Lowest home loan EMI: These non-bank companies offer home loan interest rates starting at just 8%
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What are Housing Finance Companies (HFCs)?
Lowest home loan interest rates
Name of Lender Loan Amount (Rs) Upto 30 Lakh Above 30 Lakh & Upto 75 Lakh Above 75 Lakh Non-bank companies home loan interest rates LIC Housing Finance 8.00 onwards 8.00 onwards 8.00 onwards Bajaj Housing Finance 7.99 onwards 7.99 onwards 7.99 onwards Tata Capital 8.75 onwards 8.75 onwards 8.75 onwards PNB Housing Finance 8.25-14.50 8.25-14.50 8.25-11.35 GIC Housing Finance 8.80 onwards 8.80 onwards 8.80 onwards SMFG India Home Finance 10.00 onwards 10.00 onwards 10.00 onwards Sammaan Capital
(Formerly Indiabulls Housing Finance) 8.75 onwards 8.75 onwards 8.75 onwards Aditya Birla Capital 8.50 onwards 8.50 onwards 8.50 onwards ICICI Home Finance 8.80 onwards 8.80 onwards 8.80 onwards Godrej Housing Finance 8.55 onwards 8.55 onwards 8.55 onwards *Extra interest rate concession of 0.05% to borrowers opting for insurance policy and extra 0.10% on green home projects.
**Additional concession of 0.05% & 0.10% for women borrowers & takeover loans, respectively. Rates as of 18th June 2025 Source: Paisabazaar.com
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Documents required to apply for home loan
PAN Card
Aadhar card
Proof of Residence
For NRIs: You'll also need to provide your passport
For salaried applicants: Provide your salary slips and Form No. 16.
For all applicants: Submit your bank statements for the last 6 to 12 months.
For self-employed or professionals: Include your income tax returns for the last 3 years along with your financial statements.
Proof of Ownership: Documents showing that you own the property.
For Flats: An allotment letter from the builder or society.
Tax Receipt An up-to-date tax paid receipt for the property.
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Since the beginning of 2025, the Reserve Bank of India (RBI) has cut the repo rate by 1% (100 basis points), bringing cheer to home loan borrowers as the reduction has led to lower interest rates. Historically, banks have been the go-to option for housing loans, thanks to their strong reputation and established presence in the financial sector. However, in recent years, housing finance companies (HFCs) have emerged as notable competitors, demonstrating adaptability and reliability in lending practices. Individuals who are self-employed or have non-traditional income sources may find it difficult to meet the stringent requirements of banks. As a result, they are often attracted to HFCs, which typically offer more flexible eligibility criteria compared to traditional banks.According to Kotak Mahindra Bank's website, 'HFCs primary focus is providing housing loans or financing through various direct or indirect means. While they were initially regulated by the National Housing Bank (NHB), the responsibility of handling HFCs was transferred to the Reserve Bank of India (RBI) in 2019. However, certain regulatory powers remain with the NHB.Also read: Home loan EMIs continue to fall: 7 banks cut home loan interest rates after RBI repo rate cut in June Currently, housing finance companies in the country offer interest rates between 7.99% and 10% on home loans. These rates depend on factors such as the lender, credit score, and loan amount, among others.Here are some basic documents to keep handy before applying for home loans, according to LIC Housing Finance 's website.KYC documentsIncome DocumentsProperty documentsImportant FAQs from PNB Housing every home loan borrower should know:On the annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.In the case of the daily reducing balance, which is the methodology we employ, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. This, in essence, lowers your effective rate of interest significantly.Before you choose the house that you want to buy, we give you an in-principle approval based on your income and repayment capacity.This makes the entire process of identifying and buying a house easier and more flexible. You won't be under pressure to identify a house, as you know how much funds the bank would make available to you.This in-principle approval is valid for 6 months, giving you sufficient time to choose a flat/house of your choice.For construction/additions of house/flat/purchase of ready built house/ flat: The loan, along with interest, is to be repaid in equated monthly instalments (EMIs) within a period of 30 years inclusive of the moratorium period.For carrying out repairs/renovation/alterations to the house/flat: The loan, along with interest, is to be repaid in equated monthly instalments within a period of 15 years, inclusive of the moratorium period, if any
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