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The home loan also known as housing loan is the amount borrowed by the individuals from the financial institutions for a fixed tenure for buying, renovating or constructing a residential property. In India, owning a house is one of the key signs of success but, for an average Indian, it gets difficult to generate the required income in such a short period of time. And with the property rates skyrocketing even in smaller cities, the dream of every average Indian tends to diminish as it becomes impossible to buy a residential property just with the savings. The housing loans are the largest selling banking products where different financial institutions offer different types of house loans with different tenures and interest rates. Homes loans are one of the most popular products offered by financial institutions. Every home loan is charged with an interest on the loan amount and has to be paid out in the given period of time along with the principal amount.
This financing facility comes with a number of benefits to lure aspiring homeowners. A home loan is one of the cheapest borrowing tools which comes with a low rate of interest. Unlike other loans, there's zero prepayment penalty on home loans with floating interest rates.
1. Excellent customer service
2. Provide doorstep services to the customer
3. Home balance transfer facility
4. It helps you find your dream house
5. Provide wide range product
6. Multiple repayment options
7. Quick loan processing
8. Simple documentation
9. Provide post disbursement services
10. Provide balance transfer facility
To apply for a housing loans in india you have to pay fees and charges applied by the bank. It covers all charges and fees made by a bank to their customers. The following charges are taken from Home Loan (HL) i.e. processing fee, penal interest, EMIs bounce charges etc.
|
TYPE |
CHARGES |
|
Processing Fees |
0.5% to 1% of the total home loan amount plus the additional GST |
|
EMIs Bounce Charges |
Rs.2500 |
|
Penal interest |
2% per month |
|
Interest Rate |
Start at 6.70% per annum |
|
Loan Amount |
Upto Rs.10 crore |
Before applying for a home loan you should fulfil all basic eligibility criteria as prescribed by the bank. You will get your loan amount very soon if you meet all the required eligibility criteria once the documentation is done.
|
Age |
18 years to 70 years |
|
Resident Type |
Indian Resident, NRIs, PIOs |
|
Employment |
Salaried and Self employed |
|
Net Annual Income |
At Least Rs.5 to 6 lakh depending with the type of employment |
|
Residence |
A permanent residence A rented residence he/ she has resided for at least 1 year period to applying for a home loan |
|
Credit Score |
At least 750 or more |
Any applicant who is going to avail a home loan must have to submit the following documents. These documents are the requirements for the lenders who are providing you the amount of loan.
1. Fully filled signed application form
2. Passport size photograph
3. ID Proof : Aadhaar Card, PAN Card, Driving License, Passport, Voter identification, Employment id
4. Address Proof : Aadhar Card, Rental agreement, Voter id, Driving license, Passport, Employment id
5. Income Proof : For salaried employees = 3 months salary slip, last 2 years ITR Return or form 16, Bank statement for last 2 months showing that the salary has been credited
6. For Self employed individuals / professionals = 2 years ITR return, Profit & loss account and Balance sheet computation with CA seal and sign, Bank statement for the last 6 months.
