One common aspiration all of us share all throughout our lifetime is to have a home that we can call our own. Although renting out a property is clearly the trend now; however, an extensive survey conducted among 5000 Indians by the Economic Times in 2019 pointed out that more than 85% of the participants wanted to build a house of their own in either the city where they currently reside or in their rural dwellings.
Although this is a common goal all of us share, however one obstacle which often arrives pre-packaged with this aspiration is the dilemma of how we can finance the dream project, and that is exactly what we will be talking about in today’s article.
In today’s issue, we will share with you an in-depth list of the most popular and sought-after housing finance companies in India and also share why these companies are good on their word, and how they can help you in making your dream of owning your own house come true.
Without further ado, let’s get started.
What Is a Housing Finance Company?
Before we dive into the list of the most popular housing finance companies in India, let us first start by understanding the actual meaning of the term housing finance.
In simple terminology, the phrase housing finance can be understood as a financial lending instrument wherein the lender (referred to as the housing finance institution) lends you a sum of money, anywhere in the range of ₹10 lakhs to ₹1 crore, and financially empowers you, the borrower to build your own home. The concept of housing finance has been around in India since independence, and generally, these loans are the ones which arrive with the longest tenures and a competitive rate of interest.
Historically, these loans were only disbursed by traditional banks, however over the past decade, a number of companies have come up which give out such loans to a broad spectrum of borrowers, and the key purpose of this article is to capture some of the most significant of these companies and highlight their key offerings for the Indian diaspora.
1. HDFC Housing Finance
HDFC is a popular name among Indian consumers mostly for its banking initiatives; however, few are aware of the company’s origin, which is effectively captured in its name. The abbreviation HDFC stands for Housing Development Finance Corporation, and the company has an extensive list of offerings exclusively aimed at those wanting to build a house to their name and are actively seeking a credit line for the same.
Some of HDFC’s most popular offerings empower individuals to purchase flats of their own, build a house, renovate an existing one or even add sections to it. The company charges a competitive interest rate starting at 6.75% and a processing fee of maximum of 0.5% of the loan amount, making its offerings very attractive to Indian consumers.
2. Punjab National Bank (PNB) Housing Finance
No matter where you reside, that is either in rural or urban India, chances are that you have visited a PNB branch at least once. Similar to HDFC, PNB is famous for its banking initiatives; however, its housing finance branch is equally popular among consumers for its wide range of offerings and competitive terms and conditions.
PNB offers an extensive range of housing finance products and charges a competitive rate of interest starting from 7.35%. Similar to HDFC, it charges a processing fee of 0.50% (minimum ₹10,000), and you can take a loan with a maximum tenure of 30 years if, at the time of applying, you are 21 years old.
3. LIC Housing Finance
There is a reason as to why LIC’s slogan reads “Zindagi ke Saath bhi, Zindagi ke baad bhi,” and one of the main proponents of this, is the wide range of housing finance products the company offers to millions of Indians. The country’s largest insurer by volume, revenue generated, and customers serviced, LIC’s housing finance products are highly favored by Indian consumers both in cities as well as rural settlements for their attractive features.
The housing finance products offered by LIC arrive at a competitive rate of interest starting at 6.90%, and the company charges a minimum processing fee of ₹10,000 on its house loans. You can take a loan of maximum tenure of 35 years if you are self-employed and of 30 years if you are salaried, and also take advantage of its borrower-centric terms and conditions.
4. Indiabulls Housing Finance
A relatively new entrant in the housing finance industry in India, IndiaBulls is quickly gaining a lot of attention from borrowers across the country, mainly for its attractive offerings, which have been intentionally designed keeping in mind the average Indian borrower. In order to apply for a home loan from IndiaBulls, you need to be of minimum 23 years of age, and you can take a loan with a maximum tenure of 25 to 30 years.
The company charges an attractive rate of interest starting at 8.65% and a processing fee of 1% on all its home loans and even offers loans to new or first-time borrowers.
5. IIFL Home Finance
Last but not least, on our list of the most significant housing finance companies in India is IIFL, the abbreviation of which stands for India Infoline. If you have just turned 18 and you are looking for an affordable housing loan provider who favors young borrowers, IIFL is the company you should approach.
The company offers a wide range of housing finance products and charges an interest rate starting at 8.45% and a maximum processing fee of 1.25%. Along with this, all housing finance products arrive with a maximum tenure of 30 years, meaning that you have time on your side to steadily pay back your loan.
Conclusion:
Building a house to our own name is a dream for many of us; however, without access to proper financing instruments, it can be harder to realize. Now that you know of the most popular housing finance institutions in India, which one will you choose for your home loan; comment down below and let us know.
Related Links: Home Loan EMI Calculator
