List of Top 15 Housing Finance Companies in India

Housing Finance Companies in India

6 mins read

Last updated on 30th April 2024

Owning a home is more than just a status symbol; it's a dream that signifies stability and achievement. In India, this dream is brought to life by housing finance companies, the pillars of our thriving real estate sector. In the ongoing year 2024, the list of NBFC in India offering the best housing loans has already expanded, becoming more dynamic and customer-centric. This article presents a meticulously curated list of top housing finance companies in India.

Whether you're a first-time home buyer, a real estate investor, or someone looking for a home loan private finance, this list will serve as your definitive guide to navigate the NBFC home loan landscape in India in 2024. 

Table of Contents

Top 15 Housing Finance Companies in India 2024

1. LIC Housing Finance Limited

LIC Housing Finance Limited offers home loans tailored to your needs, catering to salaried individuals, self-employed professionals, and NRIs. You have the option to choose between online or offline application methods according to your preferences. The home loans come with flexible tenures of up to 30 years or until the age of 60, enabling you to achieve your homeownership goals at your convenience. Whether you are constructing, purchasing, or renovating a house or flat, LIC HFL Home Loans offer interest rates ranging from 8.45% to 10.50%. The processing fee for these loans is only 0.25% of the loan amount.

2. Indiabulls Housing Finance Limited

Indiabulls Housing Finance Limited offers instant home loans with flexible repayment options starting from 9.30% interest rate. The rate varies based on customer profile, property valuation, loan amount, and tenure. You have the option to apply online through the Indiabulls app or BASIC’s website for quick and complete loan processing. There are no prepayment or foreclosure charges for floating home loans, and the online application process is designed to be seamless.

Indiabulls home loan caters to various needs, such as Home Construction, Improvement, Extension, and Balance Transfer. Self-employed individuals can also apply for LAP, MSME, or ECLLGS against a residential property. 

3. ICICI Home Finance

ICICI Home Finance offers home loans for both eligible self-employed individuals and salaried professionals. Loan amounts range from Rs 3 lakh to Rs 5 crore, and the online application process takes just 10 minutes. Disbursal is completed within 72 hours, providing timely access to financing. Interest rates range from 9.00% to 10.05%, with the possibility of lower rates by adding a co-applicant or a women co-borrower. With a maximum tenure of 30 years, ICICI Home Finance provides flexible loan options tailored to individual needs.

4. L&T Housing Finance Limited

Ready to make your dream of owning a home a reality? Look no further than L&T Housing Finance Limited! Home loans up to 90% of the property cost, attractive interest rates from 8.60% to 8.75%, flexible tenures up to 30 years, and competitive processing fees starting from just 0.25%. Whether you're buying a plot, constructing, improving, extending, or transferring your loan, tailored solutions are available. No matter your income, home loans are accessible to both self-employed and fixed-monthly income individuals. 

5. PNB Housing Finance Limited

Did you know that PNB Housing Finance Limited is one of the top housing finance companies in the country? They offer a range of home loans with loan amounts of up to 90% of the property cost. The best part? The interest rates are super competitive, starting from as low as 8.75% p.a. up to 11.25% p.a. It's open to both Indians and NRIs, and you can apply online or offline, whichever way you prefer. The Home Loan amount can go up to a whopping Rs. 20 Crore! And if you're part of the low-income group, they've got a special scheme called PNB Unnati Home Loan just for you. You just need to be at least 21 years old to apply.

6. Tata Capital Housing Finance Limited 

Are you familiar with Tata Capital Housing Finance Limited? They are a prominent housing finance company that offers home loans with attractive features. You can secure financing of up to 80% of the property cost, and their interest rates range from 8.60% to 10.10%. The loan tenure can extend up to 30 years, providing you with flexibility in repayment. When it comes to processing fees, they charge a percentage of the loan amount, typically between 0.5% to 2.0%, plus GST. Tata Capital Housing Finance caters to various needs, whether you're looking to purchase a plot, construct a new home or apartment, or make improvements to your existing property.