There are many top schemes and offers for getting a home loan that is :
1. SBI Bridge Home Loan – Best for Short-Term Requirements
2. Aditya Birla Capital Home Loan – Best for Low Interest Rate
3. ICICI Bank Extra Home Loans– Best for Long Term Requirements
4. Canara Bank Housing Loan – Best Interest Rate for Women
5. Axis Bank Home Loan – Best Interest Rate for Salaried Employees
6. SBI Home Loan – Joint Home Loan
7. HDFC Reach Home Loans for self-employed professionals
8. LIC HFL Home Loan for Pensioners/Senior Citizen
9. SBI Privilege Home Loan for Government Employees
10 .Axis Bank NRI Home Loan
11. HDFC Ltd. Home Loan for Purchase
12. Indiabulls Housing Finance Loan for Construction
13. DHFL Home Renovation Loan
14. PNB HFL Plot Loan: Best Home Loan for Plot and Construction
15. HDFC Ltd. Home Loan for Existing Customers: Best Home Loan for Existing Customers
16. SBI Realty Home Loan: Best Home Loan for Land Purchase
17. HDFC Ltd. Home Loan Balance Transfer: Best Home Loan Balance Transfer
1. Ensure that you have researched on the loan you want to apply for
2. Read the fine print before taking the loan
3. Look out for any charges applicable on prepayments and foreclosure
4. Make sure you pay the equated monthly instalments (EMIs) on time
5. Ensure that you have a good credit score before you apply
6. Apply for a loan amount you are eligible for
7. Submit all the necessary documents
8. Ensure that you have stable employment
1. Do not blindly sign the documents before you read every term and condition on it
2. Do not blindly sign the documents before you read every term and condition on it
3. Do not default on your monthly payments
4. Do not apply for a loan just for the sake of it
5. Do not sign the home loan agreement before reading the clauses
6. Do not request for a change in tenure unless you have considered all the aspects
7. Do not submit an incomplete or mismatched loan application
8. Do not have too many ongoing loans
Proceed with the following steps to avail a home loan with ease.
Check your credit reports and rectify errors, if any.
Estimate EMIs with a house loan calculator and decide on the loan amount as per repayment capacity.
Keep all the necessary documents handy.
Compare the available offers for the best housing loan option.
Ensure to meet all eligibility before applying.
Basis the different requirements for housing loans and varied customer profiles, the types of home loan are –
Home Loans for New House Purchase: New Home Loans are offered to eligible customers who are looking to purchase a house or property for the first time.
Pre-approved Home Loans: Pre-approved home loans are offered by banks to eligible borrowers once his/her creditworthiness, income and financial position are taken into consideration for an in-principle approval of the loan.
Home Purchase Loans: Home purchase loans are specifically given to borrowers looking to purchase a house or flat.
Home Loans for Property Construction: Home loan for construction is offered to customers who are looking to construct their own house on an existing piece of land.
Plot Loans: Plot loans are loans offered to customers looking to purchase a piece of land or plot for the purpose of constructing a house on it.
Home Loan Top Up: Home Loan Top Up is a facility offered by most banks and NBFCs that allows existing customers to borrow a certain amount above and over the existing home loan.
Home Extension/Renovation Loans : Home loans for extension or renovation of home are offered to borrowers who wish to renovate/extend their existing house/property.
Balance Transfer Home Loan: Individuals can use the balance transfer option to transfer their home loan from one bank to another. Most people choose this option to avail better interest rates.
|
BANKS |
INTEREST RATE |
|
Starts at 10.05% onwards |
|
|
Starts at 7.75% onwards |
|
|
Starts at 7.75% onwards |
|
|
7.75% to 9.40% |
|
|
Start at 9.55% onwards |
|
|
8.15% to 8.30% |
|
|
8.90% to 9.15% |
|
|
6.95% onwards |
|
|
7.40% onwards |
|
|
6.95% onwards |
|
|
6.95% onwards |
|
|
6.95% onwards |
|
|
6.95% onwards |
|
|
7.65% onwards |
|
|
7.90% onwards |
|
|
9.50% to 10.50% |
|
|
6.75% onwards |
|
|
10.45% onwards |
|
|
8.05% onwards |
|
|
7.45% onwards |
|
|
6.95% to 7.50% |
|
|
7.40% to 9.70% |
|
|
9.60% to 10.55% |
|
|
7.34% to 8.29% |
|
|
6.95% to 8.05% |
|
|
Starting at 8.71% |
|
|
7.80% to 8.80% |
|
|
9.75% to 10.05% |
|
|
8.55% to 8.655 |
|
|
11.005 to 11.505 |
|
|
8.00% to 15.00% |
|
|
6.85% to 7.75% |
|
|
