What is home loan?
A home loan is a secured financial product that helps individuals purchase, construct, or renovate a residential property. In India, banks and NBFCs provide home loans at competitive interest rates, where the property itself acts as collateral until the loan is fully repaid. Home loans are one of the most popular financing options for turning the dream of owning a house into reality. Discover our diverse selection of products offering highly competitive Home Loan Interest Rates , extended repayment periods, and additional advantages such as EMI waivers.
Home Loan Interest Rates Comparison
| Bank Name | Interest Rate | Processing Fee | Loan Amount / Tenure |
|---|---|---|---|
| SBI Home Loan | 7.25% p.a. to 10.50% p.a. | 0.35% of the loan amount (Min Rs.3000 + GST to Max Rs.12,000 + GST) | Loan Amount: At bank's discretion. Tenure: Up to 30 years |
| HDFC Home Loans | 7.75% p.a. to 13.20% p.a. | Up to 0.50% of loan amount or minimum of Rs.4,000 + GST | Loan Amount: At bank's discretion. Tenure: Up to 30 years |
| Union Bank Home Loan | 7.15% p.a. (Floating) / 11.40% p.a. (Fixed) | 0.50% of the loan amount up to a maximum of Rs.15,000 + GST | Loan Amount: Contact the bank. Tenure: Up to 30 years |
| Punjab National Bank (PNB) | 7.20% p.a. onwards | 0.35% of the loan amount (Min Rs.2,500 to Max Rs.15,000) | Loan Amount: Up to Rs.100 lakhs. Tenure: Up to 30 years |
| PNB Housing Home Loan | Floating: 7.75% / Fixed: 14.75% | Contact the Bank | Loan Amount: Up to 90% of property value. Tenure: Up to 30 years |
| LIC HFL Home Loan | 7.15% p.a. onwards | 0.25% of loan amount (Max Rs.15,000 + taxes) | Loan Amount: At bank's discretion. Tenure: Up to 30 years |
| Axis Bank Home Loan | 8.00% p.a. (Floating) / 14.00% p.a. (Fixed) | Up to 1% of loan amount or Rs.10,000 (Higher) + GST | Loan Amount: Rs.3 lakhs to Rs.10 crores. Tenure: Up to 30 years |
| Aditya Birla Capital | Contact the bank | Contact the NBFC | Loan Amount: Rs.15 lakh onwards |
| Karnataka Bank Home Loan | 7.30% p.a. (Floating) | 0.25% of loan amount (Nil for KBL Xpress below 75L) | Loan Amount: Up to Rs.5Crs. Tenure: 1-30 Years |
| IDFC Home Loan | 8.85% p.a. | Up to 3% of the loan amount | Loan Amount: As per property value. Tenure: Up to 30 years |
| Bank Of Baroda | 7.20% p.a. (Floating) / 8.90% p.a. (Fixed) | Minimum Rs.8,500 - Maximum Rs.25,000 | Loan Amount: Rs.1 lakh to Rs.10 crores. Tenure: Up to 30 years |
| Canara Bank Home Loan | 7.15% p.a. | 0.50% (Min Rs.1500 to Max Rs.10,000 + GST) | Loan Amount: No upper limit. Tenure: Contact the Bank |
| Kotak Mahindra Bank | 7.70% p.a. (Floating) / 12.00% p.a. (Fixed) | Up to 2% of the loan amount + GST | Loan Amount: Up to Rs.40 crores. Tenure: Up to 25 years |
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Features and Benefits of Home Loan in India
Early Home Ownership
A home loan allows you to buy your dream house without waiting to save the entire amount. You can own a property now while continuing to manage your other financial goals.
Better Financial Planning
Instead of using all your savings at once, a housing loan lets you pay in manageable EMIs. This helps maintain liquidity and ensures better financial planning.
Long Repayment Tenure
Home loans come with flexible repayment tenures of up to 30 years, making EMIs more affordable and easier to manage over time.
Lower Interest Rates
Compared to personal loans, home loans in India offer lower interest rates. Some lenders also provide special benefits and reduced rates for women borrowers.
Tax Benefits
Home loan borrowers can avail tax deductions on principal repayment under Section 80C and on interest under Section 24(b), as per applicable tax laws.
Minimal or No Prepayment Charges
Most lenders do not charge prepayment or foreclosure fees on floating rate home loans, allowing you to repay your loan early without extra cost.
Types of Home Loans in India
Home loans in India are designed to meet different financial needs, whether you are buying a new property, refinancing an existing loan, or upgrading your home.
Home Loan for Property Purchase
A home loan for property purchase helps you buy a new house, whether it is under construction or ready to move in. You can avail a high loan amount with flexible repayment options, making it easier to own your dream home.
Home Loan Balance Transfer
A home loan balance transfer allows you to transfer your existing home loan to another lender at a lower interest rate. This helps reduce your EMI burden and overall interest cost. You may also be eligible for a top-up loan for home renovation or other financial needs.
Home Construction Loan
This type of loan is ideal for individuals who want to construct a house on their own land. Funds are disbursed in stages based on construction progress, ensuring you only pay for what you build.
Home Renovation Loan
A home renovation loan helps you upgrade, repair, or remodel your existing property. It covers expenses like painting, flooring, and structural improvements to increase your home's value.
Money King Home Loan Interest Rates
Our home loan interest rates are linked to market benchmarks and may change depending on RBI policies and lender guidelines. Borrowers with a higher CIBIL score (750+) can benefit from lower interest rates. We provide expert assistance to help you compare lenders across India.
Charges Related to Home Loan
The fees and charges related to home loan are mentioned in the table below:
Lenders charge a processing fee for evaluating your home loan application. This is usually a small percentage of the loan amount and may vary from lender to lender.
