Home Loan
You can borrow up to Rs.10 crore as a home loan on RatingOK. The interest starts at 7.35% per year, the processing fee begins from 0.5%, and you can repay the loan in up to 30 years.
What is a Home Loan?
A home loan is financial help from a bank or lender to buy a house. The loan covers most of the property cost, while you pay a part of it as a down payment. The rest of the amount is paid back through monthly EMIs, with repayment time ranging between 5 and 30 years.
| Bank Name | Interest Rate | Loan Amount | Processing Fees | Max Tenure | Foreclosure Charges |
|---|---|---|---|---|---|
| SBI Home Loan | 7.25% p.a. to 10.50% p.a. | As per your eligibility | Starting from 0.35% | 30 Years | Nil |
| HDFC Home Loan | 7.75% p.a. onwards | As per your eligibility | Up to 0.50%, with a minimum amount of Rs 3,300 | 30 Years | 2.5% |
| PNB Housing Finance | 7.70% p.a. to 11.45% p.a. | Up to 90% of the property cost, no minimum limit. | Up to 0.50% of the loan amount, plus applicable taxes. | 30 Years | 3.0% |
| Axis Home Loan | 8.35% p.a. to 9.35% p.a. | As per your eligibility | 1% of the loan amount or a minimum of Rs.10,000, whichever is higher. | 30 Years | 0%–2% |
| Union Bank of India Home Loan | 8.60% p.a. onwards | As per your eligibility | Half percent of the loan amount. | 30 years | 0%–2% |
| Bank of Baroda Home Loan | Floating rate: 7.45% to 9.20% per year, Fixed rate: 9.15% to 10.20% per year. | Minimum: Not fixed, Maximum: Rs. 20 crore | Up to 0.50%, with a minimum of Rs. 8,500 and a maximum of Rs. 25,000. | 30 Years | Nil |
| LIC Home Loan | 7.50% p.a. onwards | As per your eligibility | 0% - 0.50% | 30 Years | Nil |
| Kotak Mahindra Bank Home Loan | 7.99% p.a. onwards | As per your eligibility | ₹ 10,000 | 1 - 20 Years | Nil |
| Central Bank of India Home Loan | 7.35% p.a. onwards | As per your eligibility | NIL or up to 0.50% | 30 Years | No charges applicable on floating rate home loans. |
| Aditya Birla Housing Finance | Salaried: 8.80%–14.00% p.a. & Self-employed: 9.10%–14.75% p.a. | Min: Not fixed, Max: 90% of property value | Up to 1% | 30 Years | 0% for floating-rate, 2%–4% for fixed-rate packages |
| HSBC Home Loan | 7.70% p.a. onwards | As per your eligibility | (1% of loan or ₹10,000 )+ Taxes | 25 Years | 0%–3% |
| Standard Chartered Bank Home Loan | Starting from 8.95% p.a. | As per your eligibility | Up to 1% of loan amount | 25 Years | Nil |
| TATA Capital Home Loan | 7.75% p.a. onwards | Salaried & Self-employed: Rs. 5 lakh – Rs. 7.5 crore | Salaried: Rs. 5,000 + GST; Self-employed: Rs. 10,000 + GST | 30 Years | NIL for self-payments, 2% for non-individuals, and fixed-rate balance transfers. |
| YES Bank Home Loan | 9.00% - 11.50% p.a. | Loans available from Rs. 10 lakh up to Rs. 5 crore. | 2% of the loan amount + GST or Rs. 10,000, whichever is greater. | 35 Years | 0%–4% |
| IDBI Home Loan | 7.65% p.a. onwards | Up to 90% of the property value (As per your eligibility). | Based on the bank’s decision. | 30 Years | Nil for individuals |
| Bandhan Bank Home Loan | 8.14% p.a. onwards | Up to 90% of property value | Up to 1% | 30 Years | Fixed: 4%/2%/Nil. Floating: Nil/2% non-individuals. |
| Federal Bank Home Loan | 8.75% p.a. onwards | As per your eligibility | 0.5% of the loan amount (min Rs. 3,000, max Rs. 7,500) | 30 Years | Nil |
| South Indian Bank Home Loan | 8.30% p.a. onwards | As per your eligibility | 0.50% (Max ₹ 10,000) | 30 Years | Nil |
Top Housing Loan Schemes & Offers
- Kotak Mahindra Bank – Best for Low Interest Rate: Kotak Mahindra Bank offers home loans at rates starting from 7.99% p.a. for salaried and self-employed applicants. The repayment period can go up to 25 years which helps keep EMIs comfortable. You might need to pay a processing fee that can go up to 0.5% of your loan. There are no prepayment charges. You can switch your current home loan to another lender and borrow extra funds on top.
