Home Loan: Apply for Housing Loan Online

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Last Updated: October 4, 2021

Are you amongst people in the streets looking for nuts and bolts about a home loan? Buying a home is a vision to reality thing for countless people, and at the same time, acquiring the best home loans can be daunting. So, better be ready with your checklist before unknowingly getting into the field of housing loans. If you are poised to apply for a home loan, know your eligibility and applicable home loan interest rate through home loan cal. Before finalizing a colossal financial decision, refer to our in-depth housing loan guide, and prepare a good knowledge base.  

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A home loan is a determined amount of money that a person borrows from a bank or other finance providers to buy a house. House loans are applicable for the purchase of brand-new houses, flats, and plots. Furthermore, one can acquire a home loan for renovation purposes in addition to the extension and repair of the existing house.

While opting for a housing loan, keep an eye on the housing loan interest rate to corroborate that the loan amount to be returned doesn't become a burden on you. A house loan can be tied down to establish a house, modernization, and redecoration of the old house, or buying a brand new ready-to-move-in house and flat.

Excessive real estate leads people to avail of a housing loan for being a homeowner. Furthermore, banks and housing finance companies prefer the facility of home loan top up using which the applicant can borrow a specific amount over the ongoing house loan.

Small amounts such as a loan of 5 lakhs are a perfect fit for top-up loans. The best part is home loan top up interest rate is a lot less than the other available loan and associated interest rate. The top-up loan interest rate varies from 6.9% to 10.10% as per various banks and finance providers. 

The crucial point about a property loan is when you acquire it, your property is kept as a mortgage by the bank/finance provider. To get an overall hold on your property, you need to pay the loan amount through EMIs every month. The lender determines the home loan EMI through the home loan cal or EMI calculator.

The interest amount and principal amount do qualify for a tax deduction. Thus, we recommend that the best bank for home loan will be the one with the lowest home loan interest rate. After going through the basics, let's go through the advantages of property  loans. 

When you count on a house loan, you unlock an array of top-notch features and benefits. Some of them are depicted below:

Tax Benefits With House Loan:

The splendid benefit of acquiring a property loan is the deduction of income tax. You can claim this deduction on the interest amount paid on an annual basis. People with housing loans are subject to receive income tax benefits. The paid interest amount is deducted from the income tax that is supposed to be paid. 

Available at Lower Rate Of Interest:

Home loans can be procured at lower interest rates as compared to other available loans. Getting a loan is highly beneficial despite a personal loan to purchase your own house. The lenders don't want to face skipped EMI's and unpaid loan amounts and to avoid such a situation, the housing loans are available at low interest rates. 

Due Diligence Of Property:

The best part about such a loan is that if you fail to detect the property's authenticity, the bank will carry it out. Moreover, while processing the home loan documents, the bank representatives perform legal checks to ensure the borrower doesn't get scammed. Such due diligence checks areas they provide bank's approval about the purchase and alert you in case of risky purchase.  

Prolonged Repayment Tenure:

Another thing that makes a house loan dissimilar to other loans is the repayment tenure. You can ask for prolonged repayment tenures with utmost ease at your convenience. One can stretch this period up to 25-30 years. With increased repayment time, the monthly EMI gets reduced, bringing down the borrower's burden. 

Absence of Prepayment Penalty:

In the case of a home loan with a floating interest rate, easily pay any lump sum amount to the lender without bearing any prepayment penalty. Then, close the loan before the closing tenure without any additional charges. 

Transfer Balance From one Lender to Another:

A bank loan for a house offers you the ability to transfer the balance loan amount from an existing lender to another. There can be multiple reasons behind it: rate of interest, service charges, bothering customer support experience, and many more.

Capital Growth:

The real estate data over the past decade reveals that the cost of properties is rising consistently. As per experts, the capital appreciation of the properties has been much higher compared to the paid interest amount. For instance, you took a loan worth 10 lakh at a 10% rate of interest. Suppose the property value got elevated by 20% till the end of the loan tenure. In such a case, the capital appreciation becomes higher than the paid interest amount. So, the borrower can now generate more profits by selling out the property. 

Increased Loan Eligibility:

Paying all EMI's on time and prepayment of the loan before completion helps increase your overall CIBIL score. The best part is with a good credit score, and you get increased loan eligibility. The borrower gets listed as a highly responsible borrower and becomes more eligible to procure loans at lower interest rates.

