What is the Minimum Home Loan Amount?

I learned from my bank manager what is the minimum home loan amount. It is the lowest loan amount, banks or housing finance companies (HFCs) approve for the purchase, building, remodelling, or extension of a property. Depending on the lending organisation and the particular loan terms, it varies. My bank manager also informed me.

• While there is no universal rule, the minimum home loan amount typically starts at ₹1–₹5 lakhs, depending on the lender and the nature of the loan.

• Each bank or HFC sets its policies for the minimum loan amount. Public sector banks like SBI or private lenders like HDFC often have specific thresholds.

• Since renovation loans often involve lesser sums, some lenders have greater minimum limits for construction loans.

• The minimum loan amount may be lower if the property is in a rural region or has a low appraisal.

• Loans under government schemes like Pradhan Mantri Awas Yojana (PMAY) often start at smaller amounts (₹2–₹5 lakhs) for economically weaker sections. For home improvement or repairs, minimum loans can start as low as ₹1 lakh.

• Borrowers seeking smaller amounts can explore microfinance institutions or cooperative banks, which cater to small-ticket loan requirements. Additionally, personal loans might be an alternative, though they come with higher interest rates.

This is all about what is the minimum amount for home loan.

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The minimum loan amount for home loan is not fixed for all banks. The loan amount varies based on factors like the applicant’s repaying capacity, his/her credit score, whether the applicant meets all the eligibility requirements or not, and others. As a bank official, I can say that in most banks the minimum loan amount is Rs 3 lakh. 

What is the Minimum Amount for Home Loan?

There is no such hard and fast rule for the minimum home loan amount. 

• In ICICI Bank Home Loans start from Rs 3 lakhs and can go up to Rs 5 crore. This will depend on your eligibility criteria mainly. 

• Even the minimum house loan amount in Axis Bank is also Rs 3 lakh. 

• On the other hand, SBI does not have any specific minimum loan amount mentioned. 

They will go through your documents, check your reason for availing of the loan, check your eligibility criteria and then decide whether to approve your request for a home loan or not. 

So to know the minimum housing loan amount, you better visit the bank and ask the officials about it. 

I hope I have been able to answer your question. 

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Last year I bought a house but needed Rs 2 lakh more to do some renovations and updates in it. I wanted to avail a loan but believed they might not grant Rs 2 lakh as a home loan since it's quite less. I hence visited the bank and asked the officials what is the minimum home loan amount in SBI that I can avail. I learnt the eligibility criteria for availing a home loan there and discovered that there is actually no such minimum amount.  You will just need to talk with the bank officials and your respective bank will help you know everything about it. Let me share my knowledge about it now.

The eligibility criteria differ from one bank to another so do learn about it first. The eligibility criteria to avail a home loan in SBI are

• The applicant must have a minimum salary of Rs 25,000

• He/she should be between 21 years to 60 years

• The applicant must be a citizen of India

The loan is then granted after checking the credit score of the applicant and salary mainly. There is no such minimum home loan amount stated by the bank officials so visit your bank and check whether you can avail your desired amount loan or not.

What is the HDFC home loan minimum amount?

To avail a home loan in HDFC, you have to be between

• 21 years to 65 years

• Must be having a salary of Rs 10,000 per month

• Your business income must be Rs 2 lakhs or above

They have not set any minimum home loan amount as I got to learn from a friend of mine so you can get any amount after fulfilling these criteria. 

What is the minimum home loan amount in ICICI bank?

Most banks have not set any minimum home loan amount but HDFC has. Their home loan ranges from Rs 5 lakh. To avail a home loan in ICICI, you have to be

• Between 21 years to 60 years

• An Indian citizen

• Have a salary of Rs 25,000 or above

This is all I know about the minimum home loan amount in these banks.