All About Home Loan

Home loans are for individuals who are interested in buying/constructing houses. It is supported by banks or financial institutions who loan a certain amount, based on the need of the individual(s). Loans can be applied for purchase, construction or improvement of homes.

Types of Home Loan :

  • Home Purchase Loans
  • Land Purchase Loans
  • Home Construction Loans
  • Home Improvement Loans
  • Home Conversion Loans
  • Home Extension Loans
  • Bridge Loans

Home Loan Details

Find Home Loan details of Amount Funded, Interest Rate, Prepayment charges, Processing Fee, Tenure, etc.,

  • Home Loan Amount Funded
  • Up to 85% of Property Value
  • Home Loan Tenure
  • 1 year to 30 years
  • Guarantor requirement
  • Not required
  • Interest Rate (Monthly Reducing Balance)
  • 9.15% to 15%
  • Processing Fees
  • 0.5% to 1% of Loan Amt
  • Prepayment charges
  • 0% to 2% on outstanding loan amount

Apply For Home Loan

Apply For Home Loan

List of Home Loan Documents Required

If you are looking for a Home Loan from a bank in India, you would require the following Home Loan Documents to process your Home loan application.

List of Home Loan Documents Checklist for Salaried Person.

  • Photo Identity Proof
  • Residence Address Proof
  • Bank Statement: Latest 1 year statement where your salary is getting credited
  • Property Documents: Property documents to be submitted based on the purchase of your dream home.
  • Job Continuity Proof:
  • Income Proof: Latest 6 months Salary Slips and Last 2 Year Form 16.
  • Photo Identity Proof
  • Copy of agreement executed / Sales Deed.
  • Share Certificate.
  • Latest Maintenance Bill.
  • List of documents & sanction letter given by Existing Banker (If Applicable).
  • Advance Processing Cheque required to process loan documents for sanction.
  • 2 passport size colour photograph
  • IF PROFESSIONAL: Please submit your Professional Degree Certificate.
  • IF EXISTING LOANS: If any existing loan, please submit sanction letter, Payment Track Record.

List of Home Loan Documents Checklist for Self Employed Business Person

  • Photo Identity Proof
  • Residence Address Proof
  • Bank Statement: Latest 1 year statement where your salary is getting credited
  • Property Documents: Property documents to be submitted based on the purchase of your dream home.
  • Office Address Proof
  • IF PROFESSIONAL: Please submit your Professional Degree Certificate.
  • Business Existence Proof
  • Copy of agreement executed / Sales Deed.
  • Share Certificate.
  • Latest Maintenance Bill.
  • List of documents & sanction letter given by Existing Banker (If Applicable).
  • Advance Processing Cheque required to process loan documents for sanction.
  • IF EXISTING LOANS: If any existing loan, please submit sanction letter, Payment Track Record.
  • Income Proof: Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc.,
  • 2 passport size colour photograph

Home Loan Faqs

For floating rate home loan, the rate of interest varies with the market conditions. They are tied up with a base rate plus a floating element added to it. Floating rate home loans are usually 1-2% cheaper than the fixed rate home loan.
Repayment of home loans in fixed equal instalments over the period of the loan are categorized as Fixed Rate Home Loans. These rates do not change even with change in market conditions or with changes in loan rates by RBI.
Issue post-dated cheques for the tenure of the loan.
Deduction of amount from the salary
Deduction of the EMI directly from the bank (ECS)
Yes.
Lump sum payment can be made. But in such cases, banks may charge a penalty of the range of 2-3% of principal amount standing subject to Terms and Conditions mutually agreed at the time of signing loan agreement. On the other hand, many banks do not charge that too, if the EMI are paid periodically
Processing Fee ­ for processing charges of the application
Commitment Fee ­ fee for unused credit line or undisbursed loan
Pre-payment Charge ­ for pre-payment of loan
Miscellaneous charges ­ documentation and administration charges
The tax benefit on home loan is divided into two sections- Repayment of the principal amount- It is considered under Income Tax Section 80C with a maximum tax deduction of Rs. 150000. Repayment of the interest rate on home loan- You can avail the tax benefit on the amount to interest paid on home loan to a maximum limit of Rs. 2 Lakhs, under Section 24 of Income Tax Act
Amortization schedule is a table showing amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term. The percentage of each payment that goes toward interest diminishes a bit with each payment, and the percentage that goes toward principal increases. The interest rates differ based on the profile of the customer.