Key Point: 

Home loan for women comes with numerous other benefits counting lower interest rates, lower stamp duty, higher loan eligibility and tax deductions. Whereas home loan for pensioners is available only from the bank in which they do have pension account. But it comes with a limited tenure of 15 years or up to the age of 70 years. 

To borrow a property loan, an individual is supposed to pass through specific criteria. Thus, it gives satisfaction to the lender and financial institution about the creditworthiness of the borrowing personnel. In general, the eligibility criteria for a mortgage loan depends on certain factors, including age, borrower's financial position, overall credit history, CIBIL/credit score and financial obligations. Based on all these parameters, the applicant can get the cheapest home loan rates. 

The potential borrowers are supposed to meet indubitable eligibility criteria, resulting in hassle-free housing loan processing. Additionally, the eligibility criteria include age, employment status, category- employee/ or businesspeople, income in addition to property value. 

Regardless of the profession, I.e., self-employed, businessperson or salaried individual, an individual can avail of a loan. Although, the criteria may vary a bit. Choose the specific eligibility set based upon your profession and apply for the loan.

Note: Anyone who falls under Foreign Exchange Management Act, 1999 (FEMA) is eligible to procure an NRI home loan in India. NRI home loan is applicable for purchase, construction, renovating a new or old house. 

Typically, the home loan eligibility depends upon income source in addition to the repayment capability of an individual. Home loan eligibility is calculated through age, income, credit history, CIBIL, or credit score. 

  1. Present Age of the borrower and retirement year to know about the remaining working period. The applicant's age plays a critical role to determine the home loan eligibility. At max, the loan term is rounded off at 30 years.
  2. Age Limit ranges from 21 to 65 years for Salaried Individuals.
  3. Age Limit ranges from 21 to 65 years for Self-Employed personnel.
  4. Applicants should have a minimum salary of ₹10,000 p.m.
  5. Business individuals must have ₹2 lac p.a. as an income. 
  6. At max, the loan term can be 30 years.
  7. Financial position of the applicant: The present and upcoming income play a significant role in determining the loan amount.
  8. Past & Present credit score: An on-time repayment record will be the appropriate one. 
  9. Other applicable financial obligations, including a car loan or credit card debt.

The applicant can rely on certain things to enhance the eligibility for housing loans:

  • Add an earning folk as a co-applicant.
  • Avail a well-structured plan for Repayment.
  • Stable income flow with regular savings and constant investments works well.
  • Enhancing additional sources of income.
  • Take appropriate actions for rectifying errors present in the credit score.
  • Repayment of ongoing loans along with other short-term debts.

To avail of a property loan with ultimate ease, be prepared with mentioned documents:

Documents for Identity Proof:

  1. PAN Card
  2. Aadhar Card
  3. Voter ID 
  4. Passport
  5. Driving License

Documents for Address Proof:

  1. Electricity/Telephone Bill
  2. Any identity proof document inclusive of address such as Aadhar Card
  3. Income Proof:
  4. Salary slips/ Form 16
  5. Bank Account Statements (last six months)

Other Documents:

  1. Passport-size photographs
  2. For business persons: business continuity proof of 5 years

Certain factors highly affect the eligibility of your mortgage loan. Therefore, you must know about them to fix them as soon as possible to procure loans with utmost ease at the lowest home loan rates.

1. Applicant Age:

The lender determines the home loan tenure through the applicant's age. Applicants who are at the peak of their career can avail of the loan for extended tenor conveniently. To avoid delayed payments, lenders or loan providers cap the maximum age for salaried employees & self-employed personnel. 

2. Credit Profile and Credit Score:

The credit score, also termed CIBIL score, is one of the finest benchmarks used by the lender as an eligibility parameter for lending loans. It helps to figure out the involved risk in offering an applicant for the specific home loan amount. An applicant with a 750 or above credit score is an ideal candidate. Profile with on-time repayments without delays stand more chances of approved mortgage loan.

3. Employment Status and Business Stability:

Beyond credit score, another crucial thing in eligibility criteria is income stability. Financial institutions refer to 3 and more years of employment of the salaried applicants to figure out a stable income source for on-time EMI payment. Whereas, in the case of the self-employed applicant, the owner should be running the business for at least five years or longer. Based upon such stable yearly incomes, the bank provides a loan to the borrower. 

