Home loans are secured loans provided by banks and housing finance companies to help individuals purchase, construct, or renovate residential property, with interest rates starting from about 7.35% per annum in India as of late 2025. These loans usually require minimum documentation, and most lenders offer flexible tenures ranging from 20 to 32 years, depending on the financial profile of the borrower.​

Key Features

• Home loans can be used for buying, constructing, renovating, or extending a property.​

• The property itself serves as collateral until the loan repayment is completed.​

• Leading lenders include HDFC, SBI, Bajaj Finserv, LIC Housing Finance, and others, each offering different slabs, processing fees, and disbursement processes.​

• Interest rates typically range from 7.35% to above 13%, based on the lender, loan amount, and applicant profile.​

Eligibility Criteria

• Most lenders require the borrower to be an Indian citizen (including NRIs and PIOs).​

• Age range: generally 23 to 70 years depending on occupation and age at loan maturity.​

• Minimum monthly income: ranges from ₹5,000 upwards, depending on lender.​

• Required CIBIL/credit score: usually above 725 is ideal, with some lenders preferring 730 or higher.​

• Both salaried and self-employed individuals are eligible; supporting income proof is mandatory, but some lenders offer options without income proof.​

Documents Required

• KYC documents (identity & address proof like PAN, Aadhaar, passport, etc.).​

• Proof of income (salary slips, bank statements, ITRs).​

• Property-related documents (sale agreement, title deeds, allotment letter).​

• Recent photographs and processing fee cheque.​

Loan Repayment and EMI

• Repayment is done through Equated Monthly Installments (EMIs), combining principal and interest.​

• EMI starts after disbursement of the loan (either partial or full, depending on property and construction status).​

Tax Benefits

• Tax deductions under Section 80C (principal) up to ₹1.5 lakh per year.

• Section 24B allows up to ₹2 lakh deduction for interest repayment.

• Registration fees and stamp duty may also be claimed under certain conditions.​

Common Types of Home Loans

• Loans for ready property, under-construction homes, resale, construction on own land, home renovation, and home extension.​

Summary Table: Leading Home Loan Providers (Late 2025)

Home loans remain one of the most accessible finance options for property ownership, with competitive rates and flexible eligibility requirements across Indian lenders as of late 2025.