Best Home Finance Companies (HFCs) in India 2023
Housing Finance Companies (HFCs) are Non-Banking Financial Companies (NBFCs) that specifically cater to disbursing home loans. In recent times, India has seen a spurge in HFCs. With so many options available, finding the best HFC could be tedious. Check out this list of 15 best Housing Finance Companies in India. Read on to compare and select the home financing company of your choice!
Facts to Know
While RBI regulates HFC, it’s NHB (National Housing Bank) that supervises HFC.
Best Housing Finance Companies in India in 2023 – Top HFCs
Here is a list of best housing finance companies 2023:
| Name | Interest Rate (p.a.) |
| Navi | 8.60% onwards |
| LIC Housing Finance | 8.65% onwards |
| PNB Housing Finance | 8.50% onwards |
| GIC Housing Finance | 8.10% onwards |
| ICICI Home Finance Company Limited | 9.20% onwards |
| IIFL Housing Finance Limited | 8.70% onwards |
| Tata Capital Housing Finance Limited | 8.75% onwards |
| Sundaram Home Finance Limited | 9.85% onwards |
| Reliance Home Finance Limited | 9.75% onwards |
| Edelweiss Housing Finance Limited | 10.50% onwards |
| Motilal Oswal Home Finance Limited | 11.75% onwards |
| Aditya Birla Housing Finance Limited | 8.75% onwards |
| Indiabulls Housing Finance | 9.30% onwards |
| Bajaj Housing Finance Limited | 8.60% onwards |
| Muthoot Homefin (India) Limited | 11.25% onwards |
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How to Get a Home Loan at an Affordable Interest Rate?
1. Maintain a Good Credit Score
Your credit score is one of the primary factors that reflect your trustworthiness as a borrower. A credit score below 700 can result in higher interest rates, while a higher score of 750 and above increases the chances of getting a home loan at a lower interest rate. Pay your credit card bills on time to maintain a good credit score. Here are other ways you can increase your credit score.
2. Go for Home Loan Balance Transfer
If you already have a home loan with a lender, you can transfer the balance loan amount to a Housing Finance Company that offers balance transfer facilities. It will help reduce your home loan rate of interest and bring down the overall cost of your new home.
3. Opt for a Lower LTV Ratio
The loan-to-Value (LTV) ratio is a proportion of the value of a given property sanctioned for a home loan. Taking a loan with a lower LTV ratio and higher down payment will get you better rates.
4. Opt for Floating Rate of Interest
Floating rates are generally 1-2% lower than fixed-rate but fluctuate with changing base rates. When base rates are lower, you can enjoy lower interest charges with a floating rate.
Also Read
How Do Housing Finance Companies Work?
Housing finance companies are non-banking financial institutions involved in aiding the construction or refurbishing of residential or commercial properties. These loans can be availed by businessmen or employed professionals.
Apart from providing home loans, Housing Finance Companies also provide loans against property. The tenure may vary from anywhere between 15 to 30 years based on the repayment capacity of the borrower.
Best Housing Finance Companies 2023 – Detailed Overview
Navi offers home loans up to ₹5 Cr at attractive interest rates. Home loan borrowers can enjoy instant loan approvals and sanction letters along with flexible EMI options. Its easy-to-use loan app helps check loan eligibility in seconds. No need to stand in long queues or do heavy paperwork, just enter PAN or Aadhaar card details to complete KYC. The requested loan amount is disbursed to the borrower’s account after KYC verification. Download the Navi app to apply now!
- Interest Rate for Salaried – 8.60% p.a. onwards
- Interest Rate for Self-employed – 8.74% p.a. onwards
- Eligibility Criteria – Indian resident, age between 25-62 years
- Processing Fee – Nil
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
2. LIC Housing Finance Ltd. (LICHFL)
LICHFL offers home loans at attractive interest rates and flexible tenures extending up to 30 years. You can opt for a variety of home loan products with LICHFL. The HFC also offers home loans to NRIs.
- Interest Rate for Salaried – 8.65% p.a. onwards
- Interest Rate for Self-employed – 8.75% p.a. onwards
- Eligibility Criteria – Indian resident, Minimum salary Rs.30,000, Maximum Age: Salaried – 50, Self-employed – 75, Minimum Credit Score – 700
- Processing Fee – 0% – 0.50%
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
3. Punjab National Bank – PNB Housing Finance (PNB Housing)
PNB Housing Finance offers up to 90% of property value as home loan. The HFC charges a low processing fee of up to 0.5% of the loan amount. The tenure can be extended up to 30 years.
- Interest Rate for Salaried – 8.50% p.a. onwards
- Interest Rate for Self-employed – 8.50% p.a. onwards
- Eligibility – Indian resident, Age: 21-65 years, Minimum Salary: Rs.15,000/-, Minimum Credit Score – 611
- Processing Fee – Up to 0.50% of the loan applied for + Applicable taxes
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
4. GIC Housing Finance
GIC Housing Finance offers home loans under the ‘Apna Ghar Yojana’ scheme. You can get up to 90% of the value of the property at attractive interest rates and flexible repayment tenures of up to 30 years.
