Home Loan Overview

Planning to invest in your dream home? Choose from the best home loan offers for easy financing. Whether you want to buy a home or construct it from scratch, you can get access to funds that can make it a reality.

Types of Home Loan Available in India

There are various home loan products that you can choose from based on your requirements:

Type of Loan  Details
Purchase of apartment  You can get a home loan for a residential apartment complex that is under construction or already ready to move in. 
Purchase of bungalow/independent house Get a home loan to purchase a ready-to-move-in or under construction bungalow or independent house. 
Purchase of land/plot  You can buy a vacant plot for construction. Some banks insist that you must begin constructing your property within one year of purchasing the land. 
Home renovation These loans are for the improvement or renovation of an existing house or apartment.  
Construction of house  You can avail of a loan for the construction of property if you have permission from the municipal corporation and an approved building plan. 
Balance transfer Transfer an existing home loan to another bank or NBFC that gives you better home loan eligibility criteria and interest rates. 

Features & Benefits of Home Loan

  • Capital appreciation
  • Sense of accomplishment
  • Tax benefits on interest and principal components
  • Zero prepayment charges
  • Home loan top up and balance transfer facility
  • Long repayment tenure of up to 30 years
  • High loan amount of up to 5 Crores (can be more in some cases)
  • Makes it easy to purchase a new or resale house/apartment/plot, house construction, or even renovation of an existing house.
  • Repayment holiday facility
  • Loan available as term loan and overdraft
  • Fixed, floating, and hybrid rates of interest available

Best Home Loan Providers in India 2024

Compare Lowest home loan interest rates, processing fees, and tenure of top banks in India, including HDFC, ICICI, SBI, and so on. The table provides instant home loan comparison to help you decide on the best home loan in India at lowest interest rate.

Top Banks Home Loan Interest Rate (per annum) Maximum Tenure Processing Fee
HDFC Bank 8.75% - 9.65% 30 years Up to 50% (maximum Rs. 4,500) + taxes. Flat Rs. 1,500 for women.
PNB Housing Finance 8.50% 30 years  1% + taxes
Kotak Mahindra Bank 8.75% 20 years 0.50% + GST & statutory dues
Larsen & Toubro Financial 8.65% to 8.75%  30 years Minimum 0.25% + taxes + Rs. 4,999 login fees 
Bajaj Finserv 8.50% - 15.00% 20 years  Up to 0.50% - 7.00%
Federal Bank 8.80% 30 years  0.50% (minimum Rs. 10,000 & maximum Rs. 45,000) 
SBI 8.50% - 10.05% 30 years Up to 0.50% + GST  
ICICI Bank 8.75% 30 years Up to 0.50% or maximum Rs. 1,500 (Rs. 2,000 for Mumbai, Delhi & Bangalore) + GST
Tata Capital Housing Finance 8.75% onwards 30 years 0.50% onwards + GST.
Bank of Baroda 8.40% - 10.60% 30 years Up to 0.50% (minimum Rs. 8,500 & maximum Rs. 25,000)
Aditya Birla Housing Finance 8.75% to 14.50% 30 years Up to 1% 
Fullerton India 9.50% - 10.50% 30 years  Up to 3% 
Ummeed Housing Finance 11.99% - 17.99% 15 years  Up to 3% 
Shriram Housing Finance 9.50% onwards 25 years  Up to 0.50% (maximum Rs. 5,000) + taxes 
DMI Housing Finance 11.00% - 15.50% 25 years   0.5% + GST 

Types of Home Loan

Some common types of home loans available in India are:

  • Home loan for purchase of a flat in an apartment complex: Banks finance their customers to buy flats in residential complexes. Here you have the concept of an Undivided Share (UDS) in the land.
  • Home loan for purchase of an individual house: This is similar to the type of Home Loan described above however there is no concept of ownership of UDS. The entire land belongs to the borrower. Naturally, such houses have a better resale value.
  • Home loan for purchase of land/plot: Banks finance their customers for the purchase of vacant plot or land for subsequent construction of house. Usually, banks stipulate that the construction of the house should begin within one year of purchase of land for the loan to be treated as a home loan.
  • Home loan for construction of a house on own land/land: You can avail a loan for constructing your house on your land. Banks have their methods of determining the cost of construction. Naturally, you need to obtain the requisite permission from the local municipal authorities for constructing your house on the land. You need to have an approved plan as well.
  • Home loan for home improvement/extension: You can approach a bank for financing home improvement or for extending the house. In the latter case, you need to have the requisite approvals and plans in place.
  • Home loan balance transfer: This facility allows you to switch over your Home Loan from one bank to the other. If you have a high-interest Home Loan, availing this facility can be useful. You could transfer your outstanding loan amount to another lender at low interest rate, thus saving on interest cost.

What is the Home Loan Application Procedure?

We have made the procedure of applying for a housing loan very simple.

  • Opt for the purpose of the loan. This entails making a choice between purchasing residential ready property, residential plot, residential plot + construction, residential under construction or home extension loan. Each of these loans has a separate procedure.
  • Choose your city of residence.
  • Choose your gender and proceed further.
  • Access the official website of Madhuparna Enterprises Private Limited.
  • Choose the city where you intend to purchase the property.
  • Enter the approximate market value of the property.
  • Choose your employment type.
  • Enter your annual income.
  • Enter the required loan amount.
  • Enter a few personal details.
  • Enter your email address and phone number.
  • Accept the conditions and proceed further.
  • We will send you an OTP to your mobile number.
  • Enter the OTP.

