Home Loans in Kerala

Keen to buy a home in “God’s Own Country”, Kerala, then apply for a housing loan Kerala and make your dream come true to live in this serene state of backwaters. Top banks and NBFCs offer home loans in Kerala starting at a rate of interest of 8.50% per annum. The maximum period for loan repayment is up to 30 years. For processing each home loan application, the lender may charge a processing fee between 0.25% - 0.50% of the loan amount. The best home loan in Kerala offers up to 90% of the property value as the loan amount to eligible borrowers. 

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Home Loan Interest Rates in Kerala

Applying for a home loan in Kerala is not an arduous task if you know the exact procedure and fulfill the eligibility requirements laid out by your chosen bank or NBFC. The lowest home loan interest rate in Kerala starts at 8.50% per annum. 

The table below aims to acquaint you with the home loan rate of interest and processing fee of the top 10 banks and NBFCs in Kerala:

BASIC Bank/NBFC Partner Name Max Tenure (in years) Rate of Interest Processing Fees (INR) Contact
bank LIC HFC 30 8.50% Up to 0.25% (Rs. 25,000 max) Enquire
bank L&T Housing Finance 25 8.60% onwards Up to 3% of the loan amount + taxes Enquire
bank HDFC Bank 30 8.65% - 9.85% Up to 0.25% (Rs. 3,540 min) Enquire
bank Union Bank of India 30 8.70% 0.50% (Rs. 15,000 max) Enquire
bank PNB Housing 30 8.75% - 11.45% Up to 0.50% (Rs. 10,000 max) Enquire
bank ICICI Bank 30 8.75% onwards 0.50% - 2.00% of the loan amount Enquire
bank Kotak Mahindra Bank 20 8.75% - 9.60% Rs. 10,000 - 0.25% Enquire
bank Aditya Birla Capital 20 8.80% - 14.75% 0.75% - 1.00% Enquire
bank GIC Housing Finance 30 8.80% Rs. 2,500 + GST Enquire
bank State Bank of India 30 9.15% - 12.95% Up to 0.25% (Rs. 10,000 max) Enquire
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Eligibility Criteria for Home Loans in Kerala

So, what do banks and NBFCs consider when granting home loans to applicants in Kerala? They look for general parameters like the applicant's age, nationality, source of income, minimum income, and credit history. 

The table will acquaint you with the general criteria for home loan eligibility in Kerala:

Eligibility Parameters Salaried Individuals Self-Employed Individuals
Citizenship Indian/ NRI/ PIO Indian/ NRI/ PIO
Professional Experience 2years 2years
Age

Min: 21 years
Max: 65 years 

Min: 21 years
Max: 65 years 

Monthly Income

Minimum Rs. 1.8 lakh per annum

Minimum Rs. 1.8 lakh per annum

CIBIL Score 750+ 750+

Note: Applicants are encouraged to declare any additional sources of income besides those mentioned in the table above to boost their chances of getting a home loan approval.

  • A majority of banks and NBFCs offer home loans in Kerala to Indian residents, while some also offer to NRIs and PIOs
  • The eligible age limit for an applicant to apply for a home loan in Kerala is between 21 years to 65 years
  • Salaried applicants should possess a minimum work experience of 2 years, and the self-employed ones should have a minimum work experience of 3 years in a business
  • Kerala banks prefer offering home loans to applicants with a credit or CIBIL score of 750 or more 

Note:These criteria are subject to variation from one bank to another. It is recommended that you check with the specific bank you are applying to for a home loan for its eligibility requirements.

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Documents Requirement for Home Loans in Kerala

Lending money to borrowers is not possible unless the applicants follow all formalities, and one such formality is submitting the right set of documents to the lender. These are documents that the banks and NBFCs use to verify the authenticity of the borrowers in terms of identity, address, and salary. Spare some time to check the list of documents required for housing loan in Kerala mentioned below:

1. For Salaried Loan Applicants

  • KYC documents such as Aadhaar Card, PAN card, Voter ID Card, Driving License and Passport
  • Salary slips of the last 3 months
  • Last year's IT return
  • Latest Form 16
  • Bank statements of the last 3 months
  • Appointment letter
  • A processing fee cheque 
  • Property documents such as sale deed, NOC from the builder or housing society, advance payment receipt to the builder, and approved construction plan

2. For Self-Employed Loan Applicants

  • KYC documents such as an Aadhaar Card, PAN card, Voter ID Card, Driving License, and Passport
  • Business profile and license of the company 
  • Latest Form 26AS
  • Savings account statement for last 6 months 
  • Latest ITR form
  • Profit & Loss account statements and Balance Sheets for the last 3 years attested by a CA
Type of Document Required Examples of Documents that can be Submitted
Proof Of Residency Aadhaar Card, Valid Passport
Proof Of Income Bank Passbook, Bank statement, Last 3 years IT Return
Proof Of Age PAN Card, Voter ID, Birth Certificate, Registration Certificate Of Establishment
Proof Of Employment Certified Letter from Employee/Company Memorandum 
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Home Loan Options Available in Kerala

You can expect many housing loan schemes from a reputed home loan company in Kerala. Although the rate of interest offered may vary from bank to bank and NBFC to NBFC, they all try to offer all types of common home loans to borrowers who wish to buy a home or a plot, renovate or improve an existing home, or transfer the balance from an existing home loan to another lender at cheaper rates. 

Type of Document Required The Object of the Loan
Home Purchase Loan For purchasing a residential property
Plot Purchase Loan For purchasing land or plot, where construction will be completed within a time frame
Home Construction Loan For constructing a home on an already bought plot
Home Extension Loan For adding a balcony, extra floor, or room in an already existing home
Home Improvement Loan For renovating an existing house through services like wiring, painting, and other similar activities
Top-Up Loan To help the borrower meet sudden personal and professional financial needs
Balance Transfer Home Loan For transferring the outstanding loan amount to a new lender at a lower rate of interest

Note:The options tabulated above are the most popular loan options availed of by most customers. Please check with your specific bank for other home loan options that they offer.

Best Bank and NBFCs for Home Loans in Kerala

Options are unlimited when it comes to apply for a home loan in Kerala; from private banks to public banks and NBFCs, there are several financial institutions that offer affordable and quick home loans. The table below highlights the top 5 banks and housing finance companies (partnered with BASIC Home Loan) that you may consider for a housing loan in Kerala:

Top Banks for Home Loans in Kerala (BASIC Partner) Top NBFCs for Home Loans in Kerala (BASIC Partner)
Kotak Mahindra Bank LIC HFC
HDFC Bank Aditya Birla Capital
Union Bank of India GIC Housing
SBI PNB Housing
ICICI Bank L&T Housing

FAQs

Indian residents, NRIs, and PIOs with a minimum age of 21 years and maximum age at the time of loan maturity should be 65 years, either salaried or self-employed, having a decent credit score of 750 and above can apply for a home loan in Kerala. 

Seasoned banks and NBFCs in Kerala usually take 3 to 21 working days to disburse the home loan amount, provided they get all the required documents with the home loan application on time. 

The lowest interest rate on a home loan in Kerala starts at 8.50% per annum. 

The down payment for a home loan in Kerala is 20% of the property value. 

The minimum income requirement to get a home loan in Kerala for salaried applicants is Rs. 1.8 lakh per annum and Rs. 3 lakh for self-employed applicants.