bank home loan

Popular NBFCs in India offering Home Loans

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The housing finance sector in India is no longer dominated by public sector commercial banks. Non-Banking Financial Corporations (NBFCs), that so far restricted operations to wealth management and advisory services, have now entered the housing finance business. According to a 2016 study by ICRA, the home loan market of India is worth 12.5 trillion dollars, 60% of which is controlled by the commercial banks and the NBFCs operate in the rest 40%.

Increased competition in the Indian mortgages market has resulted in relaxation of lending norms and reduction in rates. Post demonetisation, the government has also reduced home loan rates to foster the growth of affordable housing, which again works out in favour of the homebuyers. So, let us talk about a few NBFCs that are making it big in the Indian housing finance business and at the same bringing people closer to their dream homes.


LIC Housing Finance

Initially promoted by LIC of India, LIC Housing Finance is now a public sector NBFC dealing in the Indian home loan business. LIC Home Loans are offered to residents as well as non-resident Indians for purchase or construction of a house or for extension of an existing house. The maximum tenure of LIC Home Loan is 30 years for salaried professionals and 20 years for the self-employed applicants. LICHFL offers housing loans on easy terms and conditions and maintains transparency in its transactions. Some key features of LIC Home Loan are-

  • Competitive interest rates
  • Guidance by skilled professionals
  • Quick loan approval based on the applicant’s income status and credit history
  • LTV Ratio- 85% for up to Rs 20 Lakhs, 80% for above Rs 20 Lakhs and up to Rs 75 Lakhs, 75% for above Rs 75 Lakhs, and 75% for a plot purchase
  • Payment in Equated Monthly Instalments on monthly rest basis
  • Hassle-free documentation formalities


DHFL Home Loan

DHFL is one of the most popular NBFCs in India offering home loans to people at attractive interest rates. Fair terms, flexibility and transparency are the three pillars of DHFL Home Loan. This loan can be taken for purchase of a ready-to-move house or an under-construction flat. DHFL caters to both HNIs and mid-segment buyers; the maximum and minimum amount of DHFL home loan is Rs 5 Crores and Rs 1 Lac respectively. Let’s look at some important features of the housing loan by DHFL-

  • Maximum loan amount is 5 Crores but in no case exceeding 85% of the property’s cost
  • DHFL home loan tenure ranges from 1 to 30 years subject to the retirement age of the applicant
  • The interest rate is based on DHFL’s RPLR which fluctuates from time to time
  • Processing fee of 1.5% is charged, which is non-refundable
  • EMI can be paid through ECS or post-dated cheques drawn on the applicant’s salary account
  • Loan can also be applied for with an earning co-applicant


Indiabulls Home Loan

Indiabulls caters to the widest range of homebuyers and is counted among the preferred home loan lenders in the country. The company understands varied needs of its customers and offers customized home loan products accordingly. Indiabulls home loan can be taken for purchase of flat/bungalow/plot, construction of a house or the extension of an existing house. Unlike other lenders, Indiabulls offers maximum loan amount, that is, 90% of the property cost (for properties up to Rs 30 Lakhs). The maximum tenure is 30 years. Given below are a few salient features of Indiabulls home loan-

  • Loan can be taken individually or with co-applicant/s
  • Home loan is offered at adjustable rate of interest which is linked to IHFL benchmark rates and is subject to change
  • Pre-approved home loan facility is also available
  • Facility offered to resident Indians as well as NRIs
  • Online management of loan account
  • Zero prepayment or foreclosure charges

Apart from LIC, Indiabulls and DHFL, several other NBFCs like Muthoot Finance, Capital First, TATA Capital, Shriram Housing Finance are also operating in the market. These NBFCs, though quite experienced in the financial services field, need to sharpen their skills in the home loan market. Changes in guiding rates and the regulatory framework put pressure on these companies to provide better services at competitive rates. Overall, the future is definitely bright for NBFCs operating in the Indian housing finance sector.