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. PNB Housing 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 | 8.75 – 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 |
B. HDFC Bank Home Loan
HDFC Bank provides tailor-made home loan solutions with special schemes for rural housing and self-employed individuals.
| Feature | Details |
| Interest Rate | 8.45% 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 |
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.
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.