Home loans are provided in India by banks and housing finance companies with interest levels of 8.10% p.a. and above, with a period stretching to 30 years and up to 90% of the cost of the house as a loan. The choice of lender is significant, as many home loan schemes are available.
In this guide, a comprehensive comparison of home loans from the top 10 banks in India will list home loan interest rates, eligibility criteria, lending features, and unique benefits.
1. Top Banks for Home Loans in India (March 2025)
| Bank | Loan Amount (₹) | Interest Rate (% p.a.) | Max Tenure (Years) | Processing Fee |
| State Bank of India | Up to ₹10 Cr | 8.25 – 9.40 | 30 | 0.35% (Max ₹10K) |
| HDFC Bank | Up to ₹10 Cr | 8.70 onwards | 30 | Up to 0.50% |
| ICICI Bank | Up to ₹10 Cr | 8.75 onwards | 30 | 0.50% (Min ₹3K) |
| Axis Bank | Up to ₹5 Cr | 8.75 – 12.80 | 30 | Up to 1% |
| Kotak Mahindra Bank | Up to ₹10 Cr | 8.65 onwards | 30 | 0.50% (Min ₹5K) |
| PNB | Up to 90% of property | 8.15 – 10.00 | 30 | 0.35% (Min ₹2K) |
| Bank of Baroda | Up to ₹20 Cr | 8.15 – 10.40 | 30 | 0.50% (Max ₹25K) |
| Union Bank of India | Up to 90% of property | 8.10 – 10.65 | 30 | 0.50% (Min ₹5K) |
| IDFC First Bank | Up to ₹5 Cr | 8.85 onwards | 30 | Up to 1% |
| Federal Bank | Up to ₹15 Cr | 8.80 onwards | 30 | 0.50% (Min ₹3K) |
Note: Interest rates as of March 2025. Processing fees may vary.
2. Detailed Bank-Wise Analysis of Home Loans
A. SBI Home Loan
SBI is the largest home loan provider in India, offering special schemes for government employees, defense personnel, and NRIs.
| Feature | Details |
| Interest Rate | 8.25 – 9.40% p.a. |
| Loan Amount | Up to ₹10 Cr |
| Maximum Tenure | 30 Years |
| Processing Fee | 0.35% (Max ₹10K) |
| Special Schemes | NRI Home Loan, Shaurya Home Loan, Privilege Home Loan |
| Overdraft Facility | Available |
HDFC Bank provides tailor-made home loan solutions with special schemes for rural housing and self-employed individuals.
| Feature | Details |
| Interest Rate | 8.70% Onwards |
| Loan Amount | Upto ₹10 Cr |
| Maximum Tenure | 30 Years |
| Processing Fee | Upto 0.50% |
| Special Schemes | Rural Housing Loans, Home Renovation Loans |
| Top-up Loan Facility | Available |
C. ICICI Bank Home Loan
ICICI Bank offers fast-track approvals and digital processing, along with pre-approved balance transfer facilities.
| Feature | Details |
| Interest Rate | 8.75% Onwards |
| Loan Amount | Upto ₹10 Cr |
| Maximum Tenure | 30 Years |
| Processing Fee | Upto 0.50% (Min ₹3K) |
| Special Schemes | Express Home Loan, Insta Home Loan Overdraft |
| Balance Transfer Facility | Available |
D. Axis Bank Home Loan
Axis Bank provides affordable housing loans with EMI waivers and overdraft features.
| Feature | Details |
| Interest Rate | 8.75% – 12.80% |
| Loan Amount | Upto ₹5 Cr |
| Maximum Tenure | 30 Years |
| Processing Fee | Up to 1% |
| Special Schemes | Asha Home Loan, Fast Forward Home Loan |
| EMI Waiver Benefit | Available |
E. Kotak Mahindra Bank Home Loan
Kotak Mahindra Bank offers home loans with minimal documentation and special options for NRIs.
