Turn your dream of homeownership into reality with Buddy Loan’s easy and affordable home loan solutions. Compare home loan interest rates, low EMI options, and flexible repayment tenures of up to 30 years from trusted lenders. Whether you’re buying a new house, constructing a home, or refinancing an existing loan, find the best housing loan tailored to your financial needs. Enjoy hassle-free online application, quick approvals, and competitive interest rates starting from 11.99% p.a. Apply for a home loan online today!
List of Top Banks For Home Loans
Explore our list of top banks and NBFCs to find the best home loan interest rate and select your desired loan amount.
| SL.No. | Banks For Housing Loan | Interest Rate (p.a.) |
|---|---|---|
| 1. | State Bank of India | 9.15% p.a. onwards |
| 2. | HDFC Ltd. | 8.50% p.a. onwards |
| 3. | ICICI Bank | 9.00% p.a. onwards |
| 4. | Bank of Baroda | 9.15% p.a. onwards |
| 5. | Union Bank of India | 9.00% p.a. onwards |
| 6. | Axis Bank | 8.75% p.a. onwards |
| 9. | Federal Bank | 10.15% p.a. onwards |
| 11. | IDFC First Bank | 8.85% p.a. onwards |
Note- The interest rates mentioned are subject to change. Do visit the website for more information
List of Top NBFCs & HFCs For Home Loans
Compare to choose your housing loan from the below list of top NBFCs & HFCs and choose among the best interest rates.
| SL.No. | Top NBFCs | Interest Rate (p.a.) |
|---|---|---|
| 1. | Muthoot Finance | 14% onwards |
| 2. | Tata Capital | 10.99% onwards |
| 3. | Bajaj Finserv | 11% onwards |
| 12. | PNB Housing Finance | 8.75% p.a. onwards |
| 14. | L&T Housing Finance | 8.60% p.a. onwards |
| 8. | LIC Housing Finance | 8.60% p.a. onwards |
| 4. | StashFin | 11.99% onwards |
| 5. | Faircent | 9.99% onwards |
| 6. | Kreditbee | Up to 29.95% |
| 8. | Money Tap | 13% onwards |
| 9. | Dhani Loans | 13.99% onwards |
| 10. | Money View | 15.96% |
| 11. | Pay Sense | 16.80%-27.60% |
| 12. | Early Salary | 18% onwards |
| 13. | Home Credit | 24% onwards |
| 14. | CASHe | 30% onwards |
| 15. | HDB Financial Services | Up to 36% |
Note- The interest rates mentioned are subject to change. Do visit the website for more information.
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Home Loan EMI Calculator
A EMI calculator is a useful tool that helps you calculate the monthly payments for your housing loan. By considering factors such as the loan amount, interest rate, and loan tenure, this calculator provides an estimate of your EMI.
Using a housing loan EMI calculator is simple. Just input details such as the loan amount, loan period, interest rate, and processing fee, and the calculator will compute your monthly EMI.
Home Loan Processing Fees & Charges of Top Banks
Here is the list of housing loan processing fees of top banks.
| Loan Details | Charges |
|---|---|
| Processing Fee | A fee of 1% to 2% will be charged based on the loan amount. |
| Foreclosure/Prepayment Charges | For floating rate: No charges apply.
For fixed rate: 2% to 4% of the outstanding principal. |
| EMI Bounce Charges | Around Rs 400 |
| Overdue Charges on EMI | Late payment charges are 2% per month of the unpaid EMI amount. |
| Legal Fee | Actual legal fees will apply. |
Home Loan Eligibility Criteria
Housing loan eligibility differs across lenders and loan schemes. Hence, here is a general set of criteria that must be met in order to be eligible for a housing loan.
| Particulars | Eligibility Criteria |
|---|---|
| Nationality | Indian Residents
Non-Resident Indians (NRIs) Persons of Indian Origin (PIOs) |
| Age | 18 years to 70 years |
| Employment | Salaried with at least 2 years work experience.
Self-Employed with at least 3 years of business continuity |
| Credit Score | Minimum 750 and above |
| Minimum Monthly Income | ₹25,000 per month |
| Type of Residence | Permanent residence
Rented residence (must have been residing in the consent place for at least a year) |
Documents Needed to Apply for Home Loan
To apply for a housing loan, you need to provide some basic documents as proof of your identity and income. Here’s a list of documents required for a housing loan.
