With more NBFCs or Non-Banking Financial Companies launching loan apps, it has become easier for potential homebuyers to apply for loans. Still, there are apprehensions among people, especially when it comes to choosing between a traditional bank and an NBFC. Click here to read more on whether you should go with the NBFC home loans offer.
The following table will give you a comprehensible idea about the top 5 best NBFCs for a home loan in India in 2022 along with their interest rates and loan repayment tenure:
|NBFC||Maximum loan amount||Repayment tenure||Interest rates|
|Navi||Rs. 10 Crore||1-25 years||8.39% onwards|
|PNB Housing Finance Ltd.||Rs. 75 lakh||1-30 years||8.90% onwards|
|Tata Capital||Rs. 5 Crore||1-30 years||8.60% onwards|
|Indiabulls||Rs. 3 Crore||1-30 years||8.95% onwards|
|LIC Housing Finance||Rs. 15 Crore||1 – 30 years||8.40% onwards|
NBFCs have a very detailed process for home loan applications. To apply for a home loan through an NBFC you have to go through the following procedure:
To compete with the low-interest rates offered by traditional banks, NBFCs have also started offering loans at low rates. Today, you can get NBFC home loan interest rate as low as 7.05% p.a. with an NBFC.
NBFCs usually don’t follow a stringent loan application and approval process like traditional banks. As a borrower, it’s easier to get a loan with a relatively lower credit score from an NBFC than from banks. However, this may vary from financing company to company and may also affect the NBFC home loan interest rate.
NBFCs are more tech-focused. With the introduction of consumer-friendly apps, taking a home loan has never been this easier. You can experience a hassle-free application process, minimal documentation, and quick loan disbursal with NBFCs.
NBFCs are more flexible when it comes to approving a home loan. One of the many goals of NBFCs is to offer a customer-friendly, hassle-free loan application process. They are pretty flexible in terms of eligibility and documentation.
The documentation procedure could be relatively hassle-free in the case of NBFCs. Most NBFCs have resorted to online documentation (for application) and KYC post-pandemic. This also decreases the disbursal time for loans.
Every borrower has to pay stamp duty and registration costs for the property for which they are getting a loan. States set their own stamp duty, and usually, borrowers have to cover this cost themselves. While banks fund none of these costs, some NBFCs include some of these additional costs in their loan schemes. This eventually contributes to higher LTVs.
The eligibility criteria set by NBFCs differ, but generally, these prerequisites are easy to meet.
NBFCs ask for minimal documents to make the application process hassle-free. You will be required to present the following general documents:
The following factors will affect your home loan interest rates. By taking care of these factors you will be able to avail of NBFC home loan at low-interest rates:
When it comes to home loans, it is debatable whether to choose a bank or an NBFC. It depends on the financial situation of the borrower and the terms and conditions of the lender that one is choosing.
As we have seen, it is easier to get a loan approved by an NBFC than to get it sanctioned by a bank. There are many other benefits that you can avail of from an NBFC while getting a home loan which is otherwise not provided by banks. So, one should consider the interest rate, repayment tenure, offers available, loan charges, etc. to compare and choose between the available options.
NBFC home loans are designed to fulfil every borrower’s dream to buy a house. Even though NBFCs have a smaller customer base, they are constantly striving to make personal finance more accessible to customers.
NBFCs can be a better alternative to banks in case you are looking for a hassle-free loan application process. However, make sure to consider the NBFC home loan interest rate, your repayment capacity, and other fees and charges, before applying.
Ans: No, they are not the same thing. Housing finance companies (HFCs) are NBFCs that provide financial aid to people only for housing-related purposes.
Ans: In 2020, RBI allowed NBFCs to co-lend with banks. This co-lending arrangement is made to improve underserved sectors of Indian society. This allows registered NBFCs to borrow from RBI, but only with banks.
Ans: A borrower should analyse many factors before obtaining a home loan like interest rates, eligibility criteria, processing time etc. However, the option about which scheme is better is subjective and varies according to the financial capabilities of individuals.
Ans: Generally, home loans are given to individuals above the age of 23. But few NBFCs make special provisions for 18-year-olds to get these loans.
Ans: There are two types of home loan interest rates offered by NBFCs- fixed and floating interest rates.
Ans: If you compare fixed and floating interest rates offered by NBFCs, fixed interest rates are always 1%-2.% higher than the floating interest rates. Floating interest rates usually prove to be more beneficial than the fixed interest rate.
Ans: Home loan interest rates as offered by NBFCs are not influenced by RBI and usually depend on the Prime Lending Rate. The borrower can further negotiate with the lender to get a suitable interest rate.
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 8.74% 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.
|Home Loan Interest Rate||Home Loan EMI Calculator||Home Loan Tax Benefits|
|Home Loan Prepayment Calculator||Minimum CIBIL Score For Home Loan||How to Apply for Home Loan|
|Home Loan Prepayment||NBFC Home Loans In India||Home Loan Stamp Duty|
|Home Loan Balance Transfer||Home Loan Types||Home Loan Process|
|NRI Home Loan||Home Loan Insurance||Benefits of Joint Home Loan|
|Documents Required For Home Loan||Top Banks And NBFCs for Home Loans||Home Loan For Women|
|Home Construction Loans||Home Loan Sanction Letter||Loan Against Property Interest Rates|
Housing Loan Interest Rates in 2023: Formula, Calculation and ChargesWith RBI increasing its repo rate to 6.50%, lenders have increased their home loan interest rates t... Read More »
Get Home Loan In Dharwad – Interest Rates and How to Apply OnlineDharwad, located in the north-western part of Karnataka, is a developing industrial hub of the stat... Read More »
How to Apply for a Home Loan in Bangalore – Interest Rates and Eligibility CriteriaGetting a home loan in Bangalore wouldn't be too difficult if you have the repaying capacity and a ... Read More »
Home Loan Repayment Calculator – Best Ways to Repay Home LoansHome loan repayment (foreclosure) refers to the complete repayment of the outstanding loan amount t... Read More »
Tips to Consider Before Purchasing Your First HomeBuying your first home is essential, and emotional for many in India. It is one of the most sought-... Read More »
Benefits of Taking a Joint Home Loan in India – Tax Benefits (2023)While applying for a home loan it is not mandatory to have a co-applicant. However, there are multi... Read More »
Mortgage Loan/Loan Against Property: Eligibility, Interest Rates and Things to ConsiderA mortgage loan is a secured financing option sanctioned against a property kept as collateral. Als... Read More »
RERA Telangana – TSRERA Services, Registration Process and FeesOn 31st July 2017, the state government of Telangana notified the TSRERA or Telangana State Real Es... Read More »
Loan-to-Value Ratio | Working, Calculation, Guidelines and ImpactThe loan-to-value (LTV) ratio is a risk evaluation method used by financial institutions and l... Read More »
Best SIP Mutual Funds To Invest In India (2023) – Its Types And TaxationA Systematic Investment Plan (SIP) is a convenient way to invest a fixed sum in mutual funds. For i... Read More »
All information is subject to specific conditions | © 2023 Navi Technologies Ltd. All rights are reserved.