4. Condition of the Property:

The property that is kept as a mortgage plays a crucial role in loan eligibility. Its condition, market value, and resale value help the lender depict the loan amount's eligibility by the borrower. Properties situated across prime locations and loaded with modern amenities stand a better chance to get higher loan values. Additionally, the property's age also contributes to the list of critical factors. Finally, properties established recently pose a higher propensity for huge loan amounts. 

5. FOIR

FOIR stands for Fixed Obligation to Income Ratio. It is a measure criterion that depicts the repayment capability of the applicant. To calculate FOIR, the lenders consider the applicant's monthly income in opposition to monthly liabilities. The monthly liabilities comprise ongoing EMIs or payable rent. Therefore, FOIR should not be more than 50% of the monthly income. Moreover, it put up to the all-inclusive home loan eligibility.  

6. LTV

The Loan-to-Value ratio caters lenders to calculate the paramount house loan finance value. As per the current market value of the mortgaged property, the LTV determines the peculiar percentage which can be given to the borrower. However, in keeping with the RBI guidelines, the value shall not extend beyond 90 per cent of the overall valuation of mortgage property. For better understanding, let's have an example. Let say the overall value of your property is Rs.75 lakh; then at max, the finance provider can offer you Rs.67.50 lakh. Furthermore, based upon the LTV, the down payment of the loan amount is calculated.

Interest rates play a crucial role in property loans and procuring loans for plot purchase, house construction loans, and home renovation loans. A housing loan interest rate is a discrete percentage imposed on the gross amount borrowed. The current home loan interest rates have a big significance on the rate of interest that the applicant is supposed to pay. Even a small change in bank home loan rates generates a large impact on the home loan emi. Therefore, it is foremost to watch over whether they mutiny, fall or remain steady. 

Best home loan rates are what an individual pays for the entitlement. In simple words, consider it similar to leasing a car. Home loan interest rates are what you pay for leasing one's money. 

The home loan interest rate all bank may vary based upon the credit score, so when you apply for a home loan, carry in-depth research on housing loan interest rates of all banks, lowest home loan rates, bank home loan interest rates, and low-interest home loans. The pre-eminent way to opt for home loan interest rate comparison and count on the best suitable one. 

A home loan interest rate is the percentage of the amount charged by the lender on the loan. It is represented in percentage and is broadly dependent on the total loan amount and loan tenure. All bank home loan interest rates may vary depending on government policies, borrower's credibility, size or location of property and value of the property.

It is of two major types – fixed and floating. The interest rate charged is varied from lender to lender. Some have the lowest housing loan interest, and these lenders are usually preferred. You can get specific through home loan interest rate comparison. 

The home loan interest rate trend in 2021 has been a little variable, with the lowest interest rate being 6.65% while the highest is 12%. The larger the loan amount, the lesser the interest rate and lower the housing loan EMI. For instance, 15 lakh home loan emi for 10 years will be 17,339 with a 6.9% interest rate and 10 lakh loan emi for 5 years will be 19,754. So, it shows lesser the tenure, the higher will be the EMI. 

Since the home loan interest rate is directly related to real estate, the interest amount varies with the trends of properties. If the value of a property increases, banks readily give loans at lower interest rates, and if the value falls, the interest usually tends to be higher. 

Some banks offer two government initiatives: the home loan for women and home loan for pensioners. Pradhan Mantri Awas Yojana home loan plays an essential role by making women co-ownership mandatory. These have relatively lower interest rates and are enlisted as the lowest housing loan interest rate. These initiatives are very helpful to uplift the position of women and senior citizens of the country.

A housing loan isn't simply for the purchase of a house. There are several types of home loans, and each has different interest rates. Let's go through available home loan products to get a home loan comparison rate.

