Buying a home is a significant achievement in anyone’s life and an expensive one. It often involves years of savings and financial planning. Home loans provide a critical financial bridge, making it possible for individuals to purchase their dream property without exhausting their life savings. A home loan is an amount of money a person borrows from a bank or a financial institution to buy a residential property. The borrower repays the amount and the interest over a predetermined period, ranging between 10 to 30 years, through equated monthly instalments (EMIs).
In India, several banks offer attractive home loan schemes tailored to meet the diverse demands. However, selecting the best bank from all the available options can be overwhelming.
Hence, we have listed the top 10 banks for housing loan in India based on different factors like interest rates, loan tenure, processing fees, customer service, and more. Whether you’re a first-time buyer or want to invest in property, this comprehensive guide will help you make an informed decision.
10 Best Banks for Home Loans in India
Based on different factors, the best banks for home loans in India are as follows:
1. State Bank of India (SBI)
SBI is the largest public sector bank in India and a preferred choice for home loans due to its trust factor, competitive interest rates, and wide reach. Home loans by SBI cater to different sections, such as government employees, defence personnel, non-salaried individuals, and more. The loan tenure can be extended up to 30 years for comfortable repayment. Also, women borrowers are eligible for a 0.05% interest reduction. There are no additional or hidden charges, or prepayment penalties.
Interest Rate: Starts from around 8.50% p.a.
Loan Tenure: Up to 30 years
Loan Amount: Up to ₹10 crore
Processing Fees: 0.35% of the loan amount (maximum ₹10,000 + GST)
Features:
- No hidden charges
- Benefits like interest rate concessions for women borrowers
- Pradhan Mantri Awas Yojana (PMAY) benefits available
- Overdraft facilities and balance transfer options
- Step-up loans for young professionals
2. Punjab National Bank (PNB)
Next on our list of best banks for home mortgage is PNB, which offers up to ₹1 crore as a loan. The bank offers customized home loan solutions with competitive interest rates, swift disbursal, minimal documentation, and flexible repayment options. The repayment period can be extended for up to 30 years, and the processing fee is .35% of the loan amount + GST.
Interest Rate: Starts from approx. 8.40% p.a.
Loan Tenure: Up to 30 years
Loan Amount: Up to ₹5 crore
Processing Fees: 0.35% of loan amount + GST
Features:
- Flexible EMI options
- Loans for construction, purchase, renovation
- Online application and tracking
3. Bank of Baroda (BoB)
Bank of Baroda is known for its transparency and low-interest home loans, particularly after the merger with Dena and Vijaya Bank. Its interest rate starts at 8.40%, and the repayment period extension is up to 30 years. The bank also offers various exclusive features and benefits, providing loans to buy an apartment, renovate a home, or construct a house.
Interest Rate: Starts at 8.40% p.a.
Loan Tenure: Up to 30 years
Loan Amount: Up to ₹10 crore
Processing Fees: 0.25% of the loan amount
Features:
- No prepayment or foreclosure charges
- High loan-to-value (LTV) ratio
- Top-up loan facility available
4. HDFC Bank
HDFC is considered the best bank for home loan due to its flexible repayment tenures, customized loan amounts, and competitive interest rates. It is the leading private bank that has helped millions of Indians realize their dream of owning a home. The bank ensures a seamless home loan journey for customers so they can own a dream house soon.
Interest Rate: Starts at 8.75% p.a.
Loan Tenure: Up to 30 years
Loan Amount: ₹1 lakh – 10 crore
Processing Fees: Up to 0.50% of the loan amount or ₹3,000 (whichever is higher)
Features:
- Expert property and legal counselling
- Special rates for salaried and women borrowers
- Attractive balance transfer schemes
5. ICICI Bank
ICICI Bank provides tailor-made home loan solutions for salaried, self-employed, and NRI customers. There is minimal paperwork, and the entire process is digital, which allows for hassle-free documentation and quick loan disbursal.
Interest Rate: From 9.25% p.a.
Loan Tenure: Up to 30 years
Loan Amount: ₹1 lakh – 10 crore
Processing Fees: Up to 0.50% – 2% of the loan amount + GST
Features:
- Instant sanction for pre-approved customers
- Doorstep service
- Balance transfer with top-up option
6. Axis Bank
Axis Bank is a preferred name on our list of best banks for home loans in India. It offers a minimum of ₹3 lakh as a loan amount, ensuring a straightforward application process, flexible loan tenure, and affordable interest rates. This major private sector player offers varied repayment options, and borrowers can choose between floating and fixed interest rates.
