Table of Contents
What is Home Loan?
A home loan is a loan that banks and housing finance businesses provide to customers who want to buy, build, or modify a home. This helps homeowners manage costs. You repay a home loan in equal monthly instalments or EMIs. Every payment includes interest and loan amount. Home loans help consumers buy their dream home by providing the funds.
Top Banks Offering Personal Loan at Lowest Interest Rates 2024
Bank Name | Interest Rates | Loan Amount (in INR) | Processing Fees | Prepayment Charges |
State Bank of India (SBI) | 8.50% p.a. – 9.65% p.a. | Up to ₹50 lakhs | 0.35% of loan amount + GST, Min ₹2,000 + GST | As applicable by the bank |
LIC Housing Finance (LIC HFL) | 8.50% – 8.75% | Up to ₹15 Crores | 0.25% (up to ₹10,000) for loans below ₹1 crore | Nil |
HDFC Ltd | 8.75% – 9.65% | Up to ₹10 Crores | Upto0.50% of the loan amount or Rs. 3300/- + GST | 1%-2% of the principal outstanding |
PNB Housing Finance Ltd (PNBHFL) | 8.50% – 11.05% | Above ₹35lakh | up to 1% for Home Loan | As applicable by the bank |
ICICI Bank | 8.75% -10.05% | Up to ₹5Cr | 0.50% of the loan amount plus applicable taxes | 1%of the principal outstanding |
Axis Bank | 8.75% – 9.65% | Up to ₹5 Cr | Up to 1.00% of the loan amount + GST | 2% of the principal outstanding |
Bank of Baroda | 8.40% – 10.60% | Up to ₹50 lakhs | 100% processing charge waiver, requiring ₹3,500.00 + GST per property out-of-pocket expenses. /p> | 0%-2% of the principal outstanding |
Bank of India | 8.35% – 9.35% | Up to ₹5 crore | 0.25% of the loan amount, Min ₹1,500 & Max ₹20,000 | Zero for floating-rate packages 0.65% to 2.25% of fixed-rate loan balance |
Citibank | 8.00% onwards | Up to ₹10Cr | Up to 1% of the loan amount | Nil |
IDBI Bank | 8.45% – 12.25% | Up to ₹10 Crores | Up to 0.50% of loan amount | 2% of outstanding loan amount |
Kotak Mahindra Bank | 8.75% onwards | Up to ₹2 Crores | Up to 0.5% of loan amount | Salaried: 0.5%,Self-Employed, HL top-up/Commercial Purchase: 1.0% of loan amount |
Tata Capital | 8.75% onwards | Up to ₹5 Cr | 0.10% of Loan Amount + GST for salaried and 0.20% of Loan Amount + GST for self employed | Not Found |
Piramal Capital & Housing Finance | 9.50% onwards | Up to ₹2Cr | Up to 5% of the loan amount + GST | 2%of the principal outstanding |
Godrej Housing Finance (GHF) | Up to ₹10Cr | 0.25% of loan amount for self-employed | Nil |
Highlights of Home Loans
People who want to buy or fix up a house need loans. Many things are fantastic about them. Allow us to examine these parts.
Competitive Interest Rates: Home loans start at 8.65% per year, making them accessible to many. Thanks to this low rate, monthly payments are achievable.
Special Rates for Women: Many lenders offer women different interest rates to promote gender equality. This means women can borrow cheaply.
Fixed EMIs: Home loans are lovely because the monthly payments don’t vary. Debtors can better budget when they know their monthly payments.
Interest Subsidy: The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) enables qualified applicants to obtain home loans at reduced interest rates, thereby offering substantial financial relief and improving affordability.
Tax Benefits: Borrowers of home loans are eligible for tax deductions, with a maximum of INR 1.5 lakhs deductible for principal repayment and up to INR 2 lakhs for interest payments, leading to significant tax savings.This advantage applies to everyone who borrows money to rebuild, repair, or expand their home.
Top-Up Loan Option: Homeowners can acquire a top-up loan for home modifications and additions.
Long Tenure and Balance Transfer Facility: You can repay this loan over 30 years using a long-term and balance transfer facility. You gain long-term financial freedom. Any homeowner can switch lenders for better terms or interest rates.
Home loans are helpful for people who wish to buy a property and have enough money for daily expenses.
Fees & Charges
Before receiving a house loan, research the fees. These can affect your total payment.
Interest Rate: The average annual percentage rate for a home loan is 8.65%. This rate determines your loan interest and monthly payments. Researching competitive rates might save you a lot of money over time.
Processing Fee: Most lenders charge 0.35% of the loan plus GST. A one-time fee. The lender uses this fee to offset loan costs. Knowing that this cost reduces your loan amount is essential.
Late Fees: Late fines may apply if you pay off your home loan early. The lender charges these fees for early loan repayment. This reduces interest costs. Knowing these fees will help you manage your home loan.
Criteria for Home Loan Eligibility
Lenders evaluate multiple criteria to ascertain an applicant’s qualification for a mortgage. Comprehending these characteristics can enhance your purchasing strategy. Eligibility Criteria for home loan may differ between salaried and self-employed individuals.
Age: The applicant’s age is a critical consideration. Salaried workers are generally required to be aged between 21 and 60, although self-employed applicants may apply until the age of 65. Certain lenders prefer younger candidates since their extended working years enhance their capacity for loan payback.
Income: Lenders often mandate a minimum yearly income of INR 1,80,000 for both salaried and self-employed persons. This assists lenders in evaluating your capacity to manage monthly EMIs. They may assess your gross or net income, with net income defined as the amount remaining after taxation. Lenders assess post-tax profits to determine loan eligibility for self-employed individuals.