Home Loan Products Interest Rates
For purchasing land: Many home loan bank provide borrowers with this option. The bank will lend a maximum of 85% of the price of the land, and the interest rate will be between 6.75% to 12.09%, depending on the location, time, and credit score. Purchasing land is an excellent investment as a home can be built later, after saving money as site loan interest rates are modest amongst home loan rates of all banks.
For purchase of a house: The borrower can borrow up to 85% of the cost of the house from the bank with an interest rate of 9.85% to 11.25%. Almost all banks that offer loans offer this type of home loan
For construction:

Many people prefer to build their houses instead of purchasing built ones. The loan amount is calculated based on the total construction cost, age of the property, and extra expenses. Another feature is that the full loan amount can be taken at once or in parts as and when needed. The interest is decided on the basis of the loan amount and usually ranges between 6.85% to 9.50%. 
Pradhan Mantri Home Loan Yojana/ Awas Finance Awas housing finance is an excellent initiative by the Indian government to provide low-income households with loans to purchase or build homes even in high-cost areas. It is considered to be the best amongst government home loans. The interest rate for the Pradhan Mantri home loan is subsidized depending on the per annum family income. It has been a step forward in preventing homelessness. The interest rate charged by the govt is as low as 4% up to 7%. The Pradhan Mantri Awas yojana loan is easily accessible at lower interest rates.

The housing loan interest rates are categorized into two divisions named fixed interest rate and floating interest rate. The applicant has the power to switch from fixed to floating rate. Let's get more clarity about these rates and how they work as they are the backbone of the payback amount. 

Fixed Interest Rate:

In this practice of rate computation, the interest rate endures the same across the loan tenor. As the rate gets fixed initially, it won't fluctuate or range anyhow. Depending upon the signed documents, the applicant is liable to switch from fixed rate to floating rate but only after successful completion of a certain duration within the loan period. 

The interest amount is predetermined, and the same amount is paid every time. The interest rate will not be dependent on fluctuating market rates. At the same time, if the lending interest percentage falls, you'll bear a significant loss.

  • Advantage: The sole advantage is the rate remains stable, so the applicant knows about the upfront charges. The housing loan is shielded from recurring fluctuations of rates and aid to save money in the distant future. 
  • Disadvantage: If the standard lending rates go downwards, you don't benefit as your interest component is initially frozen.

Floating Interest Rate:

The interest rate will depend on the lending rate trending in the market. The interest amount will be calculated from the percentage the bank publishes. This interest rate is usually fluctuating as it depends on many factors like RBI policies, revision in lending rates, and banks' decisions on the revision of interest rate. The advantage and disadvantages are dependent on the rise and fall of the lending rate in the market, respectively. A drop in lending rate will yield a profit, whereas an increase in lending rate will cause losses. 

  • Advantage: The foremost visible perk of considering the floating interest rate is getting billed based on the latest interest rate. If the rate falls, you get to save huge interest charges in terms of home loan emi.
  • Disadvantage: In a scarce scenario, when the standard rate increases, you will have to bear the brunt of paying off emi with a higher rate.

There are numerous  interest rates, and the selection of appropriate ones can be highly confusing. The interest rates vary from one provider to another. Also, the same provider may offer home loans at different interest rates. This is because of the applicant's credit score and risk of non-payment. The mortgage property's current value also alters the interest rate. For specific interest rates, look for the rbi home loan interest rate today, as it will depict the annual interest rate stated by RBI and highly influence the bank interest rates. In addition, RBI updates regarding interest rates impact the latest home loan interest rate. 

Equated Monthly Installment or EMI is an important part of loan duration. These are monthly payments that the borrower begins to pay after a certain period. Very large loan amounts may take the borrower years of EMIs to pay it all back. 

Before considering a loan, it is important to calculate the monthly EMI first to deduce whether you'll successfully pay off the loan. EMI can be calculated in 2 ways –

Offline method 

Use this simple formula – 

EMI = {P x (R/100) x (1+R/100)^n} / {(1+R/100) ^n-1}

Here P – Loan Amount, R – monthly interest rate, and n – total number of monthly installments. You can also use spreadsheets to perform this calculation. It is quite tedious but gives more assurance about the calculation. 

Online method

There are countless EMI calculators online. Almost every bank has its own EMI calculator on its website and apps. There are many credit websites and business news websites that feature EMI calculators as well. They're fairly simple to use, just input the P, R and n values, and you'll get the amount for monthly instalments.

Once you're clear about the housing EMI, then proceed with the loan approval process. 

Use our quick EMI calculator and know what your monthly repayment amount or EMI will be. We have already calculated the most significant one’s for you through our home loan emi calc. The chosen interest amount is 6.9%, and the period is 30 years. 

