Home is the enabler for middle class family in India where building their dream house is like achieving their life ambition. Everyone struggle in their childhood, college days and job life to buy their dream house which will make them forget all their pain while achieving it. We at loan on mind help you to make your dream come true in lesser hassle free in quickest possible time. The purchase of property or construction cost is quite high. So, many people are looking for the home loans to buy the homes or properties. Home loans are for the people who want to buy a home or land or flat. The loans can be availed for renovation, construction and extension of a house. Any banks or non banking finance companies are providing the home loans to the people. Home loans are eligible for certain IT (Income Tax) exemptions which can be used to save the income tax amount that can an individual pays in every financial year. Under section Income Tax Act 24 , tax benefit can be claimed on up to Rs. 1,50,000 out of the interest rate of your home loan.
Avail a house loan scheme which suits your financial stand and zeroing in on a home that is well aligned with the capacity of your finance is a way to ensure a comfortable loan tenure. Many customers are making mistakes while buying a property at high cost. Any such situation will lead to delayed repayments and thereby a higher final amount being paid to the bank as interest and fees.
Firstly, you have to choose a property or home and verify the all the documents of your chosen property or home. Then, you can start searching the lender who offer the best home loans after checking the eligibility criteria.
Know the Eligibility of Home Loan: Many banks are offering home loans based on your monthly salary and property value. They will give you maximum amount in which your EMI of your home loan and other loans up to 50 to 60% of your income.
Select the Best Home Loan after evaluation: In home loan selection process, the primary feature is comparing the interest rates of the home loans in various banks. However, you can also check the additional fees and charges like processing fee, application charges, legal charges etc. To check the interest rates and others charges of various banks, LoanOnMind has brought a home loan comparison chart. Banks offer floating and fixed interest rates in home loans.
Apply for a Home Loan: After choosing a lender, you need to fill the loan application form. The lender requires the complete information about your financial liabilities & assets.
Documentation and Verification Process: You need to submit the important documents to the bank which are verified with your loan application by a lender.
Credit and Default Check: Banks checks the repayment capacity of a borrower and confirm the loan amount based on the borrower's eligibility to repay the loan. The loan repayment capacity of a borrower is based on the age, experience and nature of business, income etc. Banks also check the previous credit history through CIBIL score which can play a crucial role in approving your loan application. Low credit score can be a reason of rejecting a loan application. So, a good credit score is a green signal of getting a loan.
Loan Sanction and Offer Letter to a Borrower: After the credit verification, bank sanctions the loan and decides the final amount. The banks sends the offer letter to the borrower which includes interest rates, repayment options and loan tenure etc.
Acceptance Copy to the bank: The borrower have to send a copy of acceptance to the bank after agree with the terms and conditions in the offer letter.
Checks the Legal Documents: The banks asks the borrower to provide the legal documents of a property for security purpose. The next step is property valuation to sanction the loan amount.
Sing the Agreement and the Loan Disbursal: The borrower need to sign the loan agreement and the bank disburses the amount.
Depending upon the type of property being purchased and the loan amount, home loans can be classified into the following different types.
Purchase loans are given for the purchase of homes or flats. These are most popular among the home loan types and many borrowers are applying for this loan. All banks and NBFCs are offering these purchase loans.
Construction loans are offered to the people who want to construct their home. These loans are granted when you already having a own land and want to construct your home on it.
Land purchase loans are like home loans. The plot loans are availed in order to complete the purchase of a land for construction. The different between home and land purchase loans are used to purchase a vacant plot. The interest rate procedure is same for the home loan and land purchase loan.
These are becoming popular due to it's interest rates are same as the home loan's interest rates. If you are planning to renovate your house or repair your present home, then apply for these loans.
Many people want to extend their home due to various reasons. These loans are availed for those who want to extend their existing house.
If you already taking a home loan for your house and planning to buy a new house, then you can apply for this home conversion loans.
NRI home loans are for the NRIs who want to buy a home in India. The procedure and requirements of this loan is different from the home loans.
