Home Loans in India

In India, the prices of property have reached mountain hikes. Such enormous pricing of residential properties have made normal people struggle heavily while trying to buy. However, looking at the present scenario, several banks have come up with some suitable solutions to help these people. The option of availing home loans has come up from several banking organizations available in India. The advent of a large number of real estate agents has helped in making the availability of lands and properties flourish in a larger way. Most of the real estate agents and property dealers recommend the customers to undergo some appropriate home loan scheme in order to buy the much desired property. In most of the cases we have seen that these agents arrange for the loan schemes from some reliable banking organizations.

But what exactly is the concept of “Home Loans”?
Home loan is referred to that type of loan facility which allows you to buy land property and houses. As buying home requires investment of large amount of capital, therefore it becomes not always possible to pay such big amount at a time. One even may not be such financially stable to pay a big amount at a time. Therefore, these people approach the banking organizations to apply for loans. There may be a lot of different loan schemes available, but not all will be ideal for the purpose. The best ones for property and house purchasing are the home loan schemes available with most of the banks. The Home Loan scheme lets the customer avail a big sum of money (the cost price required to pay for the home) and then allows him / her to pay back at easy monthly installments for a fixed period of time. Although interest rate is levied on the loan amount, but still this option is much preferable due to the easy payback policy associated with them.

Home loan services are available from several private agencies as well nationalized as well private banking industries. The interest rates may vary from one company to another. Loan can be availed for buying of new house property or even renovation and modification of the existing house property. Banks, especially the nationalized ones are the most trusted ones to approach for home loan schemes. In the following paragraphs you will find some information regarding some of the resources which provides the cheapest loan policies related to home. The interest rates are the major area of concern and this is sorted out also according to different banks and organizations.

State Bank of India Home Loans:–

The SBI offers some attractive schemes and policies while speaking about home loans. The State Bank of India has been voted as the most efficient home loan providing organization available in the entire India. The reason behind the popularity of the SBI as the best loan provider is due to a number of reasons like no admission rates, small and marginal possessing fee, minimal rate of interest and no inclusion of penalty for delayed payment policies.

There are four products available under the SBI Home Loan Scheme: Easy, Advantage, & Premium.


Loan Amount Achievable (INR)

Base Rate (%)

Interest Rate (%)

Processing Fee (INR)


Thirty lacs or less



7,000 (for amount exceeding 20 lacs)
5,000 (for amount exceeding 10 lacs)
2,000 (for amount exceeding 5 lacs)
1,000 (for amount up to 5 lacs)


Up to Seventy-Five lacs but greater than Thirty lacs



8,000 (for amount exceeding 50 lacs)
7,000 (for amount up to 50 lacs)


Above Seventy-Five lacs


10.00 (up to Five Crore)
10.25 (above Five Crore)

20,000 (for amount exceeding 5 Crore)
10,000 (for amount exceeding 1 Crore)
8,000 (for amount exceeding 75 lacs)

ICICI Home Loans:-

The ICICI Bank Home Loan scheme is also quite attractive although the base rate is slightly on the higher side if compares to the SBI. The base rate is 8.75 %. The eligibility criteria for the residential Indians are as follows:

  • Should have completed an age limit of 21 years

  • Should be a salaried or a self-employed professional

  • The loan needs to be repaid before you reach an age limit of 65 years

For NRIs, the candidate needs to be a salaried professional.
The maximum amount that can be sanctioned for home loan will depend on several factors. The first is the income stature of the applied candidate. Then, the repayment capability will also be taken into consideration. The interest rate applicable is 14.50 % (FRR) & 16.50 % (PLR).

Central Bank of India Home Loan (Cent plus):-

The Cent Plus home loaning scheme from the Central bank of India offers a maximum loan amount of five lacs of rupees to its customers. The processing fee applicable is five hundred INR while the rate of interest is one percent higher than the normal house loan rates. The repayment procedure is a maximum of sixty months installment policy.

HDFC Home Loan:-

Being one of the most reputed private banking sectors in India, the HDFC Bank offers great home loan schemes for its customers and applicants.

The application for home loan can be done in both the ways: single or jointly.

A maximum total of eighty percent of the overall cost price of the property can be given from the bank as home loan.

Moreover, other adjoining conditions like repayment policies and annual income of the customer also is considered for the sanctioning of the loan amount. The maximum term of repayment is twenty years.

If the loan amount is within thirty lacs INR, then variable interest rate of 9.75 % will be levied upon the amount during the repayment policy. If the loan amount is greater than thirty lacs but less than or equal to 75 lacs INR, then the variable interest rate will be 10.00 %. Anything above 75 lacs INR will result in levying a variable rate of 10.25 %.