HOME LOAN

Owning a home is a significant milestone in one's life, and it's often a lifelong dream. However, for most people, purchasing a home involves a substantial financial commitment that can be challenging to meet with savings alone. This is where home loans come to the rescue. It allows you to borrow a substantial amount of money from a financial institution to purchase or construct a house. The borrowed amount is repaid over a specified period, including interest, making it an affordable way to turn your homeownership dreams into reality.

Top Banks Offering Home Loan In India

Discover the ideal home loan interest rate and determine your preferred loan amount from our compilation of leading banks.

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SL.No. Top Banks For Home Loan Interest Rate (p.a.)
1. State Bank of India 9.15% p.a. onwards
2. HDFC Ltd. 8.50% p.a. onwards
3. ICICI Bank 9.00% p.a. onwards
4. Bank of Baroda 9.15% p.a. onwards
5. Union Bank of India 9.00% p.a. onwards
6. Axis Bank 8.75% p.a. onwards
7. Kotak Mahindra Bank 8.85% p.a. onwards
8. Federal Bank 10.15% p.a. onwards
9. IDFC First Bank 8.85% p.a. onwards
10. PNB Housing Finance 8.75% p.a. onwards
11. Standard Chartered 8.75% p.a. onwards
Note- Please note that the rates mentioned above are subject to fluctuations in the financial market and may slightly vary depending on the specific bank's policies.

Top NBFCs & HFCs Offering Home Loan In India

Select your home loan from the following roster of top NBFCs & HFCs, offering a range of competitive interest rates to choose from.

SL.No. Top NBFCs Interest Rate (p.a.)
1. Muthoot Finance 14% onwards
2. Tata Capital 10.99% onwards
3. Bajaj Finserv 11% onwards
4. StashFin 11.99% onwards
5. Faircent 9.99% onwards
6. Kreditbee Up to 29.95%
7. Navi Finserv 9.9% – 45%
8. Money Tap 13% onwards
9. Dhani Loans 13.99% onwards
10. Money View 15.96%
11. Pay Sense 16.80%-27.60%
12. Early Salary 18% onwards
13. Home Credit 24% onwards
14. CASHe 30% onwards
15. HDB Financial Services Up to 36%
16. LIC Housing Finance 8.60% p.a. onwards
17. Bajaj Housing Finance 8.70% p.a. onwards
18. Tata Capital Housing Finance 9.15% p.a. onwards
19. L&T Housing Finance 8.60% p.a. onwards
Note- Please note that the rates mentioned above are subject to fluctuations in the financial market and may change at the lender's discretion.

Home Loan EMI Calculator

A Home Loan EMI (Equated Monthly Installment) calculator serves as a valuable tool for calculating your monthly home loan payments. By taking into account variables like the loan amount, interest rate, and loan tenure, this calculator offers an approximation of your EMI.

Using a housing loan EMI calculator is straightforward. Simply provide information such as the loan amount, loan duration, interest rate, and processing fee, and the calculator will generate your monthly EMI.

Home Loan & Other Charges

Loan Details Charges
Processing Fee A fee of 1% to 2% will be charged based on the loan amount.
Foreclosure/Prepayment Charges

For floating rate: No charges apply.

For fixed rate: 2% to 4% of the outstanding principal.
EMI Bounce Charges Around Rs. 400
Overdue Charges on EMI Late payment charges are 2% per month of the unpaid EMI amount.
Legal Fee Actual legal fees will apply.

Home Loan Eligibility Criteria

Eligibility for a home loan can vary among lenders and specific loan programs. As a result, the following are fundamental criteria that typically need to be met in order to qualify for a home loan.

Particulars Eligibility Criteria
Nationality

Indian Residents

Non-Resident Indians (NRIs)

Persons of Indian Origin (PIOs)
Age 18 years to 70 years
Employment

Salaried with at least 2 years work experience.

Self-Employed with at least 3 years of business continuity
Credit Score Minimum 750 and above
Minimum Monthly Income Rs. 25,000 per month
Type of Residence

Permanent residence

Rented residence (must have been residing in the consent place for at least a year)

Documentation For Home Loan

In order to initiate a home loan application, you must furnish essential documents as evidence of your identity and income. Below is a compilation of the documents necessary for a home loan.