6.85% to 7.755 |
|
|
6.90% to 8.90% |
|
|
7.55% to 8.40% |
|
|
Starting at 7.00% |
Home Loan Purposes
Home loans serve the primary purpose of purchasing a property or facilitating the construction of one for home buyers. Different types of home loans are taken for different purposes such as :
Purchase of Land
Readymade Home Purchase
Home Construction
House Expansion or Extension
Home Conversion
Home Renovation
Loans Against Property or Mortgage Loan
There are two ways to apply for home loans :
1. Offline method : By visiting nearest bank branch
2. Online Method :
First of all first visit to official website of the Bank
In retail section go to the “loans”
Now click in home loan
After that go to “home loan”
Now click on apply now and fill application form
Since housing loans are generally huge amounts, paying them in EMIs or Equal Monthly Instalments helps in evenly distributing the loan burden. Calculating EMI manually is often confusing as a result of which people often end up with the wrong results. A Home Loan EMI calculator is a simple online tool to instantly calculate the Equal Monthly Instalments that you need to make to repay your home loan. A home loan EMI calculator can give an accurate answer within seconds. The following formula is used to calculate EMI of Home Loan :
EMI = [PXRX(1+R)^N] / [(1+R)^N-1]
Where,
P stands for Loan Amount
R stands for Interest Rate
N stands for tenure in number of months
Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the land or as a security till the repayment of the loan.The home loan also known as housing loan is the amount borrowed by the individuals from the financial institutions for a fixed tenure for buying, renovating or constructing a residential property.
The repayment tenure is up to 30 years provided by the Home Loan.
Banks/financial institutions consider the following factors when determining your loan eligibility:
Age Annual Income
Occupational stability
Resident type [Indian Citizen, Non-Resident Indian (NRI), Person of Indian Origin (PIO)]
Number of co-applicants
Co-applicants' income
Credit score
Other ongoing loans, if any
The loan repayment period begins only after the loan provider has disbursed the entire home loan amount. However, you will be required to pay the interest i.e. pre-EMI on the partially disbursed loan on a monthly basis, in most cases.
The Interest rate of Home Loan starts at 6.70% per annum onwards.
You can reach out to us in various ways to apply for a home loan
Online : You can easily apply for a housing loan online by just filling up your basic details.
Visiting our Branch : Another way to apply for a home loan is to visit one of our country-wide branches and our executives will walk you through the entire process.
Through the phone : Applying for a home loan just a phone call away!
Through a Virtual assistant : You can even apply for your home loan with the help of a loan processing virtual assistant.
The maximum loan amount of Home Loan is upto Rs.10 crore.
Yes, the age is an important factor to apply for Home Loan is from 18 years to 70 years.
Salaried and self employed are eligible to take a Home Loan.
The co-applicant can be an immediate family member such as your spouse, your parents or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.
Last Updated on : 09/Nov/2020Know More About
You're eligible for a Home Loans if you:
Are legally adult enough to handle it
Have still got it
Get a regular pay check
Make more than a basic buck
Your eligibility depends on:
Earn more than minimum income required
Maximum allowed Home Loans is Rs. 10K to Rs. 45 lakhs
EMIs of other loans loweryour eligibility
Boost your eligibility by:
Pay off your credit card bills
Choose longer tenure loan up to 5 years
Nothing gets done without that paperwork (which we'll happily carry over to the bank for you, no sweat). Here's what you'll need:
- 1. Photo ID and age proof
- 2. Signed application form with photograph
- 3. Residence proof
- 4. Last 6 months bank statement
- 5. Documentation for salaried applicants:
- Last 3 months salary - slips
- Form 16 or Income Tax Returns
- 6. Documentation for self-employed applicants:
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
Updated on 25 Nov 2017
| Home Loans Details | |
|---|---|
| Interest Rate (Monthly reducing balance) | 10.05% - 0% |
| Processing Fees | Varies with bank |
| Loan Tenure | year to 35 years |
| Pre-closure Charges | Varies with bank |
| Guarantor Requirement | Varies with bank |
Home Loans EMI Calculator