Interest Rate: Starts at 8.75% p.a.
Loan Tenure: Floating Interest Rate- Up to 30 years, Fixed Interest Rate- up to 20 years
Loan Amount: Up to ₹5 crore
Processing Fees: Up to 1% of the loan amount
4. Features:
- EMI calculators and online eligibility checks
- Special schemes for affordable housing
Fast disbursal for salaried customers
7. Union Bank of India
UBI has enhanced its reach and offers home loans with simplified documentation. It offers an interest reduction of .05% for women borrowers. Their home loan products include Union Home-Smart Save (an overdraft facility), Union Awas (for rural/semi-urban areas), Home Loan, and loans under the PMAY scheme.
Interest Rate: Starts at 8.10% p.a.
Loan Tenure: Up to 30 years
Loan Amount: ₹2 lakh – 10 crore
Processing Fees: 0.50% of the loan amount
Features:
- Loan for purchase, construction, and renovation
- PMAY benefits applicable
- Free insurance cover options
8. Canara Bank
Canara Bank is another top bank for home loan in India, with affordable interest rates and minimal processing fees. Although there is no upper limit on the loan amount, it is income-based. With a vast branch network and digital services, Canara Bank offers flexible and low-interest home loans suitable for various customer profiles. It offers loans for renovation, repairs, and to buy a second home.
Interest Rate: Starts at 8.10% p.a.
Loan Tenure: Up to 30 years
Loan Amount: Up to ₹50 lakh
Processing Fees: Up to 0.50% of the loan amount (Max- ₹10,000 and Min- ₹1500)
Features:
- High LTV ratio
- Minimal documentation
- Loans also available for NRI customers
9. Kotak Mahindra Bank
Kotak offers flexible and digital-first home loan services that appeal especially to young professionals and salaried customers. You get attractive interest rates, flexible repayment tenure, minimal documentation, and 50% off on processing fees.
Interest Rate: Starts at 8.70% p.a.
Loan Tenure: Up to 20–25 years
Loan Amount: Up to ₹5 crore
Processing Fees: Up to 0.50% of the loan amount for salaried borrowers and 1% of the loan amount for self-employed borrowers
Features:
- Digital loan application process
- Quick approval and disbursement
- Home loan overdraft facility
10. Bank of Maharashtra
Last but not least. Bank of Maharashtra is one of the top banks for home loan in India, and is known for its customer-centric approach and home loan products that cater to low and middle-income groups. It offers higher loan amounts and lower EMIs. Also, with its “Track My Loan”, you can track the status of your loan application. Other features include no hidden charges, a simple process, quick disbursal, and no prepayment penalty.
Interest Rate: From 8.60% p.a.
Loan Tenure: Up to 30 years
Loan Amount: ₹15 lakh – 1 crore
Processing Fees: .15% of the loan amount
Features:
- Low EMI options
- Mortgage loan facility
- Attractive schemes for women and government employees
Factors Affecting Interest Rate
Before selecting a home loan provider, it’s important to understand what influences the interest rate you’ll be offered:
1. Credit Score
Your CIBIL score is a key determinant of your loan eligibility and interest rate. A score above 750 indicates responsible credit behavior, which qualifies you for lower rates.
2. Income and Employment Type
Salaried individuals, especially those employed in government or reputed firms, are often offered better rates compared to self-employed individuals.
3. Loan Tenure
Shorter loan tenures usually have lower interest rates, though they might result in higher EMIs.
4. Loan Amount
Lenders may offer preferential rates based on the size of the loan. Loan amount of up to ₹30 lakh usually has lower interest rates, and a substantial down payment can reduce the interest burden further.
5. Property Location and Type
Banks consider the resale value of the home to determine interest rates. Urban and semi-urban properties are often seen as less risky and can attract better interest rates. The legal and technical valuation of the property also matters.
6. Gender and Age of Applicant
Many banks offer discounted rates for women applicants. Similarly, younger applicants might get more flexible terms due to longer working years ahead.
Also Read – Buying vs Renting a Home: Which is Better?
Conclusion
Choosing the best banks for a home loan can make a significant difference in the total cost of your property. While interest rates are a critical factor, other elements such as customer service, flexibility in repayment, processing speed, and special offers also play an important role.
The listed banks are reputed institutions offering reliable home loan products for various customer needs.
Before making a final decision, compare loan offers, read the fine print, check for hidden charges, and, if needed, consult a financial advisor. A home loan is a long-term commitment, and choosing the right partner can bring you one step closer to buying your dream home with peace of mind.