Home Loan
Home Loan
Home Loans For Your Dream Home
Funds borrowed from a bank or Non-bank financial institution for purchasing, expanding, or constructing a home is recalled as a Home or Mortgage loan. These loans have fixed or adjustable interest rates payable in EMI or Equated Monthly Instalment over an agreed period. Moreover, these are secured loans, i.e., the loan amount is backed by property you purchased from the loan amount. Currently, a home loan's starting annual interest rate is 8.45%. Some of the main advantages of house loans are low application fees, 30-year terms, provisional approval, and adjustable EMIs.
- Minimum Interest Rate:In the last 15 years, home loan interest rates are rapidly rising. Thanks to rainy festival specials, you can currently take advantage of the most effective interest rates on house loans starting from 8.45% p.a. for all loan amounts.
- EMI That Fits Your Budget:You can now get a home loan with the lowest EMI of Rs. 765 per lakh and the most flexible repayment terms. Options include balance transfers, top-ups, moratoria, OD facilities, step-up and step-down EMIs, and more.
- No Part or Total Repayment Charges:There is no fee for partial or full prepayment. You can prepay early and reduce interest costs depending on your cash flow. You can pay foreclosure without paying any extra charges.
Different Home Loans To Meet Your Requirements
- Housing Loan:A home loan is the most popular kind of loan where the residence is used as security up until the loan is repaid. Such offers come with various repayment alternatives and are made by numerous housing finance firms, public banks, and private banks.
- Loan for Home Construction:A house construction loan may be the best option if you own a piece of land but need more funds to build a house. Such borrowing is typically done to construct or repair a significant portion of your home.
- Loan for Home Extension:Expanding your current home, building another floor, or extending the structure, a home extension loan is your best bet for financing these requirements.
- Loan for Home Improvement:We all want to upgrade and improve our homes for better living. Home improvement loans can finance anything you need, including dated furnishings, fixtures, and malfunctioning lighting.
- Transfer of Home Loan Balance:Do you have debt with a high-interest rate on your existing mortgage? To lessen your load and increase your ability to pay, you might move your debt to a charging plan with a low-interest rate. You can transfer a house loan to a bank or NBFC with better home loan eligibility requirements and interest rates.
- Composite Home Loan:With a Composite Home Loan, you can get a single loan to buy a plot of land and then build a house within the time frame your bank specifies.
- Loan for Home Conversion:You can choose a Home Conversion Loan if you need to relocate from your current home to a new one for personal or business reasons. With the help of a house conversion loan, you may quickly transfer your existing loan from your previous property to your new one.
- Awas Yojna Pradhan Mantri:The Credit Linked Subsidy Scheme CLSS, is the name of the government's initiative to give every Indian citizen a chance to own a home in India. A citizen may apply for a home loan through nearly all participating banks under the PMAY.
- NRI Mortgage:NRI Home Loan is your option if you're a loyal citizen and a Non-Resident Indian who wants to own residential property in India. You can still acquire a loan up to a specific proportion of the value of your home, even though the application procedures could be slightly different.
- Apartment Purchase:A residential apartment building that is either being built or is currently ready for occupants can be purchased with a house loan.
- Purchase of a Bungalow or Separate Residenc:Get a home loan to buy a bungalow or independent house that is finished or under construction.
- Land or Plot Purchase:You can purchase an empty site for construction. Some lenders demand that you start building your property within a year of buying the land.
- Home Remodelling:These loans are intended for home or apartment improvements or renovations
Analysis of Home Loan
- Mortgages on the property you want can be used to obtain home loans, which are Secured Advances. Additionally, collateral can be existing property.
- Lenders offer Equated Monthly Instalments for a Minimum Home Loan Value of Rs. 2,000,000. (EMIs)
- Maximum home loans from lenders are up to 100% of the value of your property.
- Your income, type of employment, credit history, the location of your property, and other factors will all affect the Home Loan that is offered to you.
- There are three different types of interest rates for home loans. Rates: Fixed Rate, Floating Rate, and Marginal Fixed and Floating Rate
- Your home loan can be repaid over a minimum of five years and a maximum of thirty years, depending on the lender.
- Your home loan may be subject to registration fees, processing fees, prepayment penalties, commitment fees, and other fees for documentation and consultation.