Identity Proof (any one)
Driving License/PAN/Voter ID/Valid Passport
Residence Proof (any one)
- Copy of Electricity Bill/Water Bill/Telephone Bill
- Copy of valid Passport/Aadhaar Card/Driving License
Other Documents
- Employer Identity Card
- Duly filled loan application form affixed with 3 passport size photographs
- Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions
- Bank account statements for all the bank accounts owned by the applicant for the last six months
Income Proof Documents
For Self-employed Applicant/Co-applicant
- Income Tax Returns for the last 3 years
- Certificate of Qualification (for Doctors/CA and other professionals)
- Balance Sheet audited by a certified CA and Profit and Loss account for the previous 3 years
- Business License Details
- Business address proof
- TDS Certificate
For Salaried Applicant/Co-applicant
- Salary Slips for the last three months
- Copy of Form 16 or Income Tax Returns for the last two years
Home Loan Features & Benefits
Meet your financial needs with the easiest finance solution and cover all your expenses with Housing Loan.
- Affordable Repayment Options: Get flexible repayment plans.
- Long Repayment Tenure: Extended loan terms help lower EMI.
- Tax Benefits: Get tax deduction on your housing loan.
- Asset Creation: Builds equity and creat a valuable asset.
- Investment Potential: Real estate can lead to long-term financial gains.
- Minimal Documentaion: Faster Documentaion process for existing customers.
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Types of Housing Loans
A housing loan is a sum of money borrowed from banks and Housing Finance companies to own a house. To meet your meet you varied housing loans or plot loan needs, it is important to have knowledge about the different types of housing loans available.
You can select your desired type of housing loan mentioned according to your preference.
- Home Purchase Loan: Home Purchase loans are loans that can be availed by individuals who want to purchase a piece of land. These loans can be used for construction purposes or as an investment. The maximum loan amount offered by banks is 90% of the present market value of the land, while NBFCs offer 80%.
- Home Renovation Loans: Home renovation loans are for you! if you want to renovate, repair or refurnish your homes. These loans are very popular due to their low-interest rates. They can help cover the cost like major repairs and upgrades to the property, and improve the value of the house.
- Plot Loans: Plot loans are taken to buy residential properties like flats, row houses, and bungalows. Banks offer a maximum loan amount of 90% of the present market value of the property, while NBFCs offer 80%.
- Home Construction Loans: Home construction loans can be availed by individuals who own land and want to construct a new house. The loan can also be used to complete the construction of an unfinished house.
- Home Extension Loans: You can avail of a home extension loan if you want to add more space to your home. This loan can assist to fulfill your desire of adding a room or extending the property.
- NRI Housing Loans: Non – Resident Indians for the construction of a house or the renovation of an old property. These loans can provide maximum tenure of up to 30 years, and the interest rate can be fixed or floating.
- Balance Transfer: Housing loan balance transfer is a process where an individual transfers an existing home loan from one lender to another to get a lower interest rate. This loan also provides the option of availing a top-up facility from the new lender.
- Bridge Loan: Bridge loans are availed by people who want to buy another property by selling off their existing one. These loans help meet short-term fund requirements like a down payment for the new house until the old property is sold off. Bridge loans are generally offered at higher interest rates with a maximum repayment tenure of up to 2 years.
Home Loan Tax Benefits
A housing loan is a great way to purchase a property. Not only does it help you to own a home but it also offers various tax-saving options. Let’s take a look at some of the popular tax-saving schemes that are available with a housing loan:
| Tax Saving On | IT Act Section | Description |
|---|---|---|
| Interest Paid | Section 24(b) | Deduction on the interest paid on a housing loan. This deduction can be claimed for the interest paid on the loan taken for the purpose of purchase, construction, renovation, or repair of a residential property. |
| Principal Paid | Section 80C | Deduction on the repayment of the principal amount of a housing loan. This deduction can be claimed for the amount repaid towards the principal of a housing loan during a financial year. |
| First-Time Homebuyer Benefit | Section 80EE | Additional deduction for first-time homebuyers. This deduction is available to first-time homebuyers who have taken a loan on or after April 1, 2013. The deduction is over and above the deduction of Rs 2 lakh under Section 24(b) and Rs 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs 50,000. |
| Affordable Housing Benefit | Section 80EEA | Additional deduction for affordable housing projects. This deduction is available to individuals who have taken a loan for affordable housing on or after April 1, 2019. The deduction is over and above the deduction of Rs 2 lakh under Section 24(b) and Rs 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs 1.5 lakh. |
| Joint Housing Loan Benefit | Section 26U | Deduction is available for co-owners of a property with a joint housing loan. This deduction is available to co-owners who have jointly taken a housing loan. Each co-owner can claim a deduction for the interest paid on the housing loan in proportion to their share of ownership in the property. |
| Pre-construction Interest | Section 24(b) | Deduction on pre-construction interest paid in five equal annual installments. This deduction is available on the interest paid during the pre-construction period of a property. The deduction is available in five equal installments starting from the year in which the construction of the property is completed. |
Tips Before Applying for a Housing Loan
Here are some tips to consider before applying for a housing loan:
- Check your credit score: Before applying for a housing loan, it is important to check your credit score.
