Home Loan
Purchase of Residential Property
Home Construction
Home Renovation
Acquisition of Land
Home Expansion
Balance Transfer
If you have an existing Home Loan, go for Top Up product, or else go for PL. Any amount of money borrowed from a bank or from NBFC for the purchase, expansion, or construction of a home at a certain fixed or floating rate of interest, payable in EMI (Equated Monthly Instalment) over an agreed period, is termed as a Home Loan. The property remains as security with the lender for the term or period of the loan. You may avail a home loan for purposes such as:
Different types of loans
Home Loan
A Home loan happens to be the most common type of loan wherein the house is held as collateral until you repay the loan. Numerous housing finance companies, public and private banks make such offerings with a choice of repayment options.
Home Construction Loan
If you have a plot of land and lack financial support to construct a home on that piece of property, you may choose a house construction loan. Such borrowing is mainly made to construct or repair a major part of your home.
Home Extension Loan
Should you already own a home, and feel the need to extend the building, add an annexe, or build another floor, etc., Home Extension Loan is your go-to option that finances such needs.
Home Improvement Loan
All of us wish to improve and upgrade our homes for a better life. From your old-age furniture, fixtures to faulty lightning systems, Home Improvement Loan funds all your plans.
Home Loan Balance Transfer
Burdened with high-interest rate debt on your current home loan? Home Loan Balance Transfer lets you transfer your debt to a low-interest rate charging plan to lower your burden and improve your paying capacity.
Composite Home Loan
A Composite Home Loan empowers you to purchase a plot and construct a house as well on the acquired land; both with a single loan and within a stipulated time mentioned by your Bank.
Home Conversion Loan
Should you want to move from your present dwelling place to a new dwelling due to professional or personal reasons, you may opt for a Home Conversion Loan. A home conversion loan facilitates the smooth conversion of your current loan from your old home to your new home.
Pradhan Mantri Awas Yojna
The plan of the Government of India to allow every Indian Citizen an opportunity to own a home in India via the drafting of the Credit Linked Subsidy Scheme or CLSS is known as Pradhan Mantri Awas Yojna. Under the PMAY, a citizen can avail Home Loan from almost all banks allied with this scheme.
NRI Home Loan
If you are a patriot, a Non-Resident Indian, and wish to own residential property in India, NRI Home Loan is your choice. Though the formalities for application may be a little different, you can still get a loan up to a certain percentage of your property value.
Characteristics of home loan
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Home Loans are Secured Advances, which can be availed by mortgaging the property you seek to purchase. Existing property can also as collateral. Lenders offer a Minimum Home Loan Value of Rs. 500,000 payables in Equated Monthly Instalments (EMIs). Lenders offer a Maximum Home Loan up to 90% of the Value of your Property, if it is a new property or else to the extent of 100% of your agreement value in case of Re-sale property.
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You are offered a Home Loan subject to your income, employment type, credit history, the location of your property, and other factors.
Interest Rates available on Home Loan are of three kinds. Fixed Rate, Floating Rate, Marginal Combination of Fixed and Floating
Lenders offer you a Minimum Home Loan Repayment Period or Tenure of 5 years & a Maximum of 30 years.
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Processing fees, Govt Equitable Mortgage duty, as well other statutory charges, pre part/full payment penalty ( in some cases), commitment charge, and miscellaneous charges for documentation and consultation, may apply on your home loan.
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Depending on the lender you select, you may be offered a home loan pre-payment facility with or without a prepayment charge.
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You are entitled to tax benefits on your home loan according to the Income Tax Act, 1961.
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You may avail a home loan with your spouse or parent as a co-applicant or a joint applicant, for which you can avail tax benefits too.
Loan Eligibility
A Home Loan requires a borrower to pledge the property to be purchased as collateral. You may qualify for this type of credit by fulfilling your lender's set eligibility criteria. The basic home loan eligibility criteria or mortgage loan eligibility criteria are as follows:
Age
Typically, you must be age 18 to 75 at the time of the commencing of your loan, and up to 65 years or less at home loan maturity.
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Salaried Person - 18 to 65 years
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Self-Employed Person - 25 years to 70 years
Income
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Salaried Person - Minimum Rs. 25,000 per month
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Self-Employed Person - Minimum Rs. 2,00,000 per year
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Self employed persons- Have at least One year financials
Employment
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Salaried Person - Minimum 2 to 3 years of Experience in any Firm /MNC, or a Private / Public Limited Company or have First job
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Self-Employed Person - Minimum 1/2 years of Experience in the current field
Credit Score
Typically, a credit score of 750 may be considered a good score for approval, to get a good interest rate
Fixed home loan rate
Fixed home loan rate is fixed for 2-3 years
Fixed-Rate of Interest
Fixed Home Loan Rates of Interest are those rates that remain constant for the entire term of your home loan. This type of rate allows you to arrive at the total repayment sum along with the interest sum payable at the time of estimation. sidered a good score for approval, to get a good interest rate
Floating Rate of Interest
Floating Home Loan Interest Rates are likely to vary and change over the period of your home loan, and these interest rates increase or decrease according to changes to Housing Finance Benchmark Rates or RBI Reporate.. This type of rate suits a changing market scenario where you expect falling rates.
Documents Required for Home Loan
Documents required for a Home Loan application are more or less the same, but may differ based on your Home Loan plan, the purpose of your loan, your individual credit profile, etc.
Identity Proof
01. Aadhaar Card
02. PAN
03. Voter ID
04. Passport
05. Driving License
Age Proof
01. Any of the above Identity Proof with Permanent Address
02. Birth Certificate
03. Bank Passbook
Residence or Address Proof
01. Electricity Bill
02. Telephone Bill
03. Post-Paid Mobile Phone Bill
04. Water Tax Receipt
05. Property Tax Receipt
06. LIC Policy Receipt
07. Recognized Public Authority Verification Letter
Property Documents
01. Sale Deed
02. Stamped Agreement of Sale
03. Allotment Letter
04. No Objection Certificate or NOC
05. Housing Society
06. Builder
07.Possession Certificate
08. Land Tax Receipt
09. Construction Cost Estimate.
10. Bank Account Statement of Payment Made to Seller or Builder
11. Occupancy Certificate
12. Sanction Plan
Additional Documents
Additional Documents Required for Salaried and Self-Employed Individuals
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Form 16 for last 2 years.
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Employee Identity Card
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Increment or Promotion letter, if applies recently.
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3 Months Salary Slips
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12 Month Salary Bank Account Statement
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Duration of Employment Evidence
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Appointment Letter
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Confirmation Letter
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Promotion Letter
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Increment Letter
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2 Years IT Returns with computation of income statement.