Top 10 Best Housing Finance Companies in India- 2021

A housing finance company is a non-banking financial company that provides financing for the purchase of a home, the purchase of a plot, property, or the construction of a new home. A mortgage finance company will provide you with home loans, plot loans, home renovation loans, home extension loans, and new home loans. The same loans may also be obtained from a financial institution or a bank. Consider the following main considerations when choosing between a bank and a housing finance company: loan maturity period, processing cost, interest rate, and your eligibility, and determine what works best for you.

In comparison to other financial services that have been commonly available in India for several years, housing finance is a relatively new term. However, the rapid development of housing and various housing activities has led to the expansion of the Indian housing finance sector, which is understandable. As a result, a slew of new players has flooded the market. The top ten housing finance companies in India are listed below. The Housing and Urban Development Corporation (HUDCO) was established in 1970 to fund a variety of housing and urban infrastructure projects.

However, in 1977, India’s first private sector housing finance company, the Housing Development Finance Corporation (HDFC), was founded. Housing finance in India has been soaring since then. In the coming years, it is projected to rise at a 36 percent annual pace. As commercial banks increased their housing-related disbursements, their market share increased as well. In 2000, Indian housing finance firms accounted for 70% of all disbursements, but within five years, their total share had dropped to 36%. Banks accounted for 64% of all disbursements in 2005. The housing Industry currently contributes to nearly 8-9% of India’s GDP.

List of Best Housing Finance Companies in India

1.    Housing Development Finance Corporation

HDFC, or Housing Development Finance Corp., is a major home loan provider. It is the flagship company of the Indian financial conglomerate HDFC. The business has over 350 offices in India, with a total of 2,000 towns and cities covered. In 1977, the company was founded with the support of India’s business community. It aimed to alleviate the country’s housing shortage. HDFC continued to grow rapidly, and in 2000, it became India’s first home financing company to provide housing loans over the Internet. It opened its first overseas office in Dubai in 1996. It opened offices in London and Singapore in the 2000s.

HDFC home loans are based on the prime lending rate (PLR), which is currently 16.05 percent. HDFC home loan interest rates start at 6.70 percent right now. Besides, HDFC gives women borrowers special discounted rates. HDFC charges a processing fee of up to 1.50 percent on home loans. HDFC housing loans are structured to meet the needs of all types of home loan borrowers, each of whom has a different reason for needing a loan. HDFC home loan top-up, HDFC plot loans, HDFC home improvement loans, HDFC Reach home loan, and HDFC rural housing is some of the most common HDFC home loan products.

Products and Interest Rates

Features and Benefits

• Women borrowers may get home loans from HDFC at a lower interest rate.
• It can be purchased for a period of up to 30 years.
• Expert legal and professional advice is given to borrowers to help them make the best home loan decision.
• With an HDFC home loan, you can buy a home from private developers or government agencies like the DDA and MHADA.
• HDFC home loans can also be used to purchase co-operative housing associations, as well as freehold and rented land.

2.    PNB Housing Finance

PNB Housing Finance Limited (PNB Housing) is a National Housing Bank-registered housing finance company. It was formed under the Companies Act of 1956 and began operations on November 11, 1988. Punjab National Bank promotes PNB Housing (PNB). As of March 31, 2018, the organization had a presence in more than 60 locations across India, thanks to a network of 84 branches and 36 outreach offices. Individuals may get housing loans from PNB Housing for the building, purchase, repair, and upgrade of their homes. Loans against property, commercial property loans, and lease rental discounting loans for commercial property, loans for the purchase of residential plots, and loans for real estate developers are all available through the company. Fixed Deposits with various maturities and interest rate plans are also available from PNB HFL.

Products and Interest Rates

Features and Benefits

• The interest rate of the PNB Housing Finance home loan starts at 7.35 percent.
• PNB Housing Finance charges a processing fee of up to 1.00 percent of the loan amount, with a minimum of $10,000.
• The term of a home loan will vary from 5 to 30 years.
• PNB Housing Finance’s lowest EMI per lakh on a home loan is 689 per lakh, with the lowest interest rate of 7.35 percent and the longest loan term of 30 years.
• On floating rate loans, PNB Housing Finance makes prepayment with no penalties.