- Canara Bank Housing Loan – Attractive Rates for Women: Canara Bank provides rates from 7.40% p.a. to 10.25% p.a. The tenure can be up to 30 years or till the borrower turns 70. The processing fee may be as high as 0.50% of your total loan amount. The loan can be used to buy or construct a house or flat. There are no prepayment charges.
- Axis Bank Home Loan – Best for Salaried Professionals: Axis Bank home loan is a good choice for salaried individuals, with interest rates starting at 8.35% p.a. You can borrow from Rs. 3 lakhs to Rs. 5 crores. You have the option to repay your loan over a period of up to 30 years. The processing fee can be as much as 1% of your loan. There are no prepayment or foreclosure charges.
- HDFC Reach Home Loan – For Self-Employed and Salaried: HDFC Reach comes with rates from 7.90% p.a. onwards. The tenure can go up to 30 years. A processing fee of 2% of the loan amount applies. Documentation is simple and eligibility starts at a minimum annual income of Rs. 2 lakh. Adding a woman co-owner can help get a lower rate.
- SBI Privilege Home Loan – For Government Employees: SBI Privilege has zero processing fee. You have the option to repay your loan over a period of up to 30 years. Women get reduced interest rates. Extra concession is available when salary checkoff is provided.
- PNB HFL Plot Loan – For Plot and Construction: PNB Housing Finance offers rates starting from 9.25% p.a. You have the option to repay your loan over a period of up to 30 years. The processing fee can go up to 0.50% of the loan amount, and if construction expenses increase, you may ask for a higher loan. The application and approval process is quick.
- SBI Realty Home Loan – SBI Realty offers land financing with competitive interest rates starting from 7.50% annually. The maximum tenure is 10 years. The processing fee can be as high as 0.35% of the total loan amount. You can borrow up to Rs. 15 crores. Women get an interest concession.
- SBI Smart Home Top-Up Loan – For Extra Funds: SBI Smart Home Top-Up comes with interest rates starting at 8.00% per year. to 10.75% p.a. The processing fee ranges from Rs. 2,000 + GST to Rs. 10,000 + GST. Tenure can be up to 30 years. An overdraft facility is available for loans above Rs. 20 lakh. There is no prepayment penalty.
- Union Awas Home Loan – For Low Credit Score Borrowers: Union Awas home loan interest rate begins at 7.45% per year. A moratorium of up to 3 years is available for construction or purchase. You can repay the loan in a period as long as 30 years. Agriculturists can repay quarterly, half-yearly, or annually. The scheme is open to permanent employees of educational institutions and to agriculturists with annual income up to Rs. 48,000.
Home Loan Eligibility
Lenders review several factors to decide whether you can repay the loan. They focus on your credit history and income first, then check age, employment type, residence stability and applicant category. Below is a clear list of the main eligibility criteria lenders commonly verifying.
| Eligibility Criteria | Requirement |
|---|---|
| Credit Score | 750 or above from a recognised credit bureau |
| Income | Minimum Rs. 5–6 lakh per year (varies by job type) |
| Age | 18 to 70 years |
| Employment | Salaried or self-employed |
| Residence | Own house or rented house (living there at least 1 year) |
| Who can apply | Resident Indians, NRIs, and Persons of Indian Origin (PIOs) |
Note: Meeting these requirements improves your chances of getting the loan, but it doesn’t promise approval. Lenders may run additional checks like employment verification, property valuation and debt-to-income calculations.
