Denice R. Preston
A housing loan is money you borrow from banks or Housing Finance Companies (HFCs) to buy a house. When looking for a home loan, you should consider the following factors: interest rate, loan amount and tenure, monthly EMIs, credit score, and loan term.Financial institutions offer various home loan options to help customers meet their housing needs.
Home Loan Types
A person can choose the home loan that suits their needs and budget. Below are some examples of Indian home loan products:
Home Purchase Loans
This loan can purchase residential property such as bungalows, row homes, and flats. Banks will only lend 90% of the property’s current market value. This value is 80% for Non-Banking Financial Companies.
Eligibility Criteria Mortgage Loans
To be eligible for a home loan, an individual must meet the following conditions. These requirements may differ from one lender to the next.
Particulars Salaried Professionals Individuals Self-Employed
Age 18-65 years 18-65 years
Employment Min. Minimum two years experience Min. Min. 5 years experience
Credit Score 750 and above 750 and above
Documents Requirement for Home Purchase Loan
Below are the standard documents that are required to obtain a loan for a home purchase. The requirements for a home purchase loan may differ from one provider to the next.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Passport copy, voter ID, utility bills, etc.
- Income proof (Salary slips, ITR details)
- Identification Proof (PAN card, Passport, Voter ID, etc.)
- If any, existing loan documents
- To be purchased documents of the property
Get a Home Loan at Very Low-Interest Rates
Home Purchase Loan Interest rates
Below are the interest rates that leading banks offer on home-purchase loans:
Banks Interest Rate Processing Fee (exclusively GST)
SBI Home Loan 6.7% onwards Maximum 0.4% of the loan amount (Min. Maximum Rs 10,000 Maximum Rs. 30,000)
HDFC Home Loan 6.95% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Non-professional Self-Employed – Maximum 1.5% or Rs. 4,500 or higher
ICICI 30-year Home Loan 6.7% onwards 0.50% – 2.0% of the loan amount, or Rs. 1,500 (Rs. 1,500 (Rs.
Axis Home Loan 6.90% and up Maximum 1% of the loan amount (Min. Rs. 10,000)
Home Construction Loans
The land owner can apply for this type of loan to finance the construction of a house. You can also borrow a loan to construct an existing house.
Eligibility Criteria to Get a Home Construction Loan
These are the conditions an applicant must meet to be eligible for a loan for home construction. These criteria can vary from one lender to the next.
Particulars Salaried Professionals Self-Employed Individuals
Age 18-65 years 18-65 years
Employment Min. Minimum of 1-year experience with the current employer Both professionals and non-professionals are eligible.
Credit Score 700 and above 700 and above
Documents Requirement for Home Construction Loan
Below is a list of documents required to obtain a loan for home construction. The requirements of different providers may differ.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy of passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR details)
- Identification Proof (Passport, PAN card, Voter ID, etc.)
- If any, existing loan documents
- Property documents
Home Construction Loan Rates of Interest
Below are the interest rates that banks offer on home construction loans.
Banks Interest Rate Processing Fee (exclusively GST)
SBI Realty Home Loan Start at 7.50% Minimum 0.40% of the loan amount Minimum Rs. 10,000; Maximum Rs. 10,000; Max. 10,000; Maximum. 30,000)
HDFC Home Loan 6.95% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Non-professional Self-employed – Maximum 1.5% or Rs. 4,500 or higher
Canara Site Loan 6.90% and up 0.5% of the loan amount. (Min. Rs. 1,500; Max. 1,500; Maximum. 10,000)
DHFL Home Construction loan 8.75% and up Salary/Self-employed Professional – 0.5% loan amount (Min. Rs. 2,500)
Non-professional self-employed – Net PAT: 0.5%, Other: 1.0% of the loan amount
Home Improvement Loans
You can use this loan to renovate, fix or remodel your home. Home improvement loans are prevalent because of their low-interest rates.
Eligibility Criteria to Get a Home Improvement Loan
These are the conditions an applicant must meet to qualify for a home improvement loan. These criteria can vary from one lender to the next.
Age 18-65 years
Employment Salaried, self-employed professionals and non-professionals
Documents Requirements for Home Improvement Loans
Below is a list of documents required to obtain a loan for home improvements. The requirements can vary from one provider to the next.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy of passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR details)
- Original Property Title Deeds
- Estimated Renovation Cost
Home Improvement Loans Incentives
Below are the interest rates that banks offer on home improvement loans.
Banks Interest Rate Processing Fee (exclusively GST)
PNB Housing Finance Ltd. 9.25% and up Maximum 0.35% (Minimum) of the loan amount Rs. 2,500; Max. Rs. 15,000)
HDFC Bank 6.95% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Non-professional Self-employed – Maximum 1.5% or Rs. 4,500 or higher
Canara Bank 6.90% and up 0.5% of the loan amount. (Min. Rs. 1,500; Max. 1,500; Maximum. 10,000)
Bank of Baroda 6.75% and up 0.25 – 0.50% on loan amount
Home Extension Loans
This loan can be used to expand or increase the space in a home. This could be for expanding a room to meet growing family requirements.
Eligibility Criteria to Apply for Home Extension Loans
These are the conditions an applicant must meet to be eligible for a loan to extend their home. These criteria can vary from lender to lender.
Age 18-65 years
Employment Salaried, self-employed professionals and non-professionals
Documents Requirement for Home Extension Loans
Below is a list of documents that are required to obtain a loan for a home purchase. The requirements can vary from one provider to the next.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy of passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR)
- If any, existing loan documents
- Property/Home Extension-Related documents
Home Extension Loans Interest rates
Below are the interest rates that banks offer on home extension loans.
