Home Loan
Get a home loan starting from 7.35% p.a. with flexible repayment tenures of up to 30 years. Compare interest rates, processing fees, and loan features offered by leading banks and housing finance companies to choose the most suitable option. Apply online with a simple process and secure the best home loan based on your eligibility and financial needs.
What is Home Loan?
| Home Loan Details | |
|---|---|
| Interest Rate | Starting from 7.35% p.a. at CreditEMI |
| Maximum Loan Amount | Depends on the credit profile of the applicant |
| Tenure | Up to 30 years |
| Processing Fees | Up to 2% of the loan amount |
A home loan is a secured loan offered by banks and housing finance companies to help you buy, construct, or renovate a residential property. The property acts as collateral until the loan is fully repaid. If the borrower defaults, the lender can take possession of the property and auction it to recover the dues.
Home Loan Interest Rates
Home loan interest rates vary for each applicant and are influenced by several factors, including credit score, monthly income, loan amount, loan-to-value (LTV) ratio, job stability, and the reputation of the employer. Borrowers with strong credit profiles and steady income usually receive lower interest rates.
Top Banks & HFCs Offering the Best Home Loan Rates
| Name of Lender | Loans of Up to Rs. 30 Lakh |
|---|---|
| Bank of India | 7.35% p.a. onwards |
| State Bank of India | 7.50% p.a. onwards |
| Punjab National Bank | 7.50% p.a. onwards |
| Canara Bank | 7.40% p.a. onwards |
| HDFC Bank | 7.90% p.a. onwards |
| Bajaj Housing Finance | 7.45% p.a. onwards |
| ICICI Bank | 8.75% p.a. onwards |
| Axis Bank | 8.30% p.a. onwards |
| Federal Bank | 8.75% p.a. onwards |
| Kotak Mahindra Bank | 7.99% p.a. onwards |
| IDFC FIRST Bank | 8.85% p.a. onwards |
| IDBI Bank | 7.55% p.a. onwards |
| RBL Bank | 8.20% p.a. onwards |
| Tata Capital Housing Finance | 7.75% p.a. onwards |
| PNB Housing Finance | 8.25% p.a. onwards |
| Sammaan Capital | 8.75% p.a. onwards |
| India Shelter Home Loan | 10.50% p.a. onwards |
| L&T Finance Limited | 8.70% p.a. onwards |
| Godrej Housing Finance | 7.75% p.a. onwards |
| Home First Finance | 8.00% p.a. onwards |
| Easy Home Finance | 11% p.a. onwards |
| Piramal Capital Housing Finance | 9.49% p.a. onwards |
| Shubham Housing Finance | 10.45% p.a. onwards |
| Punjab & Sind Bank | 7.55% p.a. onwards |
| Jio Housing Finance | 8.20% p.a. onwards |
| HDFC Sales Pvt Ltd | 7.90% p.a. onwards |
Note: Interest rates as of 6th November 2025
Why Choose CreditEMI?
Access to the Best Loan Offers
Compare and select from a wide range of personalized loan deals sourced from 30+ trusted banks and financial institutions. Get the most suitable option based on your income, credit score, and requirements.
Save More with Balance Transfer Options
Easily shift your existing loan to another lender offering lower interest rates. You can also opt for a top-up loan, giving you extra funds without additional paperwork.
Flexible Overdraft Loan Facility
Reduce your overall interest burden by using the overdraft loan feature, where you pay interest only on the amount you use. Park extra money anytime to lower your interest outgo.
Dedicated Customer Support
From application to final approval, get end-to-end assistance from CreditEMI expert support team, ensuring a smooth and transparent loan journey.
How to Apply for a Home Loan on CreditEMI – Step-by-Step Guide
Applying for a home loan through CreditEMI is quick, secure, and completely digital. Follow these easy steps to get the best loan offers:
Step 1: Enter Your Mobile Number
Start by providing your mobile number in the online application form to begin the process.
Step 2: Verify Using OTP
Submit the OTP sent to your mobile to complete the verification.
Step 3: Share Your Loan Requirements
Enter key details such as desired loan amount, property type, and repayment preference to help personalize the offers.
Step 4: Fill in Your Personal Information
Provide basic information like income, employment type, and existing financial obligations for accurate loan matches.
Step 5: Compare and Apply for the Best Offer
View tailored home loan options from multiple lenders and apply instantly for the one that suits you best.