How to Apply for a Home Loan
- Check eligibility: On the lender’s website enter your name, date of birth, employment type, and income.
- Choose amount and tenure: Decide the loan amount and a repayment period that fits your budget.
- Submit application: Fill and submit the form online or at a branch.
- Provide documents: Submit ID, address, income, and property papers.
- Loan sanction: After verification the bank issues a sanction letter and disburses the amount.
Required Documents for Home Loan
| Category | Documents Required |
|---|---|
| Application | - Completed loan application form with 3 recent passport-size photographs |
| Banking Records | - Bank statements of all accounts for the last 6 months - Loan account statement of the past 12 months (if you already have an existing loan) |
| Identity Proof (any one) | - PAN Card - Valid Passport - Voter ID - Driving License - Employer ID Card |
| Address Proof (any one) | - Aadhaar Card - Passport - Driving License - Latest Electricity / Water / Telephone Bill |
Benefits of Taking a Home Loan
- Stop paying high rent and own your home.
- Property value can grow over time.
- Long tenures up to 30 years help keep EMIs low.
- Lower upfront cost with down payment and the rest in EMIs.
- Option to transfer the loan to a lender with a lower rate.
- No prepayment charges with most lenders.
- Tax benefits on principal and interest as per law.
Types of Home Loans in India
| New Home Loan | Pre-Approved Home Loan | Home Purchase Loan |
| Home Construction Loan | Plot Loan | Top-Up Loan |
| Home Extension or Renovation Loan | Balance Transfer Home Loan | Home Conversion Loan |
| Home Improvement Loan | Home Loans for NRIs, PIOs, and OCIs |
Tips to Avoid Home Loan Rejection
If you apply for a home loan, lenders check your income, documents, credit history and other details. Small mistakes can cause rejection. Go through the points below and use them as a quick checklist before sending your application.
Things You Should Do:
- Research before applying: Learn about different loan types, interest rates, eligibility rules and lender requirements. Pick a loan that matches both your requirements and what you can afford to pay back.
- Read all terms and conditions: Carefully go through the loan agreement and fine print. Know the interest rate type, processing fees, penalties and other charges before you sign.
- Check extra charges: Ask the bank about prepayment fees, foreclosure charges and any hidden costs. Knowing these helps you plan future repayments.
- Pay EMIs on time: Set reminders or auto-debit so you don’t miss monthly instalments. Timely payments keep your credit score healthy.
- Maintain a good credit score: Clear outstanding dues, avoid late payments and keep low credit card balances. A higher score makes it easier to get loan approval and helps you pay less interest.
- Apply for a suitable loan amount: Request a loan amount that matches your income and repayment ability. Asking for more than you can pay often leads to rejection.
- Submit correct documents: Provide valid ID, address proof, income proof (salary slips, ITR), bank statements and property documents. Make sure all details match across papers.
- Have stable employment: Lenders like to see a steady job or regular business income, so if you’ve changed jobs recently, be prepared to explain how your income is stable.
Tip: Keep photocopies and scanned copies of documents ready to avoid delays during processing.
Things You Should Avoid:
- Do not sign blindly: Never sign any document without reading all clauses. Signing without reading can trap you into unfair charges or long-term obligations.
- Do not skip comparing lenders: Interest rates and fees vary. Compare at least 2–3 banks or NBFCs to find better terms before you decide.
- Avoid missing payments: Defaulting on EMIs harms your credit score and makes lenders less likely to approve future loans.
- Don’t take a loan without reason: Apply only if you need the loan. Taking extra loans for the sake of credit can harm your finances.
- Do not ignore loan clauses: Always read the loan terms carefully, especially about prepayment rules, extra charges, changing interest rates, and penalties for missing payments. Request the lender to clearly explain anything that seems unclear to you.
- Avoid frequent tenure changes: Changing the loan period often can increase total interest or affect approval. Take time to weigh the benefits and drawbacks before asking for a change.