- Interest Rate for Salaried – 8.10% p.a. onwards
- Interest Rate for Self-employed – 8.10% p.a. onwards
- Eligibility – Indian resident, Age: 21-65 years, Indian resident or NRI, salaried, self-employed or agriculturist
- Processing Fee – Up to 0.50% of the loan
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
5. ICICI Home Finance Company Limited
ICICI Home Finance Company Limited is a wholly-owned subsidiary of ICICI bank and the headquarter is in Mumbai. It was established in the year 1999 and provides corporates and individuals with home loans for the purchase or construction of a property.
- Interest Rate for Salaried – 9.20% p.a. onwards
- Interest Rate for Self-employed – 9.20% p.a. onwards
- Eligibility – Indian resident or NRI, Salaried (Minimum income Rs.12,000/-) or self-employed (Minimum income Rs.1.5 lakh p.a.), Age: 18-65 years
- Processing Fee – 0.75% – 3%
- Loan Tenure – Up to 25 years
- Foreclosure Charges – Nil
6. IIFL Housing Finance Limited
A registered housing finance company with National Housing Bank, IIFL Housing Finance Limited provides loans for the purchase of new properties or plots. It also provides a balance transfer facility to existing home loan borrowers at a lower interest rate. With IIFL, you can apply for a home online through their app.
- Interest Rate for Salaried – 8.70% p.a. onwards
- Interest Rate for Self-employed – 8.70% p.a. onwards
- Eligibility – Indian resident, NRI and person of Indian origin, salaried or self-employed, Age: 18-65 years
- Processing Fee – Up to 1.75% of the loan amount
- Loan Tenure – Up to 25 years
- Foreclosure Charges – Nil
7. Tata Capital Housing Finance Limited
Tata Capital Housing Finance Limited is a wholly-owned subsidiary of Tata Capital Limited that provides loans for the purchase or construction of a residential unit, buying a plot, renovating or repairing a house, etc. It offers a loan of up to Rs. 5Cr. Tata Capital Housing Finance Limited is registered with National Housing Bank.
- Interest Rate for Salaried – 8.75% p.a. onwards
- Interest Rate for Self-employed – 8.95% p.a. onwards
- Eligibility – Salaried or self-employed, Age: 24-65 years
- Processing Fee – Up to 2% of the loan amount plus applicable taxes
- Loan Tenure – Up to 30 years
- Foreclosure Charges – 2% for non-individuals and balance transfer on fixed-rate
8. Sundaram Home Finance
With over 120 branches all over India, Sundaram Home Finance provides home loans for the purchase or property or plot in a personalised and flexible manner. It is a 65-year-old company with 20 years in housing finance and offers home loans up to Rs.5 Cr. It also provides balance transfer facility and top-up loans for existing borrowers.
- Interest Rate for Salaried – 9.85% p.a. onwards
- Interest Rate for Self-employed – 10.35% p.a. onwards
- Eligibility – Salaried or self-employed, Indian resident, Age: 18-65 years
- Processing Fee – 0.50% of the loan amount
- Loan Tenure – Up to 20 years
- Foreclosure Charges – Nil
9. Reliance Home Finance
Reliance Home Finance Limited is one of the leading HFCs in India. It provides home loans at attractive rates for purchasing or constructing a home. Facilities like balance transfer, 48-hour disbursal and top-up loans are available.
- Interest Rate for Salaried – 9.75% p.a. onwards
- Interest Rate for Self-employed – 9.75% p.a. onwards
- Eligibility – Salaried or self-employed, Indian resident, over 21 years with minimum salary of Rs.2 lakh per annum.
- Processing Fee – 0.5% to 1.5% of the loan amount
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
10. Edelweiss Housing Finance Limited
Registered with National Housing Bank, Edelweiss Housing Finance Limited offers home loans for the purchase, repair, construction and renovation of homes. Under its Assessed Income program, they offer big and small home loans of up to Rs.25 lakh.
- Interest Rate for Salaried – 10.50% p.a. onwards
- Interest Rate for Self-employed – 10.50% p.a. onwards
- Eligibility – Salaried or self-employed, Indian resident, 21 years and above
- Processing Fee – Up to 2% of the loan amount plus service tax as applicable
- Loan Tenure – Up to 25 years
- Foreclosure Charges – Nil
11. Motilal Oswal Home Finance Limited
One of the most trusted home finance companies in India, Motilal Oswal Home Finance Limited provides loans for purchasing a home, renovating and repairing as well as top-up loans. Established in 2013, it is promoted by the Motilal Oswal Group. It provides home loans up to Rs.40 lakh at attractive interest rates.
