11 Best Banks for Home Loans in India

Purchasing or investing in a home is a dream of many and one of the most crucial decisions in someone’s life. However, in today’s time, dreams are expensive, and so is purchasing a home. It comes at a high cost, making it difficult for a person to buy their dream home. But with top lenders offering home loans at a reasonable rate, everything seems sorted. 

To cater for the need for housing finance by a wide customer base, several banks are coming forward with exclusive schemes and benefits to make it affordable for the public. With so many options to choose from, it becomes difficult to pick one bank to get a home loan.

However, to ease your home buying decision, we have listed 11 banks for a home loan that are considered to be the best in the market. Arm yourself with the list and narrow it down to one bank that fits your home loan requirements the best.

List Of 11 Best Banks For Home Loan In India

Bank	Loan Amount	Floating Interest Rate	Tenure
Axis Bank	Rs 1 lakh to Rs 5 Crore	7.6% to 8.05%	1 year to 30 years
ICICI Bank	Up to 3 Crore	7.6% to 8.45%	Up to 30 years
Kotak Mahindra Bank	75%- 80% of the property cost	7.5% to 8.1%	Up to 20 years
Punjab National Bank	Up to 90% of property value	7.5% to 9.8%	Up to 30 years
Union Bank of India	Up to 90% of the total cost of property	7.4% to 9.1%	Up to 30 years
IDFC First Bank	Rs 1 Lakh to Rs 5 Crore	7.5% onwards	1 year to 30 years
SBI	Up to 90% of property value	7.5% to 8.55%	1 year to 30 years
Bank of Baroda	Rs 1 Crore to Rs 20 Crore	7.45% to 8.80%	Up to 30 years
HDFC Bank	No cap, depending on repayment capacity	7.55% to 8.55%	Up to 30 years
Citibank	Up to Rs 10 Crore	6.95% onwards	Up to 25 years
Indian Bank	Up to 90% of property value	7.4% to 8.4%	Up to 30 years

These 11 banks are our top picks for a Home loan. Let’s take a look at each bank and learn more about them in detail. 

1. Axis Bank

Axis is one of the leading private sector banks that offers a wide array of benefits on its home loan. You can space out your loan payment over a longer tenure, enjoy attractive interest rates, get doorstep service, etc.

The bank has designed all its home loans with your best interest in mind, and hence, it is considered to be a good choice for getting a home loan.

Types of Home Loans:

•  Axis Bank Home Loan
• QuikPay Home Loan
• Shubh Aarambh Home Loan
• Fast Forward Home Loan
• Asha Home Loan
• Top-Up Home Loan
• Super Saver Home Loan
• Power Advantage Home Loans

Features: 

• No prepayment charges on choosing a floating interest rate home loan 
• A balance transfer facility is available that lets you enjoy more benefits 
• You can avail home loan right from your home or office, without visiting a branch 
• EMI wave-off option at no extra cost on regular payment is available 

2. ICICI Bank

ICICI is the second-largest private lender in the country that is a perfect choice for getting a home loan. Known for its quick approval, ICICI offers exclusive benefits for making it easy for you to own your dream house. If you like to read about this topic, may we also suggest our list of best Digital Banks in India.

It has a wide range of products that will suit your home loan requirements and make the journey hassle-free. 

Types of Home Loans:

• Basic Home Loan
• Express Home Loan
• Land Loan
• Extraa Home Loan
• NRI Home Loan
• Pratham Home Loans

Features: 

• Loan sanction can be done digitally just by following 5 steps
• There are no charges for paying off the loan before the completion of tenure
• You can convert your loan into low EMIs for easy payment over the years
• Track your loan via the ‘Track My Loan’ app and get real-time application status 

3. Kotak Mahindra Bank

A fast-growing private lender, Kotak Mahindra is another bank that has several home financing solutions to satisfy your needs. It is a bank that provides loans for purchasing, renovating, or constructing a home.

Also, it has a smooth and efficient application process and offers feasible repayment options for an outstanding experience. 

