Home Loan
Home Loan to Buy your Dream House
What is Home Loan?
A home loan is basically a financial support solution, which allows individuals to borrow funds from large financial institutions in order to purchase property or build a house on a property. Home loans come with pre-defined interest rates and repayment tenure. The lender can be any financial institution, including banks. The borrower can pay back the loan amount through easy EMI options. However, the lender retains its ownership of the property till the borrowed amount is cleared with pre-defined interest.
Home loans are solely provided for any property purchase, construction, renovation, or repair purposes. Depending upon the lending company, these loans may vary between Rs. 50,000 to over Rs. 5 crores, with flexible repayment options within a tenure of up to 30 years, depending upon the funds borrowed.
Eligibility to Avail a Home Loan
Although the eligibility criteria vary with the financial institutions, some standard criteria are as follows –
- The age limit of the applicant for salaried must be between 23 to 63 years.
- The age limit of the applicant for self-employed must be between 25 to 70 years.
- The applicant must have a minimum CIV-BIL score of 750.
- The monthly salary of the applicant must not be less than Rs. 25,000.
- The work experience of the salaried professional must be at least 3 years.
- In case the applicant is an entrepreneur, his/her business must be more than 5 years old.
Documents Required to Apply for Home Loan
- The online loan application process is hassle-free and required zero paperwork. However, there are some documents to keep handy while filling up your online home loan application form. Here are the important documents required to apply for an online home loan –
- KYC documents
- Address proof
- Identity proof
- Latest salary slips
- Bank account statement of last six months
- Proof of business continuity
Types of Home Loans in India
Based on the requirements of the borrowers, the financial institutions have categorized home loans into different types, which are as follows –
- Home construction loan
- Loan for land purchase
- Top-up loan
- Home loan balance transfer
- Joint home loan
- Loans under the Pradhan Mantri
How to Apply for Home Loan Online?
Applying for a home loan is simple and hassle-free. Follow these steps to easily apply for a home loan online –
- Visit the official website of any trusted financial institutions and move on to the home loan section.
- Access the online loan application form.
- Enter your personal details, the purpose of the home loan, and submit the required documents.
- Enter your desired loan amount and check your eligibility.
- If you are eligible for the loan, enter the property details and continue.
- Now pay the required fees and submit your application.
- Wait for the authorities to scrutinize your application and revert.
Top Banks Home Loans Interest Rates in India 2021
How long have you been living in a rented house in the city of your work? Tired of shifting from house to house? Why not buy your own dream home in 2021 when so many banks are ready to give you a Best Home Loan according to your personal needs!
Estabizz Fintech can help you to provide the Home Loan, Personal Loan, Education Loan, Study Loan, Business Loan, and car loan. We are partners of the 106 bank and finance companies.
All you need to have is some savings for the down payment. Most of the leading private and public sector banks typically provide financing for 75-90% of the value of the property, making it financially viable for you to purchase your dream home.
It is time to shortlist a home of your choice in your city this year and Apply for a Home Loan without a delay.
When there are numerous banks offering you attractive Home Loan deals, it is but expected to be spoiled for choice. Many banks offer attractive interest rates to the advantage of the home buyers, subject to terms and conditions. Home Loan Interest Rates are generally applicable as fixed or floating type.
FAQs
Home Loans offered by Punjab National Bank (PNB) and State Bank of India (SBI) are best in the market right now because they offer lowest interest rate, starting from 7% p.a., making it an affordable deal for the customer. Processing fee is also very low and they offer Home Loans for all your housing-related needs.
There are several Home Loan types available in India, including the following:
- Home Loan for Home Purchase
- Home Loan for Construction of House
- Home Loan for Renovation/Improvement of an Existing House
- Home Loan for Extension of an Existing House
- Home Loan for Repairs
- Home Loan for Plot Purchase
- Home Loan to NRIs
- Home Loan Balance Transfer
- Home Loan Top Up
Currently, Union Bank of India is offering the lowest interest rate on the home loan, starting from as low as 6.85% p.a.
The interest rate offered on HDFC Bank is comparatively higher as compared to the SBI Bank. HDFC Bank Home Loan interest Rates start from 6.90% p.a. whereas interest rates for SBI Home Loan start from 7% p.a. Therefore, SBI Home Loan would be a better choice in terms of affordability in comparison to HDFC Home Loan.
Home Loan interest rates are at their lowest right now amid ever-developing news of COVID-19. The coronavirus has impacted the Indian economy and wreaked havoc on the stock market in March, hence, the rates will typically be lower. However, after falling to a record low in just two weeks, Home Loan rates are surging higher again. Hence, it is advised to lock your Home Loan deal right now.
The minimum salary requirement for a Home Loan may vary from lender to lender. However, most lenders require a net monthly income of Rs. 25,000 to sanction a Home Loan. Make sure that your fixed obligations (rent, existing EMIs, bills, etc.) do not exceed 50% of your monthly income.
The Home Loan amount is based upon the net income of the borrower. Many banks extend the home loan up to 60 times of the borrower’s net monthly income. In such a case, on Rs. 50,000 take-home salary, the borrower is eligible to obtain a home loan of around Rs. 30 lakhs.
Yes, you can apply for more than 2 Home Loans at same time. However, in that case, the total EMI amount of both loans must not exceed the required FOIR (Fixed Obligations to Income Ratio). Also, banks ideally grant loans that are not more than 75% of your second property’s value.
The maximum home loan tenure offered by top lenders is 30 years. The longer the tenure, the lower will be the EMI. If you are looking for low EMIs, it is better to opt for 25-30 years tenure. However, it is best to obtain a loan for the shortest tenure as the interest payment is too high for a long tenure loan. It is best to opt for a tenure within which you can repay your Home Loan comfortably, without impacting your daily life.
- Low interest rate, processing fee, and other charges
- Long tenure – Up to 30 years
- High loan amount eligibility
- Easy eligibility criteria
- Simple documentation
- Hassle-free loan application
- Online process
- Tenure of repayment
- Loan amount applied for
- Age of the applicant
- Income and employer of the applicant
- Applicant’s CIBIL score
- Location of the property
- Market situation
- Changes in repo rate
- Make sure you do a thorough research and comparisons between top housing loan offers in terms of interest rate, applicable charges, and other features.
- To cut the cost of middleman, apply online either through Estabizz Fintech or bank’s website
- Apply for the required loan amount only
- Check your eligibility before applying for the loan
- Apply early in your life (Preferably mid 20s or 30s)
- Mention all your income sources in the application
Feel Free to write us on info@estabizz.com or call us for more details on 9825622275.
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