3.    LIC Housing Finance

LIC Housing Finance Limited (LIC HFL) is one of India’s largest housing finance and mortgage loan firms, with its headquarters in Mumbai. LIC HFL is a subsidiary of LIC. It has 9 regional offices, 23 back offices, and 273 marketing offices in India as of FY-2019. It also has two overseas offices, one in Kuwait and the other in Dubai, to serve non-resident Indians in the Persian Gulf countries, including Bahrain, Dubai, Kuwait, Qatar, and Saudi Arabia. It has over 450 locations across India. The firm now employs over 12000 marketing intermediaries or agents to assist customers with their loan applications. It also has a website that allows you to apply for a home loan online.

Products and Interest Rates

Features and Benefits

• LIC Housing Finance employs qualified specialists to provide doorstep support to its home loan customers.
• LIC HFL helps its customers find the best property for their needs and budget.
• The LIC housing finance home loan mechanism is straightforward because the lender does not charge any secret fees.
• Customers with LIC HFL home loans have access to a PAN India operation.
• LIC Housing Finance provides a variety of home loan programs for a variety of purposes, including home loans for construction, purchase, maintenance, renovations, and plot purchases.

4.    Dewan Housing Finance

Rajesh Kumar Wadhawan founded and incorporated DHFL on April 11, 1984. The company’s name was changed to Dewan Housing Development Finance Ltd., then to Dewan Housing Finance Corporation, and finally to Dewan Housing Finance Corporation. The Housing Finance Corporation of India (DHFL) is the country’s second housing finance company. Industrial and residential properties are also leased by the firm. DHFL is one of India’s top 50 financial institutions. DHFL has 209 branches and 113 service centers as of June 2018. Dewan Housing Finance Ltd. provides a variety of home loan options for purchasing a new home or plot of land, as well as renovating or improving an existing house. Long repayment terms and low processing fees are included in the home loans. DHFL home loans are available to both salaried and self-employed borrowers.

Products and Interest Rates

Features and Benefits

• Provides a wide range of home loan options to meet the needs of all borrowers.
• Interest rates on home loans start at 8.75 percent and go up from there.
• Has a loan term that can last up to 30 years.
• Customers can choose from a variety of payment options to fit their needs.
• Customers may use the home loan EMI calculator to calculate their loan EMIs ahead of time and prepare their finances accordingly.
• There are tax advantages on both the principal and interest amounts.

5.    GRUH Finance Ltd.

GRUH Finance Limited is a housing finance company (HFC) located in Ahmedabad that is registered with the National Housing Bank (NHB). Individuals may get loans from the organization to buy, build, and renovate homes and non-residential properties. As of March 31, 2018, the company had disbursed loans totaling close to 28,456 crores. To help customers meet their different home loan requirements, Gruh Finance Home Loans are available at competitive interest rates starting at 8.75 percent. Gruh Finance Limited, a subsidiary of HDFC Limited, has special products designed to help women borrowers realize their dreams of owning a home.

Products and Interest Rates

Features and Benefits

• Boosted loan approval and disbursement.
• The Credit Linked Subsidy Scheme assists low-income individuals in obtaining a mortgage.
• Repayment is easy, with a term of up to 30 years.
• Gruh Finance has established a special loan program for women who live in rural areas.
• Various sections have attractive interest rates.
• Get tax advantages on your home loan

6.    Can Fin Homes Ltd.

Canara Bank promotes Can Fin Homes Ltd., a Housing Finance Company (HFC). Customers can select from a variety of housing loan products offered by Can Fin based on their needs and suitability. The interest rate on a Can fin home loan starts at 9.25 percent and varies depending on the borrower’s risk level. A borrower can obtain a maximum loan amount of up to 90% of the project cost through Can Fin for a maximum loan term of 30 years. CanFin Homes offer Home Loans with terms up to 30 years and low EMIs to make meeting your housing needs more affordable and easy. CanFin Homes offers the lowest Can Fin Home Loan interest rate of 9.25 percent.

