Who Can Apply ?

Loan Term ?

Maximum Loan Amount

Home loans can be applied individually or jointly; as well as a company. The proposed owners of the property are supposed to be the co-applicants. However, all the co-applicants might not be the co-owners. Generally the close family members are considered as co-applicants.

The maximum repayment period generally ranges from 20 to 30 years.

There are various criteria on the basis of which the tenure of loan is ascertained such as age of property at loan maturity, customer’s profile, age of customer at maturity of loan, depending upon the specific repayment schemes opted and relevant terms applicable based on prevalent norms of respective Lenders you are applying to.

Various Lenders ascertain the loan amount based on the market value of the property and repayment capacity of the customer.

Generally the maximum loan amount is subject to Loan to Value Ratios:-

Loan Amount

Up to Rs 75 lakh

Above Rs 75 lakh

Maximum Funding

80% of the property cost

75% of the property cost

(In exceptional cases customers can get upto100% of agreement value), for details apply for a Home Loan Now

Home Loan

Finding and buying a home takes a great deal of planning. It is likely to be one of the largest investment decisions you will ever make – and your home loan is likely to be one of the largest debts you ever commit to. it is important to do your homework and research as much as possible.

A “home loan” is a loan from a bank or financial institution to be used for buying, building, refinancing, or renovating a home.

Feature

  • Loan available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
  • Loans amount from Rs. 15 Lakh to Rs.50 Cr.
  • LTV Varies from 65% to 95%.
  • Maximum tenure Up to 30 Years
  • Rate of interest as low as 8.65%. Special rates for women borrowers.
  • Lowest EMI of Rs. 780 per lakh.
  • Up to 1% of loan amount or Maximum Rs.10,000
  • Home saver at 8.65

Types of Home Loan

New Home Loan

This is the most common loan taken by a borrower to buy a new house/apartment or to construct a home. Banks offer new housing loan for the following purposes:

  • For buying a new flat, apartment or house from a builder
  • For buying a house from another seller
  • For construction of house on an existing plot

Home Improvement/Renovation Loans

Improvement loan is taken to renovate your existing home against the mortgage of home. The loan can be used for any home improvement purposes such as tiling, flooring, internal and external painting of the house, etc. Existing home loan customers can avail this loan on their existing home as a new loan or as a top up on their existing house loan. Home Improvement Loans are available easily at cheap home loan rates.

Home extension Loan

This loan is similar to a home improvement loan and can be used to expand your house by adding new space including additional floor, room, balcony, bathroom etc. Like improvement loan, this is also a house mortgage loan that can be availed as a new loan or as a top up on your existing home loan. These loans can be availed at low interest rates similar to that of a new Loan

Land Purchase Loan:

This loan is taken to purchase a plot for building a house on it. Very few banks offer plot loans. Most of the banks that offer plot loans require the borrower to construct a house on the plot purchased within a period of 2 to 3 years of buying the plot. Plot loans are considered to be riskier compared to other home loans and hence, rate of interest is 1.5-2% higher compared to a house loan

Home Conversion Loan:

This loan is offered to existing borrowers who want to transfer their existing housing loan interest benchmark from fixed rate to floating rate or vice – versa. You can also opt for home conversion loan if you have taken a loan before 1st April, 2016 and want to switch your benchmark rate from base rate to MCLR rate in order to change your benchmark market rates. Banks and finance companies charge a conversion fee on the outstanding principal to switch your loan.

NRI Home Loans

These loans are offered to non-resident Indians for buying, constructing or renovating a home in India.

Home Loan Overdraft

Some banks such as SBI and Citibank offer overdraft facility to borrowers along with home loan. Borrowers are provided with an overdraft account in which borrowers can deposit any available surplus amount for any period and reduce their interest liability. This is the best home loan for self employed, businessmen, professionals who have fluctuating fund flow during the year. Interest rate on housing loan overdraft is around 0.15%-0.2% higher than rate of a regular home loan

Home Loan Top Up

Top up loan is an additional loan amount that you can avail on your existing home loan either from your existing bank or at the time you transfer your housing loan to another bank. The amount of top up loan is capped at the maximum of LTV of your existing home loan. Always do a detailed comparison of home loan top up offers of different banks to check for the best home loan eligibility and lowest home loan interest rate. Interest rate for top up is 0.25% to 1% higher than the regular home loan rate and can be availed for personal use.

Home Loan Balance Transfer

Home loan transfer from one bank to pay off an existing loan. Generally, borrowers look to transfer their loan to get lower interest rate or to get additional top up loan along with home loan amount. You will have to take approval from your existing bank for transferring your loan and apply for home loan with a new bank to get a loan sanction. Customers’ balances transfer their loans to reduce their interest rate and get lower EMIs.