EMI chart for home loan:

7 lakh home loan EMI INR 4,610
8 lakh home loan EMI INR 5,269
12 lakh home loan EMI INR 7,903
15 lakh home loan EMI INR 9,897
25 lakh home loan EMI INR 16,465
30 lakh home loan EMI INR 19,758
35 lakh home loan EMI INR 23,051
40 lakh home loan EMI INR 26,344
50 lakh home loan EMI INR 32,930
EMI for 1 crore home loan INR 65,860

There are numerous factors driven by the applicant's background as well as an income source, which highly influence the interest rate offered by the bank. Let's have a look at certain leading factors that might help to negotiate the best possible rate.

Income: 

The enterprise you currently work in and the employer says a lot, along with the income factor. A stable and high income sufficient to afford the loan will be sanctioned with a lower interest rate.

Type of Loan:

It depends on the type of house loan interest you've chosen, i.e., fixed, floating, or fixed rate of interest. It further depends on RBI and its policies. 

MCLR:

It is the minimum interest a bank can charge you. This varies from bank to bank as it is also dependent on costs of operation and funds. MCLR is retained for one year, and the interest rate changes with change in MCLR. 

Credit Score: 

The borrower's score is the deciding factor in both loan approval and housing  loan interest rate. Having a bad credit score leads to higher interest rates as the lender attempts to minimize the risk. 

Property Location:

The location for which you're applying for the loan is also crucial. Suppose the property is in an influential or up-and-coming area. In that case, the home loan interest rate from the bank will be relatively lesser than that for properties in developing or underdeveloped areas. 

LTV: 

Loan to Value Ratio is a mathematical method to calculate the amount of loan that can be financed for a property. It depends on the size of the down payment. The higher the down payment, the lower will be the interest rate. 

Loan Amount: 

The put forward amount greatly influences the loan EMI and rate. The thumb rule of a property loan is that the higher the principal amount, the more chances to avail lower rate.

Loan Tenure: 

The loan repayment period is a crucial factor influencing the interest rate offered to the borrower. Chances are, the longer the repayment tenure, the lesser the interest rate. 

Employment Type:

Salaried entrants usually get moderately lower rates comparing to the self-employed applicant. The key reason is a stable income source and less risk involvement. In general, banks have separate slabs for both types of applicants.

Reducing housing loan interest led to soothing the burden of EMIs off the shoulders. Choosing a home loan low interest bank will already be half the interest burden on your shoulders. If you are looking for how to reduce the mortgage loan interest burden, then go through the depicted points. These will help you out in reducing  loan interest with utmost ease. 

  • Always consider a shorter loan tenure: In the case of long terms loan, you may have to pay a lesser amount of EMI, but the overall amount drastically increases. You are supposed to pay interest for a longer time, resulting in more repayment in terms of interest. So, always count on shorter tenure to reduce the interest burden. Applicants can use home loan cal to compare long-tenure and short-tenure property loans.
  • On-time prepayments: During initial loan tenure, you pay more almost at the interest and less for the principal amount. Thus, by paying prepayments, you somehow bring down the outstanding principal amount. So, if you carry out on time prepayments, you don't have to go through penalties and high-interest burdens. 
  • Count on Balance transfer: Opt for a balance transfer, specifically when your current lender charges a high interest rate compared to other lenders. The major number of banks allow borrowers to transfer their  loans based upon certain procedures.

Everyone must get the house they dream of. To achieve this, you might not have sufficient funds, which is the best time to apply for a home loan. Maximum people apply for it to buy their own house, and the rest of them procure it for renovation purposes. Thus, the key reason because of which you deserve a home loan is to make your dream come true. Yet there are numerous other advantages which you can enjoy by considering a house loan. If you are looking to purchase property in the US then, consider us home loan interest rates as they are distinct from the Indian housing loan interest rates in banks. 

Sense of Accomplishment:

Buying a house is one of the biggest lifetime financial investments. It's not just because of the sentimental value, but additionally due to the financial value. Our lifetime savings get invested in building our own house, which is why you purely deserve a house loan for this sense of accomplishment.

Capital Appreciation:

Without any doubt, we have noticed huge fluctuations in property prices in the past five years. The expanded capital appreciation is the critical reason to buy a home. Even construction costs account for almost 70% of the cost, which has risen by 15% within the past decade. Moreover, the rent rates have increased drastically. Thus, investing in your own house is better than sending the same amount as monthly rent charges.

The Dream House:

Easily buy your dream house by paying a specific amount as down payment and monthly EMIs. Saving a huge amount and then buying a dream house in the late '60s won't make sense. Do it now because you deserve it through a housing loan and get increased buying capacity.

