Home loans usually have the longest possible tenures among all types of loans, sometimes given for as many as 30 years. Therefore the amount and tenure would be calculated by the bank in a way that the complete repayment of the loan can be completed by the age of 60 or less.
The employment or business venture of the applicant should be at least 3 years old at the time of applicant. The income from such salary or own business should be in the region of Rs. 5 to 7 lakhs per annum for a home loan application to be accepted. The property for which the loan is applied for would be held as collateral for the loan, but the current address of residence also has a bearing on the eligibility. The applicant should have been living at that address for at least one year.
Apart from the income, age and address criteria, one important criteria for a home loan is how credible the applicant is, and this is assessed in two ways. First, the number of other loans running presently or taken earlier. Current loans would mean that the banks would deduct the EMI amount from monthly income while calculating the maximum possible loan that can be given. For previous loans, the banks would look at how well they have been serviced and repaid by the applicant. Banks also consider the CIBIL score of the applicant, and a score of up to 900 is required.
|Providers||Interest Rate||Processing Fee|
|SBI||8.30% onwards||Rs. 0 - 10,000|
|HDFC Bank||8.35% onwards||Up to 0.5% of loan amt|
|ICICI Bank||8.35% onwards||0.5% - 1.00% of loan amt.|
|IDFC Bank||8.50% onwards||Rs 10000|
|IndiaBulls||8.35% onwards||Up to 1% of loan amt|
|For up to 1 Cr - Rs 5000 , Above 1 Cr Rs 10,000|
|Up to 1% of loan amt|
|Up to 1% of loan amt|
|Up to 1% of loan amt|
|IDBI Bank||8.35% onwards||0.5% of loan amount|
|Tata Capital||8.75% onwards||0.2% of loan amt.|
|Punjab National Bank||8.35% onwards||Nil|
|Bank of India||8.40% onwards||Min. 1000 and Max. Rs. 20,000|
|Syndicate Bank||8.45% onwards||Min. 500 to Max. 5,000|
|Canara Bank||8.35% onwards||Varies based on applicant profile|
|United Bank of India||8.55% onwards||Varies based on applicant profile|
|IIFL||8.50% onwards||0.75% of the loan amount (minimum Rs. 5,000)|
|SCB||8.55% onwards||0.25% of the loan amount or (Rs. 5,000 for Salaried & 10000 for Self Employed)|
|CITIBANK||8.50% onwards||0.25% of the loan amount or (Rs. 5,000 for Salaried & 10000 for Self Employed)|
What Is A Home Loan And Why Is It A Good Idea?
You do need a place to stay, but if that place is your own home instead of a rented place, the satisfaction and pleasure is much greater. Owning one’s own house is not only a matter of great joy, but it also comes with certain other practical benefits too. Real estate is one of the asset classes with best appreciation rates, which makes a house a great investment vehicle as well. Instead of paying rent to fill someone else’s pockets every month, you can pay a little more every month to your bank as repayment for a home loan, and build up your own asset, which is yours for life. Also, the government provides many tax exemptions for home buyers for their loans, both on principal as well as interest.
What Are The Types Of Home Loans Available?
There are several types of home loans that are available. You could take a loan for buying a home, or for constructing a house, or buying a plot of land, or renovating your present house. The lender would assess the value of the property you are buying, based on the location and the materials used or proposed to be used in the construction. While applying for loans for buying land, most banks insist that the plot of land should be within municipal limits.
What Are The Eligibility Criteria and Documentation Requirements Of Home Loans?
Every home loan has certain home loan eligibility criteria, like age, status of employment, income level, credit rating etc. In terms of documents, the home loan requirements include proof of address and identity, along with relevant income documents (salary slips, bank statements, financial statements etc.). The bank would also need complete documents regarding the property (agreement for sale, approved plan, occupancy certificate, land records etc.), and would also carry out an evaluation independently using an empanelled valuator. Since it is a secured loan, where the property you select is held as mortgage by the bank, therefore the rate of interest is usually lower than unsecured loans. Also, the tenure of repayment is much longer, and some banks offer home loans of up to 30 years repayment period.
How Is Home Loan Interest Rate Fixed?
A big factor to be considered while selecting your home loan is the home loan interest. The reason is that different banks have different ways of calculating home loan interest rates. Some offer a fixed rate of interest which stays unchanged during the tenure of the loan, while others offer floating rates, which change according to the changes in the prime lending rate. That’s why when you are comparing current home loan rates, you need to understand what type of rate it is.
How can OneFinance Help You?
To help you navigate through the process of selecting the best bank to take a home loan from, understanding your eligibility, and completing the paperwork for application, we will be your one stop loan advisor. Our home loan EMI calculator will give you an idea of your likely monthly EMI depending on the property value and rate of interest the bank offers. We will verify your documents, complete the application, submit to the bank and facilitate their evaluation of your property. We have tie ups with all the leading banks in the country, and these relationships will help us work closely with the bank you choose, so that your home loan is correctly chosen and effortlessly processed.