Major Home Loan providers in India

Banks Loan to Property Value Interest Rates Apply
State Bank of India (SBI) 75% -90% 9.50% - 9.55% Apply
HDFC Ltd 75% -80% 9.50% - 9.55% Apply
LIC Housing Finance 75% -80% 9.60% Apply
Axis Bank Home Loan 75% - 85% 9.50% - 9.65% Apply
ICICI Bank Home Loan Upto 85% 9.50% - 9.80% Apply
Fedbank Home Loan Upto 85% 10.35% - 10.70% Apply
PNB Housing Finance 75% - 80% 9.60% Apply
IDBI Home Loan 75% - 90% 9.75% Apply
DHFL Home Loan 80% - 85% 9.55%(upto 25lacs),then 9.65% Apply
Kotak Home Loan up to 80% 10.25% Apply
Oriental Bank of Commerece - 9.70% - 10.20% Apply
Corporation Bank - 9.65% - 9.90% Apply
Indiabulls Home Loan - 9.50% to 11.25% Apply
India Infoline - 9.55% Onwards Apply
L & T Home Loans - 9.90% - 10.75% Apply
Reliance Capital - - Apply
Tata Capital - 9.60% for salaried, 9.80% for self-employed Apply

Home Loan – Let us explain how this will go about and what the steps are for the same:
The first step involves the process of finding your property, followed by the verification of property documents. Post examination and checking eligibility criteria, one can simultaneously start searching for the lender who can offer the BEST Home Loan Deal.

Know the Home Loan Eligibility: Banks offer loan amount on the basis of your income and property value. EMI, calculated on the basis of income and property value, will be up to 50-60% of your monthly pay.

Select the Best Home Loan after evaluation: While home loan interest rates comparison is the primary feature in the home loan selection, one shouldn’t neglect other fees & charges like application fees, processing fees, legal charges. To check interest rates & other charges incurred by various banks, has brought in a Home Loan Comparison Chart of various banks. Banks offer Fixed and Floating rates on Home loans.

Majority customers prefer floating rates

Applying for the Loan: After selecting your lender, you will have to fill the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.

Documentation & Verification Process: You are required to submit the necessary documents to the bank which will be verified together with the application details.

Credit & default check: . The amount of loan to be provided is confirmed by the Bank after checking the checks out the borrower’s loan eligibility (by calculating the repayment capacity). The repayment capacity is based on the income, salary, age, experience & nature of business etc. of the borrower. CIBIL score, giving the credit history of the borrower, plays a critical role in deciding & approving the loan application. Low credit score implies that the bank upfront rejects your application on the basis of earlier credit defaults; while a high credit score gives a green signal to your application.

Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower, bank decides the final amount & sanctions the loan. Further, the bank sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.

Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after agreeing with the terms & conditions in the offer letter.

Bank checks the legal documents: The bank, further requests for the legal documents of property from the borrower to verify its authenticity as well as to keep the same as a security for the loan amount given.
The next step involves the valuation of the property by the bank that determines the loan amount to be sanctioned by the bank.

Signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.

Documents required for a Home Loan

Generally, the documents required to processing your loan application are almost similar across all the banks; however the same may differ with various banks depending upon specific requirements. Following documents are required by financial institutions to process the loan application:

  • Income
  • Age Proof
  • Address Proof
  • Income Proof of the applicant & co-applicant
  • Last 6 months bank A/C statement
  • Passport size photograph of the applicant & co-applicant
In case of Salaried Individual In case of Self-employed Individual
Employment certificate from the employer, Copy of audited financial statements for the last 2 years
Copies of pay slips for last few months and TDS certificate Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company
Latest Form 16 issued by employer Bank statements Profit and loss account for the last few years Income tax assessment order