Home Loans in Bangalore
- Shivafinz
- December 28, 2023
- 6:38 pm
Getting the right consultants for taking Home loans in Bangalore is not an easy task. So Shivafinz is here to assist you. Whether you’re looking for a new home, planning to build one, or renovating an existing property, Bangalore’s home loan options offer affordable interest rates and flexible repayment plans.
The city’s real estate market provides various choices for prospective homebuyers and securing a home loan makes it easier to achieve the dream of owning a house.
Lender | Up to Rs. 30 Lakh | Above Rs. 30 Lakh to Rs. 75 Lakh | Above Rs. 75 Lakh |
State Bank of India (SBI) | 8.40% – 10.15% p.a. | 8.40% – 10.05% p.a. | 8.40% – 10.05% p.a. |
HDFC Bank Limited | 8.35% p.a. onwards | 8.35% p.a. onwards | 8.35% p.a. onwards |
LIC Housing Finance | 8.40% – 10.35% p.a. | 8.40% – 10.55% p.a. | 8.40% – 10.75% p.a. |
ICICI Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
Kotak Mahindra Bank | 8.70% p.a. onwards | 8.70% p.a. onwards | 8.70% p.a. onwards |
PNB Housing Finance | 8.50% – 14.50% p.a. | 8.50% – 14.50% p.a. | 8.50% – 11.45% p.a. |
Punjab National Bank | 8.45% – 10.25% p.a. | 8.40% – 10.15% p.a. | 8.40% – 10.15% p.a. |
Bank of Baroda | 8.40% – 10.65% p.a. | 8.40% – 10.65% p.a. | 8.40% – 10.90% p.a. |
Union Bank of India | 8.35% – 10.75% p.a. | 8.35% – 10.90% p.a. | 8.35% – 10.90% p.a. |
IDFC First Bank | 8.75% p.a. onwards | 8.75% p.a. onwards | 8.75% p.a. onwards |
L&T Finance Limited | 8.60% p.a. onwards | 8.60% p.a. onwards | 8.60% p.a. onwards |
Bajaj Housing Finance | 8.50% p.a. onwards | 8.50% p.a. onwards | 8.50% p.a. onwards |
Tata Capital Housing Finance | 8.70% p.a. onwards | 8.70% p.a. onwards | 8.70% p.a. onwards |
Federal Bank | 8.80% p.a. onwards | 8.80% p.a. onwards | 8.80% p.a. onwards |
Please note that these rates are as of the provided date and are subject to change. Always check with the respective banks for the most up-to-date information before making any decisions.
What are the Different Types of Home Loans Offered in Bengalore?
In Bengaluru, prospective homebuyers can explore a variety of home loan options tailored to meet diverse needs. The different types of home loans offered in Bengaluru include:
- Home Purchase Loans: This is the most common type, designed for buying a new or resale residential property. The loan amount is typically a percentage of the property’s market value, with repayment over an extended period.
- Land Purchase Loans: Intended for those looking to buy a plot or land for future construction. These loans can cover a significant portion of the land cost and are distinct from home purchase loans.
- Home Construction Loans: Specifically designed for individuals planning to construct a house on their existing plot of land. The loan amount is disbursed in stages based on the construction progress.
- Home Improvement Loans: Tailored for homeowners who wish to renovate or enhance their existing property. These loans cover various improvements, such as interior remodeling, structural changes, or even aesthetic upgrades.
- Home Extension Loans: Aimed at individuals who want to expand their current residence. This could involve adding extra rooms, floors, or any other form of extension.
- Balance Transfer Loans: Borrowers with existing home loans can opt for a balance transfer to another lender offering better interest rates. This can lead to reduced EMIs and potential cost savings.
- Top-Up Loans: Homeowners with an existing home loan can avail of additional funds for personal needs, such as education, medical expenses, or other financial requirements, without the need for separate collateral.
- Joint Home Loans: Ideal for those looking to share the financial responsibility of home ownership. Joint home loans involve co-applicants, often family members, combining their incomes to enhance loan eligibility.
Each type of home loan in Bengaluru comes with its own set of features and benefits. Prospective homebuyers are advised to carefully assess their requirements and financial capacity before selecting the most suitable home loan option. Additionally, consulting with financial advisors and comparing loan offerings from different lenders is crucial for making informed decisions in the dynamic real estate market of Bengaluru.
Features of Home Loan in Bangalore
Housing loans in Bangalore come with various features that cater to the diverse needs of homebuyers in the city. Here are some common features associated with home loans in Bangalore:
- Competitive Interest Rates: Banks and financial institutions offer competitive interest rates and borrowers can choose between fixed and floating rates based on their preferences.
- Flexible Loan Amounts: Home loan amounts are flexible, allowing borrowers to finance a significant portion of the property’s cost. The loan amount is often based on factors like income, repayment capacity, and the property’s value.