Products and Interest Rates

Features and Benefits

• Available for both salaried and self-employed borrowers
• Low-interest rate starting from 9.25%
• Longer loan tenure of up to 30 years
• No pre-closure charges
• Minimal pre-payment charges
• Loans available for every kind of need of customers

7.    Repco Home Finance Ltd.

Repco Home Finance Limited (RHFL) is a National Housing Bank-registered housing finance firm (NHB). RHFL provides housing loans to people from all walks of life, including salaried workers, business owners, and self-employed professionals. RHFL’s products are all custom-made to meet the needs of individual customers. RHFL distinguishes itself from other lenders by providing straightforward and fast loan processing as well as a strong emphasis on customer support. A subsidy of 2.67 lakh is also available for qualifying cases under PMAY. Repco Home Finance is well-known for its excellent customer service. All consumer complaints are addressed as soon as possible.

Products and Interest Rates

Features and Benefits

• Reasonable interest rates
• fast sanctioning and disbursements
• Clear and easy-to-understand instructions and good standards
• Improved customer service and door-to-door service
• For the purchase of a home or the building of a flat
• For house renovation and repair or to buy a piece of property

8.    Aadhar Housing Finance Ltd

Customers can get home loans from Aadhar Housing Finance at a reasonable interest rate starting at 11.00 percent. Aadhar Housing Finance provides customized home loan solutions to meet the needs of a diverse customer base. Many Aadhar home loan schemes can be used for various purposes. Aadhar Housing Finance’s new home loan interest rate starts at 11.00 percent per year. The real rate of interest charged is determined by the loan amount and the customer’s risk profile. To meet the needs of customers, Aadhar Housing Finance offers personalized home loan schemes through HDFC Bank.

Products and Interest Rates

Features and Benefits

• High loan-to-value ratio
• No hidden charges
• Quick approval
• Wide range of home loan products
• Simplified documentation
• Balance transfer facility
• Up to 30 years of repayment time

9.    Aditya Birla Housing Finance

Aditya Birla Housing Finance Limited (ABHFL) is a licensed Housing Finance Company (HFC) that provides home loans with variable interest rates starting at 9.00 percent per annum. Housing loans are available to salary and self-employed professionals for the purchase, renovation, expansion, and extension of homes. Aditya Birla’s new housing loan interest rate starts at 9.00 percent. The interest rate on Aditya Birla home loans is determined by the ABHFL Reference Rate (ARR), which is currently 16.25 percent. The Aditya Birla home loan rates will change if the ARR changes. Different consumers have different needs when it comes to home loans. ABHFL provides home loans for a variety of purposes to meet the diverse loan needs of its customers.

Products and Services

Features and Benefits

• Attractive interest rates begin at 9.00 percent per annum.
• Longer loan terms of up to 30 years are available.
• Customers can choose from a variety of home loan options to meet their needs.
• Customers can choose from a variety of loan repayment plans to meet their needs.
• The phase of documentation that is free of hiccups

10.  Sundaram Finance Home Loan

Customers can get home loans from Sundaram Home Finance Limited at a reasonable interest rate starting at 8.60 percent. Sundaram Finance provides customized home loan solutions based on the unique needs of customers. Read on to learn everything there is to know. Sundaram Finance’s new home loan interest rate ranges from 8.60 percent for salaried individuals to 9.50 percent for self-employed individuals. The real rate of interest on a home loan is determined by the type of loan and the amount borrowed. Sundaram Finance provides customers with personalized home loan schemes to suit their needs.

Products and Services

Features and Benefits

• The interest rate on a home loan starts at 6.90 percent.
• Sundaram Home Finance charges a maximum processing fee of 3,000 rupees.
• The term of a home loan will vary from one to twenty years.
• On a house, the lowest EMI per lakh is Sundaram Home Finance offers a loan of Rs. 769 per lakh with a 6.90 percent interest rate and a 20-year repayment period.
• On floating rate loans, Sundaram Home Finance makes prepayment with no penalty.
• Customers who have taken out a home loan with Sundaram Home Finance have given the bank an average rating of /5.0.