7. Edelweiss Housing Finance Limited

Edelweiss Housing Finance Limited (HFL), renamed as Nido Home Finance Limited, offers home loans tailored to meet the needs of both self-employed and salaried individuals. You can secure financing for various purposes such as the construction, purchase, repair, and renovation of a residential unit. The loan amount can go up to 90% of the property value, and the interest rates range from 8.50% to 16.45%. With a processing fee of only 0.25%, it offers a cost-effective solution. You can avail a maximum loan tenure of 25 years.

8. SMFG India Home Finance Co. Ltd.

SMFG India Home Finance Co. Ltd. or SMFG Grihashakti (Formerly Fullerton India Home Finance Co. Ltd.) has options designed for both salaried and self-employed individuals. You can avail a loan amount ranging from 75% to 90% of the property cost, with interest rates starting from 9.50% and going up to 10.50%. The processing fee is as low as 0.25% of the loan amount onwards, plus GST. Fullerton India Home Finance provides a user-friendly Home Loan EMI Calculator for easy cost evaluation. 

9. Bajaj Housing Finance Limited

Bajaj Housing Finance Home Loans offer financing of up to 85% of the property cost, with interest rates ranging from 8.50% to 15%. Enjoy a flexible repayment tenure of up to 30 years, and the lowest possible EMI starting from Rs. 755 lakh. The processing fee is up to 1% of the loan amount, plus GST and other applicable statutory levies. You can apply for a loan to purchase, build, or develop a residential unit. To be eligible, you should have a minimum salary or monthly income of Rs. 30,000. 

10. Aditya Birla Housing Finance Limited (ABHFL)

A part of the Aditya Birla Group, ABHFL offers home loans with interest rates typically starting from around 8.55% per annum. They provide a maximum tenure of up to 30 years for home loans, and the processing fee ranges from 0.5% to 1% of the loan amount. Their products include home loans for purchase, construction, and renovation, as well as loans against property.

11. Hero Housing Finance 

This company targets primarily the low and middle-income groups with home loans that have interest rates starting at approximately 9.50% per annum. The loan tenure can go up to 30 years - 30 years (salaried) and 20 years (self-employed), depending on the borrower's profile, with a processing fee of up to Rs. 5000+ taxes. Hero Housing Finance focuses on accessibility and flexibility in its loan offerings. 

12. Piramal Capital & Housing Finance

Operating under Piramal Enterprises, this company offers housing loans with interest rates starting from 11% per annum. The maximum loan tenure is up to 30 years, and the processing fees are typically up to 3% of the loan amount. They provide comprehensive financial solutions that include housing finance, business loans, and construction finance.

13. Capri Global Housing Finance

Aimed at lower-income and informal income groups, Capri Global offers housing loans with interest rates starting around 10% per annum plus taxes. The loan tenure can extend up to 20 years, with a processing fee of Rs. 2000 + GST. Their focus is on making home financing accessible with minimal documentation and fast processing.

14. DMI Housing Finance 

Part of DMI Finance, this entity provides home loans with interest rates starting from 11% per annum. DMI Housing Finance offers loan tenures of up to 25 years and charges a processing fee ranging from 1% to 2% of the loan amount. They offer flexible loan solutions for home purchase, construction, and improvement. The maximum loan amount you can avail is up to Rs. 30 lakhs.

15. Aadhar Housing Finance

Aadhar Housing Finance is one of India's leading affordable housing finance companies, primarily catering to the low-income and economically weaker sections of society. The company offers home loans with interest rates starting from approximately 11.75% to 17% per annum, aiming to make homeownership accessible to everyone. The maximum loan tenure can extend up to 20 years, providing flexibility to borrowers to manage their repayment schedules comfortably. The processing fee for loans is generally 3500/- plus taxes, depending on the loan type and borrower’s profile. Aadhar Housing Finance emphasizes simple documentation, quick loan approval, and widespread branch coverage to ensure that financial solutions are readily available to its target demographic across various regions.