Banks Interest Rate Processing Fee (exclusively GST)
HDFC Home Extension Loan 6.95% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Non-professional Self-employed – Maximum 1.5% or Rs. 4,500 or higher
DHFL Home Extension Loan 8.75% and up Salary/Self-employed Professional – 0.5% loan amount (Min. Rs. 2,500)
Non-professional self-employed – Net PAT: 0.5%, Other: 1.0% of the loan amount
Tata Capital Home Extension Loan 6.90% and up Maximum 0.5% of the loan amount
Loans for Land-Purchase
This home loan is available for purchasing land, a plot loan for construction, or as an investment.
Eligibility Criteria to Apply for Land-Purchase loans
These are the conditions an applicant must fulfill to be eligible for a loan for land purchase.
Age 18-65 years
Employment Salaried, self-employed professionals and non-professionals
Documents required for Land-Purchase loans
Below is a list of documents that are required to obtain a loan for a home purchase. The requirements can vary from one provider to the next.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy of passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR)
- If any, existing loan documents
- Documents relating to a property
Interest Rates on Land-Purchase Leasing
Below are the interest rates that banks offer on land-purchase loans.
Banks Interest Rate Processing Fee (exclusively GST)
HDFC Bank 7.05% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Non-professional Self-employed – Maximum 1.5% or Rs. 4,500 or higher
PNB Housing Finance Ltd. From 7.55% Maximum 1% on the loan amount (Minimum. Rs. 10,000)
Bajaj Finserv 6.95% and up Salary for salaried persons: Up to 0.80%
Self-employed persons: Maximum 1.20% of the loan amount
DHFL 8.75% and up Salary/Self-employed Professional – 0.5% loan amount (Min. Rs. 2,500)
Non-professional self-employed – Net PAT: 0.5%, Other: 1.0% of the loan amount
NRI Mortgages
Non-Resident Indians can apply for this type of loan to finance the construction or renovation of a home in India. This loan has a maximum term of 30 years and can have a fixed or floating interest rate.
Eligibility Criteria to Apply for NRI Home Loans
These are the conditions an applicant must fulfill to be eligible for a loan for a home purchase. These criteria can vary from lender to lender.
Age 18-60 years
Employment Salary Individuals and Self-Employed with at minimum two years work experience in the current company
Documents Requirement for NRI Home Loans
Below is a list of documents that are required to obtain a loan for a home purchase. The requirements can vary from one provider to the next.
- Copy of passport and work visa
- Valid work permit proof
- Copy of the employment contract
- Current proof of residence abroad
- Salary slips for the past three months
- Statement of Salary Account for the Past Six Months
- General power of attorney
- Last year, ITR did not apply to NRIs in the Middle East and Merchant Navy employees.
- Papers for property
NRI Home Loans Interest rates
Below are the interest rates that banks offer on home construction loans.
Banks Interest Rate Processing Fee (exclusively GST)
PNB Housing Finance Ltd. From 7.55% Maximum 1% of the loan amount Rs. 10,000)
Balance Transfer
A person who wishes to transfer a home loan balance from a bank/NBFC can apply for a home loan balance transfer. This loan can be used for a lower interest rate and the availability of a top-up facility.
Eligibility Criteria to Balance Transfer
Below are the conditions an applicant must fulfill to qualify for a home loan balance transfer. These criteria can vary slightly from one lender to the next.
Age 18-65 years
Employment Salary- and self-employed individuals with a clear record of making timely repayments to the previous lender
Documents required for a balance transfer
Here is a list of documents required to obtain a home loan balance transfer.
- Age Proof (Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy of passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR details)
- Statement from the bank confirming repayment of an ongoing loan
- Documents relating to property
- List of property documents and loan statement in the possession of the current lender
Balance Transfer Interest rates
Below is a table that shows top providers’ interest rates offered to home loan balance transfers.
Banks Interest Rate Processing Fee (exclusively GST)
SBI Home Loan balance Transfer 6.7% onwards Minimum 0.40% of the loan amount Minimum Rs. 10,000 & Max. 10,000 & Max. 30,000)
HDFC Home Loan balance Transfer 6.95% and up Salary/Self-employed Professional – Maximum 0.5% of the loan amount or Rs. 3,001, or the higher
Self-employed Non-Profit – Maximum 1.5% or Rs. 4,500 or the higher
ICICI Home Loan balance Transfer 6.7% onwards 0.50% – 2.0% of the loan amount, or Rs. 1,500 (Rs. 1,500 (Rs.
Bajaj Finserv Balance transfer 6.95% and up Salary for salaried persons: Up to 0.80%
Self-employed persons: Maximum 1.20% of loan amount
Bridge Loan
People looking to purchase a new property or sell their existing one can apply for this type of loan. This fund can meet short-term funds such as down payment or purchase of a new home. Bridge loans generally have higher interest rates and a maximum repayment term of 2 years.
Eligibility Criteria to Get a Bridge Loan
Age 18-70 years
Customers who are eligible All property owners and all co-applicants
Documents required for a bridge loan
Below is a list of documents required to obtain a bridge loan.
- Age Proof ((Birth certificate, Class 10 marks sheet, etc.)
- Address proof (Copy passport, utility bills, voter ID, etc.
- Income proof (Salary slips, ITR)
- Statement from the bank confirming repayment of an ongoing loan
- Documents relating to property
Bridge Loan Interest rates
Below is a table that shows the interest rates offered to bridge loans by top providers.
Banks Interest Rate Processing Fee (exclusively GST)
SBI Bridge Loan 1st year: 9.50%
2nd year: 10.50% Maximum 0.35% (Minimum) of the loan amount Rs. 5,000)
