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Best Home Loans for Salaried Individuals in India

Highlights

  • What are some of the best Home Loan Lenders for Salaried Employees?
  • Know everything about them such as their interest rates, tenure, processing fee, eligibility criteria, etc.

The percentage of salaried individuals in our country is higher than self-employed individuals. Owning their homes is the number one priority for every individual. People who get a fixed monthly income and want to purchase their dream home can opt for a home loan provided by several banks, non-banking financial companies (NBFCs) and Housing Finance Companies (HFCs).

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    Home Loans are usually high-ticket purchases and also a long-term commitment. A home loan usually ranges from 15 to 20 years. However, the maximum tenure can be 30 years. These are the few reasons that salaried individuals look very closely at all the lenders before finalizing the suitable home loan for them. Salaried Employees earn a fixed income every month, and to invest their hard-earned money in the dream home, they need to be extra cautious while choosing the best home loans.

    In this article, we will be telling you about some of the best home loans for salaried individuals. So, if you are one of those salaried individuals and want to know about some of your best options then this article is for you. So, without any further delay, start reading!

    Top Home Loan Lenders for Salaried Employees

    To know which could be the best home loan for salaried employees, it is important to know about some of the home loan lenders in India. We are providing details about those lenders such as their interest rates, tenure, loan amount, eligibility, etc. This will help you choose the right option. Check them below.

    HDFC Home Loan

    Being one of the largest mortgage loan providers in India, HDFC provides best home loans for Salaried Employees by meeting all their requirements. An individual who is earning a fixed income per month wants to have the lowest interest rates on the home loan facility so that he/she can easily repay the loan amount. And HDFC provides pretty affordable interest rates on its home loan ranging from 6.95% - 7.85% per annum. Also, if you have a credit score of 780 or above, you can opt for the home loan interest rate of 6.95%* per annum.

    The home loan can be taken for various purposes such as the purchase of a flat/raw house/ bungalow from credible private builders, purchase of properties from various development authorities such as DDA, loan for the construction of your house, etc. Some of the important details related to the HDFC Home Loan are mentioned in the table below.

    You can choose a longer tenure (upto a maximum of 30 years) to reduce your EMI amount so that you can pay on time. The tenure also depends on various factors such as your age, employment type, property’s age, etc. A lot of individuals worry about the maximum loan amount that they can get from the lender. HDFC offers home loans upto 75%-90% of the property cost. You can look at the Loan-to-value ratio in the below table. Check it out!

    Loan AmountLoan to Value Ratio
    Upto INR 30 lakh90% of the overall property value
    Above INR 30 lakh and upto INR 75 lakh80% of the overall property value
    Above INR 75 lakh75% of the overall property value

    There are a few conditions that a salaried individual has to fulfill in order to be eligible for an HDFC Home Loan. Look at them below.

    • The salaried employees must be a resident Indian.
    • The minimum age must be 21 years that can be a maximum of 65 years.
    • You can add your relative, spouse, parents as the co-applicants of your home loan. It will also help you in increasing your loan amount.
    • If you add a woman as your co-applicant, you can also get better interest rates on your home loan.

    ICICI Home Loan

    One of the major features because of which salaried employees find ICICI Home Loan so much preferable for them is the affordable interest rates ranging from 6.95% - 7.95% per annum. With the lower interest rates, salaried individuals can repay the loan amount without any trouble as the EMIs are within their repayment capacity. ICICI provides a maximum tenure for 30 years. So, you can choose the tenure according to your repayment capacity. Also, if a salaried individual wants to apply for a Home Loan Balance Transfer facility, the floating rate of interest would be 7.85%* per annum which is a bit lower than the 8.00%* per annum given to the self-employed individuals.

    Other than this, ICICI Bank also provides a feature through which you can track the status of loan sanction. ICICI Bank provides the loan amount that ranges from 75% to 90% of the overall property value. Suppose the property value is INR 30 lakh then the maximum loan amount would be INR 27 lakh. In the below table, we are providing some of the important details related to the ICICI Home Loan for Salaried Individuals. Have a look!

    Loan AspectDetails
    Loan AmountCustomized (depends on the Property Value)
    Interest Rate6.95% - 7.95%
    TenureMaximum 30 years
    Processing Fees0.50% to 2% of the loan amount plus applicable GST charges
    Minimum of INR 1,500 plus GST charges ( INR 2,000 for Mumbai, Delhi & Bangalore)
    Prepayment ChargesNil for Floating Rate of Interest
    2% of the Outstanding Loan Amount for Fixed Rate of Interest

    Before opting for an ICICI Home Loan, it would be ideal for an individual to check his or her home loan eligibility to know the maximum loan amount that he or she can opt for. For this, you can use the Home Loan Eligibility Calculator by feeding a few basic details such as Age, Required loan amount, monthly income, current obligations, etc.

