Home loans in India are a popular way to finance the purchase of residential properties. To be eligible for a home loan, prospective borrowers must meet certain criteria laid out by the lending institutions, including factors such as age, income, employment status, credit history, and property value. The loan amount that a borrower can obtain depends on their eligibility and the value of the property being purchased. Typically, banks or financial institutions offer up to 80-90% of the property’s value as a home loan. The remaining amount is required to be paid as a down payment by the borrower.
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Home loan interest rates can be fixed or floating. Fixed rates remain constant throughout the loan tenure, while floating rates fluctuate with market conditions. Interest rates can vary between different lenders and are influenced by factors like the borrower’s creditworthiness and the loan amount. Home loans generally have a tenure of up to 30 years, but this can vary based on the lender’s policies and the borrower’s age at the time of application. Longer loan tenures usually result in lower equated monthly instalments (EMIs).
Home loans are repaid in monthly EMIs. An EMI includes both the principal amount and interest, spread over the loan tenure. Lenders may charge processing fees and other administrative charges for home loan applications. Applicants need to provide various documents such as proof of identity, address, income, bank statements, property documents, and passport-sized photographs.
Borrowers can avail tax benefits on both the principal and interest components of the home loan under the Income Tax Act.
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It’s essential to conduct thorough research and compare offers from different lenders to find the most suitable home loan option based on your financial situation and requirements. If you plan to take a home loan, check out the latest interest rates public and private sector banks are offering for loans under Rs. 30 lakh.
| Bank name | Interest Rate Range (Floating Loans |
| Axis Bank | 9.0-9.4% |
| Bank of Baroda | 9.15-10.60 |
| Bank of India | 8.50-10.75 |
| Bank of Maharashtra | 8.60-10.80 |
| Canara Bank | 8.85-11.25 |
| Central Bank | 8.40-9.35 |
| DBS Bank | <=10.20 |
| Federal Bank | 10.15-10.20 |
| HDFC Bank | 8.40-9.00 |
| ICICI Bank | 9-9.80 |
| Indian Bank | 8.50-9.40 |
| Indian Overseas Bank (IOB) | >=8.85 |
| IDBI Bank | 8.65-12.25 |
| J&K Bank | 9.45-9.55 |
| Karnataka Bank | 8.75-10.43 |
| Karur Vysya Bank | 9.23-10.73 |
| Kotak Mahindra Bank | 8.75-9.60 |
| Punjab National Bank | 8.55-10.10 |
| Punjab & Sind Bank | 8.85-9.95 |
| RBL Bank | 9.15-11.55 |
| State Bank of India | 8.50 – 9.75 |
| South Indian Bank | 9.85-12.60 |
| Tamilnad Mercantile Bank | 9.35-9.85 |
| UCO Bank | 8.45-10.30 |
| Union Bank of India | 8.5-10.50 |
Disclaimer: Interest rates that vary with tenures or credit scores within the specified loan amount are indicated as a range. Data taken from respective bank’s websites on Jul 14, 2023. *Annual percentage rate
