Concepts In Home Loan
What is Home Loan?
Home loan is a type of loan given to people for purchasing or improving their homes. It is usually the biggest purchase someone ever makes. It is important for people to know how it works before they go apply for one. The borrower has to repay the home loan with interest over an agreed period of time, typically 10-30 years. The interest rate will depend on what type of home loan you are applying for and what your credit score is.
Features & Benefits of a Home Loan
- Tax benefits
- Lower interest rates
- Long repayment tenure
- No Part/pre payment charges
- Pradhan Mantri Awas Yojana
Home Loan EMI Calculator
Types Of Home Loan
The purchase home loan is the most popular type of loan taken by people who want to buy a home. Once the purchase is made, they can then repay that same lender, in monthly instalments. If you meet the eligibility criteria for the loan, the lender can approve up to 80%-90% of the cost of the property as a Home Loan. This purchase home loan is taken to buy a residential property, including flats, individual houses and bungalows, etc.,
Eligibility criteria for Home Loan
- Age Limit- Minimum 21 years to Maximum 58 years
- Work status – Salaried and Self Employee
- Work Experience – Minimum 2 year
- LTV Ration – Up to 90%
- Salary – Minimum net salary Rs. 25,000/- and above.
- Self employee- Minimum net profit Rs. 25,000/- and above monthly as per ITR.
- CIBIL Score- Minimum 650 and above
The above-mentioned Home loan eligibility criteria are indicative in nature. Lenders have the discretion to relax or make the documents for a Home loan more stringent from one applicant to another.
Documents/Check list for Home Loan
For Salaried Employees
- Property all link documents minimum of 13 years
- Plan and permission copy of property
- Agreement of sale
- Adhar , Voter ID, Driving Licence, passport
- Pan
- Passport size photo
- Latest 6 months payslips
- Company id
- Minimum 2 yr employment proof
- Latest 12 months bank statement
- Present address proof(adhar, voter id, driving licence, passport, HR letter, gas bill, rental agreement on Rs. 100 bond paper, postpaid bill).
- Additional Documents: own house proof, 2 years Form 16 and PF passbook statement.(These additional documents are not for all, for required customers only)
For Salaried Employees
- Property all link documents minimum of 13 years
- Plan and permission copy of property
- Agreement of sale
- Adhar , Voter ID, Driving Licence, passport
- Pan
- Passport size photo
- Latest 3 years ITRs of company and partners/directors
- Company pan(pvt ltd/partnership)
- Minimum 2 yrs of business proof
- Latest 12 months bank statement
- Present address proof(adhar, voter id, driving licence, passport, HR letter, gas bill, rental agreement on Rs. 100 bond paper, postpaid bill).
- Business address proof(GST/Rental agreement/Labour licence/any govt register document)
The above-mentioned Home loan documents are indicative in nature. Lenders have the discretion to relax or make the eligibility criteria for a Home loan more stringent from one applicant to another
Interest Rates For Home Loan
Name of Lender | Up to 30 Lakh | 30 to 75 lakh | Above 75 Lakh |
6.55% – 7.95% | 6.50% – 7.65% | 6.50% – 7.60% | |
6.55% onwards | 6.55% onwards | 6.55% onwards | |
6.70% – 7.55% | 6.70% – 7.55% | 6.70% – 7.55% | |
6.75% – 11.50% | 6.75% – 11.50% | 6.75% – 11.50% | |
10.20% – 12.80% | 10.20% – 10.70% | 9.50% – 10% | |
6.70% – 7.85% | 6.70% – 8.05% | 6.70% – 8.05% | |
6.70% – 8.45% | 6.70% – 8.60% | 6.70% – 8.70% | |
>=6.70% | >=6.70% | >=6.70% | |
6.65% – 14% | 6.65% – 14% | 6.65% – 14% | |
6.99%-12% | 6.99% – 12% | 7.15% – 11.50% | |
>=7.15% | >=7.15% | >=7.15% | |
>=7.45% | >=7.45% | >=7.45% | |
>=7.60% | >=7.60% | >=7.60% | |
9.00 – 12.50% | 9.00 – 12.50% | 9.00 – 12.50% | |
>=9.20 | >=9.20 | >=9.20 | |
8.00% – 18.00% | 8.00% – 18.00% | 8.00% – 18.00% |
The above-mentioned Home loan rate of interests is indicative in nature. These are all last month interest rates this month might be varies.