Best Home Loans in India 2026 — Compare Top Banks
Independent comparison of India's best home loan offers — interest rates, LTV ratios, processing fees, prepayment terms, and eligibility. Updated May 2026. Apply directly through the lender — BankTalky never sees your KYC documents.
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Quick picks — find your best home loan
Home loan comparison — rates, LTV, fees
| Lender | Interest (p.a.) | LTV Ratio | Max Tenure | Processing Fee | Part-prepayment | Special Feature | Apply |
|---|---|---|---|---|---|---|---|
| Bank of Baroda | 8.40% p.a. | Up to 90% (≤30L) | 30 years | Nil | Free (floating) | 0 processing fee on new accounts | Apply |
| SBI | 8.50% p.a. | Up to 90% (≤30L) | 30 years | Nil (limited period) | Free | Govt subsidy empanelled; YONO pre-approval | Apply |
| PNB Housing | 8.50% p.a. | Up to 90% (≤30L) | 30 years | 0.25% | Free (floating) | Flexible EMI start options | Apply |
| LIC Housing Finance | 8.65% p.a. | Up to 90% | 30 years | Nil | Free (floating) | Joint loan — income clubbing for higher eligibility | Apply |
| HDFC Bank | 8.70% p.a. | Up to 80% | 30 years | 0.50% | Free (floating) | Doorstep documentation, balance-transfer ready | Apply |
| Axis Bank | 8.75% p.a. | Up to 80% | 30 years | 1% | Free (floating) | Digital pre-approval in 3 working days | Apply |
| Tata Capital Housing | 8.95% p.a. | Up to 90% | 30 years | 0.50% | Free (floating) | NRI and self-employed friendly | Apply |
Rates and fees last verified in May 2026. Banks and insurers revise terms often — always confirm the final rate on the provider's site before applying.
Detailed lender profiles
Bank of Baroda
- Rate from 8.40% p.a. — lowest published rate
- 90% LTV on loan amounts up to ₹30 lakh
- Nil processing fee (new launch offer)
- Free part-prepayment on floating rate loans
- PMAY subsidy empanelled lender
SBI
- Rate from 8.50% p.a. for regular salaried borrowers
- 90% LTV on loans up to ₹30 lakh
- Zero processing fee (limited-period waiver)
- Free part-prepayment on floating rate loans (RBI rule)
- PMAY subsidy empanelled — get upfront principal reduction
PNB Housing
- Rate from 8.50% p.a. matching SBI
- 90% LTV on loans up to ₹30 lakh
- 0.25% processing fee — lower than most private banks
- Flexible EMI holiday of up to 36 months
- PMAY subsidy empanelled
LIC Housing Finance
- Rate from 8.65% p.a. for salaried borrowers
- Up to 90% LTV across all ticket sizes
- Zero processing fee
- Joint loan option — club spouse/parent income for higher eligibility
- Free part-prepayment after 6 months
HDFC Bank
- Rate from 8.70% p.a. for prime salaried
- Up to 80% LTV (lower than PSU banks)
- 0.50% processing fee (often negotiable for balance transfers)
- Doorstep documentation service
- Pre-approved top-up loans for existing customers
Axis Bank
- Rate from 8.75% p.a.
- Up to 80% LTV
- Pre-approved in as little as 3 working days for eligible applicants
- 1% processing fee (cap at ₹10,000 for salaried)
- Free part-prepayment after lock-in period
Tata Capital Housing
- Rate from 8.95% p.a.
- Up to 90% LTV across all ticket sizes
- 0.50% processing fee
- NRI home loans available
- Self-employed with ITR accepted — no salary slip required
Home Loan Tax Benefits — Save More While Repaying
₹2 lakh deduction on interest paid per year
For self-occupied property. Under construction: deduction available post-completion over 5 years.
₹1.5 lakh deduction on principal repaid per year
Under ₹1.5L aggregate limit shared with PF, ELSS, LIC premium, etc.
Up to ₹2.67L NPV subsidy on interest
For EWS (income ≤₹3L), LIG (≤₹6L), MIG-I (≤₹12L). Credited to principal upfront.
Consult a CA for your specific tax situation. Deductions subject to filing under old tax regime.
Eligibility — what lenders look for
- Age 18–70 (at loan maturity) — PSU banks go up to 70; private banks typically up to 65
- Salaried: minimum ₹25,000/month net income; self-employed: 2+ years of ITR
- CIBIL 700+ for best rates; 650+ may be accepted at PSU banks with higher rate
- Property: clear title, RERA-approved for under-construction, free from disputes
- LTV: up to 90% for loans ≤₹30L; 80% for ₹30L–₹75L; 75% for >₹75L (RBI rule)
- PAN, Aadhaar, salary slips (3 months), bank statement (12 months), property documents
Watch-outs before signing
- •LTV is on property valuation (bank's own valuer), not on agreement value — can be 5–15% lower
- •Mandatory insurance bundled with home loans is optional — declining saves ₹1–3L on a ₹50L loan
- •Processing fee is charged even if loan is not disbursed after sanction — confirm waiver in writing
- •Stamp duty and registration (4–8% of property value) are not covered under loan LTV
- •Floating-rate loans: RBI bans prepayment penalty for individuals (since Oct 2019) — insist on this
- •Under-construction property: builder-linked disbursement means you pay EMI before possession — negotiate pre-EMI interest only
Home loan FAQ
What is the lowest home loan interest rate in India in 2026?
Bank of Baroda offers the lowest published rate at 8.40% p.a. SBI and PNB Housing are at 8.50% p.a. Rates are linked to RLLR/REPO — they change with RBI policy. Always ask for the current effective rate at the time of application.
How much down payment is required for a home loan?
RBI mandates LTV caps: 90% for loans ≤₹30L (10% down), 80% for ₹30L–₹75L (20% down), and 75% for loans above ₹75L (25% down). Additionally, stamp duty + registration (4–8%) is out-of-pocket.
What is PMAY and how do I get the subsidy?
PMAY-CLSS (Credit Linked Subsidy Scheme) gives upfront NPV subsidy of up to ₹2.67L for EWS/LIG/MIG borrowers. Apply through an empanelled bank (SBI, PNB, LIC HFL etc.). Subsidy is credited to your loan account within 3–4 months, reducing principal.
Can I get a home loan as a self-employed person?
Yes — most banks accept 2–3 years of ITR + bank statement + GST returns as income proof. Tata Capital, LIC HFL, and PNB Housing are considered more self-employed friendly. Expect rates 0.10–0.25% higher than salaried profiles.
What is balance transfer on a home loan?
Transferring your outstanding home loan to a new lender at a lower rate. The maths works if the new rate is at least 0.50% lower and remaining tenure is 10+ years. Processing fee at new bank is 0.25–0.50% — usually recovered within 4–8 months of savings.
What tax benefits can I claim on a home loan?
Section 24(b): up to ₹2L/year deduction on interest (self-occupied). Section 80C: up to ₹1.5L/year on principal repaid. First-time buyers may also claim ₹50,000 extra under Section 80EEA (if loan sanctioned before March 2022 and property value ≤₹45L).
How is home loan EMI calculated?
EMI = [P × R × (1+R)^N] / [(1+R)^N − 1], where P = principal, R = monthly rate (annual%/12/100), N = tenure in months. Use our free Home Loan EMI Calculator to get exact figures instantly.
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