Types of Home Loans:

• Kotak Home Loan
• Home Improvement Loan
• NRI Home Loan
• NRI Home Improvement Loan
• Home Loan Balance Transfer

Features: 

• Minimum or no processing fee on a home loan when applied online
• There are multiple home loan insurance options available at lucrative premium rates
• You can call for doorstep service to avail loan without running around the branches
• A home loan from Kotak Mahindra can be taken for purchasing a house, construction or even renovation

4. Punjab National Bank

Punjab National Bank is the second-largest public sector bank in the country that offers home loans up to 90% of the total property value. It is a bank that is known for quick approval of the loan and faster funds disbursal. We have also compiled a list of the best Private Banks in India so you can shortlist the ones for you.

PNB has multiple home loan options to suit everyone’s needs. If you are looking for a loan to purchase a plot or construction, PNB is the right bank for you.

Types of Home Loans:

•  PNB Gen-Next Home Finance Scheme
• Pradhan Mantri Awas Yojana – Home For All
• Home Loan For Public
• PNB Pride Home Loan
• PNB Max Saver
• PNB Flexible Home Loan

Features: 

• There is no requirement for a guarantor for availing home loan
• Doorstep service is available for easy and quick disbursal of the loan
• The application process is simple and transparent, with no hidden charges or technical conditions that a layman can’t understand
• When applying online, your information passes through robust, encrypted systems that are 100% safe and can be trusted completely

5. Union Bank of India

An Indian government-owned bank, Union Bank of India, is one of the best banks that offers home loans at low-interest rates. It provides loans for all home purposes with special privileges to non-agricultural plots and construction units. In case you want to explore a best banks for Gold Loans, we have a curated list for you.

The bank also offers a home loan overdraft facility to new applicants to enhance their experience and make it easy to fulfil their dream.

Types of Home Loans:

• Union Home Loan
• Union Awas
• Union Smart Save
• Union Ashiyana Personal Loan Scheme
• Union Roof Top Solar 

Features: 

• You can avail of loans for both old and new home units
• Borrowers engaged in agriculture or allied activities can opt for quarterly payments than monthly payments
• Your Union Bank home loan can be taken over by any other bank or NBFC by paying a takeover penalty 
• There is no need for a third-party guarantee if you are an Indian resident

6. IDFC First Bank

With zero processing fee, IDFC First Bank is a great choice for taking a home loan. It offers the best interest rates on home finance and provides you with tailor-made loan options for better selection.

There are several other benefits linked with IDFC home loans that will help you live your dream of owning a home without putting a burden on your pocket. 

Types of Home Loans:

• IDFC First Home Loan
• IDFC First Suvidha Shakti
• IDFC FASTRACK Home Loan Balance Transfer

Features: 

• Digitalised loan application for a hassle-free experience and faster process
• You can effortlessly transfer a house loan in case you already have a one
• The loan can be taken for residential purchase, resale, top-up, plot purchase, construction, etc.
• The balance transfer option is available from all banks, NBFCs, and HFCs

7. State Bank India (SBI)

SBI is one of the largest Mortgage Lenders in India. It has a wide range of home loan products that are designed with exclusive benefits to help you in achieving your dream.

It uses the most stringent property verification procedures that protect you from facing any legal issues in the future. With its attractive interest rates, quick disbursal, and more, SBI is the right pick. 

Types of Home Loans:

• SBI Regular Home Loan
• SBI Flexipay Home Loan
• SBI NRI Home Loan
• SBI Privilege Home Loan
• SBI Shaurya Home Loan
• SBI Pre-approved Home Loan
• SBI Realty Home Loan
• SBI Home Top-Up Loan
• SBI Smart Home Top Up Loan
• SBI YONO Insta Home Top Up Loan
• SBI Home Loan to Non-Salaried Differential offerings
• SBI Tribal Plus
• SBI Reverse Mortgage Loan
• SBI Commercial Real Estate (CRE) Home Loan
• SBI Earnest Money Deposit (EMD)

Features: 

• The low-interest rate is calculated on the basis of daily reducing balance
• The loan is available for everyone, including salaried employees, homemakers, retired, Self-employed businesses, etc. 
• An overdraft facility is available for optimising the utilisation of surplus funds 
• Special offers and benefits are available for women home loan applicants, like a lower interest rate

8. Bank of Baroda

Now, it’s easy to turn your dream of owning a home into reality with a Bank of Baroda home loan. The bank has several home loan options for various purposes to help you avail of the maximum benefits.

