Housing Loan
About Us
Sachin Vashishth
(Managing Director)
Contact Info
- +91-9810454531
- Projectfinancer@yahoo.co.in
Book an Appointment
Home loan is a secured loan facility, which banks and HFCs offer for purchasing, constructing, renovating, repairing and extending an existing/ new residential property. The loan is backed by the underlying property till the loan repayment. In case of default by the borrower, the lender has the legal right to take the concerned property into possession and then auction the property to recover the unpaid loan amount.
Banks and Housing Finance Companies (HFCs) offer home loans of up to 75% to 90% of the property’s value depending on the credit profiles of their loan applicant, subject to the caps on the LTV ratios set by the lenders and the RBI. The tenures of these loans can go up to 30 years. At Paisabazaar.com, we help you compare housing loan interest rates and other features offered by top banks and HFCs and apply online for the best option available on your credit profile.
Home Loan Detail
| Home Loan Details | |
| Interest Rate | Starting from 8.35% p.a. |
| Loan Amount | Varies on case-to-case basis |
| LTV Ratio | Up to 90% of the property value |
| Tenure | Up to 30 years with some lenders extending till 40 years |
| Processing Fees | 1% to 2% of the loan amount (may vary across lenders) |
Home Loan offered by Top Banks & HFCs in India
| Name of Lender | Interest Rate (p.a.) |
| State Bank of India | 8.50% – 9.85% |
| HDFC Bank | 8.70% onwards |
| ICICI Bank | 8.75% onwards |
| Bank of Baroda | 8.40% – 10.90% |
| Punjab National Bank | 8.40% – 10.25% |
| Axis Bank | 8.75% – 13.30% |
| Kotak Mahindra Bank | 8.70% onwards |
| LIC Housing Finance | 8.50% – 10.75% |
| Federal Bank | 8.80% onwards |
| IDFC First Bank | 8.85% onwards |
| PNB Housing Finance | 8.50% – 14.50% |
| Tata Capital Housing Finance | 8.75% onwards |
| L&T Finance Limited | 8.65% onwards |
| Standard Chartered Bank | 8.95% onwards |
| Godrej Housing Finance | 8.55% onwards |
Interest rates as of 12 July 2024
Home Loan Rates offered by Other Banks & HFCs
| Name of Lender | Interest Rate (p.a.) |
| Canara Bank | 8.40% – 11.25% |
| Bank of India | 8.40% – 10.85% |
| Indian Overseas Bank | 8.40% onwards |
| Bank of Maharashtra | 8.35% – 11.15% |
| Union Bank of India | 8.35% – 10.90% |
| UCO Bank | 8.45% – 10.30% |
| Bandhan Bank | 9.16% – 15.00% |
| Punjab & Sind Bank | 8.50% – 10.00% |
| South Indian Bank | 8.70% – 11.70% |
| RBL Bank | 8.90% onwards |
| Karnataka Bank | 8.50% – 10.62% |
| Sammaan Capital Limited | 8.75% onwards |
| (Formerly known as Indiabulls Housing Finance) | |
| Karur Vysya Bank | 9.00% – 11.05% |
| Dhanlaxmi Bank | 9.35% – 10.50% |
| Tamilnad Mercantile Bank | 8.60% – 9.95% |
| Repco Home Finance | 10.00% onwards |
| GIC Housing Finance | 8.80% onwards |
| Aditya Birla Capital | 8.60% onwards |
| ICICI Home Finance | 9.20% onwards |
| HSBC | 8.50% onwards |
Interest rates as of 5 July 2024
Types of Home Loans
• Home Purchase Loan is offered for buying ready-to-move-in properties, under-construction properties and pre-owned homes/resale properties helps you buy a residential plot and build a house on it within a given time frame
• Composite Loan can be availed for buying a plot and building a house on it. The first disbursement in composite loan is made towards plot purchase. Subsequent payments depend on the stages of construction of the house.
• Home Construction Loan is offered to individuals for house construction. The disbursements depend on the stages of construction of the house.
• Home Renovation/ Improvement Loan is for meeting home renovation costs of an existing house. The interest rate for a home renovation/improvement loan and a regular home loan are usually same.
• Home Extension Loan is for those requiring funds to extend or add more space to their existing house. In this, lenders usually lend 75% – 90% of the construction estimate, depending on the loan amount and LTV ratio.
• Bridge Loan is a short-term home loan suitable for individuals planning to buy a new house with the sale proceeds of their existing house.
• Interest Saver Loan is a home loan overdraft wherein the borrowers’ home loan account is linked to their bank account. Any amount deposited in the bank account over and above the EMI is considered as a prepayment towards the loan, thus, saving on the interest amount.
• Step Up Loan allows borrowers to pay lower EMIs during the initial years of the loan tenure and have the provision of increasing the EMI amount over time. This makes the loan affordable for young professionals who have just started their career.
Home Loan Eligibility Criteria
Home loan eligibility differs across lending institutions and home loan schemes. However, a common set of housing loan eligibility criteria is given below:
- Nationality: Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)
- Credit Score: Preferably 750 and above
- Minimum Age: 18 years with some lenders setting the minimum age of 21 years
- Maximum Age: Usually 70 years at the time of loan maturity with some lenders extending the tenure till 75 years of age
- Work Experience: At least 2 years (for salaried)
- Business Continuity: At least 3 years (for self-employed)
- Minimum Salary: At least Rs. 25,000 per month (varies across lenders & locations)
- Loan Amount: Up to 90% of property value
Note: Apart from the above parameters, your home loan eligibility also depends on the property you are buying and the location of the property.
