If you can dream it, you can own it! Everything you need to know to avail of a home loan is right here. You can be assured of fair terms, total transparency and flexibility. We believe that when it comes to owning a home, nothing should come in the way.
A home loan or housing loan is an amount borrowed by individuals for a fixed tenure from financial institutions to buy, construct, repair or renovate a residential property. Lenders charge an interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount.
Home loan or housing loan is one of the most popular products offered by banks and NBFCs to customers. Home loan is also the largest selling banking product and the one that ensures the longest banking relationship with the lender. Owning a home of your own is generally an obvious as well as a major decision in a person’s life.
However, the cost of construction or purchase of property is quite high and this is where home loans play a major, almost indispensable role for majority of home buyers. Home or housing loans are advances made to borrowers who require funds to purchase houses/flats/land. They can also be availed of for construction, extension and renovation of houses. Lenders can be banking or non-banking financial institutions.
Apply for loanAs the name itself indicates, home purchase loans are specifically given for purchase of flats or homes. These are the most popular type of home loan and are availed by most home loan borrowers. Almost all banks and Non-Banking Financial Corporations offer home purchase loans.
Home loans for extension or renovation of home are offered to those home loan borrowers who already have a house but are looking for further construction or renovation on their existing piece of property. For example, addition of an extra room or renovating a staircase etc.
Plot loans are loans offered by banks for purchase of land or plot. These loans are not necessarily offered by all banks or NBFCs.
Stamp Duty Loans are offered by banks to cover the stamp duty charges, which is incurred while purchasing a property.
Home loan for construction is offered to customers who want cash to construct their own house on an existing piece of land. The catch is that the land for construction should have been bought within a year of availing the loan for the cost of land to be counted as part of this loan. In case the land was bought earlier than one year, then the cost of land is excluded from the loan amount. The formalities for construction loan are slightly different than those for regular home loans. The loan applicant needs to give a lump-sum construction cost estimate to the lending entity and thereafter the lender evaluates and decides to sanction or reject the loan.
NRI Home Loans are specially designed for Non-Resident Indians (NRI) who wish to purchase a residential property in India. The requirements and procedure of availing this loan is different from the regular home loans.
If you have already taken a home loan for purchasing a house, but wish to shift to another house, then you can opt for a home conversion loan. It will help you in transferring the current loan to your new house.
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.
Existing homeowners who want to buy a new house can apply for a Bridged Loan, which will fund the new house. Generally, the tenure of this loan is below 2 years and it requires the borrowers to mortgage the new property with the lender until the loan is repaid.
You can avail a Home Loan of up to 500,00,000 (minimum loan amount `1 lac) but not exceeding 85% of the cost of property (including stamp duty and registration fees) or 80% of market value, whichever is lower. The loan amount can be further enhanced by including an earning co-applicant.
Criteria than or equal to Rs.2,00,000
23 to 65 years for self employed professinols
Up to 80% on SORP UP to 70% on SOCR UP to 60% on Rented property & up to 55% on plot /vacant Property
Indian & NRI
Min 1 yr in some & 3 year in current business
Up to 80% on SORP UP to 70% on SOCR UP to 60% on Rented property & up to 55% on plot /vacant Property
12 to 240 months for home loan
10 Lacs to 50 crores
• Eligible Loan Amount =[{ (PAT+DEP+INT ON LOAN)/12 MONTHLY Obligation]} (70% to 200%)\Loan EMI Per Lac]
• Eligible Loan Amount =[{ (PAT+DEP+INT ON LOAN)/12 -MONTHLY Obligation)*(muiltiplier)}
ELIGIBLE Loan EMI = monthly ABB/20
Eligible Loan Amount={[PAT+ DEP =INT on loan )12-Monthly obligation)}+70%/ Loan EMI per lag ]
45% of market value of proprty
All running loans EMI is called obligation
• Loan obligation should not more than 100% of net income
• New loan With Closure of exsiting Loan is a good option any time
Between 10.00% to 16% reducing (floating interest)
Not allowed or Provfide valid justification for the same
IfCurrent o99verdue not allowed or Requirad proper justification any other running loan clean track for support
I650+(subject to clean loan repayment all running or past years) or go with compartioble banks
Clear banking with healthly transaction with inward & outword bounces for premium banks
If Poor banking with some inword bounces please prefer B category NBFC’ s
Not Allowed
Not Allowed
Class 4 th employee,Cash salary
All the Government taxes must be paid like –income tax, VAT, Service Tax etc.
