Best Bank For Home Loan In India 2021 | Credit Help India

11 Best Bank For Home Loan In India 2021

Before thinking of choosing the best bank for the home loan make sure some factors must be taken care of before applying for the loan. 

Below are some factors that customer Should Consider Before Choosing the Best Bank for Home Loan in India.

1. Interest Rate

Interest rate act as an important factor for a home loan. Due to this, even a slight difference of 0.5% in the interest rate on lakhs of rupees can make a huge difference.

2. Processing Fees

Your bank will charge a fixed amount or a percentage of the loan value as processing fees. The fee is just for processing your application and does not guarantee loan approval or rejection. In many banks, home loan processing fees are non-refundable.

3. Legal Fees

Some banks charge legal fees to verify the documents of the property.

4. Pre-closure Charges

Some banks ask that customer cannot pre-close their loan or that customer has to pay an additional amount in the form of charges to pre-close the loan.

5. Loan-To-Value (LTV) Ratio

LTV related the proportion of the property value that the bank is ready to finance. Bank may finance anywhere between 75% to 90% of the property value.

7. Insurance Cover

Customer can also buy an insurance cover for their home loan. It is not compulsory to buy as depend upon the customer.


ICICI Bank Home Loan

ICICI is famous for its easy documentation process, fast approvals and competitive interest rates. Customer can apply for loans for house purchase, house construction, home renovation as well as Top-up home loans. ICICI provides home loans for properties up to Rs.5 Crores and up to 30 years loan tenure.

The interest is charged on a monthly reducing balance. If the customer can make a part payment today, the interest out-go on their loan reduces starting from the 1st of next month.


Can make a non-working female partner as a co-borrower.

Fast processing of loans.

Door-step services are available free of cost.


EMI once increased cannot be decreased even if the customer has made enough part payments.

State Bank of India Home Loan

SBI has one of the most strict property verification criteria during the loan process. The bank offers loans for house purchase, house construction, home renovation as well as Top-up home loans.

SBI provides only floating-rate loans and SBI Maxgain loans. SBI home loan interest rates are available at the lower range as compared to other lenders. The interest is charged on a daily reducing balance.


Stringent assessment of property

Transparent charges

Calculation of interest on the daily-reducing balance


Slow approval process

HDFC Bank Home Loan

HDFC is known for the fast verification of property documents. Customer can have door-step services for consultation with an HDFC loan expert or they can easily apply online and upload the documents. HDFC home loan interest rates are competitive and customer can have loans for house purchase, plot purchase, house construction, home improvement, and home extension.


Very transparent charges

Multiple options to choose for loan repayment


HDFC charges up to Rs. 2,000 for re-appraisal of loan.

Axis Bank Home Loan

Customer can get a home loan for amounts as low as Rs.3 lakhs from Axis bank. The loan can be avail for the purchase of a constructed residences, construction of the property, and top-up loans. Axis bank offers to float and fixed interest rate home loans with a maximum tenure of up to 30 years.


Loans as small as Rs.3 lakhs

Both fixed and floating rate home loans


Charges for statement issue, repricing, document photocopy issue, document retrieval, interest certificate issue etc.

Union Bank of India Home Loan

Union Bank offers loans for the purchase of the old and new residential units, purchase of plot & construction, and renovation, but not Top-up loans.



Both fixed and floating rate home loans available

Low 6.8% starting home loan interest rate


Top-up loans are not available

Fixed-rate are for a maximum of 5 years

Indiabulls Housing Finance Home Loan

Indiabulls provides loans for home purchase, house construction, home extension, and home renovation. Indiabulls charges a 2% processing fee. Also, there are no other additional charges. The interest is calculated on a monthly reducing balance basis.

It offers a dual-rate loan called ‘Fixed and Floating Rate Loans’ in which the interest rate remains fixed for the initial 2 years of the loan. They are one of the preferred lenders for people who want to buy properties with incomplete documentation or an unclear path of inheritance.


Home loan product for people who lack time for the loan formalities and branch visits.

Funds 90% of the property value if it is less than 30 lakhs.


Slow processing of application and customer service not up to the mark.

Rs. 650 charges for database admin fee

LIC Housing Finance Home Loan

LIC Housing Finance offers loans for house purchase, house construction, repairs, plot purchase, home extension as well as renovation.

Top-up loans are also available under some terms and conditions. You can choose a fixed or a floating rate loan with a tenure of up to 30 years. The interest is calculated on a monthly reducing basis.


Lower fixed and floating interest rates.

No charges for prepayment.


Slow processing and approval

PNB Housing Finance Home Loan

PNB Housing Finance offers a wide range of home loan schemes such as Home Purchase Loans, Home Construction Loans, Home Extension Loans, Residential Plot Loan and Home Improvement Loans. PNB home loan does not provide top-up loans.


In case you take a loan for house construction, you can request for enhancement of the loan if the cost of construction escalates.


Slow processing of applications

Bank of Baroda Home Loan

Bank of Baroda provides loans at competitive interest rates. customer can available loans for house purchase, buy plot, construction, improvement, top-up and renovation. The customer can get a loan approved even before the customer finalizes the property.


Enjoy a free credit card and concession of 0.25% for car loans. Bank of Baroda also provides free accident insurance with every home loan.

You can avail of loans as low as Rs.2 lakhs.


Slow processing of applications.

Aditya Birla Capital Home Loan

Aditya Birla Capital provides loans facility for home purchase, plot & home construction, home construction, home extension, and home improvement but not top-up loans. They are re-known for the speedy processing of the loan application and lower interest rates.

The Aditya Birla provides doorstep services in case customer is unable to visit the branch.


Doorstep services and low-interest rates.


Rs. 1,000 charges for a pre-closure quote.

High 4% loan cancellation charges.

Tata Capital Home Loan

Tata Capital offers a wide range of all the housing needs such as the loan for a home, plot and ready to move in apartments. Moreover, customer can find loans for constructing a home, home extension even for house maintenance and repairs. Customer can opt for a home loan of Rs. 5 Lakhs to Rs. 5 Crores.

Customer can apply online by providing details and submitting a few documents like income proof. After verification, the customer can get a spot conditional approval online. 


Doorstep services and low-interest rates

Easy repayment through Flexi EMI option


Account maintenance charges

Branches only in few cities

Final Words

Now that we have all information about the best home loan providers and tips to select a bank. According to the loan requirement, repayment capacity and cash flow, customer should choose a home loan suitable for them. 

So, it’s important to select a lender who will finance the amount you need and has hassle-free easy loan approval and repayment options.


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