Affordable Home Loan

Affordable home loan refers to the Home loan taken for housing units that are affordable by that section of society whose income is below the median household income.

Though different countries have different definitions for affordable housing, but it is largely the same, i.e. affordable housing should address the housing needs of the lower or middle income households. Affordable housing becomes a key issue especially in developing nations where a majority of the population isn't able to buy houses at the market price.

Disposable income of the people remains the primary factor in determining the affordability. As a result, it becomes the increased responsibility of the government to cater to the rising demand for affordable housing. The Government of India has taken various measures to meet the increased demand for affordable housing along with some developers and stressing on public-private partnerships (PPP) for development of these units.

Avail home loans up to Rs.10 crore with interest rates starting at 8.35% p.a. with additional benefits such as extended loan terms and flexible repayment options. Simple documentation, quick processing, and an excellent customer service with a response time of 30 – 45 minutes makes LoanBazaar a go-to place for all your housing loan needs.

Bank ROI Processing Fees Loan Amount Tenure Institution Type Best Fit For  
AAVAS Financiers Ltd AAVAS Financiers Ltd 11.50% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Aditya Birla Capital Aditya Birla Capital 8.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Avanse Financial Services Avanse Financial Services 10.50% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Axis Bank Axis Bank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
AXIS FINANCE AXIS FINANCE 7.50% 1% 7CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Axis Finance Axis Finance 8.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - OD FACILITY
Bank of Baroda Bank of Baroda 6.90% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
Bank Of India Bank Of India 7.25% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Bank Of Maharashtra Bank Of Maharashtra 7.05% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Easy Eligibility Checks
Canara Bank Canara Bank 7.25% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
Citibank Citibank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Low Interest Rate
DCB Bank DCB Bank 8.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Dewan Housing Finance Corporation Dewan Housing Finance Corporation 9.20% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Deutsche Bank Deutsche Bank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Edelweiss Edelweiss 9.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Federal Bank Federal Bank 8.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Fullerton India Fullerton India 9.20% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Below 650 Cibil Cases
Gic Housing Finance Gic Housing Finance 8.50% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Different Income Categories
HDFC Bank HDFC Bank 7.00% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Self-Employed Professional
Hero FinCorp Hero FinCorp 8.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
ICICI Bank ICICI Bank 8.20% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Quick Disbursal
ICICI Home Finance ICICI Home Finance 7.50% 1% 7CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
IDFC First Bank IDFC First Bank 8.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Loan on Banking sarogate
IIFL IIFL 8.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Indiabulls Indiabulls 8.50% 1% 10CR 25 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
Jana Small Finance Bank Jana Small Finance Bank 7.25% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
JM Financial JM Financial 7.25% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
KIFS KIFS 11.50% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Kotak Mahindra Bank Kotak Mahindra Bank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Quick Turnaround Time
LIC Housing Finance LIC Housing Finance 6.90% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Special Offers
Magma Finance Magma Finance 11.50% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Salaried,Self Employed,Professional
Manappuram Finance Limited Manappuram Finance Limited 13% 1% 2CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Muthoot Finance Muthoot Finance 11.50% 1% 3CR 25 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
PNB Housing Finance PNB Housing Finance 8.50% 1% 10CR 25 Years NBFC Salaried,Self Employed,Professional - Easy Eligibility Checks
SBI SBI 6.90% 1% 10CR 25 Years GOVT PSU Salaried,Self Employed,Professional - Salaried,Self Employed,Professional
Shriram Finance Shriram Finance 10.50% 1% 3CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Standard Chartered Bank Standard Chartered Bank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Quick Disbursal
Suryoday Small Finance Bank Suryoday Small Finance Bank 11% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Tata Capital Tata Capital 8.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Flexible Interest Rates
Tata Capital Housing Finance Limited Tata Capital Housing Finance Limited 7.50% 1% 5CR 25 Years NBFC Salaried,Self Employed,Professional - Different Income Categories
Union Bank Of India Union Bank Of India 7.25% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Different Income Categories
Yes Bank Yes Bank 7.50% 1% 10CR 25 Years BANK Salaried,Self Employed,Professional - Affordable Interest Rates
Home Loan Fees and Charges

Depending on the type of loan you are applying for, the following charges may be levied:

Processing fees:This is a one-time non-refundable fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.

Prepayment charges:Prepayment penalty is the fee you will have to pay the lender if you plan on repaying your home loan before the completion of the loan tenure.

Conversion fees: Some banks also charge a conversion fee when you decide to switch to a different loan scheme in order to lower the interest rate associated with your current scheme.

Cheque dishonour charges:The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonoured due to reasons such as insufficient funds in the borrower's account.

Fees on account of external opinion:In some cases, you might want to consult an external expert such as a lawyer or a valuator for his/her opinion on the loan. This fee should be paid directly to the concerned person and not the lending institution.

Home insurance:The premium should be paid directly to the concerned company during the term to ensure that the insurance policy is running during the home loan tenure.

Default charges:Loan providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.

Incidental charges: This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly instalments on time.

Statutory/regulatory charges:The fee includes all charges associated with Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and stamp duty. You can visit www.cersai.org.in to know more about these charges.

Photocopy of documents:The fee is payable to the bank if you require a photocopy of your home loan documents for any personal needs.

Change in loan term: Some banks also charge a nominal fee if you wish to change the tenure associated with your loan.

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