    State Bank of India (SBI) Home Loan

    State Bank of India (SBI) is undoubtedly the largest public sector bank in India that provides home loans to both salaried and self-employed individuals. But salaried people get lower interest rates and flexible repayment tenure. As a result, SBI Home Loan can be called one of the best home loans for salaried employees. Talking about interest rates that range from 6.95% - 7.45% per annum, individuals can enjoy pocket-friendly EMI amounts. Interest rates will most likely depend on the Credit Score of the applicant. Home loans for salaried employees at lower interest rates is possible with a high credit score. SBI Home Loan ranges from 75% to 90% of the property value.

    Apart from this, if a salaried individual decides to opt for the prepayment facility, he or she can do it without paying any charges for the floating rate of interest.

    To know more about the important details related to SBI Home Loan, you can look at the below table.

    Before applying, it is important to know the eligibility criteria of the SBI Home Loan so that you can prepare for them beforehand and meet these conditions easily.

    • The salaried applicant must be a resident Indian.
    • Any applicant who is 18 years old can apply for the SBI Home Loan. The maximum age can be 70 years.
    • The maximum loan tenure that you can choose is fixed at 30 years.
    • The applicant must have a satisfactory source of income for a smooth loan repayment.

    LIC Housing Finance Limited Home Loan

    A lot of salaried employees opt for housing finance companies that provide a home loan to buy the home they want. Due to its PAN-India presence, any salaried employee can opt for a home loan from anywhere in the country. The most striking thing about this facility is the competitive interest rates ranging from 6.90% - 7.80% per annum. There are so many schemes provided by LIC HFL that you can opt for, such as Construction Loans, Home Purchase Loans, Home Repair, Renovations, etc.

    LIC HFL provides a longer tenure to salaried employees as compared to self-employed. Salaried individuals can repay the loan amount within 30 years, while for self-employed applicants, the maximum tenure can be for 20 years.

    A longer tenure can help salaried applicants in reducing the EMI amount according to their repayment capacity. This is why LIC HFL Home Loan is so much popular among salaried employees. Also, an individual with a credit score of 800 or above can get a home loan at 7.50%* per annum that can also be reduced to 7.40%* per annum if he/she assigns new or existing single premium term insurance plan with sum assured equaling the loan amount.

    All the other important details related to the LIC HFL Home Loan are given below in the table.

    Loan AspectDetails
    Loan AmountMinimum of INR 1,00,000
    The maximum will depend on the Property Value
    Interest Rate6.90% - 7.80%
    TenureMaximum 30 years for Salaried Applicants
    Maximum 20 years for Self-employed Applicants
    Processing FeesUpto INR 1 crore - 0.25% of the Loan Amount plus GST or INR 10,000 plus GST
    Above INR 1 crore - INR 25,0000 plus GST
    Prepayment ChargesNil for Floating Rate of Interest
    2% of the Outstanding Loan Amount for Fixed Rate of Interest

    To know the maximum loan amount that an individual can get, LIC HFL Home Loan Eligibility Calculator can be used. It will need only a few details such as Gross Monthly Income, Total Current EMIs, Interest Rate, Loan Tenure and how much money you can spend in a month. You will get the approximate loan amount you can get according to your details.

    PNB Housing Finance Home Loan

    Due to its extensive range of home loan products and affordable interest rates ranging from 8.60% - 9.25% per annum, PNB Housing is a pretty good option for salaried applicants.

    Apart from this, home loan interest rates for salaried applicants are much lower than self-employed individuals. The final interest rate will depend on a lot of factors such as monthly income, credit score, employment history, obligations, etc. With the PNBHFL Home Loan, you can get upto a maximum of 90% of the property value as the loan amount if the loan amount is upto INR 30 lakh. While for loan amounts above 75 lakh, you will get a maximum of 75% of the property value. Some other details are given in the below table. Have a glance at them.

    Loan AspectDetails
    Loan AmountCustomized (Depends on the Property Value)
    Interest Rate8.60% - 9.25%
    TenureMaximum 30 years
    Processing FeesCustomized
    Prepayment ChargesNil for Floating Rate of Interest
    2% of the Outstanding Loan Amount for Fixed Rate of Interest
    Repayment MethodEquated Monthly Installments

    Conclusion

    So these are some of the best home loans for salaried employees. Choose the one that you feel is the best for you and pay the loan EMI on time.

    Note – Interest rates mentioned against each of the lenders can change from time to time. As of now i.e., June 19, 2020, these rates exist. As and when the rate changes, we will let you know of the same.

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  • Home Loan Interest Rates September 2020
    Axis Bank7.75% - 8.55%
    Bank of Baroda7.00% - 8.40%
    Citibank8.20%
    HDFC6.95% - 8.00%
    ICICI Bank6.95% - 8.05%
    Indiabulls Housing Finance Limited8.80% - 11.05%
    Kotak Bank7.20% - 9.30%
    LIC Housing6.90% - 7.90%
    Piramal Capital & Housing Finance9.00% - 9.10%
    PNB Housing Finance8.60% - 9.45%
    Reliance Home Finance8.75% - 14.00%
    State Bank of India/SBI6.95% - 7.60%
    Tata Capital9.20% - 9.35%