Ease In Repayment:

The procured house loan doesn't need to be paid in one go. The borrower is supposed to repay the debt in easy installments. You don't have to drain all your savings at once to buy your house. Choose the tenure and EMI based upon your ability to pay. It is easy to pay the monthly installment in contrast to the huge amount at once.

Procuring a house loan is quite an easy procedure. You just need to be prepared with specific documents, and that’s it. With the short and hassle-free procedure, borrow a loan in minimal time. 

Step 1: Visit the official website of the bank or loan provider.

Step 2: Scroll through the sections and look for the housing loan option. Click on “Apply for Home Loan.”

Step 3: Find out the loan amount you are eligible to borrow through ‘Check Eligibility’.

Step 4: Under Look for the basic information section and choose the loan type you want to apply for, such as plot loan, house loan, home repair loans, renovation loan. 

Step 5: In case you have already shortlisted the property, then mention the required property details. In general, the provider asks for the location, locality and cost of the property. If you haven’t chosen the property yet, just mention your name within the Applicant's Name column. Furthermore, add a co-applicant for your loan.

Step 6: Choose residential status, I.e., Indian or NRI, along with your current and permanent address, occupation, and retirement age, along with other specific details. Additionally, it comprises gross and total monthly income, other ongoing loans and payable EMI.

Step 7: Next to this, check for the ‘Offers’ tab. It enlists available loan products, the maximum loan amount that can be lent, rate of interest, loan tenure, type of loan and EMI.

Step 8: Select the home loan product and mention the asked details, then click submit.

Step 9: Post to this upload all required documents in the asked format.

Step 10: Now, all you will be left with is processing fees. Pay your online processing fees, and your loan application is complete.

With a mortgage  loan comes the opportunity to own a residential property, establishing an asset, yet enjoy tax benefits. Initially, almost 20% of the funds have to be paid as a down payment, and the rest can be paid in terms of installments with interest rates. Both the principal amount in addition to interest prepayment is countable in the tax deduction category. As per your convenience, submit an application either at a bank branch or online through the dedicated portals. Let us consider a few tips to keep in mind while applying for a house loan: 

#Tip1  

Depict how much amount is affordable for you in terms of EMIs (Equated Monthly Instalments). The housing loan is an indelible commitment and requires the advance calculation of affordable instalments. Deduct monthly expenses, credit card payment, and other loan emi and then see how much you can pay as an instalment of a housing  loan. Don’t forget to consider the present home loan interest rate as the current housing loan interest rate may vary from the past one. Plan everything as per the home loan interest rate 2021 as the home loan interest rates all banks 2019 are bygones. 

#Tip2

It is recommended to apply for a loan in the bank where the applicant already has a good banking relationship in terms of the account, previous personal loan, or any car loan. When the bank is already known to your credit history, accessing a property loan becomes quite easier. The processing time will be cut down as the bank already has every minute detail along with the KYC - Know Your Customer procedure.

Few More Tips:

In many cases, the lenders look for customers due to a good and on-time repayment record with a high credit score. Such applicants get faster approval and disbursal with lower interest rates.

You must ensure that the property you are about to invest in has all clearances in terms of laws, rules, regulations and environmental clearances. You can even go through the bank approved projects to check if it is one amongst them. This will help to get faster loan disbursement. 

 If the eligible loan amount isn’t sufficient to buy the property, then you can apply for a joint loan with a co-applicant (spouse or parents or sibling). However, if you don’t want to consider the joint loan, you can opt for a longer tenure home loan. A longer repayment tenure will result in lower EMI and a lesser burden.

Once you have enough knowledge about property loans, interest rates, credit scores, factors affecting loan eligibility, and tips to apply for a mortgage loan, you are all set to procure your home loan. Start keeping an eye on the credit score and repayment schedules in advance as they play a major role in the home loan and interest rate. You always have a chance to improve the eligibility parameters to access desirable loan amounts with lower interest rates. Count on home loan cal to get precise values. Procuring a home loan isn’t a one-go thing, so you must look at the loan interest rate of different banks before finalizing your decision. Square Yards tuppence worth of advice is reliable to access property loans with utmost ease in minimal time.