| Feature | Details |
| Interest Rate | 8.65% Onwards |
| Loan Amount | Upto ₹10 Cr |
| Maximum Tenure | 30 Years |
| Processing Fee | Up to 0.50% ( Min ₹5K) |
| Special Schemes | NRI Home Loan, Home Improvement Loan |
| Balance Transfer Facility | Available |
3. Key Features of Home Loans
| Feature | Description |
| Loan Tenure | Up to 30 years |
| LTV Ratio | Up to 90% of property cost |
| EMI Calculation | Based on loan amount, interest rate & tenure |
| Prepayment Charges | NIL for floating rate home loans |
| Overdraft Facility | Available in SBI, BOB, Axis, PNB |
| Special Benefits | EMI waivers, lower interest rates for women borrowers |
4. Best Bank for Home Loans Based on Different Needs
| Requirement | Best Bank | Reason |
| Lowest Interest Rate | Union Bank of India | Starting at 8.10% p.a. |
| High Loan Amount | Bank of Baroda | Loans up to ₹20 Cr |
| Fastest Processing | ICICI Bank | Digital approval & processing |
| Lowest Processing Fee | SBI & PNB | Starting from 0.35% |
| Best for Salaried | HDFC Bank | Special home loan schemes |
| Best for Self-Employed | IDFC First Bank | Loans without income proof |
| Best for Women Borrowers | Union Bank of India | 0.05% concession |
| Best for NRIs | Kotak Mahindra Bank | Special NRI schemes |
Factors to Consider While Applying for a Home Loan
- Total EMI Amount – EMIs consist of both principal and interest. Over time, the principal component increases while interest decreases.
- Loan Tenure – Choose a loan tenure that matches your financial stability and income flow. Longer tenure reduces EMI but increases interest costs.
- Interest Rate – The cost of borrowing depends on the principal amount and bank rates. Compare fixed and floating rates before applying.
- Down Payment – A higher down payment (10-20%) reduces the loan amount and total interest burden. Some banks offer 100% financing but at higher costs.
- Mortgage Insurance – Protects your family from loan repayment burden in case of an unforeseen event. Some banks make it mandatory.
- Additional Fees – Includes processing fees, administrative charges, and service fees. Clarify these costs with the lender to manage your budget effectively.
5. Conclusion: Choosing the Right Home Loan Provider
Choosing the best bank for a home loan depends on interest rates, tenure, loan amount, processing fees, and special benefits.
For lowest interest rates: Union Bank of India & PNB
For high-value loans: Bank of Baroda
For digital loan processing: ICICI Bank & Axis Bank
For first-time home buyers: HDFC Bank & SBI
Before applying, compare home loan rates using an online home loan calculator to estimate EMIs, interest costs, and affordability.
You can take help of Upniva, a reputed Fintech firm with multiple lenders at one stop.
What is the difference between fixed and floating rates?
Fixed Rate – Interest remains constant.
Floating Rate – Varies with RBI policy changes.
Can I prepay my home loan?
Yes, partial or full prepayment is allowed. Floating-rate loans usually have no penalty.
Are home loans eligible for tax benefits?
Yes, under Section 80C (₹1.5 lakh on principal) and Section 24 (₹2 lakh on interest).
Who can be a co-applicant?
Spouse, parents, or major children.
What is Pre-EMI?
Interest paid until full loan disbursement.
Can I switch from a fixed to a floating rate?
Yes, but a conversion fee applies.
When does loan repayment start?
After full disbursement. Pre-EMI applies on partial disbursal.
Can I take two home loans at once?
Yes, if eligible. Tax benefits differ for the second home.
Can I get 100% home loan financing?
No, lenders finance only a portion of the property value.
Does a personal loan affect home loan eligibility?
Yes, ongoing loans impact your eligibility.
Can I buy a house with two loans?
No, taking two loans for the same property is fraudulent.
How do joint home loans work?
Co-applicants share ownership and loan responsibility.