- You can be given the option of prepaying your house loan with or without prepayment fees, depending on the lender you choose.
- Following the Income Tax Act of 1961, you are entitled to tax advantages on your mortgage.
- As a co-applicant or joint applicant, you can apply for a house loan with your partner or parent and receive tax benefits.
Perks of Home Loan
- Value of property increases with time.
- Feeling of achievement
- Tax advantages for the principal and interest components
- No fees for prepayment or foreclosure
- Top-up and balance-transfer options for mortgage loans
- Up to 30 years of extended repayment terms
- can receive a loan of up to five crores
- Holiday repayment facility
- It makes it simple to buy a new or used home, apartment, or plot of land or even to build a new home or renovate an existing one.
- Fixed and adjustable interest rates are offered for home loans.
Home Loans And Interest rates And Charges
| Bank | Interest Rate |
| State Bank of India | 8.60% - 9.40% |
| Kotak Mahindra Bank | 8.65% - 9.45% |
| CitiBank | 8.45% |
| Union Bank of India | 8.60% - 10.46% |
| Bank of Baroda | 8.60% - 10.30% |
| The central bank of india | 8.55% - 9.55% |
| Bank of India | 8.60% - 10.60% |
| HDFC Bank | 8.65% - 9.35% |
| ICICI Bank | 8.75% - 9.85% |
| LIC Housing Finance | 8.65% - 10.50% |
Best Home Loans Provider in 2023
Comparison list of interest, return tenure and processing fees of top banks and financial services of India.
| Top Banks | Home Loan Interest Rate (per anum) | Maximum Tenure | Processing Fee |
| Axis Bank | 8.60% - 9.05% | 30 years | up to 1% (minimum rs 10,000) |
| CitiBank | 8.45% | 25 years | up to 0.40% (maximum rs. 5,000 collected upfront) |
| HDFC Bank | 8.65% - 9.35% | 30 years | up to 50% (maximum rs 4,500) + taxes. Flat rs 1,500 for women |
| ICICI Bank | 8.75% - 9.85% | 30 years | Upto 0.50% or maximum rs 1,500 (rs 2,000 for mumbai ,delhi and Banglore) + GST |
| Tata Capital | 8.95% - 12.00% onward | 30 years | 0.50% onward + GST |
| Kotak Mahindra Bank | 8.65% - 9.45% | 20 years | 0.50% + GST & statutory dues |
| Larsen & Toubro Finance Services | 8.65% - 8.75% | 30 years | minimum 0.25% + taxes + rs 4,999 login fees |
| Bank of baroda | 8.60% - 10.30% | 30 years | up to (minimum rs 8,500 & maximum Rs 25,000) |
| SBI Bank | 8.60% - 9.40% | 30 years | upto 0.50% GST |
| Aditya Birla | 8.75% - 14.50% | 30 Years | Upto 1% |
| Federal Bank | 8.60% - 9.70% | 30 years | 0.50% (minimum rs 10,000 & maximum rs 45,000) |
| PNB Housing | 8.50% - 10.65% | 30 years | 1% + taxes |
| Bajaj Finance | 8.60% - 14.00% | 20 years | up to 0.50% - 7.00% |
| Fullerton India | 9.50% - 10.50% | 30 years | up to 3% |
| Ummeed Housing Finance | 9.50% onwards | 25 years | up to 0.50% (maximum rs 5,000) + taxes |
| Shriram Housing Finance | 9.50% onwards | 25 Years | up to 0.50% (maximum rs 5,000) + taxes |
| DMI Housing Finance | 11.00% - 15.50% | 25 years | 0.5% + GST |
Applicable Charges And Fees For The Home Loan
- Processing fees:Many banks impose an upfront processing fee to process your application. This typically costs between Rs. 3,000 and Rs. 5,000. Even if the bank denies your loan request, this charge is non-refundable. They will include this fee in their standard processing charges if they approve your loan. The processing fees related to your mortgage should be something you're prepared to spend. Although some banks charge less for processing, they may make up for it in another way. While some banks and financial institutions combine their fees and include them in the processing fees, others do the opposite. Look at some typical costs you could incur when applying for a mortgage.