All The document must be self Attested by customer
Rate of Interests-Up to 5cr 9.40%[for women] 9.45%[for others]
Processing Fees-0.50%of loan amount upto 1 croreRate of Interests-9.60%-11.00%
Processing Fees-0.50%
Rate of Interests-9.50% to 14.5%
Processing Fees-12000+service tax
Rate of Interests-10.85% to 11.00%
Processing Fees-1%
Rate of Interests-9.40%[ for women] 9.45% [for others]
Processing Fees-0.5%or maximum 10.000+service tax [14.5%
Rate of Interests-9.55%-10 50%[salaried/se prof]
9.80%-11.00%[s emp non prof]
Processing Fees-0.25%-0.50%
TDS-10%
Rate of Interests-12.00%
Processing Fees-1%
Rate of Interests-9.65% -10.50% (for Salaried / S E P)9.65%-10.50%(SENP)
Processing Fees-0.25%-1%OR Rs.10000 which ever is higher =ST, subject to customer profile
Rate of Interests-9.55%(upto 25 lacs), than 9.65%
Processing Fees-1%for salaried &1.5% for SENP
1.Photo
2.PAN Card
3.Current Address Proof
Latest 1 year bank statement of All accounts
1.Latest 6 Month Bank Statement
2.Latest 3 Month Bank Statement
3.Last 2 Year Form 16
4.All existing loan detail documents (welcome Letter, sanction Letter
Statement Of loan account) If required /Any CIBIL issues –detaiil document required.
1. Shop act Licence /SSI Certificate /Any other Govt certificate for business stability proof
2. Last 3 year ITR Set along with CA Certified Balance sheet ,profit & loss(P& L) Computation of income tax Audit Report (IF applicable)and all Schedule of Balance sheets.
1 PAN CARD
2 partnership Deed for partnership firm
3.moa and incorporation certificate for pvt. Ltd. Company
4 office address proof
5 last 3year ITR and tax audit reports
1.copy of property papers
2.copy of Approved Santion Plan
3.comencement certificate/completion certificate/ any other applicable documents as per the law of the state/ government
4 .if co –operative housing society –society certificate and share certificate /any other applicable documents as per the law of the state/ government
1. PAN CARD
2. partnership Deed for partnership firm
3.moa and incorporation certificate for pvt. Ltd. Company
4.office address proof
5. last 3year ITR and tax audit reports
Existing loan details
Provide all exisiting loan detail and documents1 welcome letter
2 sanction letter
3 statement of loan account
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ.
There is no particular right time for making your home loan application. As soon as you have figured out your budget and zeroed down on the property that you want to buy, you should apply for home finance.
Yes, mostly. Although a lot of loan processing work has been shifted to online platforms, still a loan applicant is required to visit the lending bank branch at least once to formally close the loan processing formalities. Many private banks have started sending their representatives to borrowers’ place to get documents and forms signed and verified.
No. Generally, banks only lend 80% of the cost of your property. The rest 20% is to be borne by the loan borrower. However, to ease out the process for customers, most banks have broken up this ration into 10-80-10 so that at the time of availing the loan, customers are only required to pay 10% of the total cost and the rest is paid by the bank.
Repayment of loan starts after the entire home loan is disbursed to the borrower. In case of under-construction properties banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, customers are free to either repay the principal and interest amount both or just the interest amount or none at all.
Current home loan borrowers who have a running home loan account can choose to continue with base rate or switch to MCLR. New home loan borrowers need to avail the new MCLR rates which are subject to change every set interval of time as mandated by the RBI.
Your home loan will get sanctioned as soon as all the required documents are submitted and verified successfully. This may take anywhere between 10 to 30 days.
Yes. Home loans are a great instrument to avail tax benefit. This is offered to both the interest and principal components of home finance. Under section 24(1) interest repayment of Rs.1,50,000 is eligible for exemption and on the same housing loan a principal amount of Rs.1,00,000 is eligible for exemption from tax.
Any kind of property is considered an asset and hence buying a property is considered as a wise decision. Also, real estate prices have been appreciating on an annual basis. If you are confident that your income is sufficient to cover you for a long term liability like home loan then you can surely avail one to buy a property.
Since home loan is a huge loan amount and the tenure also is long, hence, almost all banks ask borrowers to furnish some collateral as security against the loan. This include the papers of property for which loan is being sought, some other property papers, any fixed deposit schemes or insurance schemes etc. that are on the loan borrower’s name.
Yes. You can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.
Now apply for a Home Loan online, All you need to do is provide your details below application form.