Home Loan Processing Fees and Additional Charges
Home loan processing fees differ from one lender to another and may also vary depending on the applicant’s credit score, income, and overall financial profile. To understand what you might be charged during the loan application process, refer to the detailed table below.
| Particulars | Charges |
|---|---|
| Processing Fee | 1% – 2% of loan amount |
| Foreclosure/Prepayment Charges | For floating rate: Nil |
| For fixed rate: Around 2% – 4% on the principal outstanding | |
| Overdue Charges on EMI | 2% per month of the unpaid EMI |
| EMI Bounce Charges | Around Rs 400 |
| Legal Fee | As per Actuals |
Home Loan Eligibility Criteria
Home loan eligibility differs from one lender to another, but most banks and housing finance companies follow a similar set of guidelines. Below are the commonly accepted criteria for housing loan approval:
Nationality
Eligible applicants include Indian Residents, NRIs (Non-Resident Indians), and PIOs (Persons of Indian Origin).
Credit Score
A credit score of 730 or higher is generally preferred for faster approval and better interest rates.
Minimum Age Requirement
Applicants should be at least 18 years old. Some lenders may require a minimum age of 21 years at the time of applying.
Maximum Age at Loan Maturity
Most lenders allow loan repayment up to 70 years of age, while some may extend the upper limit to 75 years.
Work Experience (For Salaried Individuals)
A stable employment history with a minimum of 2 years of total work experience is usually required.
Business Stability (For Self-Employed Applicants)
Self-employed professionals and business owners should have at least 3 years of continuous business operations.
Minimum Income Requirement
Many lenders prefer a monthly income of ₹25,000 or more, but this can vary depending on the city and the lender.
Loan-to-Value (LTV) Ratio
Borrowers can get funding of up to 90% of the property’s value, depending on the loan amount and lender guidelines.
Note: In addition to the above parameters, your home loan eligibility also depends on the type of property, its condition, legal status, and the location where it is situated.
Documents Required for a Home Loan
When applying for a home loan, lenders ask for specific documents to verify your identity, address, income, employment stability, and repayment capacity. The exact list of documents may vary depending on the lender, your credit profile, the type of property, and the category of home loan you choose.
Below are the essential documents commonly required during a home loan application:
| Proof Type | Details |
|---|---|
| Proof of Identity | PAN Card, Passport, Aadhaar Card, Voter ID Card or Driving License |
| Proof of Residence | Bank Passbook, Voter ID Card, Ration Card, Passport, Utility Bills or LIC Policy Receipt |
| Proof of Income for Salaried | Form 16, Salary Slips, ITR of past 3 years, Investment Proofs (if any) |
| Proof of Income for Self-Employed | Business License Details, Proof of Business Address, ITR of last 3 years, Balance Sheet and Profit & Loss Account Statement of the Company/Firm |
| Property-related Documents | NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter and an approved copy of the building plan. |
| Other Documents | If any previous loan from other lenders, then loan a/c statement for the last 1 year. |
Different Types of Home Loans in India
Banks and housing finance companies (HFCs) provide a wide range of home loan products designed to meet the diverse needs of homebuyers. Each loan type caters to specific requirements—whether you’re purchasing a house, constructing one, renovating your existing property, or investing in a residential plot.
Below is a quick overview of the most commonly offered home loan categories in India.
| Home Loan Type | Details |
|---|---|
| Home Purchase Loan | This loan is offered to buy ready-to-move-in, under-construction and resale properties, as well as residential plots to build a house within a set time frame. |
| Home Construction Loan | This home loan facility, also known as self-construction home loan, allows borrowers to construct their own house on plots already owned by them. |
| Plot Purchase Loan | This loan facility allows individuals to finance their plot purchases and then turn their dream home into reality within a pre-specified period. |
| Home Renovation | This loan facility allows borrowers to finance the expansion, renovation, improvement, structural changes or essential repairs of their existing homes. |
| Home Extension Loan | Existing homeowners can avail this loan facility to extend their property or add more space to it to meet the needs of their growing family. |
| Overdraft Facility | This home loan variant allows borrowers to reduce their interest cost by depositing surpluses in the Overdraft A/c and make withdrawals as per their needs. |
| Step Up/ Flexi Home Loan | This home loan facility allows borrowers to service just interest components during the predetermined pre-EMI period and repay regular EMIs thereafter. |
Dos and Don’ts to Get Your Home Loan Approved Faster
| Dos | Don’ts |
|---|---|
| Keep your credit score at 730 or above | Apply for home loan without checking your credit score |
| Limit your total EMI obligations within 50-60% of your net monthly income | Use emergency fund for making higher down payment |
| Compare home loan offers from various lenders | Apply with multiple lenders within a short span |
| Try making larger down payment to reduce LTV ratio | Forgo existing investments for making higher down payment |
| Add a co-applicant for higher loan eligibility | Plan EMI payments without considering the monthly contributions you need to make towards your crucial financial goals |
FAQs
How can I apply for a home loan?
You can apply for a home loan directly through banks or housing finance companies (HFCs). Most lenders now support a fully digital process, allowing you to apply via their websites, mobile apps, or net banking portals.