Pre-approved home loans

These loans where a bank pre-approves your housing loan before you complete your property transaction based on your credit score, repayment history, current EMI obligations etc. Pre-approved home loan are available at low interest rates and allows you to get a loan as soon as you finalize your property. The validity period of the pre approved loan offer is limited up to 6 months in most of the cases.

Process
Filled application form with photographs
Filled application form with photographs

Application forms need to be signed with photograph for all borrowers.

Personal Identity Documents
  • ID Proof ( Driving license / Ration card / Passport / PAN card / Voter’s ID card / Employee ID / Bank passbook )
  • Age proof ( PAN card / Birth certificate / 10th class marksheet / Bank passbook / Passport / Driving license )
  • Address Proof ( Bank passbook / Bank account statement / Voter’s ID / Ration card / Passport / Utility bill (telephone, electricity, water, gas) – less than 2 months old / LIC policy receipt / Letter from a recognized public authority verifying the customer’s residence address )
Personal Identity Documents
Income Proof
Income Proof
  • Salary Slips for past 6 months
  • Copy of Form-16 Past 3 Years
  • Appointment Letter with Current CTC
  • Increment Letter latest
  • Three Years Complete set of Income Tax Returns (Income tax Acknowledgement, Computation of Income, Profit and Loss account and balance Sheet
  • Copy of Form 26 AS (Current Year and Past 2 financial years)
  • Copy of Salary Slips which reflect Bonus Received for past 3 years + Relevant Extract of
  • Bank Statement Reflecting Receipt of Bonus.
  • Profile of the company on letterhead of the company
  • Three years complete set of Income Tax returns (Including ITR acknowledgement, Computation of income, Balance sheet and Profit & Loss a/c, Audit & Tax Audit Reports) duly certified by CA
  • Existing Loan sanction letter with repayment track
  • GST Registration Certificate with last two years return
  • Photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act
  • Proof of investments
  • Certificate of Practice (If Applicable)
  • Receipts of advance tax payments (if any)
  • One year bank statement (Saving & Current)
  • Pan Card of the company
  • Profile of the company on letterhead of the company
  • Three years complete set of Income Tax returns (Including ITR acknowledgement, Computation of income, Balance sheet and Profit & Loss a/c, Audit & Tax Audit Reports) duly certified by CA
  • Existing Loan sanction letter with repayment track of Individual & Company
  • GST Registration Certificate with last two years return
  • Photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act
  • Partnership Deed of the company
  • Proof of investments
  • Certificate of Practice (If Applicable)
  • Receipts of advance tax payments (if any)
  • Latest 12 months bank statement of Company of all current accounts and the same for Partner’s Savings Bank Account Pvt Ltd / Ltd Companies
  • Pan Card of the company
  • Profile of the company on letterhead of the company
  • Three years complete set of Income Tax returns (Including ITR acknowledgement, Computation of income, Balance sheet and Profit & Loss a/c, Audit & Tax Audit Reports) duly certified by CA
  • Existing Loan sanction letter with repayment track of Individual & Company
  • GST Registration Certificate with last two years return
  • Photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act
  • MOA/AOA of the company with share holding pattern on letter head of the company
  • Proof of investments
  • Certificate of Practice (If Applicable)
  • Receipts of advance tax payments (if any)+
  • Latest 12 months bank statement of Company of all current accounts and the same for Director’s Savings Bank Account
Property Documents
  • Occupancy Certificate
  • Approved Plan of building
  • Share certificate copy
  • Chain of deeds in case of resale property
  • Property Card
  • Nil Encumbrance Certificate- EC ( if applicable)
  • Current Sale agreement/ Draft Agreement
Property Documents
Prepayment

Prepayment

As name suggest it is simply means that repayment of part or full amount of the loan before it’s officially due. it offers an alluring proposition: By paying what you owe early, you are reducing the amount of interest you owe to the lender, which can save you good chunk of interest in the long term.

Balance Transfer

Balance Transfer

When your current rate of interest is higher than current market rate it is advisable to switch from one lender to another, usually lender offer lower interest rate and/or more flexible features. Interest component on your home loan is higher in first 5 to 6 years so it is advisable to do through analysis of saving and cost you will incurred with balance transfer.

Offset Balance Loan

Offset Balance Loan

You can reduce the effective rate of interest on your home loan by stashing extra funds you have in to your transaction account which is linked to your home loan account. In this the account’s balance (or a proportion of that balance) is ‘offset’ daily against your home loan balance, and as a result you’re only charged interest on the difference between the total loan balance and the amount offset.

This means the lender charges you less in interest because they are not charging you interest on the full, actual remaining balance of your loan.