Some lenders may charge fees if you repay your loan before the tenure ends. However, most floating rate home loans come with zero or minimal prepayment charges.
If you miss your EMI due date, a penalty is charged on the overdue amount. Timely payments help you avoid extra costs and maintain a good credit score.
These charges cover property verification, legal checks, and technical evaluation conducted by the lender before approving the loan.
A nominal fee may be charged for preparing and processing loan-related documents.
If you choose to switch from a higher interest rate to a lower rate within the same lender, a conversion fee may be applicable.
Eligibility Criteria of a Home Loan
The eligibility criteria that must be fulfilled by the home loan applicant:
Age criteria
18–21 years (min) to 70–75 years (max) at loan maturity.
Income requirement
Salaried: ₹25,000/mo. Self-employed: ₹30,000/mo (approx).
Credit score
730 or above is preferred for better interest rates.
Employment type
Eligible for both salaried and self-employed individuals.
Existing EMIs
Lenders prefer a DTI ratio below 50–55%.
Property documents
Proper documentation ensures faster approval.
Eligible applicants
Indian residents, NRIs, and PIOs are eligible.
Loan amount
Up to 90% of the property value can be sanctioned.
Documents Required for a Home Loan
The documents need to be submitted to apply for a home loan are mentioned below:
| Document Category | List of Documents |
|---|---|
| Identity proof | Aadhaar card, passport, PAN card, voter ID, or driving licence. |
| Address proof | Bank passbook, voter ID, ration card, utility bills, passport, or LIC receipt. |
| Income proof (salaried) | Salary slips, Form 16, and ITR (Income Tax Return) of the last three years. |
| Income proof (self-employed) | Business details, address proof, ITR (last three years), and financial statements. |
| Property documents | Sale deed, approved building plan, allotment letter, NOC (No Objection Certificate), and construction cost estimate. |
| Other documents | Previous loan statements (last one year), if applicable. |
Main Reasons for Home Loan Rejection in India
Understanding common reasons for home loan rejection helps you improve eligibility and increase your chances of approval. At Money King Financial, we guide you to avoid these mistakes and secure your loan faster.
Low Credit Score
Lenders prefer a score of 700+. A low score reflects poor credit history and increases risk perception.
Repayment Capacity
If your existing EMIs exceed 50% of your take-home pay, lenders worry about your ability to survive.
Property Legalities
Issues with titles, missing municipal approvals, or non-approved layouts lead to instant rejection.
Multiple Enquiries
Applying at 5 banks at once? It makes you look 'credit hungry' and negatively impacts your CIBIL.
Employment Stability
Frequent job changes or working in 'blacklisted' industries can make banks hesitant to lend.
Home Loan Rejection: The Ultimate Do's & Don'ts
| Do's | Don'ts |
|---|---|
| Ensure that you have researched on the loan you want to apply for | Do not blindly sign the documents before you read every term and condition on it |
| Read the fine print before taking the loan | Do not forget to compare interest rates offered by different loan providers |
| Look out for any charges applicable on prepayments and foreclosure | Do not default on your monthly payments |
| Make sure you pay the equated monthly instalments (EMIs) on time | Do not apply for a loan just for the sake of it |
| Ensure that you have a good credit score before you apply | Do not sign the home loan agreement before reading the clauses |
| Apply for a loan amount you are eligible for | Do not request for a change in tenure unless you have considered all the aspects |
| Submit all the necessary documents | Do not submit an incomplete or mismatched loan application |
| Ensure that you have stable employment | Do not have too many ongoing loans |
Do: Ensure that you have researched on the loan you want to apply for
Don't: Do not blindly sign the documents before you read every term and condition on it
Do: Read the fine print before taking the loan
Don't: Do not forget to compare interest rates offered by different loan providers
Do: Look out for any charges applicable on prepayments and foreclosure
Don't: Do not default on your monthly payments
Do: Make sure you pay the equated monthly instalments (EMIs) on time
Don't: Do not apply for a loan just for the sake of it
Do: Ensure that you have a good credit score before you apply
Don't: Do not sign the home loan agreement before reading the clauses
Do: Apply for a loan amount you are eligible for
Don't: Do not request for a change in tenure unless you have considered all the aspects
Do: Submit all the necessary documents
Don't: Do not submit an incomplete or mismatched loan application
Do: Ensure that you have stable employment
Don't: Do not have too many ongoing loans
Tips to Improve Chances of Availing a Home Loan
Some of the tips that can be followed to improve the chances of availing a home loan are mentioned below:
Credit Score
Pay bills on time, avoid defaults, and keep credit utilization low.
Increase Income
Higher income boosts repayment capacity and loan eligibility.
Debt-to-Income
Reduce your DTI ratio by clearing credit cards and other liabilities.
Higher Down Payment
More down payment reduces loan amount and lender's risk.
Longer Tenure
Lower EMIs improve eligibility, though total interest will be higher.
Lower LTV Ratio
Borrow a smaller percentage of property value to improve chances.
Employment History
Lenders prefer applicants with a steady job or business history.
Repay Existing Loans
Paying off current loans lowers DTI and enhances eligibility.
EMI to Income Ratio
Keep total EMIs below 50–55% of your take-home income.
Avoid Multiple Enquiries
Don't apply at many places at once to protect your CIBIL score.
Property Legal Status
Choose a property with a clear title and all municipal approvals.
Strong Documentation
Provide clear salary slips, ITR, and financial statements.
Home Loan FAQs
A home loan is a secured loan offered by banks and NBFCs to help individuals purchase, construct, or renovate residential property. At Money King Financial, you can apply for a home loan in India for ready-to-move, under-construction, or resale properties with competitive interest rates and flexible repayment options.
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