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Home Loan Facts

Home Loan: Essential Facts You Must Know

A home loan is a secured loan provided by banks or NBFCs where the property acts as collateral. It helps individuals finance the purchase of a new home, buy land, construct a house, renovate, extend, or refinance an existing property. The type of loan determines the required documentation. For a new property purchase, both personal and property documents are needed, including identity proof, income proof, bank statements, and income tax returns. Property documents like sale agreement and title deed are also required. For renovation, extension, or refinancing loans, lenders may additionally ask for a property valuation report from an approved valuer to assess the current market value and eligibility.

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Owning Your Dream Home with Ease

  • Online Sanction
  • Fast Processing
  • Hassle-free Documentation
  • Long Tenure
  • Flexible Repayment Options
  • Competitive Interest Rates

Calculate Your EMI

How to apply for a loan?

Required Documents

Required Documents

A home loan requires property documents, identity proof, income proof, and income tax returns. For non-fresh property loans, a valuation report from a certified valuer is also needed.

Loan Amount Calculation

Loan Amount Calculation

Banks and NBFCs typically fund 90% to 120% of the property value depending on parameters like market valuation, income level, valuer's report, and applicable bills.

Eligibility Criteria

Eligibility Criteria

Eligibility is assessed based on your profile — salaried, self-employed, or businessman. Indian citizens and NRIs can apply. The applicant must be below 60 years of age with a good CIBIL score.

Application Process

Application Process

Applying is simple — fill the application form and submit required documents. Many institutions offer doorstep services. NRIs must additionally provide a copy of their Green Card, passport, and residence proof.

Loan Repayment

Loan Repayment

Repayment begins one month after disbursal via EMI (Equated Monthly Installment), covering both principal and interest. A repayment schedule is provided to the borrower at the start of the loan term.

Interest Rates & Charges

Interest Rates & Charges

Home loans are available at fixed or floating interest rates. Additional charges include document fees, processing fees, and stamp charges. Pre-closure of the loan may attract a penalty — either a fixed amount or a percentage of the outstanding balance.

Home Loan Feature and Benefits

Online Sanction  

Get your home loan sanctioned online with minimal documentation through a smooth and convenient digital application process.

Enhanced Loan Eligibility

Avail a higher loan amount calculated on the basis of your income, property value, and overall net worth as assessed by the lender.

Nil Prepayment Charges

With no prepayment penalty on floating rate home loans, you have the freedom to repay your loan ahead of schedule and reduce your overall interest burden.

Post-Disbursement Services

Access all post-disbursement services including statements, NOC requests, and balance enquiries online from the comfort of your home.

About Home Loans

1. Understanding a Home Loan
A home loan is a secured loan offered by banks and NBFCs against a residential property. It can be used for purchasing, constructing, renovating, or extending a home. The property serves as collateral until the loan is fully repaid.
2. Home Loan: Fees & Charges
Apart from the loan amount, borrowers are required to pay processing fees, document charges, and stamp duty. In case of pre-closure, a penalty may apply — either as a fixed sum or a percentage of the outstanding loan amount.
3. Are Home Loans a Good Option to Buy Property?
Yes. Home loans make it possible to purchase property without waiting to save the full amount. With flexible tenure options, manageable EMIs, tax advantages, and rising property values, a home loan is one of the most financially sound ways to invest in real estate.
4. Home Loan Disbursement Process
Once your loan is approved and all documents are verified, the loan amount is disbursed via direct credit to your account or by cheque. Repayment in the form of EMI begins from the following month. The entire disbursal process typically takes 10 to 15 days after file submission.
5. Home Loan: Interest Rates & Charges
Home loans are available at fixed or floating interest rates. Fixed rates remain unchanged throughout the tenure, while floating rates vary with market conditions affecting your EMI. Interest may be calculated on a daily, monthly, or yearly reducing balance basis, depending on the lender.
6. Benefits of a Home Loan
Home loans offer long repayment tenures (up to 25 years), competitive interest rates, tax benefits on both principal and interest repayment, and the ability to own a home without paying the full amount upfront.

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