rates offered can vary widely across lenders, a brief comparison of the home loan interest rates offered by leading banks and HFCs with the pre-approved home loan rate offered to you might help you in availing the optimum loan offer.

Interest Rates of Pre-Approved Home Loan

Name of Lender	Loans of Up to Rs. 30 Lakh
Bank of India	7.10% p.a. onwards	Check Eligibility
State Bank of India	7.25% p.a. onwards	Check Eligibility
Punjab National Bank	7.20% p.a. onwards	Check Eligibility
Canara Bank	7.15% p.a. onwards	Check Eligibility
HDFC Bank	7.90% p.a. onwards	Check Eligibility
Bajaj Housing Finance	7.40% p.a. onwards	Check Eligibility
ICICI Bank	7.65% p.a. onwards	Check Eligibility
Axis Bank	*8.25% p.a. onwards	Check Eligibility
Federal Bank	*7.90% p.a. onwards	Check Eligibility
Kotak Mahindra Bank	7.70% p.a. onwards	Check Eligibility
IDFC FIRST Bank	8.85% p.a. onwards	Check Eligibility
IDBI Bank	7.35% p.a. onwards	Check Eligibility
RBL Bank	8.20% p.a. onwards	Check Eligibility
Tata Capital Housing Finance	7.75% p.a. onwards	Check Eligibility
PNB Housing Finance	*7.20% p.a. onwards	Check Eligibility
Sammaan Capital (Formerly known as Indiabulls Housing Finance)	8.75% p.a. onwards	Check Eligibility
India Shelter Home Loan	8.43% p.a. onwards	Check Eligibility
L&T Finance Limited	*8.40% p.a. onwards	Check Eligibility
Godrej Housing Finance	7.75% p.a. onwards	Check Eligibility
Home First Finance	8.00% p.a. onwards	Check Eligibility
Easy Home Finance	8.99% p.a. onwards	Check Eligibility
Piramal Capital Housing Finance	*8.25% p.a. onwards	Check Eligibility
Shubham Housing Finance	10.45% p.a. onwards	Check Eligibility
Punjab & Sind Bank	7.30% p.a. onwards	Check Eligibility
Jio Housing Finance	8.20% p.a. onwards	Check Eligibility
HDFC Sales Pvt Ltd	7.90% p.a. onwards	Check Eligibility

Note: Interest rates as of 6th August 2025

• Assured eligible loan amount: In the “in-principle” approval letter, lenders state the eligible loan amount as per the prevailing home loan interest rate. This helps the prospective home buyers get a clearer picture regarding their affordability and eligibility for home loan. Such in-principal approvals are valid only for a pre-determined period. Moreover, the final loan amount would also depend on the features of the selected property.
• Quicker disbursal: Such loans have lower processing time as the applicants already meet most of the eligibility criteria set for the home loan. Once all the property is identified and verified, the home loan could be approved and disbursed quicker than other home loan applicants.

What are the important things to consider while applying for a pre-approved home loan?

• Pre-approved loans are valid only for a certain period of time, therefore, customer need to apply in the specified time frame to be eligible for the offer
• Before availing the offer, enquire lender about all the applicable charges like processing fee, pre-payment charges and pre-closure charges, etc.
• Remember to compare other available pre-approved home loan offers as well as home loan offers available from other lenders

FAQs

1. What is the validity period of a sanction letter?
Ans. The “in-principal” sanction letter is valid for a period of up to 6 months. However, this number may vary from lender to lender. The borrower must finalize a property before the expiry date mentioned in the letter.

Check Also: What are the steps of the home loan process?

2. How do banks decide the eligibility for a Pre-approved Home Loan?
Ans. Various factors such as income, liabilities, repayment capacity, credit score, etc. are taken into account for deciding upon the eligibility of a customer.

3. Does a pre-approved home loan offer guarantee loan disbursal?
Ans. No, a pre-approved offer does not guarantee loan disbursal. For example, if the features of the property purchased by you do not meet the eligibility criteria set by your lender, the lender can reject your loan application despite your pre-approval home loan letter.

4. What are the common documents required to avail a pre-approved home loan?
Ans. As most pre-approved home loans are offered to existing customers, no additional documents are required as the lender already has details regarding your income, KYC, etc. in their database. However, in some cases such as when a pre-approved loan is offered to a new customer, lenders may require the following documents:

• Income proof
• Address proof
• ID proof

Moreover, after the property is identified, the lender may require property related documents for verification.