- Extended Repayment Tenure: Home loans generally offer extended repayment tenures, often up to 30 years. This provides borrowers with the flexibility to choose a repayment period that aligns with their financial goals.
- Quick Processing: Many lenders in Bangalore strive for quick and efficient loan processing, ensuring that borrowers can expedite the home-buying process.
- Transparent Fees and Charges: Transparent fee structures and a clear breakdown of charges, including processing fees, prepayment charges, and other applicable fees, help borrowers understand the cost implications.
- Pradhan Mantri Awas Yojana (PMAY) Benefits: Eligible applicants can avail of benefits under the PMAY scheme, which offers credit-linked subsidies based on income categories, making homeownership more affordable.
- Balance Transfer Option: Borrowers have the option to transfer their existing home loan to another lender offering better terms, including lower interest rates and reduced EMIs.
- Top-Up Loans: Top-up loans allow borrowers to access additional funds on top of their existing home loan for various purposes, such as home improvement or meeting other financial needs.
- Customized EMI Options: Lenders often provide flexibility in choosing the Equated Monthly Instalment (EMI) structure, allowing borrowers to select a repayment plan that suits their financial situation.
- Online Application and Account Management: Many banks facilitate online application processes, making it convenient for borrowers to apply for a home loan. Additionally, online account management services make it easy to track loan status and manage payments.
- Insurance Options: Lenders may offer insurance options, including home loan insurance and mortgage protection plans, providing financial security to borrowers and their families.
Special Schemes for Specific Groups: Some lenders offer special home loan schemes for specific groups, such as women borrowers, senior citizens, or government employees, with preferential terms and conditions.
What are the Interest Rates for Home Loan in Bangalore?
Various banks and financial institutions in Bangalore offer competitive home loan interest rates. The rates are subject to change and depend on factors such as the loan amount and tenure. State Bank of India (SBI) offers rates ranging from 8.40% to 10.15% p.a., HDFC Bank provides rates starting at 8.35% p.a. and LIC Housing Finance offers rates between 8.40% and 10.75% p.a.
Other prominent lenders like ICICI Bank, Kotak Mahindra Bank, and PNB Housing Finance also provide home loan interest rates tailored to different segments. Prospective homebuyers are advised to check with specific lenders for the most up-to-date information.
Eligibility Criteria of Home Loans in Bangalore
Home Loan Eligibility Criteria for an Individual
- Age limit: for Salaried persons: 18 to 60 years
- for self-employed persons: 18 to 65 years
- Minimum income: INR 30,000/- per month
- Minimum work experience: 2 years
- Minimum education: Bachelor’s degree for individuals working in private firms
Home Loan Eligibility Criteria for a HUF
- Karta of the HUF who must be the applicant/co-applicant
- Minimum 3 years of existence and IT returns
- Minimum net income of INR 360,000/- per annum
Home Loan Eligibility Criteria for an Organisation
- Minimum 3 years of existence
- Minimum net income of INR 360,000/- per annum
Documents Required for Home Loans in Bangalore
The documents required to apply for a home loan in Bangalore are:
- Application form with a duly signed photograph of the applicant
- Banking details
- Identity proof like PAN, Aadhaar, Driving licence, Passport, Voter ID
- Age proof like PAN, Aadhaar, Driving licence, Passport, Voter ID
- Signature proof like PAN, Passport
- Address proof like Aadhaar, Driving licence, Passport, Voter ID
- Evidence of educational qualification/ proof of business existence
- last 3 months’ salary slips (for salaried person)
- Last 3 years’ balance sheet and audited P/L statement (for self-employed person)
- Last 1 years’ filed ITR for salaried professionals
- Relationship proof
Home Loans in Bangalore FAQs
Most leading banks offer home loans in Bengaluru. SBI and LIC Housing Finance offer competitive rates, while private banks like HDFC and ICICI provide additional benefits. It’s advisable to compare loan terms from different lenders before deciding.
You can use a home loan EMI calculator available on bank websites or financial portals. Enter the loan amount, interest rate and tenure to estimate your monthly instalment.
Yes, a credit score of 700 or higher is preferred by lenders for home loan approval in Bengaluru.
After submitting all required documents, home loan approval typically takes around 30 days.
Home loans in Bangalore generally come with a maximum repayment tenure of 30 years, subject to the borrower’s age and lender’s policies.
Yes, many banks and financial institutions offer NRI home loans in Bangalore with specific eligibility criteria.
Yes, the Pradhan Mantri Awas Yojana (PMAY) provides credit-linked interest subsidies for certain income categories, making home ownership more affordable.
The minimum income requirement varies but is generally around Rs. 30,000 per month. Salaried individuals and self-employed professionals must meet specific income criteria for loan eligibility.