- Charges for legal review:Legal review of the property is required. You must obtain a clear title to the property before the financing bank can guarantee that the mortgage will be upheld in court. As a result, they have a panel of legal professionals who have searched for 30 years. To enable these attorneys to act appropriately, you must give them access to your property paperwork. While many banks include these costs in their processing fees, some require the customer to pay the advocates separately.
- Mortgage Registration Fees:An equitable mortgage is a primary security for the house loan. Most Indian states demand that you file an equitable mortgage in the bank's favour. You pay stamp duty and registration fees in such a situation. Some states, like Rajasthan, do not charge stamp duty on equitable mortgages. However, in states like Tamil Nadu, there is a stamp duty of 1% of the loan amount, up to a maximum of $25,000. Additionally, you must pay registration fees of 5,100. Be mindful of these extra costs when applying for a home loan.
- Insurance:It is necessary to obtain insurance for the property. The loan is bundled with several products from banks and financing companies, including loan insurance, Mediclaim family floater policies, accident insurance, critical illness coverage, etc. Also included in their funding is the premium. Of course, you must make the same payment toward your EMI. These insurance policies are beneficial in a way since life is unpredictable. The insurance can cover the liabilities if the primary borrower and breadwinner are injured or killed. All other policies, excluding property insurance, are, however, optional.
Easy Loan Approval with HBCL Finance.
Apply Today
Fast and Easy Loan Approval with HBCL Finance.
Apply Today
EMI Calculator For Home Loans
In order to avoid financial difficulties and to receive a suitable home loan, you must evaluate your ability to repay the loan when you decide to apply for one. In this sense, the EMI Calculator is a valuable tool for figuring out the EMI (equated monthly instalment) of a housing loan. It is an easy-to-use calculator that is available for free and can be used from any location at any time to determine your required monthly payments. To get an accurate result, the House Loan EMI Calculator needs a little information about your home loan, such as the loan amount, interest rate, and repayment period.
Loan Amount
₹
|
|
|
|
|
|
|
|
|
1L
1.25Cr
2.50Cr
3.75Cr
5.00Cr
6.25Cr
7.50Cr
8.75Cr
10Cr
Rate Of Interest
%
|
|
|
|
6%
9%
12%
15%
Tenure
Yr
|
|
|
|
|
|
|
0Yr
5Yr
10Yr
15Yr
20Yr
25Yr
30Yr
EMI Schedule
| Year | Opening Balance | Interest | Principal | Closing Balance |
|---|---|---|---|---|
| 2024 | ₹ 2,00,00,000 | ₹ 2,94,272 | ₹ 15,33,118 | ₹ 1,84,66,883 |
| 2025 | ₹ 1,84,66,883 | ₹ 12,68,544 | ₹ 96,95,796 | ₹ 87,71,086 |
| 2026 | ₹ 87,71,086 | ₹ 3,65,864 | ₹ 87,71,086 | ₹ 0 |
.png)
Your EMI
₹ 9,13,695
9 % interest
per anum
Apply Now
.png)
₹ 19,28,676
Total Interest.png)
₹ 2,19,28,676
Principal + InterestLoan Amount -
₹ 2,00,00,000
₹ 2,00,00,000
Total Interest -
₹ 19,28,676
₹ 19,28,676
Eligibility Criteria For Home Loans
Various factors go into the determination of your Home Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons.
- Your current income:Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months to which their salary is credited. Self-employed professionals should submit a report of accounts for one year where they receive the credits for their services.
- Continuity of employment/business:Salaried employees can show their continuity of employment on their income tax returns, Form 16, Form 26AS, etc. They can also provide a statement of the Provident Fund account to prove the connections. Business owners and professionals who work for themselves can submit their income tax returns along with additional financial documents, including balance sheets and profit and loss statements. They can also provide copies of the invoices that their customers have raised.
- Current commitments:An applicant can already make monthly payments on personal loans, auto loans, or other debts at the time of application. When determining your eligibility for a home loan, you must also consider these instalments.
- Credit history:The applicant's record of on-time repayment is crucial. A credit bureau, such as CIBIL, is a member of every bank or financial institution. These bureaus monitor each borrower's loan-related actions. Then create your credit history profile based on this data, and they quantify it by creating your credit score. This figure lies somewhere between 300 and 900. Your chances of securing a loan are better the higher your credit score. It should go without saying that missed payments, repeated loan requests, and defaults can all negatively impact your credit score. Fair is a score of 600 or more when evaluating HL eligibility.