Present Employment/Business
Experience: Employment or business stability is essential. Salaried candidates are often required to possess a minimum of 2-3 years of experience with their current employer, whilst self-employed individuals must have operated their firm for no less than three years. This steadiness instills confidence in lenders regarding the applicant’s capacity to fulfil repayment commitments.
CIBIL Score: A robust credit score is crucial for loan acceptance. Most lenders mandate a minimum CIBIL score of 720. An elevated score enhances the likelihood of obtaining a loan with advantageous conditions. Should your score fall below 720, certain lenders may still evaluate your application, but with potentially elevated lending rates.
Property Location: The property’s location is a crucial factor in loan approval. Lenders favour financing properties situated in legally compliant and well-developed regions. The loan amount is often established according to the property’s market worth, ensuring it corresponds with the lender’s risk evaluation.
It is essential to recognise that particular qualifying criteria may differ among banks and Non-Banking Financial Companies (NBFCs). It is recommended to consult your loan provider for specific criteria.
Documentation Process
You must submit the proper papers when applying for a house loan. This simple list breaks down the documentation you require by job type.
Documents for Salaried Individuals
Identity Proof: A PAN card, voter ID, Aadhaar card, passport, or driver’s license are all great ways to prove who you are.
Residence Proof: Proof of where you live: a passport, an Aadhaar card, a utility bill, or a driver’s license.
Income Proof: Pay stubs from the last three months and Form 16 are proof of income.
Job Continuity Proof: A current job certificate or letter of appointment.
Bank Statements: The most recent account from the past year shows salary credits.
Property Documents: Property papers, like a copy of the agreement, the sale deed, or upkeep bills.
Recent photos the size of a passport.
Documents for Self-Employed Individuals
- Identity Proof: A PAN card, voter ID, Aadhaar card, passport, or driver’s license are all great ways to prove who you are.
- Residence Proof: Same as for salaried people.
- Income Proof: For proof of income, show your tax returns and bank statements from the last three years.
- Business Existence Proof: Proof that the business exists: a copy of the shop’s registration or tax registration.
- Bank Statements: The most recent bill for a current or savings account that covers a year.
- Property documents: Same as for salaried people.
- Recent photos the size of a passport.
- Ensure you have all the papers ready so the application process goes smoothly!
How to Calculate the Home Loan EMI?
Your EMI for a home loan is essential for budgeting. The Home Loan EMI Calculator can estimate your monthly home loan payment. Enter the loan amount, interest rate, and length. Monthly EMIs cover interest and principal.
You want to borrow INR 50 lakh for 20 years at 8%. Using home loan calculator, you must know the EMI is roughly INR 42,170. The loan will cost INR 61,20,928 to repay, plus interest of INR 11,20,928.
Check your income to discover whether you can acquire a home loan. Most lenders allow half of your net salary to repay the loan. Remove your annual payments from this amount to see how much money you have for a new loan. Say you earn INR 1,000,000 monthly and have paid INR 16,000 in EMIs. You would have INR 34,000 for a new EMI. Understanding these math problems will improve your money management.
Types of Home Loans
Non-banking financial companies (NBFCs) and banks offer home loans to help people buy homes or make changes to their existing ones. If you know about the different kinds of home loans, you can pick the one that fits your needs best:
- Home Purchase Loan: People who want to buy a ready-to-move-in home usually get a home-buying loan. Low home loan interest ratemakes it easier for more people to buy their own homes, and the loan covers the whole cost.
- Land Purchase Loan/Plot Loan: You can get a land purchase loan or a plot loan if you want to buy land where you can build your dream home someday. It aids in getting money to buy land.
- Home Construction Loan: This type of loan provides money in stages based on the progress of the building process. People who want to build a new home will love it. This ensures that you get the right amount of money at the right time.
- Home Improvement Loan: Do you want to improve or renovate your home? This loan gives you the money you need to do so. It will make your house more valuable and comfortable.
- Home Conversion Loan: If you already own a home and want to buy a new one, you can use this loan to switch from your old home loan to a new one. This can help you keep your money in order while moving.
- Home Extension Loan: This loan is outstanding for people who want to add a room, floor, or car to their house to make it bigger. The money from this helps you pay for the new prices.
How do you apply for a home loan?
Here discuss how applying online or via WhatsApp is quick and easy.
Online Personal Loan Application Form
Want a home loan? Simple—just follow these steps:
Find home loan section in any website.
Enter your employment, monthly income, and loan amount.
Give your name, city, birthdate, phone number, and email.
Be aware of and comply with rules.
Click “Get Quotes.”
After sending the form, it will ask for property details like valuation, gender, address, and PAN number. When you click “Get Quotes” again, a list of home loan providers appears.
How to Apply via WhatsApp?
Home loan Company also allows WhatsApp home loan applications. After answering a few simple chat questions, it will provide lending choices. Easy as establishing chat friends.
Why Should I Apply for a Home Loan?
Want to borrow money for a house? To get a home loan, you should use best home loan company because of these reasons:
Online Market: An online market works the same way a market does. It helps you find the best loan without any secret agendas.
Trusted by Millions: With over 19 million happy customers, home loan company is known for making Indian property dreams come true.
Instant Quotes: Get instant prices from the best banks and NBFCs. By comparing offers, you can easily find the best deal for your needs.
Expert Guidance: Experts give you one-on-one help and walk you through every step of the loan process so you can make intelligent decisions.
Clear Process: It’s essential to be clear. If you have any questions about your home loan application, experts are here to ensure you understand everything.
Comprehensive Support: Professional helps with everything, from the first application to the final approval, making the loan process easier than it normally is.
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