5 Most Popular Home Loans

By | November 26, 2018

Choosing the right Home Loan can be a herculean task considering the wide range of offers out there. To lighten your burden, here’s a list of Home Loans that you’d do well to consider.

Top HL picks

Getting your own home is akin to winning an Olympic medal. It’s a moment of triumph when you feel all that money and effort you invested was worth it. And if you choose the right Home Loan, the exhilaration will last for years.

However, getting a good Home Loan is no child’s play. You need to look at the interest rate, prepayment charges, foreclosure charges, processing fees, loan tenure, disbursal time and need for a guarantor, among other things.

Additional Reading: 6 Smart Ways To Manage Your Home Loan EMIs

Worried? Don’t be! Here’s a list of the most sought-after Home Loans which we are sure you will love.

PNB HFL Home Loan

Interest rate: 9% – 9.5%

Processing fee: Up to 0.50%

Tenure: 1 – 30 years

Guarantor: Not Required

Additional Reading: Home Loans: Myth Vs Fact #1

PNB Housing Finance Limited (HFL) is a subsidiary of Punjab National Bank and provides different types of Home Loans. The list includes:

  • Home Purchase Loan – For the construction, purchase or extension of home.
  • Construction Loan – For the construction of a residential home.
  • Extension Loan – To help you extend your home where more area or floors need to be added.
  • Improvement Loan – For the improvement of your home. This could include internal/external repairs, roofing, painting, waterproofing, plumbing, electrical works, etc.
  • Residential Plot Loan – For the purchase of a residential plot of land in an urban area.
  • Loan for NRIs – To help NRIs construct, purchase, repair or renovate residential properties in India.

The eligibility criteria for loans from this housing finance company are:

You must be an Indian citizen or an NRI and your age must not exceed 70 years at the time of loan maturity. For NRI Loans, the customer must have worked for at least one year in a foreign country. Employed people who have gone abroad on deputation aren’t eligible for this loan.

ICICI Bank Home Loan

Interest rate: 8.9% – 9.10%

Processing fee: 0.25%

Tenure: 3 – 30 years

Guarantor: Not Required

Additional Reading: Does It Make Sense To Opt For A Joint Home Loan?

ICICI bank being one of the largest lenders in the country, provides Home Loans that can be availed online with minimal paperwork. If you are interested, you can apply for this loan by clicking here. The paperwork is almost nil and you also get an Amazon gift voucher!

ICICI Bank also offers pre-approved Home Loans, balance transfer facility, top-up facility and step-up Home Loans.

The eligibility criteria for Home Loans from ICICI bank are:

You must be at least 21 years old when the loan is sanctioned and the entire loan must be repaid at or before the age of 65 years. You must be self-employed or salaried with a regular income source. The co-applicant’s age must be at least 18 years.

HDFC Home Loan

Interest rate: 8.8% – 9.05%

Processing fee: Up to 0.50%

Tenure: 1 – 30 years

Guarantor: Not Required

Additional Reading: HRA And Home Loan: Can Both Be Claimed For Tax Deduction?

HDFC is the country’s top home finance company. It provides the following types of Home Loans.

  • Home Loan: For individuals to purchase (fresh/resale) or to construct houses.
  • Improvement Loan: To facilitate internal and external repairs and other structural improvements like painting, waterproofing and roofing, plumbing and electrical works, tiling and flooring, grills, aluminium windows, compound walls and more.
  • Extension Loan: For adding more space to your existing home for meeting the requirements of your growing family.
  • HDFC Rural Home Loans: Offered to farmers, agriculturalists, horticulturalists, dairy farmers, etc.

HDFC Home Loan’s eligibility criteria are:

Housing loans can be applied for individually or jointly with a co-applicant(s). Every proposed owner of the property is considered a co-applicant. However, all co-applicants are not deemed as co-owners. Ideally, co-applicants are immediate family members.

HDFC Housing Loans are offered to both salaried and self-employed individuals. However, you must be at least 18 years old when the loan is sanctioned.

Indiabulls Home Loan

Interest rate: 8.75% – 11.2%

Processing fee: Up to 0.50%

Tenure: 1 – 30 years

Guarantor: Not Required

Additional Reading: How Is A Land Loan Different From A Home Loan?

Indiabulls’ unique Home Loan offers the following options:

  • EMI Holiday- payment of EMIs after a 3-month delay
  • Increased EMI – Option to increase your EMI rate from the original one in case of income surge
  • Flexible Loan Investment Plan – The EMI reduces as time passes. If one of the co-applicants is set to retire earlier, the repayment can be higher initially.

The eligibility criteria for Home Loans offered by Indiabulls are:

You must be a resident Indian. NRIs can apply for NRI Home Loans but the loan amount can only be used to purchase properties in India.

You must be older than 21 years and must not be over 65 years at loan maturity and must have a steady source of income, as proved by accompanying documents. You should have a good credit history, with no obvious red flags to get this loan.

Axis Bank Home Loan

Interest rate: 8.80% – 11.75%

Processing fee: 0.50%

Tenure: 1 – 30 years

Guarantor: Not Required

Additional Reading: SBI Home Loans

Axis Bank, one of the leading banks in the country, offers various types of Home Loans. Some of them are:

  • Fast Forward Home loan – You can take advantage of your family’s combined income to avail the maximum loan amount under this scheme. You get EMI waivers for 12 EMIs for loans serviced beyond 10 years.
  • Asha Home Loan – This loan offers a loan amount of up to Rs. 28 lakhs at an affordable interest rate. You can get funding for up to 85% of property value, 12 EMIs waived, longer tenures and a customised loan based on your banking pattern.
  • Empower Home Loan – This scheme offers you a loan amount starting at Rs. 10 lakhs up to Rs. 1.5 crores. You get 3 guaranteed rate reductions on maintaining a good repayment track record, attractive interest rates and no prepayment charges.

The eligibility criteria for Home Loans offered by Axis Bank include:

Individuals in permanent service in the Government or reputed companies can apply for this loan. If you are a salaried applicant, you should be above 21 years of age at the time of loan commencement and up to the age of 60 or superannuation, whichever is earlier at the time of loan maturity.

Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, and management consultants only) who meet the Axis Bank Home Loan eligibility criteria can apply. Professionals above 21 years of age at the time of home loan commencement and up to 65 years or less at the time of home loan maturity meet the home loan eligibility criteria.

If you are a self-employed applicant, you should be above 21 years of age at the time of the commencement of the home loan and up to 65 years or less at the time of maturity of the home loan.

Additional Reading: Home Loan FAQs

Home Loan Documents

All of these Home Loans will require documents such as a signed application form along with your photograph, identity proof, address proof and bank statement. Salaried individuals will have to give their last 3 months salary slips and the last two years’ Income Tax Returns.  Self-employed individuals will be required to submit their audited balance sheet and profit and loss statement.

Ensure that you have a Credit Score of 750+ before you apply for a loan. This will reduce the chances of your loan application getting rejected. Want to check your Credit Score for FREE? Click here.

Didn’t think much about these Home Loans? There are plenty of others waiting for you! Interest rates start at 8.35%.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Money Management

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