Along with this, it offers easy home loan balance transfer and takeover options for reducing the burden and making your home loan experience worthwhile. 

Types of Home Loans:

• Baroda Home Loan
• Baroda Home Loan Advantage
• Baroda Home Loan Takeover Scheme
• Home Improvement Loan
• Baroda Pre-Approved Home Loan
• Baroda Top Up Loan
• Baroda Home Suvidha Personal Loan
• Credit Risk Guarantee Fund Scheme

Features: 

• You can take a loan for buying an apartment, construction, extension, or renovation
• A sanctioned home loan can be linked easily with the savings account for easy EMI repayment
• Processing charges are low while the availing loan amount is high
• Different insurance covers like accidental, life, etc. are provided with the home loan 

9. HDFC Bank

You can rely on the wide range of home loan offerings by HDFC bank for all your home needs. From purchasing to building to renovating to repairing or redecorating, HDFC helps get you the perfect living space.

At this bank, you can enjoy a hassle-free loan application process with easy loan repayment options and flexible tenures. 

Types of Home Loans:

• Regular Home Loan
• Home Improvement Loan (HIL)
• Home Extension Loan (HEL)
• Top-Up Loan
• Balance Transfer

Features: 

• You can set standing instructions for EMI payment from HDFC Savings Account to avoid payment delays 
• The bank offers extensive features on home loans for a property in the rural area
• You can avail advisory and counselling services for making the right decisions regarding your property
• There is a simple and easy application process that can be performed digitally without any hidden charges or fees

10. Citibank

Citibank has entered the market with multiple home loan variants and extensive features that are specially designed to suit the home finance needs of different individuals.

It is one of the best banks for home loans that offer funds to people with good CIBIL scores and stable income flow. Check if you are eligible for a Citibank home loan and turn your dream into reality with ease. 

Types of Home Loans:

• Regular Home Loan
• Top-Up Home Loan
• Loan Against Property
• Home Credit Advantage
• Takeover plus enhancement

Features: 

• You can avail up to 80% of the property value as a loan at an attractive interest rate
• The bank provides flexibility to pay only the interest during the construction period
• You can track your loan application or review its status or trace it at any time via an online portal
• The interest is calculated on the daily reducing balance of the loan account

11. Indian Bank

One of the major nationalised banks, Indian Bank, offers home loans at attractive interest rates to both resident Indian and Non-Resident Indians (NRIs). Individuals of 18 years to 70 years can apply for the loan and use the funds for all their home needs.

To ease the process, you can apply for the loan digitally and convert the total amount into small EMIs to make it EMIs affordable and convenient.

Types of Home Loans:

• IB Home Loan
• IB Home Improve
• IB Home Loan Plus
• NRI Plot Loan
• IB Home Loan Combo
• NRI Home Loan
• Plot Loan
• IB Home Advantage
• IB Home Enrich

Features: 

• No processing fee is being charged on a home loan from Indian Bank.
• The home loan funds can be used for construction, purchasing a home site, buying an existing flat, renovating, etc.
• Applicants can opt for Group Insurance Life Cover at a concessional premium on purchasing a home loan.
• For lesser interest payments, you can easily transfer your home loans from other banks to an Indian bank.

Final Word

Taking a home loan is an important decision, and hence, it is important to conduct extensive research before committing to a long-term repayment agreement with a lender. But now that you have the list of best lenders, you can analyse them deeply and pick the one for fulfilling all your home dreams. 

While all the mentioned banks on the list are regarded the most for their offerings, we find Axis and Citibank the best because of the interest rate and flexible repayment options. However, SBI is another top bank that has a long list of home loan options that attracted us a lot.

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