You can also use online financial marketplaces to compare offers from multiple lenders in one place based on your credit profile.
What is the current interest rate for home loans?
Home loan interest rates generally start from around 7.35% p.a.
Your final rate depends on several factors such as your credit score, income, loan amount, property type, and lender’s internal risk assessment.
Who is eligible to get a home loan?
Home loans are available to Resident Indians, NRIs, and PIOs.
Both salaried and self-employed individuals can apply, provided they meet the lender’s income and credit norms.
What property documents are required for a home loan?
The required documents may differ based on whether you’re buying a new home, a resale property, or constructing a house.
The lender will share a property-specific checklist covering documents like title deeds, builder agreement, NOC, approvals, and more.
How much home loan can I get with a ₹40,000 salary?
The loan amount depends on the lender’s EMI-to-income ratio and LTV limits.
To get an estimate, you can use online home loan eligibility calculators or compare offers across multiple lenders on financial marketplaces like CreditEMI.
Which bank is the best for a home loan?
The ideal lender offers:
The lowest interest rate
Reasonable processing fees
Flexible repayment terms
Fast approval and disbursement
You can compare all these factors easily on online loan marketplaces instead of visiting multiple lender websites individually.
What is the maximum home loan amount I can get?
Lenders use one or both of the following methods to decide loan eligibility:
Multiplier Method: Loan amount is usually up to 72× your monthly income or 6× your annual income.
EMI/NMI Ratio: Your total EMIs should be within 55–60% of your net monthly income.
Some lenders use a combination of both.
How do lenders check EMI affordability?
Lenders calculate whether your income can comfortably accommodate the new EMI along with existing EMIs.
In most cases, your total EMI outgo should not exceed 55–60% of your monthly income.
What home loan options are available for people with a low credit score?
Different lenders have different credit policies.
If your score is low, compare offers from multiple lenders online. Some may still offer loans but at higher interest rates or with stricter conditions.
What credit score is ideal for getting a home loan?
A credit score of 730 or above is generally preferred for faster approval and lower interest rates.
Some lenders may still approve loans for lower scores but at comparatively higher rates.
What will be the EMI for a ₹20 lakh home loan?
At an interest rate of 8.50% p.a. and a tenure of 20 years, the EMI for ₹20 lakh comes to ₹17,356.
You can calculate different EMI values using any online loan EMI calculator.
Who can be a co-applicant for a home loan?
Your spouse, parents, siblings, or adult children can co-sign the loan.
If a property has multiple owners, all co-owners must be co-applicants.
Are there prepayment charges on home loans?
Floating rate loans: No prepayment charges (as per RBI rules).
Fixed rate loans: Lenders may charge a penalty, usually 2–4%, depending on the terms.
What is a home loan balance transfer?
A balance transfer allows you to shift your existing loan to another lender offering lower interest rates or better terms.
It’s beneficial if your credit score has improved or if market rates have reduced.
Can I take two home loans at the same time?
Yes. If your income, credit profile, and property documents meet the lender’s requirements, you can take a second home loan.
How long does home loan approval take?
Typically 1–2 weeks, but the timeline may change based on your profile, documentation, and lender’s internal process.
Can I prepay my home loan?
Yes.
Floating rate loans: No charges
Fixed rate loans: Lenders may apply a prepayment fee
Can I claim tax benefits on home loans?
Yes.
Section 80C: Deduction on principal repayment
Section 24(b): Deduction on interest paid
These benefits apply subject to income tax rules.
Can I switch from fixed to floating interest rates?
Yes. Most lenders allow you to switch between fixed and floating rates by paying a small conversion fee.
What is the maximum loan amount under PMAY-G?
Under PMAY-Gramin, beneficiaries can avail a loan of up to ₹70,000.
What is a home loan foreclosure charge?
It is a penalty charged for closing the loan before the end of the tenure.
No foreclosure charges on floating rate loans (as per RBI)
Fixed-rate loans may carry a foreclosure fee unless paid from personal funds
Are there hidden charges in home loans?
Lenders must disclose all fees as per RBI’s Fair Practices Code.
Always check the lender’s schedule of charges for processing fees, legal fees, valuation charges, etc.
What is a Notice of Intimation (NOI)?
An NOI is a document submitted to notify government authorities about the purchase of a property or the availing of a home loan.
It helps prevent fraud, duplicate property registration, and multiple loans on the same property.
Can I get a top-up loan on my existing home loan?
Yes. If you have a good repayment record and a strong credit profile, lenders can offer a top-up loan for:
Home renovation
Home extension
New property purchase
Personal expenses (non-speculative)
Is home loan insurance mandatory?
Home loan insurance is not compulsory, but many lenders recommend it.
It helps protect your family by covering the loan in case of death, disability, or major damage to the property.