- Research and compare: It is essential to research and compare different lenders and their interest rates and loan terms.
- Assess your affordability: You should have a clear understanding of your affordability and budget for the EMI payments.
- Save for a down payment: It is advisable to save for a down payment before applying for a housing loan.
- Calculate additional expenses: Apart from the loan amount and EMI, there may be additional expenses such as processing fees, legal fees, and stamp duty charges.
- Avoid multiple applications: It is not advisable to apply for a housing loan with multiple lenders simultaneously.
- Read the loan agreement carefully: Before signing the loan agreement, read it carefully and understand all the terms and conditions.
Do’s and Don’ts of Getting a Housing Loan
To increase your chances of housing loan approval and enhance your eligibility for a preapproved loan, it is important to follow certain guidelines. Here are some essential do’s and don’ts to improve your chances of getting a housing loan:
| Do’s | Don’ts |
|---|---|
| Maintain a good credit score | Avoid the delay of loan payments |
| Save for a down payment | Avoid applying for multiple loans simultaneously |
| Maintain a stable employment history | Avoid switching jobs frequently |
| Reduce existing debt | Avoid taking additional debt |
| Organize required financial documents | Do not provide false information |
Steps to Apply for a Home Loan
Here’s the step-by-step process that you can follow to apply for a housing loan on Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the Loan Application Page. Provide the mobile number and enter the received OTP.
- Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
- Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
- Step 5: Enter your work details (Including company name, years of service and Designation)
- Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
- Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.
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Tips to Avoid Home Loan Application Rejection
If your home loan application gets rejected, it can be disheartening. However, there are steps you can take to address the situation and increase your chances of future approval. Here are some important actions to consider:
- Check Your Credit Score: Obtain a free CIBIL score or credit report to understand your creditworthiness and identify any issues that may have led to the rejection.
- Work on Credit Improvement: If your credit score is low, focus on improving it by paying bills and existing debts on time, reducing outstanding balances, and avoiding new credit inquiries.
- Reassess Your Financial Situation: Evaluate your financial standing and consider whether it’s necessary to enhance your income or decrease your existing debts.
- Address Documentation Requirements: Review the home loan documents list provided by the lender and ensure that you have submitted all the necessary documents accurately.
- Seek Professional Guidance: Consult with a reputable mortgage broker or financial advisor who can provide insights and guidance on improving your loan eligibility.
- Consider getting a Joint Home Loan: Opting for a joint home loan can increase your chances of loan approval. By including a co-applicant with a stable income, you can combine your earnings and improve overall loan eligibility.
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Home Loan Balance Transfer
A hosuing loan balance transfer, refers to the process of transferring an existing housing loan from one lender to another. This option allows borrowers to switch their loans to a new lender offering better terms and benefits. Here are some important points to consider regarding housing loan balance transfer:
Benefits of Housing Loan Balance Transfer:
- Lower Interest Rates: One of the primary reasons borrowers opt for a housing loan balance transfer is to secure a lower interest rate. By switching to a new lender with a more competitive rate, borrowers can save significantly on their monthly payments and overall interest costs.
- Improved Loan Terms: Transferring a housing loan provides an opportunity to negotiate for improved loan terms such as reduced EMIs, longer repayment tenure, or additional features like a top-up loan facility.
- Enhanced Savings: Lower interest rates and improved loan terms result in enhanced savings over the loan tenure, allowing borrowers to better manage their finances.
Home Loan Repayment
The Housing Loan Repayment, involves fulfilling your financial obligation towards the loan. There are different options available for borrowers, including pre-payment and part-payment.
Pre-payment allows borrowers to make an early repayment of a lump sum amount, reducing the loan principal and the interest burden.
Part-payment involves making partial repayments towards the principal amount, helping to lower the oerall interest paid and shorten the loan tenure.
Calculating housing loan repayments can be done using online calculators or by consulting with your lender. These repayment options provide flexibility and can help borrowers save on interest costs while expediting the loan repayment process.
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