- Property value:The value of the property you buy is significant. The funding bank must ascertain the project's cost before providing money. Banks often lend between 75% and 90% of the property's worth (also known as the LTV or Loan to Value Ratio), leaving the remaining amount as your contribution, or margin, as they call it.
- Legal position:A mortgage on the land and building they have financed serves as the primary security for any house loan. The mortgage must be written up and registered with the appropriate registering authorities. It would help if you had the legal power to create the mortgage to do this. To establish the ownership chain, banks and other financial institutions require a legal scrutiny report from their team of attorneys, who search for the preceding 30 years.
- Borrower's age:The borrower must be at least 21 when applying for a home loan. Generally speaking, maturity should occur at age 65. Some banks may extend this period to 70 years.
Required Documents For Home Loan
Each customer must adhere to the Know Your Customer (KYC) requirements set forth by the RBI. You must submit the necessary paperwork for your KYC, employment, business, and income.
| Identity proof |
|
| Address Proof |
|
| Other Documents |
|
| Property documents |
|
| Income proof documents |
|
Necessary Documents For NRI For Home Mortgage
| Identity documents |
|
| Income proof document for salaried |
|
| For self employed |
|
Reasons To Apply For A Home Loan From HBCL ?
Since each bank will have its home loan program and interest rate, applying for a home loan may seem complicated, and information on home loans may need clarification. It may become challenging for you to evaluate the various rates and make wise decisions.
You may compare the various rates on a single screen using HBCL finance to gather all the information in one location. Additionally, based on your societal makeup, income, and ability to repay the loan, we can assist you in securing the most incredible mortgage deal. We can advise you on many elements of your home loan because we have more than 30 years of experience. This includes assisting you in selecting the bank that offers the following services:
- The lowest rate of interest
- Lowest processing fees
- Easy documentation
- Fastest loan turnaround time
- Terms of foreclosures and prepayment of Home Loan instalments.
- Transaction charges such as the creation of mortgage and payment of stamp duty.
Our Home Loan Specialists Can Help You To:
- Assess your personal profile
- Analyse your previous repayment record
- Understand the fine print, especially in case of home loan offers that seem overly attractive.
- Understand the various policies of the banks financing home loans.
We can help you realise your dream of acquiring your own house.
Major Reason For Rejection Of Your Home Loan?
Your home loan application may be invalidate for a variety of reasons, including a low credit score, a mistake on your credit report, a delay in loan repayment, a history of job changes, an employer who does not fall under the lender's lending category, a lack of documentation, a high level of debt, the borrower's age, and the failure to obtain a No Dues Certificate from prior lenders, among others.
Ensure The Following To Prevent Having Your Home Loan Application Rejected
- Your business or employment is secure (at least from the last two years).
- Your credit score is high (650 or above).
- Your supporting materials are accurate and thorough.
- The lender has allowed the property to be purchased.
- You get your prior lenders to provide you with a "No Dues Certificate."
Things To Keep In Mind Before Applying For A Home Loan?
- Before applying, thoroughly investigate the available house loan possibilities in the market.
- Before starting the home loan procedure, compute all the costs (interest rate, processing fee, etc.) related to the mortgage and strive for affordability. Make sure you can afford the EMIs without cutting back on your living standard.
- Before requesting a loan, determine your eligibility for a mortgage. For this, you might make use of a home loan eligibility calculator.
- When applying for a loan, have all the necessary paperwork (KYC, income, property, and other documents).
- Select EMIs that are right for you. A larger down payment will also lighten your loan load. The ideal EMI amount does not surpass 45% of your monthly income.
- Select the proper tenure. While choosing a long term could result in a low EMI amount, it will negatively affect the interest rate, increasing the cost of your loan. If your salary and budget permit it, choose a short repayment period and higher EMIs.
- It would help if you stuck to a strict spending plan because you have a long-term monthly house loan EMI to pay.
- By timely paying off a loan or credit card, you can keep your CIBIL score high. Your chances of getting a house loan approved will increase.
- Be aware of the lender's charges and terms for foreclosure. It will be helpful if you intend to foreclose on your mortgage.
- Before signing the documentation for the mortgage loan, thoroughly read everything.