Identity Proof (any one)

- Driving License/PAN/Voter ID/Valid Passport

Residence Proof (any one)

-Copy of Electricity Bill/Water Bill/Telephone Bill

-Copy of valid Passport/Aadhaar Card/Driving License

Other Documents

  • -Employer Identity Card
  • -Duly filled loan application form affixed with 3 passport size photographs
  • -Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions
  • -Bank account statements for all the bank accounts owned by the applicant for the last six months

Income Proof Documents

For Self-employed Applicant/Co-applicant

  • -Income Tax Returns for the last 3 years
  • -Certificate of Qualification (for Doctors/CA and other professionals)
  • -Balance Sheet audited by a certified CA and Profit and Loss account for the previous 3 years
  • -Business License Details
  • -Business address proof
  • -TDS Certificate

For Salaried Applicant/Co-applicant

  • -Salary Slips for the last three months
  • -Copy of Form 16 or Income Tax Returns for the last two years

Benefits of having A Home Loan

Fulfill your financial requirements effortlessly and address all your expenses using a Home Loan.

  • Homeownership: Acquiring a home loan enables you to become a homeowner, allowing you to invest in a property that can appreciate in value over time.
  • Tax Benefits: Home loan borrowers can enjoy tax deductions on both the principal and interest components, reducing their overall tax liability. This can result in significant savings.
  • Affordable Repayment: Home loans often come with extended tenures, which can make the monthly repayments more manageable and affordable for borrowers.
  • Leverage Your Investment: Home loans enable you to leverage your investment in real estate. With a relatively small down payment, you can purchase a more valuable property.
  • Capital Appreciation: Real estate typically appreciates over the long term, which means your property's value may increase, offering potential returns on your investment.
  • Asset Creation: Owning a home is not just a place to live but also an asset that can be passed down to future generations or sold for profit.
  • Renovation and Customization: Home loans can also cover renovation and customization costs, allowing you to create your ideal living space.
  • Security and Stability: Homeownership provides a sense of security and stability, knowing that you have a place to call your own.

Types of Home Loans In India

A home loan is a financial arrangement where individuals borrow money from banks and Housing Finance companies to acquire a property. Understanding the different types of home loans available is essential to meet your various housing or plot loan requirements. Below, you can explore the types of home loans and select the one that aligns with your preferences:

  • Home Purchase Loan: Ideal for those looking to buy land, these loans can be used for construction purposes or as an investment. Banks typically offer up to 90% of the property's current market value, while NBFCs provide 80%.
  • Home Renovation Loans: If you plan to renovate, repair, or refurbish your home, these loans with their low-interest rates can cover expenses like significant repairs and property upgrades, enhancing your home's value.
  • Plot Loans: Intended for the purchase of residential properties like flats, row houses, and bungalows. Banks offer up to 90% of the property's current market value, while NBFCs provide 80%.
  • Home Construction Loans: For individuals who own land and wish to build a new house. These loans can also be used to complete the construction of an unfinished property.
  • Home Extension Loans: When you want to expand your home, a home extension loan can assist you in adding a room or extending your property.
  • NRI Home Loans: Designed for Non-Resident Indians (NRIs) to construct a new house or renovate an existing property. These loans can have tenures of up to 30 years, with both fixed and floating interest rates available.
  • Balance Transfer: Home loan balance transfer enables you to move your existing home loan from one lender to another to secure a lower interest rate. This option often includes the possibility of obtaining a top-up loan from the new lender.
  • Bridge Loan: Suited for individuals who want to purchase another property by selling their current one. These loans provide short-term funds, such as a down payment for the new property, until the old property is sold. Bridge loans typically have higher interest rates and a maximum repayment tenure of up to 2 years.

Home Loan & Associated Tax Benefits

A home loan provides an excellent avenue for acquiring a property. Beyond facilitating homeownership, it also presents a range of tax-saving opportunities. Let's explore some of the well-known tax-saving schemes associated with home loans:

Tax Saving On IT Act Section Description
Interest Paid Section 24(b) Deduction on the interest paid on a home loan. This deduction can be claimed for the interest paid on the loan taken for the purpose of purchase, construction, renovation, or repair of a residential property.
Principal Paid Section 80C Deduction on the repayment of the principal amount of a home loan. This deduction can be claimed for the amount repaid towards the principal of a home loan during a financial year.
First-Time Homebuyer Benefit Section 80EE Additional deduction for first-time homebuyers. This deduction is available to first-time homebuyers who have taken a loan on or after April 1, 2013. The deduction is over and above the deduction of Rs. 2 lakh under Section 24(b) and Rs. 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs 50,000.
Affordable Housing Benefit Section 80EEA Additional deduction for affordable housing projects. This deduction is available to individuals who have taken a loan for affordable housing on or after April 1, 2019. The deduction is over and above the deduction of Rs. 2 lakh under Section 24(b) and Rs. 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs. 1.5 lakh.
Joint Home Loan Benefit Section 26U Deduction is available for co-owners of a property with a joint home loan. This deduction is available to co-owners who have jointly taken a home loan. Each co-owner can claim a deduction for the interest paid on the home loan in proportion to their share of ownership in the property.
Pre-construction Interest Section 24(b) Deduction on pre-construction interest paid in five equal annual installments. This deduction is available on the interest paid during the pre-construction period of a property. The deduction is available in five equal installments starting from the year in which the construction of the property is completed.

