Home Loan

Consumers can avail home loans directly from the banks and HFCs. As many home loan lenders now-a-days facilitate online home loan application processes, consumers can consider applying for them through such lender’s official websites, mobile apps or internet banking platforms. Alternatively, consumers can also get a housing loan through online financial marketplaces to fetch home loan offers from multiple lenders from a single platform, depending on the consumers’ credit profiles.

Currently, home loan interest rates start from 7.10% p.a. The final interest rate at which the bank or HFC will offer a home loan will depend on the applicant’s credit score, loan amount, employment profile, employer’s profile, LTV ratio, etc.

Home loan companies offer home loans to all resident and non-resident Indians. They can be salaried or self-employed professionals/non-professionals.

The property documents required to avail home loans may vary on a case-to-case basis. The documents for home loans availed for buying a new house will vary from the documents for home loans availed for house construction. For a detailed home loan document list.

You can compare multiple offers and apply for a home loan online through Paisabazaar.

You should select the bank that not only offers a low interest rate but also has relaxed loan terms and lower fees and charges. At Paisabazaar, you get offers ranked and personalised as per your credit profile and approval chances.

You can utilise the home loan EMI calculator to find out the EMI, interest and total amount. For this, you just need to provide the loan amount, interest rate and tenure.

The loan amount depends on a number of factors such as the property values, your income, your credit score and the lender from whom you are applying for the loan to name a few.

Your credit score, salary/income, property details, etc. are considered while considering your home loan application. Lenders may also ask applicants to fulfil additional criteria on a case-to-case basis. Do check whether you fulfil all requirements set forth by the lender before you apply for the loan.

A lender generally requires the proof of identity, proof of income and property documents while assessing your home loan application. They may further ask you to provide additional documents if required. 

You will have to pay an EMI of Rs. 41,822 when you take a Rs. 50 lakh loan for 20 years at 8% p.a.. This amount would reduce to Rs. 38,590 when the tenure is extended to 25 years at the same rate but you will have to pay a higher overall amount for the same loan.

Yes, self-employed applicants are also eligible for a home loan. However, they may get the loan at a relatively higher interest rate and may have to adhere to stricter loan term.

Checking the eligibility for a home loan offer on Paisabazaar does not impact your credit score. Your score gets impacted only when you apply for a home loan.

The Credit-linked Subsidy Scheme (CLSS) under PMAY – Urban 2.0 is a government-backed subsidy scheme available to urban first-time borrowers under the EWS, LIG and MIG categories where interest subsidy is provided to borrowers that helps reduce the overall interest cost.

Yes, you can transfer your existing home loan at a higher rate to another bank that offers the loan at a lower rate.

Home loan borrowers can claim a deduction of up to Rs. 1.5 lakh paid as the principal amount under section 80C and up to a maximum of Rs. 2 lakh paid as interest under section 24 of the Income Tax Act.

Generally, it takes 1 to 2 weeks for lenders to approve a home loan. However, this can vary considerably depending on the loan approval process of the banks/HFCs, the credit profile of the applicant and the features of the property to be purchased/constructed.

A lender may charge the following fee at the time of loan application – processing fee, legal and technical charges, valuation fee, stamp duty and registration charges, etc. In addition to these, the lender usually charges prepayment or foreclosure charges, conversion fee, late payment charges, etc. as and when the case may be.

Home loan lenders determine applicants’ eligible loan amount based on the EMI/NMI ratio and LTV ratio, which vary as per the lender’s credit risk policy. To estimate the loan amount, consumers can use their lender’s home loan eligibility calculator on the website or explore online financial marketplaces like Paisabazaar for maximum loan offers from different lenders.

Lenders consider the repayment capacity of home loan applicants while evaluating their loan application and loan amount eligibility. Home loan lenders usually prefer to lend to home loan applicants whose total EMI including the proposed home loan EMI is within 55-60% of their monthly income. Hence, home loan applicants can use online home loan EMI calculators to find the optimal home loan amount and tenure based on their repayment capacity.

