A Comprehensive Guide About Housing Loans in India



Are you looking to build or buy your dream home? Congratulations! You are one of those people who are taking the steps towards to realize one of the biggest dreams.

If you don’t have the financial capacity to fund the entire home purchase, there is nothing to worry. The facility of housing loan in India can help you get as high as up to Rs.3.5 crore from leading lenders. It can also help you pocket home loan interest tax benefits on the payment of interest and principal to lessen the overall burden.

What’s more, if you have managed a robust CIBIL Score, repayment and income history, then the home loan rates in India could become affordable.

As a result, you can repay the housing loan over a longer tenor in smaller EMIs and manage other expenses easily.

If you want to know about the housing loan, its eligibility, documents needed and beyond to help you approach it smoothly, then here is a post to help you. Read on!

What is a Home Loan?

A housing loan is a financial product that banks and other lenders give to eligible borrowers to buy their homes. Based on one’s eligibility, the disbursed loan amount may go up to Rs.3.5 crore. A lender approves only about 85-90% of the value of the home that you want to buy. The remaining 10-15% needs to be arranged by a borrower. It is also known as the down payment. It helps a borrower reduce home loan rates later. A housing loan comes with a tenor of up to 20 years. It is to help a borrower manage other life expenditures and pay in small installments.

Home Loan Rates in India

In India, lenders offer two types of interest rates – floating and fixed. A floating home loan rates in India depends on MCLR and varies leading to fluctuating EMIs. The applicable rate of interest can also go down which may help borrowers to save. On the other hand, fixed home loan rates in India means a flat rate of interest leading to the payment of fixed EMIs over the tenor. It is good to opt for the floating rate as it may help borrowers pocket savings as well. If you are unsure about the EMIs that you will pay, you can use the home loan EMI calculator available at a lender’s site for free. It will show an exact EMI amount + interest payable so that you can prepare for it in advance.

Home Loan Eligibility at a Glance

Lenders also want a prospective borrower to prove his/her eligibility while processing the loan application. Here are some standard home loan eligibility conditions:

  • The applicant needs to be a resident citizen of India
  • His/her age should be between 23-62 years

He/she should have work expertise of at least 3 years and beyond

Home Loan Documents

Along with meeting the eligibility, one also needs to furnish some standard documents required for home loan approval such as:

  • KYC documents
  • Address Proofs
  • Identity Proofs
  • Recently clicked coloured photograph
  • Latest Salary Slips or Form 16
  • Last 6 months’ bank account statements

Home Loan Balance Transfer Facility

Are you already a housing loan customer and paying higher home loan rates in India? Then, you can switch the loan account to a lender offering a reduced rate of Interest.

What’s more, you also get a top up loan of up to Rs.1.5 crore to fund other needs.

The interest rate on it is only 1-2% more than the home loan and comes with a longer tenor. As a result, you can pay smaller EMIs and achieve multiple financial goals in life.

No comments

Powered by Blogger.