- Don’t submit incomplete applications: Errors, missing pages or mismatched details cause delays and may lead to rejection. Double-check every form before submission.
- Avoid too many existing loans: Multiple active loans reduce your repayment capacity in the eyes of the lender and can lead to rejection.
Warning: If any document details don’t match (name, PAN, income), the application can be rejected quickly. Keep everything consistent.
Quick Checklist Before You Apply
- Compare interest rates and fees from 2–3 lenders.
- Check your credit score and clear small dues.
- Gather and verify all required documents.
- Decide a loan amount you can repay comfortably.
- Use reminders or auto-pay for EMIs so you never miss a payment.
Home Loan Charges You Should Know Before Applying
- Processing Fee – A one-time, non-refundable charge you pay after your loan is approved. It varies by bank and loan scheme.
- Default Charges – A penalty applied when you miss or delay your EMI payments. The amount differs from bank to bank.
- Prepayment Charges – A fee applied when you pay off your loan before the scheduled end date. Usually applies to fixed-rate loans but often not charged on floating-rate loans.
- Conversion Fee – A charge for switching your loan to another scheme within the same bank, usually to get a lower interest rate.
- Home Insurance Premium – Paid directly to the insurance company to protect your house against risks like fire or natural disasters during the loan tenure.
- Regulatory Charges – Compulsory fees such as stamp duty, CERSAI registration, and other government-related legal costs.
- Incidental Charges – Expenses the bank incurs while recovering dues from borrowers who fail to pay EMIs on time.
- Cheque Bounce Charges – A fee charged by the bank when your cheque bounces because there isn’t enough money in your account.
- External Opinion Fee – Charges you pay directly to a lawyer or property valuer if you seek independent advice on the loan or property.
- Document Copy Fee – A small fee applied if you request photocopies of your home loan documents for personal use.
- Loan Tenure Change Fee – A nominal fee charged if you ask the bank to extend or shorten your repayment period.
What is a home loan?
A home loan is money borrowed from a bank or financial institution to buy a house, apartment, or property under construction. It is a secured loan, which means the property acts as security until the loan is fully repaid.
Which bank gives the best home loan?
There is no single “best” bank. The right option depends on comparing interest rates, fees, tenure, and other benefits. Always check with different lenders and use a home loan EMI calculator before deciding.
How much time does a home loan approval usually take?
On average, it takes 3–4 weeks for loan approval, depending on your documents, eligibility, and the bank’s process.
Who is eligible for a home loan?
Your age, income, job stability, credit score, existing loans, type of property, and even number of co-applicants decide whether you qualify for a home loan.
Can I take a joint home loan? Who can be co-applicants?
Yes. You can apply jointly with your spouse, parents, or adult children. This increases loan eligibility and makes repayment easier.
Can I take two home loans?
Yes, you can take more than one home loan if you can manage both EMIs. But, you cannot take two loans on the same property, it’s not allowed.
Will I get 100% financing?
No. Banks generally cover about 75% to 90% of the property’s price. The rest must be paid by you as a down payment.
Does having other loans affect home loan eligibility?
Yes. Personal loans, car loans, or other EMIs reduce your repayment capacity, which may lower the amount of home loan you can get.
What makes fixed and floating home loan interest rates different?
Fixed rate: Interest stays the same throughout the loan.
Floating rate: Interest changes as per RBI rates, so your EMI may increase or decrease.
Is it possible to change my loan from a fixed rate to a floating rate later?
Yes, you can change, but the bank will charge a conversion fee.
What is Pre-EMI and when does repayment start?
Pre-EMI is when you pay only the interest on your loan until the full loan amount is disbursed. Regular EMIs (principal + interest) start once the complete loan is disbursed.
Can I prepay my home loan?
Yes. You can pay partly or fully before tenure ends. Floating-rate loans usually have no charges, but fixed-rate loans may have a small penalty.
Do home loans offer tax benefits?
Yes. You can claim tax deductions on both principal (up to Rs. 1.5 lakh under Section 80C) and interest (up to Rs. 2 lakh under Section 24) every year.