It is difficult to say which home loan you will get with a low credit score as different lenders have different credit risk policies. Therefore, consumers with poor credit scores should visit online marketplaces like Paisabazaar to check and compare home loan rates and other loan features such as tenure, processing fees and other related costs from different banks and HFCs.

Lenders prefer to approve home loans to applicants with a credit score of 730 and above because such high credit scores reflect responsible credit behavior and reduce the credit risk for lenders. This is why many lenders offer lower home loan rates to applicants with high credit scores. However, some lenders offer home loans at higher interest rates to applicants with low credit scores. Therefore, one must check their credit scores at regular intervals.

EMI calculation for a Rs. 20 lakh home loan would depend on the interest rate and tenure. Let’s assume the interest rate and tenure on your Rs. 20 lakh home loan is 8.50% p.a. and 20 years, respectively. In such a case, your home loan EMI would be Rs. 17,356. For calculating EMI based on other tenure and interest rate values, you can use a home loan EMI calculator.

Your spouse or blood relatives like your father, mother, siblings and children can co-sign a home loan with you. Also, all co-owners of the property must be co-applicants in a home loan.

In case of floating rate home loans, lenders do not charge prepayment penalty as per RBI guidelines. However, lenders may charge prepayment penalty in case of prepayment of fixed rate home loans.

Yes, if the lender of your second home loan is satisfied with your repayment capacity, credit profile and features of the mortgaged property, you can avail a second home loan for another property.

Generally, it takes 1 to 2 weeks for lenders to approve a home loan. However, this can vary considerably depending on the loan approval process of the banks/HFCs, the credit profile of the applicant and the features of the property to be purchased/constructed.

Yes, you can prepay your home loan. If you have a floating rate home loan, no prepayment charges will be levied. However, in case of fixed rate home loans, lenders may levy a prepayment charge of around 2% to 4%.

Yes. Repayment of the principal amount will be eligible for tax deduction under section 80C of the Income Tax Act. Repayment of the interest component will be eligible for tax deduction under section 24(b) of the Income Tax Act.

Yes, most lenders offering home loans at both fixed and floating rates allow their existing home loan borrowers to convert their fixed rate loans into floating rate loans and vice versa, on the payment of conversion or switching fee.

Under Pradhan Mantri Awas Yojana-Gramin scheme, beneficiaries can avail a maximum home loan amount of up to Rs 70,000.

Home loan foreclosure charge is a penalty that your home loan lender may levy when you pay off the loan before the end of the loan tenure. However, the Reserve Bank of India (RBI) has prohibited banks and Housing Finance Companies (HFCs) from charging foreclosure charges on floating rate home loans. Lenders offering home loans at fixed rates usually do not charge foreclosure fees when paid off from the borrower’s own fund sources.

As per the RBI guidelines on Fair Practices Code for Lenders, home loan application forms should include information about the fees/charges, if any. Lenders should also give the notice of any change in the terms and conditions including interest rates, service charges etc. in advance to the borrowers. Therefore, borrowers should always stay updated regarding the schedule of charges of their home loans.

A Notice of Intimation (NOI) is a document that serves to inform relevant statutory authorities regarding purchase of a house property or when a home loan is availed for the said house property. The issuance of this notice has been in effect since April 1, 2013, as a measure to combat property fraud, avoid duplicate registrations of the same property, and prevent multiple loans being taken out on a single home.

Existing home loan borrowers can opt for home loan top-up facility to meet additional expenses related to home construction/ improvement/extension, purchase of a new house or taking care of any personal needs except for any speculative purposes. However, lenders will sanction top up home loans only after factoring in the credit profile and repayment history of the borrower.

Home loan insurance is not mandatory for home loan borrowers. However, lenders may recommend or require it to ensure loan repayment in case of unforeseen events like death, disability, or property damage.