Documents Required for Home Loan & Eligibility Criteria Documents Required For Home Loan
Home Loan Balance Transfer - Offers & Benefits Home Loan Balance Transfer
Processing Fee & Charges for Home Loan Processing Fee For Home Loan
Calculate Your Home Loan EMIs Home Loan EMI Calculator
Different Types of Home Loans Home Loan Types
Calculate Prepayment of Home Loan Home Loan Prepayment Calculator

FAQ

  • Q: What Is A Home Loan And How Does It Work?

    A: <p>It is a specific amount, which you borrow from a bank or finance institution to purchase a house. One can use such loans to buy brand new flats/houses, renovate the house, purchase land, or construct a house on the existing plot. It works systematically. First, you apply for a loan and get the amount you are eligible for as per the home loan interest rates today. Then, based upon the interest rate, the lender calculates the EMI, which is the repayment amount you have to pay in terms of instalments for a specific tenure.&nbsp;</p>

  • Q: Is A Home Loan A Tax-Saving Deduction?

    A: <p>Yes, a home loan is a tax-saving deduction. It is part of the Income Tax Act&rsquo;s Section 80C that state the borrower is entitled to a tax deduction, notably for the amount being paid as prepayment of the mortgage loan. An individual can claim up to INR 1 lakh 50 thousand as tax deductions.&nbsp;</p>

  • Q: Can I Get A 100% Home Loan?

    A: <p>No, you cannot get a 100 percent home loan percentage from any bank or finance provider. Whether it is a bank or a housing finance company, at max, they can finance up to 75 to 90% of the mortgage property cost. Rest 10 to 25% has to be paid as a down payment by the borrower.&nbsp;</p>

  • Q: What is the interest rate for the Home Loan?

    A: <p>The interest rate for the home loan varies from one bank to another, but usually, it ranges from 7% to 12%. In addition, the charged interest rate from an individual depends upon the credit history. Before applying for a home loan, you must go through home loan interest rates today and compare home loan interest rates all banks 2021. List them out and look for the best home loan interest rates. The ideal lender will be the one offering the cheapest home loan interest rate.</p>

  • Q: What Is The Minimum Salary For A Home Loan?

    A: <p>The minimum salary for a home loan is 25 thousand per month. However, along with the salary factor comes another crucial factor that is age. The age limit for a salaried individual applying for a home loan must be from 23 to 62 years.&nbsp;</p>

  • Q: What Is The Maximum Home Loan I Can Avail Of?

    A: <p>The maximum home loan you can avail of depends upon your occupation. For example, suppose you are a salaried applicant, then you can avail of a home loan of up to 3.5 crores. At the same time, self-employed individuals can avail of loans upto five crores.</p>

  • Q: Which Home Loan Is The Best – Fixed Or Floating Interest Rate Home Loan?

    A: <p>Looking forward to the best home loan amongst fixed or floating interest rates, then rely on the floating interest rate. Floating interest rate home loan are marginally set with lower rates compared to home loan fixed rates. However, a time might come when you have to face a high interest rate, but it will be for short tenure only. Thus, paying a high-interest rate for some time is better than paying it throughout the loan tenure. Therefore, with the lowest emi for home loan, the applicant gets the best housing loan.&nbsp;</p>

  • Q: Can I switch to floating rate from a fixed rate during my loan tenor?

    A: <p>Yes, you can switch to floating rate from the fixed rate during your loan tenure. With utmost ease, convert fixed rate into floating one after a specific period of the home loan tenure. You might have to pay a small fee, which thoroughly depends upon teh lender. Moreover, you don&rsquo;t have to pay any prepayment penalties concretely in a home loan with a floating interest rate. Based upon current home loan rates and new home loan interest rate, switch to floating rates and enjoy lower EMIs.&nbsp;</p>

  • Q: Is Opting For A Home Loan Worth It?

    A: <p>Opting for a home loan is definitely worth it. You don&rsquo;t have to pay a huge amount at once for the purchase. You have the option of paying it with easy instalments without getting burdened. Furthermore, you get tax deductions when you procure a home loan. There are various types of home loans to cope with varying borrower needs, such as home construction loans, home improvement loans, house renovation loan, and&nbsp;house building loan.&nbsp;</p>

  • Q: Can I Take Two Home Loans At A Time?

    A: <p>Yes, you can take two home loans at a time, depending upon your loan eligibility. The number of loans availed by the homebuyer is not restricted. No such law has been made that can act as a barrier from servicing more than one loan at a time.&nbsp;</p>

  • Q: How To Avail Of A Home Loan With Ease?