Enhance Your Odds of Securing a Home Loan

Here are some pointers to consider before initiating a home loan application:

  • Evaluate Your Credit Score: Prior to applying for a home loan, it's crucial to assess your credit score.
  • Conduct Thorough Research and Comparison: Researching and comparing various lenders, their interest rates, and loan terms is essential.
  • Determine Your Affordability: Gain a clear understanding of your financial capacity and establish a budget for accommodating EMI payments.
  • Build a Down Payment Fund: It is wise to save for a down payment before proceeding with a home loan application.
  • Factor in Additional Costs: In addition to the loan amount and EMIs, consider potential extra expenses such as processing fees, legal charges, and stamp duty fees.
  • Avoid Multiple Applications: It is not recommended to simultaneously apply for a home loan with multiple lenders.

Why Choose CredBharat for Home Loans?

A home loan provides financial advantages, investment opportunities, and a sense of stability and security for you and your family.

  • Secure approval for your loan in a matter of minutes.
  • Access funds without putting your assets at risk.
  • Competitive Interest Rates commencing at just 11.99% p.a.
  • Suitable for a wide range of purposes.
  • Convenient repayment, select your desired schedule.
  • No Prepayment Fees or additional penalties.

Steps to Apply for a Home Loan

To secure your home loan through CredBharat, you should adhere to the following steps:

  1. 1. Visit our website and create an account.
  2. 2. Fill out the online application form with your personal and financial details.
  3. 3. Choose your desired loan amount and repayment term.
  4. 4. Submit the application, and our team will review it promptly.
  5. 5. Upon approval, the funds will be disbursed to your account quickly.

Tips to Prevent Home Loan Application Rejection

Facing rejection when applying for a home loan can be discouraging, but there are proactive measures you can take to address the situation and enhance your prospects of future approval. Here are essential steps to consider:

  • Review Your Credit Score: Obtain a complimentary CIBIL score or credit report to assess your creditworthiness and identify any issues that may have led to the rejection.
  • Focus on Credit Enhancement: If your credit score is less than ideal, concentrate on boosting it by ensuring timely payments of bills and existing debts, reducing outstanding balances, and avoiding new credit inquiries.
  • Evaluate Your Financial Status: Take a close look at your financial situation and explore whether it's necessary to increase your income or reduce existing debts to improve your financial profile.
  • Address Documentation Requirements: Carefully examine the list of home loan documents provided by the lender and ensure that you have submitted all necessary paperwork accurately and in a timely manner.
  • Seek Expert Advice: Consult with a reputable mortgage broker or financial advisor who can offer valuable insights and guidance on improving your loan eligibility and addressing potential issues.
  • Consider Joint Home Loan: Opting for a joint home loan can bolster your chances of approval. By including a co-applicant with a stable income, you can combine your earnings, enhancing your overall loan eligibility and increasing the likelihood of securing the loan.

Home Loan Balance Transfer

A home loan balance transfer, also known as a home loan refinance, involves moving an existing home loan from one lender to another. This option empowers borrowers to transition their loans to a new lender offering superior terms and advantages. Here are key considerations regarding home loan balance transfers:

  • Reduced Interest Rates: One of the primary motivations for opting for a home loan balance transfer is securing a lower interest rate. By transitioning to a new lender offering a more competitive rate, borrowers can enjoy substantial savings on their monthly payments and overall interest expenses.
  • Enhanced Loan Terms: Transferring a home loan creates an opportunity to renegotiate for improved loan terms. This may involve negotiating for reduced Equated Monthly Installments (EMIs), an extended repayment tenure, or additional features such as a top-up loan facility.
  • Increased Savings: The combination of lower interest rates and enhanced loan terms translates into amplified savings over the loan's duration. This enables borrowers to gain better control over their financial management.

Home Loan Repayment

Repaying a housing loan, commonly referred to as home loan repayment, entails meeting your financial commitment to the loan. Borrowers have various options at their disposal, including pre-payment and part-payment.

Pre-payment allows borrowers to make an early lump-sum repayment, effectively reducing the loan principal and lessening the interest burden.

Part-payment involves making partial repayments toward the principal amount, aiding in the reduction of overall interest payments and the shortening of the loan tenure.

To compute home loan repayments, you can use online calculators or consult with your lender. These repayment alternatives offer flexibility and can assist borrowers in saving on interest expenses while expediting the loan repayment process.

Ready to move forward?