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What makes this year the focal point for investors to purchase a property by using a borrowed capital is by considering the fact the Reserve Bank of India (RBI) may not cut the policy rates anytime soon and that the home loans in India are rather low. What adds to the interest in a home loan are the discounts that are offered by the developers, as well as, the reduction in the stamp duty-announced by various state governments.
Nonetheless, it becomes quite difficult for most home buyers to then select the best banks to best a home loan while evaluating the lowest home loan interest rates and its overall effectiveness of the bargain. This is why this article becomes even more crucial as we list the top 10 best banks for housing loans in India in 2023, just for you!
These the banks that offer the most affordable deals and the rates that are mentioned are inclusive of the floating rate of interest that is linked with the repo rate of RBI and not the marginal cost of funds that are based on the lending rate (MCLR) regime.
SBI- a government-run bank, is considered the largest mortgage lender in India. It currently assists over 30 lakh families in their home purchases. They also have over 24,000 branches, both, in the country and abroad.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.7% | 7.20% |
For self-employed individuals | 7% | 7.40% |
Longest tenure: 30 years Affordability scale: High |
HDFC has a record of helping about over 80 lakh people with the best home loan to help them purchase their dream houses.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.75% | 7.40% |
For self-employed individuals | 6.75% | 7.85% |
Maximum tenure: 30 years Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher. Affordability scale: High |
ICICI is the second-largest private lender in the capitalization market that was promoted in 1994 and was wholly a subsidiary. The bank currently owns a network of 5,288 branches all across India.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.75% | 7.95% |
For self-employed individuals | 6.95% | 8.05% |
Maximum tenure: 30 years Processing fees: 0.50% of the home loan amount. Affordability scale: High |
Bank of Baroda is the third-largest bank in India with 13 other major commercial banks that were nationalized on July 19, 1969, by the government. It currently has more than 10,000 branches, both, in India and abroad.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.75% | 9% |
For self-employed individuals | 7% | 9% |
Maximum tenure: 30 years Processing fees: None currently Affordability scale: High |
Punjab National Bank is the second-largest public bank in India that offers a floating interest rate at a much affordable offer. They have about over 80 million customers and 6,937 branches that are widely spread across 764 cities.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.80% | 7.40% |
For self-employed individuals | 6.80% | 7.40% |
Maximum tenure: 30 years Affordability scale: High |
LIC is observed to have approved over 3.35 lakh home loans by offering home loan interest rates.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.90% | 7.80% |
For self-employed individuals | 7% | 7.90% |
Maximum tenure: 30 years Affordability scale: Average |
This bank which is over a century old has its headquarters in Bengaluru. It currently operates over 10,391 branches across India and became the fourth-largest state-owned bank as of last year with a business size of over Rs 16 trillion.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.90% | 8.90% |
For self-employed individuals | 6.90% | 8.90% |
Maximum tenure: 30 years Processing fees: 0.50% of the loan amount with the minimum and the upper limit capped at Rs 1,500 and Rs 10,000, respectively. Affordability scale: Average |
Union Bank has its headquarters in Mumbai and is a public lender. It offers the lowest home loan interest rates in the market with a network of over 9,500 domestic branches in India.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.70% | 7.15% |
For self-employed individuals | 6.90% | 7.35% |
Maximum tenure: 30 years Processing fees: 0.50% of the total loan amount with the upper limit capped at Rs 15,000. Affordability scale: High |
HDFC was incorporated in 1994 and owns a nationwide network of around 5,430 branches in India.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.80% | 7.85% |
For self-employed individuals | 6.80% | 7.85% |
Maximum tenure: 30 years Processing fees: Up to 0.50% of the loan amount or Rs 3,000, whichever is higher. Affordability scale: Average |
Axis bank is a leading private sector bank that currently runs around 4,500 branches, in both, India and abroad.
Highlights –
Downside –
Rate of Interest on Home Loans | Best rate* | Highest rate* |
For salaried individuals | 6.90% | 8.40% |
For self-employed individuals | 7% | 8.55% |
Maximum tenure: 30 years Processing fees: Up to 1% of the loan amount, with the minimum amount capped at Rs 10,000. Affordability scale: Average |
While you are searching for the best bank for a home loan make sure you keep the following points in mind:
It is the interest that India’s apex bank-RBI charges from scheduled banks of the country to offer funds. This also means that whenever there is even the slightest of a change in the repo rate, the banks increase or decrease the interest rates for the borrowers.
Most Indian banks offer the best interest rates to customers who have impressive credit scores. Therefore, the ones with a poor score will need to pay higher interest rates.
HDFC is one bank that purely engages in home loans as compared to the other banks that are involved in various other activities as well. Refer to the article above for more information!