    A: <p>To avail of a home loan with utmost ease, consider the below-depicted tips:</p> <ol> <li>Apply for a home loan based upon your financial condition</li> <li>Paying a higher amount as a down payment</li> <li>Maintaining a good credit score</li> <li>Don&rsquo;t drop the co co-applicant feature of the loan</li> <li>Prepare withe the required documents in advance</li> </ol>

  • Q: When Does The Loan Repayment Period Start?

    A: <p>The loan repayment period starts from the following month when the lender made the full disbursement. This repayment is made by paying easy monthly instalments for a notable time frame.</p>

  • Q: Is Home Loan Insurance Mandatory?

    A: <p>No, home loan insurance is not mandatory. None of the law and regulatory bodies, including RBI &amp; IRDAI, have made it mandatory to purchase home loan insurance.</p>

  • Q: When Do Home Loan EMIs Start?

    A: <p>Home Loan EMIs start from the succeeding month of the loan disbursement. Whereas, as per the loan management system standpoint, housing loan emi sow the seeds from 5th, 7th, and 10th of a month. EMIs are auto debited on the specified date of every month. Thus, you need to ensure that teh required amount is present in the loan account for emi deduction. The finance provider calculates the emi through the dedicated home loan emi calc.&nbsp;</p>

  • Q: What are the different purposes of a home loan?

    A: <p>Based upon the applicant&#39;s requirement, home loans have different purposes counting land purchase, house purchase, construction of the house, house expansion, and renovation. Therefore, easily avail oneself of a desirable home loan with potential eligibility and use it as a pre-requisite. Moreover, the house building loan interest or construction loan interest rates are different from home renovation loan interest rates and can be calculated through today&#39;s home loan rates.&nbsp;</p>

  • Q: Can I reduce my home loan tenure in case of a rate hike?

    A: <p>Yes, you can reduce your home loan tenure in case of a rate hike, and it is a good strategy to repay with increased EMIs. Paying more towards the principal amount leads to lower tenure. Therefore, you will be able to take the loan burden before the expected time.&nbsp;</p>

  • Q: Can I prepay my home loan?

    A: <p>Applicants are eligible to prepay the home loan, but it entirely depends upon your loan provider. Pre-closure is not entertained by every bank or finance provider. Consult this with your lender at the time of availing home loan. Early closure is not encouraged as it results in loss to the lender.&nbsp;</p>

  • Q: Can I take a joint home loan?

    A: <p>If alone you are not eligible to loan a specific amount, you can rely on a joint home loan. One essential point to note for a joint home loan is that the applicant&#39;s father/mother or married daughter can&#39;t be a joint applicant in the home loan. This is to avoid the involved risk of non-payment.&nbsp;</p>

  • Q: How is the home loan interest rate calculated?

    A: <p>Home loan interest rate is calculated through a simplified formula that is:</p> <p>EMI = {P x (R/100) x (1+R/100)^n} / {(1+R/100) ^n-1}</p> <p>You don&#39;t have to dig deep into calculations as you can do it with ease through our home loan EMI calculator or home loan cal.&nbsp;</p>

  • Q: What are the current home loan interest rates?

    A: <p>The current home loan interest rates differ from one bank to another. Let&#39;s have a glance at home loan companies and the latest home loan rates of various banks.</p> <p>If you are willing to apply for a state bank home loan, then you have to pay the state bank home loan interest rate from 6.80% to 7.50% per Anum.&nbsp;</p> <p>For central bank home loan, the interest rate is 6.85% to 7.10% per Anum.&nbsp;</p> <p>To procure a Mahindra home loan at a 6.65% annual interest rate.&nbsp;</p> <p>HBD home loan is available with a 10.50% interest rate.&nbsp;</p> <p>AFGIS loan interest rate is 9% per Anum for the home loan category.&nbsp;</p> <p>After going through them, opt for the lowest home loan interest rate bank and move to the initial processing of your home loan.</p>

  • Q: Which interest rate is better?

    A: <p>Floating interest rate is better compared to fixed interest rate home loan. In case you want to secure a minimum home loan interest rate, count on a floating interest rate. With the fluctuating rate of interest, pay your bank loan with absolute ease.&nbsp;</p>

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