After completing the above process, you can zero in on the loan provider. Keep all your documentation along with the home loan application form ready and our team will contact you and assist you in the application process. This service comes at no cost to you!

The lender will verify all your documents. The next step is the valuation and legal scrutiny. Banks have their panel of evaluators and advocates to do this for them.

A personal discussion between the lender and the borrower is the next step on the agenda. The lender usually meets the borrower at their residence to get first-hand information about the borrower's income, property, investments, and also the source of funds to meet the margin requirements. This is a sort of a pre-sanction inspection carried out by the bank.

Once the verification and processing are over, banks provide you with a loan offer letter which contains the terms and conditions of the sanction. In case you choose to accept them, you need to sign one copy and deliver it to them followed by execution of the home loan documents. MMM plays a big role in this regard and our experts will assist you every step of the way.

Fees and Charges for Home Loan

You can now apply for a home loan online using a few simple steps:

  • Click on the ‘Loan Apply.
  • Fill in the necessary details and get all the latest home loan details.
  • Fill up the online submission form for a home loan that you are eligible for and upload the home loan document required.
  • Once the application has been received by the bank, you will get a sanction letter if it is approved.
  • The loan is disbursed into your account based on the terms in the sanction letter.

How to Apply for a Home Loan

You can now apply for a home loan online using a few simple steps:

  • Click on the ‘Loan Apply’ option.
  • Fill in the necessary details and get all the latest home loan details.
  • Fill up the online submission form for a home loan that you are eligible for and upload the home loan document required.
  • Once the application has been received by the bank, you will get a sanction letter if it is approved.
  • The loan is disbursed into your account based on the terms in the sanction letter.

Home Loan Eligibility

Various factors go into the determination of your Home Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons.

  • Your current income: Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months where their salary is credited. Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them.
  • Continuity of employment/business: Salaried employees can rely on their income tax returns, Form 16, Form 26AS, etc to display their continuity of employment. They can also show a statement of the Provident Fund account to establish the links. Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients.
  • Current obligations: It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Home Loan eligibility.
  • Credit history: The repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 600 and above is considered fair for determining HL eligibility.
  • Value of the property: The value of the property you purchase is important. The financing bank needs to determine the cost of the project it is going to finance. Banks usually finance up to 75% - 90% of the value of the property (also known as LTV or Loan to Value Ratio) with the balance being your contribution or margin as they call it.
  • Legal position: The prime security for any home loan is a mortgage of the land and building they have financed. You have to create the mortgage and register the same with the respective registering authorities. In order to do so, you must be legally empowered to create the mortgage. Hence, banks and financial institutions insist on a legal scrutiny report from their panel of advocates who carry out a search for the previous 30 years to establish the ownership chain.
  • Age of the borrower: The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 70 years.

Home Loan Documents Required

Every customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income.

Identity Proof

  • PAN Card
  • Aadhar Card
  • Voter ID
  • Driving Licence
  • Passport

Address Proof

  • Registered Rent agreement
  • Aadhar Card
  • Driving License
  • Lease agreement
  • Passport
  • Latest Gas or electricity bill

Other documents:

  • Loan application form duly filled in
  • Photographs
  • Signature Proof

Property documents:

  • Copies of all property documents that can establish the chain of ownership for the past 30 years.
  • Encumbrance certificate for 30 years
  • Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer).

Income Proof Documents:

  • Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16).
  • IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well).
  • Statement of A/c for the past 1 year where your salary is credited (in case of salaried people).
  • Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons.
  • Sales tax, GST registration certificates, if applicable.
  • Partnership deed in case of partnership firms (if the applicant is one of the partners).
  • Certificate of Incorporation in case of limited companies(if the applicant is one of the directors).

Documents Required from Non-Resident Indians (NRIs) Applicants

  • Employer identity card
  • Valid passport and visa (attested copy)
  • Address proof with the current overseas address
  • Copy of Continuous Discharge Certificate (CDC) for merchant navy employees.
  •  PIO card issued by Government of India (for PIOs)
  • Documents must be attested by FOs/Rep. Offices or Overseas Notary Public or Indian Embassy/Consulate or officials of Branch/Sourcing outfits based in India.
  • Home loan application - completed and duly filled
  • 3 passport size photographs
  • Identity proof (any one): PAN/ Passport/Driving License/Voter ID Card
  • Residence proof (any one): Recent copy of Utility Bills/Piped Gas Bill/Passport/Driving License/Aadhar Card.

Income Proof Documents for NRI

  • For Salaried
    • Valid work permit
    • Employment contract with an English translation (if it’s in another language) duly attested by employer/consulate/Indian foreign office/Embassy.
    • Last 3 months’ salary certificate or salary slips
    • Last 6 months’ bank statements showing salary credit
    • Latest salary certificate or salary slip in original
    • Last year’s Individual Tax Return (duly acknowledged copy) except for NRIs/PIOs located in Middle East countries & Merchant Navy employees.
  • For Self-employed
    • Business address proof
    • Income proof in case of self-employed professionals/businessmen.
    • Last 2 years’ balance sheet and P&L accounts (audited/C.A. certified).
    • Last 2 years’ Individual Tax Return except for NRIs/PIOs located in Middle East countries
    • Last 6 months’ bank statements of overseas account(s) in the name of individual as well as company/unit.