Documents Required for Home Loan
Lenders require documents from their home loan applicants as a proof to establish their identity, place of residence, income and repayment capacity. These documents may vary across lenders based on the individual credit profile, property type, home loan type, etc. Given below are the key home loan documents that an applicant will need to furnish when applying for the loan.
Identity Proof Documents: Copy of any one (PAN Card, Passport, Aadhaar Card, Voter’s ID Card, and Driving License)
Age Proof Documents: Copy of any one (Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Mark-sheet, Bank Passbook, and Driving License)
Address Proof Documents: Copy of anyone (Bank Passbook, Voter’s ID, Ration Card. Passport, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Receipt
Income Proof Documents:
Income Documents for Salaried | Income Documents for Self Employed |
Copy of Form 16 | Business License Details |
Latest Payslips | Proof of Business Address |
IT returns (ITR) of past 3 years | ITR of last 3 years |
Investment Proofs (if any) | Balance Sheet and Profit & Loss Account Statement of the Company/Firm |
Property-related Documents: NOC from Society/Builder, detailed estimate of the cost of construction of the house, registered sale deed, allotment letter, and an approved copy of the building plan.
Documents Required for Non Resident Indian (NRI) Applicants
Proof of Identity: Passport with VISA stamps / PIO Card
Proof of Address: Government document mentioning the current overseas address
Proof of Income Documents:
Income Documents for Salaried | Income Documents for Self-Employed |
Salary Certificate/ Latest Payslips (in English) | Latest ITR, Bank Statements of Overseas Account and Balance Sheets and P&L Accounts audited or certified by a C.A. |
Latest bank statements showing salary credits NRE / NRO account (if any) | A copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy |
Work Permit/ Employment Contract / Appointment Letter / Offer Letter (Duly attested by employer/ Consulate / foreign office / embassy in case it is in any other language) | Business License & Address Proof / License of Professional Practice (for Doctors, Consultants, etc.) |
Form P60/P45 and latest employment contract (for salaried) | Registration Certificate of Establishment (For Shops, Factories & Other Establishments) |
Property Documents:
- Original title deeds tracing the title of the property
- Encumbrance Certificate
- Agreement for sale/ sale deed/ detailed cost estimate from the Architect/ Engineer for property to be purchased/ constructed/ extended/ improved
- A copy of approved drawings of proposed construction/ purchase/ extension
- Receipts for payments made for buying the dwelling unit
- ULC clearance/ conversion order, etc.
- Receipts for investing the margin money through normal banking channels from the NRE /NRO account(s) in India
- Latest tax paid receipt
- Allotment letter from the co-operative society/ association of apartment owners
Other Documents:
- If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year
Note: The above list is indicative and your lender might ask for additional documents.
Home loan features such as interest rates, loan amount, tenure and processing fees can vary widely across lenders depending on their cost of funds and credit risk assessment of their loan applicants. Thus, visiting Paisabazaar.com will allow you to compare home loan offers by its 20+ partner banks and HFCs based on your monthly income, repayment capacity, credit score, occupation profile, employer’s profile and other applicable eligibility criteria.
Tax Benefits on Home Loans
House loan borrowers can avail tax benefits under various sections of the Income Tax Act. These home loan tax benefits help borrowers save a substantial amount of money every year. Below are the tax benefits that you can get on your home loan EMI payments:
Section of Income Tax Act | Nature of Home Loan Tax Deduction | Max. Tax Deductible Amt. |
Section 24(b) | Interest paid | Rs. 2 lakh |
Section 80C | Principal (including stamp duty and registration fee) | Rs. 1.5 lakh |
Dos & Don’ts Before Applying for Home Loan
Dos | Don’ts |
Keep your credit score at 750 or above | Apply for home loan without checking your credit score |
Limit your total EMI obligations within 50-60% of your net monthly income | Use emergency fund for making higher down payment |
Compare home loan offers from various lenders | Apply with multiple lenders within a short span |
Try making larger down payment to reduce LTV ratio | Forgo existing investments for making higher down payment |
Add a co-applicant for higher loan eligibility | Plan EMI payments without considering the monthly contributions you need to make towards your crucial financial goals |
What to do if your home loan application is rejected?
If your home loan application was rejected, follow these tips to improve your chances of approval next time you apply or a home loan:
- Build/maintain your credit score at 750 or above
- Check for any inaccuracies in your credit report
- Add an earning member of your family as a co-applicant
- Contribute more towards home down payment
- Compare housing loan offers of various banks and HFCs before making the loan deal
- Avoid making multiple loan applications within a short span of time
- Ensure your total EMI obligations (including the proposed home loan EMI) are within 55-60% of your net monthly income
How to improve your chances of getting a home loan?
You can improve your chances of availing home loan by practicing these tips:
- Keep your credit score at least at 750
- Add an earning family member as co-applicant
- Opt for lower LTV ratio
- Compare home loan offers of multiple banks and HFCs to find the right loan offer
- Maintain your total EMIs, including the proposed home loan EMI, within 55-60% of your net salary
About Us
Sachin Vashishth
(Managing Director)
Contact Info
- +91-9810454531
- Projectfinancer@yahoo.co.in