- Interest Rate for Salaried – 11.75% p.a. onwards
- Interest Rate for Self-employed – 12.75% p.a. onwards
- Eligibility – Salaried or self-employed Indian resident
- Processing Fee – Up to Rs 5,000
- Loan Tenure – Up to 25 years
- Foreclosure Charges – Rs.2,000 + GST (18%)= Rs.2,360
12. Aditya Birla Housing Finance Limited
A subsidiary of Aditya Birla Capital Limited, Aditya Birla Housing Finance Limited is a housing finance company that provides home loans for the purchase of property or land or for renovation, repair at attractive rates.
- Interest Rate for Salaried – 8.75% p.a. onwards
- Interest Rate for Self-employed – 9% p.a. onwards
- Eligibility – Salaried or self-employed Indian resident, 21-70 years of age
- Processing Fee – Up to 1% of the loan amount
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
13. Indiabulls Housing Finance
Indiabulls Housing Finance offers home loans at attractive interest rates across tenures. However, the final rate of interest depends on the property type, loan amount, borrower’s profile and other parameters. They also provide a balance transfer facility.
- Interest Rate for Salaried – 9.30% p.a. onwards
- Interest Rate for Self-employed – 9.30% p.a. onwards
- Eligibility – Salaried or self-employed Indian resident, credit score minimum 750
- Processing Fee – Home loan 0.50% onwards
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
14. Bajaj Housing Finance Limited
Bajaj Housing Finance Limited is a subsidiary of Bajaj Finance Limited. It offers home loans for the purchase of a residential unit or a commercial property or for home renovation and construction of up to Rs.5 crore or higher. Benefits include 48-hour disbursal, balance transfer, loan top-up and online account management.
- Interest Rate for Salaried – 8.60% p.a. onwards
- Interest Rate for Self-employed – 9% p.a. onwards
- Eligibility – Salaried or self-employed Indian resident, 23-62 years of age
- Processing Fee – Up to 7% of the loan amount
- Loan Tenure – Up to 30 years
- Foreclosure Charges – Nil
15. Muthoot Homefin (India) Limited
Muthoot Homefin (India) Limited is registered with National Housing bank and is a wholly-owned subsidiary of Muthoot Finance Limited. Established in the year 2011, it offers home loans for salaries and self-employed individuals in rural and semi-urban areas. They offer housing loans for Indian residents as well as NRIs for buying a home or plot, construction and renovation.
- Interest Rate for Salaried – 11.25% p.a. onwards
- Interest Rate for Self-employed – 11.25% p.a. onwards
- Eligibility – Salaried or self-employed Indian resident and NRIs, 21-65 years of age
- Processing Fee – Up to 2% of the loan amount
- Loan Tenure – Up to 25 years
- Foreclosure Charges – Nil (except for Plot loans)
Types of Home Loan Rates Charged by Housing Finance Companies
There are two types of interests provided by the HFCs. They are as follows:
1. Fixed Interest Rate
For fixed interest home loans, the rate of interest remains the same throughout the tenure of repayment. Your repayment amount is safe from market fluctuation and after a certain period of tenure, you can choose to switch to a floating interest rate.
2. Floating Interest Rate
Floating interest rates do not stay the same during the repayment tenure. It is influenced by the RBI monetary policy, lending rate revisions and the concerned bank’s response to the revision. In most cases, the fixed interest rates are higher than the floating interest rates.
Final Word
Housing Finance Companies or HFCs are one of the best options for home loans. Whether you want to buy a new home or a plot, renovate or repair – you can depend on one of the 15 best housing finance companies in India in 2023 as mentioned in the list above. Check the eligibility criteria, interest rates and other charges before applying online or offline to improve your chances of getting the home loan approval.
Looking for instant approval on a home loan? Apply for Navi Home Loan in a 100% paperless manner with zero processing fee and minimal documents and get the key to your new house. Other benefits include – attractive interest rates starting at 8.74% p.a., instant sanction letter and flexible EMI options, among others.
FAQs
Ans: HFCs are NBFCs that primarily provide home loans and allied financial products. They often offer less stringent eligibility criteria and quicker processing time than banks.
Ans: Currently, Navi offers the best interest rates starting at 7.39% per annum. You can apply for a loan through both online and offline channels.
Ans: Taking a loan from HFC has its pros and cons. Their interest rates are pegged to prime lending rates, which are sometimes higher than that of banks. Moreover, they may carry more processing fees and penalties.
Ans: Yes. Any financial institution will check your income stability to make sure that you can repay the loan without any hassles.
Ans: Floating interest rates are best when the interest rates fall. Fixed rates work well when home loan interest rates in the market increase.
Ans: Earlier, the National Housing Bank used to regulate the housing finance companies in India. In 2019, due to some discrepancies in debt payments, the Reserve Bank of India took over the regulation of housing finance companies.
Ans: Housing finance companies are registered under the Companies Act, 2013.
Before you go…
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.60% p.a.
Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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