Interest Rates of the Largest Housing Finance Companies in India

Housing Finance Company Annual Interest Rates (starting at)
Aditya Birla Housing Finance 9%
LIC Housing Finance 8.50%
Bajaj Finserv 8.50%
PNB Housing Finance 8.75%
Indiabulls Housing Finance 8.75%
Shubham Housing Finance 9.90%
Capri Global Housing Finance 8.99%
Piramal Capital & Housing Finance 11.00%
DMI Housing Finance 11.00%
Hero Housing Finance 9.50%

Benefits of Borrowing from a Housing Finance Company

Borrowing from a Housing Finance Company (HFC) provides several advantages for those seeking home loans:

  1. Diverse Loan Products: They offer a wider variety of loan products, including options for land purchase, construction, and renovation.
  2. Flexible Eligibility: HFCs typically have more flexible eligibility criteria, beneficial for those with irregular income or low credit score and self-employed individuals.
  3. Quick Processing: With a focus on housing loans, HFCs usually process loan applications faster than banks.
  4. Financing Non-Standard Properties: HFCs are more likely to finance properties that banks may not, such as older homes or those in less developed areas.
  5. Customer Service: Being specialized, HFCs can offer superior, personalized customer service throughout the loan process.

What Makes a Housing Finance Company Stand Out?

In selecting the best housing finance companies for 2024, extensive research is conducted to evaluate various factors. These included competitive interest rates, flexible loan amounts, efficient processing, excellent customer service, and a strong reputation for reliability. Stringent eligibility criteria were also considered to ensure responsible lending practices. These companies have proven their commitment to providing exceptional financial solutions and helping customers fulfill their homeownership dreams.

FAQ about Top Housing Finance Companies in India

The top 10 housing finance companies in India according to the document are:

  • HDFC Housing Finance
  • LIC Housing Finance Limited
  • India bulls Housing Finance Limited
  • ICICI Home Finance
  • L&T Housing Finance Limited
  • PNB Housing Finance Limited
  • Tata Capital Housing Finance Limited (TCHFL)
  • Edelweiss Housing Finance Limited
  • Fullerton India Home Finance Company Limited
  • Bajaj Housing Finance Limited

The Reserve Bank of India (RBI) is the governing body for all housing finance companies in India. This regulatory responsibility was transferred from the National Housing Bank (NHB) to the RBI in 2019. The RBI oversees the operations and regulations of these companies to ensure financial stability and consumer protection.

Housing finance companies catalyze economic growth by facilitating home ownership, fostering real estate development, and enhancing living standards through accessible and affordable housing finance solutions.

Housing Finance Companies (HFCs) are specialized institutions, laser-focused on bolstering housing development, while Non-Banking Financial Companies (NBFCs) are versatile entities, providing a broad spectrum of financial services, both under the purview of the RBI.

In India, there are several housing finance companies operating in the market. The exact number may vary over time due to changes(new entries, mergers, acquisitions, or closures) in the industry. For the most up-to-date information, you can visit the official websites of regulatory bodies such as the Reserve Bank of India or the National Housing Bank, which provide valuable insights into the housing finance industry in India.

Housing Finance Companies (HFCs) are pivotal in shaping the real estate landscape, meticulously assessing creditworthiness, extending housing loans, managing repayments, and ensuring regulatory adherence, thereby transforming the dream of home ownership into reality.

Housing Finance Corporations (HFCs) provide loans and services for residential properties, promoting home ownership and real estate development, regulated by authorities like the Reserve Bank of India.

Finance companies secure funds through a diverse range of sources, including deposits, borrowing from financial institutions, capital investments from shareholders, securitization of loan portfolios, and accessing capital markets through bond issuances.

Identifying the best Non-Banking Financial Company (NBFC) for home loans in India depends on various factors including interest rates, loan terms, customer service, processing speed, and the specific needs of the borrower. However, some of the well-regarded NBFCs known for their home loan services include HDFC Ltd., LIC Housing Finance, Bajaj Finserv, Indiabulls Housing Finance and Piramal Capital & Housing Finance.

Published on 25th July 2023