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Last updated on 22nd January 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 2023, 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 housing finance companies in India, featuring the top NBFC in India for availing a home loan finance.
From time-tested giants to innovative newcomers, we have evaluated and ranked the top 10 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 2023.
Table of Contents
- List of Top 10 NBFCs in India
- 1. HDFC Housing Finance
- 2. LIC Housing Finance Limited
- 3. Indiabulls Housing Finance Limited
- 4. ICICI Home Finance
- 5. L&T Housing Finance Limited
- 6. PNB Housing Finance Limited
- 7. Tata Capital Housing Finance Limited (TCHFL)
- 8. Edelweiss Housing Finance Limited
- 9. Fullerton India Home Finance Company Limited
- 10. Bajaj Housing Finance Limited
- What Makes a Housing Finance Company Stand Out?
Let us explore a thoughtfully curated list of best housing finance companies in India.
List of Top 10 NBFCs in India
1. HDFC Housing Finance
HDFC Housing Finance offers home loans with loan amounts of up to 90% of the property cost and competitive interest rates ranging from 8.50% to 9.00% per annum. The company provides flexible loan tenures of up to 30 years, making repayments hassle-free. They cater to various needs, such as purchasing plots, constructing new homes or apartments, and making improvements to existing properties. A processing fee, typically between 0.5% to 2.0% of the loan amount, plus GST, applies. HDFC Housing Finance boasts an extensive network of 588 interconnected offices, ensuring efficient loan processing. Additionally, they don't impose foreclosure charges for floating rates, providing borrowers with more financial flexibility.
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2. 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.
3. 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 Construction, Improvement, Extension, Rural, NRI, and Balance Transfer. Self-employed individuals can also apply for LAP, MSME, or ECLLGS against a residential property. With flexible eligibility criteria, borrowers aged 21 to 65 can avail of an Indiabulls home loan. With a simple home loan eligibility calculator, you can easily check your criteria for the housing loan.
4. 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.
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5. 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.
6. 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. They've got branches all over India, so you can easily connect with them. 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.
Suggested read : House loan lowest interest rate
7. Tata Capital Housing Finance Limited (TCHFL)
Are you familiar with Tata Capital Housing Finance Limited (TCHFL)? 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.
8. Edelweiss Housing Finance Limited
Edelweiss Housing Finance Limited (HFL) offers home loans tailored to meet the needs of both self-employed and salaried individuals. You can secure financing for various purposes such as 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. In case of floating rates, there are no foreclosure charges. The loan eligibility criteria include factors such as income, age, qualifications, dependents, spouse's income, assets, liabilities, stability of occupation, and savings history. You can avail a maximum loan tenure of 25 years.
9. Fullerton India Home Finance Company Limited
Fullerton India Grihashakti Home Loans are 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%. Enjoy a flexible repayment tenure of up to 30 years. 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 on their website for easy cost evaluation. Salaried borrowers should be employed with multinational companies, listed public limited companies, government organizations, private limited companies, partnerships, or proprietorship firms. Self-employed individuals, including business owners, sole proprietors, employed professionals like doctors and architects, co-partnership firms, private limited companies, closely held, and unlisted companies, are also eligible to apply.
10. 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 of up to Rs. 3.5 crore to purchase, build, or develop a residential unit. Bajaj Housing Finance ensures attractive rates and customized deals for borrowers, along with flexible repayment options. To be eligible, you should have a minimum salary or monthly income of Rs. 30,000. The landscape of housing finance companies in India is rapidly transforming, driven by the rise of Non-Banking Financial Companies (NBFCs), a focus on affordable housing, and digital innovation. These changes are making home financing more accessible and customer-centric. As we move forward, this evolving landscape promises to offer even more diverse and innovative solutions, catering to the unique needs of every homebuyer in India. This evolution signifies a promising future for the housing finance sector, making the dream of owning a home a reality for more people.
What Makes a Housing Finance Company Stand Out?
In selecting the best housing finance companies for 2023, 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.
FAQs About Home Loan Finance Companies
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.
Published on 25th July 2023