An individual can use this option to transfer their loan from one bank to another. Most people choose this option to get the best interest rates.
|Home loan Banks||Interest Rates||Processing Fee|
|Axis Bank Home Loan||8.85%||0.50% Min Rs. 1,000 - Max Rs. 25,000|
|Kotak Mahindra Bank Home Loan||8.95%||Max Rs. 10,000|
|HDFC Bank Home Loan||8.90%||0.50% Min Rs. 3,000 - Max Rs. 10,000|
|Muthoot Finance Home Loan||13.50%||Upto 1.5%|
|Bank Of Baroda Home Loan||8.75%||0.50% Min Rs. 7,500 - Max Rs. 20,000|
|Bank of Maharashtra Home Loan||8.75%||0.50%|
|Canara Bank Home Loan||8.75%||0.50% Min Rs. 1,500 - Max Rs. 10,000|
|Central Bank of India Home Loan||8.60%||0.50% Max Rs. 20,000|
|Corporation Bank Home Loan||9.05%||0.50% Min Rs. 1,000 - Max Rs. 50,000|
|ICICI Bank Home Loan||9.10%||0.50% Min Rs. 5,000 - Max Rs. 5,000|
|IDBI Bank Home Loan||8.65%||0.50% Min Rs. 2,500|
|Indian Bank Home Loan||8.60%||0.23% Max Rs. 20,381|
|Union Bank Of India Home Loan||8.80%||0.50% Max Rs. 15,000|
|Oriental Bank of Commerce Home Loan||8.75%||0.50% Max Rs. 20,000|
|Punjab National Bank Home Loan||8.85%||0.25% Min Rs. 1,000 - Max Rs. 15,000|
|State Bank of India Home Loan||8.75%||0.50% Min Rs. 10,000 - Max Rs. 10,000|
|Bank of India Home Loan||8.85%||0.25% Min Rs. 1,000 - Max Rs. 20,000|
|United Bank of India Home Loan||8.65%||0.59% Min Rs. 1,180 - Max Rs. 11,800|
|Syndicate Bank Home Loan||8.75%||0.13% Min Rs. 500 - Max Rs. 5,000|
|Dena Bank Home Loan||8.75%||0.50%|
Applicant's age should be 21 to 65 years old.
He/she should earn minimum Rs. 5 lakhs per year.
Can be a employee or self employed individual.
Own or rented residence but should be resided at least 1 years in the same address.
He/She should maintain a good credit score.
1) Fill up the application form
2) Submit the required documents
3) Discuss with an expert
4) Choose the best home loan deal
5) Pay off the processing fee
6) Property investigation
7) Loan offering and sanctioning
8) Final documents
9) Acceptance and signature
10) Loan disbursement
1. HDFC Bank
2. Reliance Home Finance
3. Andhra Bank
4. Kotak Mahindra Bank
5. TATA Housing
6. Axis Bank
7. YES Bank
8. LIC HFL
Deduction for Interest Paid on Home Loan: Home loan EMI has two components which are principal repayment and interest payment. The EMI interest is paid for a year can be claimed as a deduction of up to Max. Rs. 2 lakhs under Income Tax Act 24, 1961.
Low Interest Rate: Many banks and financial organizations offer home loans at lowest interest rate.
Deduction on Principal Repayment: The Max. amount which can be claimed up to 1.5 lakhs. For this deduction, the home didn't sold within 5 years of possession.
Capital Appreciation: Having a home is one of the best investment option for long term. The property costs are rises in every time which leads to capital appreciation and is one of the a reason to invest in a home.
1. Is it necessary to visit a lending bank to get a home loan?
Yes. Most of the people apply home loan online. But the applicants need to visit a bank to close the formalities of the bank. Many banks are sending their agents to collect the documents and signature.
2. Does a lending bank can give the entire cost of a property?
No. The banks lends 80% of your property cost.
3. How loang does it take to sanction the loan?
The home loan will be sanctioned after submitting all required documents to the bank. This may take 10 to 30 days.
4. When does the loan repayment period will be started?
Loan repayment period will be started after the banks gives the loan to the borrower. For under constructions properties, banks allow partially disbursed amount. For this partially disbursed amount, the borrowers can repay the principal amount and interest or just pay the interest.
5. Can I jointly apply for a home loan with my spouse?
Yes, You can jointly apply for a home loan with your spouse. Both of your incomes will be considered for loan quantum.