Many at times, people tend to take a home loan without knowing the full details regarding the loan. As a result, customers have faced bitter experiences which have de-motivated them from making a new home loan. This guide is all about knowing the home loan in detail and how you can apply for it.
Table of Contents:
What is a home loan?
What are the eligibility criteria for a home loan?
Home loan interest rate
Home loan EMI calculator
Can I get a home loan against property?
What are the documents required for a housing loan?
Home loan online application
What is a home loan?
A home loan is a secured personal loan given by a bank against the security, which can be an underlying property. A home loan can also be availed for renovating your existing home or for buying an under-construction property or resale property.
What are the eligibility criteria for a home loan?
The applicant should be of the age 24 or above, having a stable and high income along with a good credit score. An applicant should be able to show a bank statement for the past five years.
Home loan interest rate
Banks offer two types of interest for a housing loan in India – fixed and floating. A fixed interest rate is where the interest rate remains static throughout the loan tenure. Future interest rates will not affect the current rate – be it an appreciation or fall. The floating interest rate is where the interest rate keeps changing depending on the government policies and bank reforms. Your current interest rate changes as and when the bank makes the changes – be it an increase or decrease in the interest.
Home loan EMI calculator
A home loan EMI calculator helps to know the amount of EMIs that you will need to pay after taking the house loan. Enter the desired loan amount and select your preferred duration. Type the interest rate the bank provides, and there you go with the result. s
Can I get a home loan against property?
Yes, home loans are sanctioned against a property – be it residential or commercial kept as collateral with the lender. Upon full repayment of the housing loan, the bank will return you the security document.
What are the documents required?
A home loan application form that is filled in by the applicant
Two passport-sized photographs
Proof of identity (PAN, Passport, Aadhaar card, Voter’s ID card or driving license)
Proof of residence (bank passbook, ration card, any utility bills, Voter’s ID)
Income documents – payslip, IT returns, Form 16, bank statement of last five years, business license details, proof of business address
Property documents that include
NOC
A detailed estimate of the construction of the house
The original document of the stamped agreement of your property
Property tax receipts, maintenance and electricity bills
Occupancy certificate
Unique of the land tax paid
An approved copy of the building plan (in case of flat purchase)
Encumbrance certificate
Is there an online application facility available?
Yes, you can apply for an online home loan.
All About Bank And Loans in India 