How to Apply for a Home Loan from Banks in India (2025 Guide)
Applying for a home loan is a major financial decision that helps millions of Indians achieve the dream of owning a house. With multiple banks offering home loans at competitive interest rates, understanding the eligibility, documentation, and application process is essential. In this guide, we explain how to apply for a home loan from banks in India, eligibility criteria, interest rates, required documents, and government subsidy schemes available for homebuyers.
Why Apply for a Home Loan in 2025?
With government support and banks offering lower interest rates, 2025 is an ideal year to apply for a home loan. Banks are encouraging more individuals to invest in housing by offering:
- Reduced interest rates starting from 8.30%*
- Easy EMI options up to 30 years
- Digital loan application and approval
- Pre-approved offers for salaried individuals
- Subsidies under Pradhan Mantri Awas Yojana (PMAY)
Top Banks Offering Home Loans in India
When choosing a home loan provider, consider factors like interest rate, loan tenure, processing fees, and customer support. Here are some of the best-performing banks in 2025:
| Bank Name | Interest Rate (Starting) | Processing Fee | Maximum Tenure |
|---|---|---|---|
| SBI Home Loan | 8.30% p.a. | 0.35% | 30 years |
| HDFC Ltd. | 8.40% p.a. | Up to ₹3,000 | 30 years |
| ICICI Bank | 8.50% p.a. | 0.50% | 30 years |
| Axis Bank | 8.60% p.a. | Up to ₹10,000 | 30 years |
| Bank of Baroda | 8.35% p.a. | 0.25% | 30 years |
| LIC Housing Finance | 8.45% p.a. | ₹10,000 | 30 years |
*Interest rates may vary based on applicant’s credit profile.
Eligibility Criteria for Home Loans
Most banks have standard eligibility requirements. Here’s what they usually look for:
1. Age
- Minimum: 21 years
- Maximum at loan maturity: 65 years for salaried, 70 years for self-employed
2. Employment Type
- Salaried employees (private or government)
- Self-employed professionals (doctors, lawyers, etc.)
- Business owners
3. Minimum Income
- Monthly income of ₹25,000 or more
- Combined income allowed in case of co-applicants
4. CIBIL Score
- A minimum CIBIL score of 700 is generally preferred
- Higher score increases chances of better loan terms
Documents Required for Home Loan Application
Keeping your documents ready will speed up the approval process. The following documents are commonly required:
For Salaried Individuals
- PAN card and Aadhaar card
- Latest salary slips (last 3–6 months)
- Form 16 or Income Tax Returns
- Bank account statements (last 6 months)
- Identity and address proof
- Property documents (if finalized)
For Self-Employed Individuals
- PAN card and Aadhaar card
- Income Tax Returns (last 2–3 years)
- Business proof (GST registration, trade license, etc.)
- Bank statements
- Property documents
Step-by-Step Process to Apply for a Home Loan
Step 1: Research and Compare Loan Offers
Use online platforms or visit bank websites to compare home loan offers based on interest rates, processing fees, tenure, and reviews.
Step 2: Check Eligibility
Use a bank’s home loan eligibility calculator to check how much loan amount you are eligible for based on your income, age, and repayment capacity.
Step 3: Submit Application
You can apply online or visit the nearest bank branch. Provide your personal details, income proof, property information, and upload documents.
Step 4: Verification Process
The bank will verify:
- Your credit history (CIBIL score)
- Income and employment details
- Property legal papers
Step 5: Sanction and Disbursement
If everything is in order, the bank will issue a sanction letter. Once the property is verified and the agreement is signed, the loan amount is disbursed.
Home Loan EMI Calculator
To estimate your monthly EMI, use any bank’s Home Loan EMI Calculator. Enter the loan amount, interest rate, and tenure. For example:
- Loan Amount: ₹30,00,000
- Interest Rate: 8.35%
- Tenure: 20 years
Your EMI will be approximately ₹25,800/month.
Government Subsidy: Pradhan Mantri Awas Yojana (PMAY)
Under PMAY’s Credit Linked Subsidy Scheme (CLSS), eligible homebuyers can get up to ₹2.67 lakh subsidy on home loans.
Eligibility for PMAY CLSS
- First-time homebuyer
- Annual household income less than ₹18 lakh
- Property should be in the name of a female or jointly with a female
How to Apply for PMAY Subsidy
- Apply for home loan from a PMAY-partner bank (e.g., SBI, HDFC, ICICI)
- Bank will apply for subsidy on your behalf
- Subsidy will be directly credited to your loan account
This reduces your EMI burden significantly.
Tips to Get Low Interest Rate on Home Loan
- Improve Your Credit Score
A CIBIL score above 750 improves your chances. - Choose a Shorter Tenure
Lower tenure = less total interest. - Make a Higher Down Payment
Borrow less, pay less. - Apply Jointly with Spouse or Parents
Combines income = higher eligibility. - Look for Bank Offers for Women Applicants
Many banks offer 0.05% lower rates to women.
Best Time to Apply for a Home Loan
Banks often give offers during:
- Festive seasons (Diwali, Ugadi, Dussehra)
- New Year or financial year-end sales
- Government-backed housing drives
Check your preferred bank’s official website for latest schemes and interest rates.
Can I Get a Home Loan for Under-Construction Property?
Yes, most banks allow loans for under-construction properties. The amount is disbursed in stages based on construction progress. Make sure:
- The builder has RERA registration
- You check for legal clearances
Banks may have tie-ups with reputed builders, making it easier to get a loan sanctioned.
Common Mistakes to Avoid While Applying for a Home Loan
- Not comparing multiple loan offers
- Ignoring hidden charges (processing fees, legal fees, etc.)
- Taking longer tenure without checking total interest
- Buying beyond your budget
- Not reading loan agreement terms properly
✅ Apply link ✅
Getting a home loan from a bank in India is simpler than ever, especially in 2025 with digital applications and support from government schemes like PMAY. By choosing the right bank, preparing documents in advance, and maintaining a good credit score, you can easily get your home loan approved at a competitive interest rate. Always research and compare offers, and make sure you choose a tenure and EMI that suits your financial situation.
Frequently Asked Questions (FAQs)
Q1: Which bank offers the lowest interest on home loans in India?
SBI, Bank of Baroda, and HDFC are offering competitive interest rates starting from 8.30% p.a. in 2025.
Q2: Can I apply for a home loan online?
Yes, all major banks offer online home loan applications with document uploads and digital verification.
Q3: What is the maximum home loan tenure?
Most banks offer a maximum tenure of 30 years for home loans.
Q4: Is PMAY subsidy still available in 2025?
Yes, PMAY-Urban CLSS is expected to continue in 2025 for eligible homebuyers.
Q5: How much down payment is required?
Typically, banks finance up to 80–90% of the property value. You need to pay 10–20% as a down payment.