Best Home Loans in India
Compare home loan interest rates, processing fees, prepayment terms and tenure from HDFC, SBI, ICICI and LIC Housing Finance.
| Lender | Interest Rate | Processing Fee | Approval Time | Loan Amount | Eligibility | |
|---|---|---|---|---|---|---|
HDFC Home Loans home loan | 8.50% - 9.40% | Up to 0.50% | 3-7 days | Up to ₹10Cr | Salaried/SE, 21-65 yrs | |
SBI Home Loan home loan | 8.40% - 9.10% | 0.35% (max ₹10K) | 5-10 days | Up to ₹15Cr | Salaried/SE, 18-70 yrs | |
ICICI Home Loan home loan | 8.75% - 9.65% | Up to 1.00% | 3-7 days | Up to ₹10Cr | Salaried/SE | |
LIC Housing Finance home loan | 8.50% - 10.75% | Up to 0.50% | 7-10 days | Up to ₹15Cr | 21-65 yrs |
- Processing Fee
- Up to 0.50%
- Approval
- 3-7 days
- Amount
- Up to ₹10Cr
- Processing Fee
- 0.35% (max ₹10K)
- Approval
- 5-10 days
- Amount
- Up to ₹15Cr
- Processing Fee
- Up to 1.00%
- Approval
- 3-7 days
- Amount
- Up to ₹10Cr
Home loans in India — how the market works in 2026
Home loans are the largest secured retail loan category in India, with outstanding home loan book crossing ₹33 lakh crore as of 2025 per RBI sectoral deployment data. Borrowing rates today are dominated by the External Benchmark Lending Rate (EBLR) regime, under which every floating home loan must be linked to a transparent external benchmark — most lenders use the RBI repo rate plus a spread of 2.00%–2.75%.
That means when the RBI repo rate moves, your EMI moves within 3 months. Public-sector banks (SBI, Bank of Baroda, PNB, Canara) typically publish the lowest spreads. Private banks (HDFC, ICICI, Axis, Kotak) price slightly higher but lead on digital underwriting and balance-transfer offers. HFCs (LIC Housing, Bajaj Housing, Tata Capital) regulated by the National Housing Bank fill gaps in self-employed and tier-2 city lending.
EMI components & what you actually pay
Use a reducing-balance EMI formula: EMI = P × r × (1+r)^n / ((1+r)^n − 1), where r is the monthly rate (annual rate / 12 / 100) and n is the number of monthly instalments.
Floating vs fixed vs hybrid
Floating rate (recommended for most borrowers): Resets every 3 months with the repo rate. No prepayment penalty per RBI rules. Pricing typically 100–150 bps lower than fixed.
Fixed rate: Locked rate for the entire tenure or a sub-period. Higher pricing (9.75%–11%) and 2%–4% foreclosure charges. Worth it only if rates are at a clear cyclical bottom.
Hybrid (fixed-then-floating): Fixed for 2–5 years, then floats. Useful if you want EMI predictability while a young family settles, but most borrowers don't recover the upfront premium.
Tax benefits checklist (FY 2025-26)
- Section 24(b): Up to ₹2 lakh deduction on interest for self-occupied; full interest deductible on let-out (loss capped at ₹2 lakh per year, balance carried forward 8 years).
- Section 80C: Up to ₹1.5 lakh on principal + stamp duty + registration (shared with PPF, ELSS, EPF).
- Section 80EE / 80EEA: Additional ₹50K–₹1.5L for first-time buyers (eligibility windows apply).
- Available only under the old tax regime. New regime allows interest deduction on let-out property only.
Confirm current limits on the Income Tax Department portal.
Frequently asked questions
Calculate your home loan EMI
Try different tenures and rates side-by-side to find the sweet spot between EMI and total interest paid.