HOME LOAN RATE OF INTEREST

AND

HOME LOAN ELIGIBILITY

Loan amount 10 Lakhs to 25 Cr.
Rate of interest Minimum 6.65%
Processing fee Rs.5000 to 0.5% of the Loan Amount
Loan Tenure 5 years to 30 years
LTV (Loan to Value) 65% to 90% of the property value
Age
Employment Type Salaried,Self Employed,Proffessionals
Work experience Minimum 3 years
Resident Type Resident Indian,Non Resident Indian
CIBIL score Minimum 650
Apply for Home Loan @ 6.65%* & Get Upto Rs.25000* Cashback













      Home loan: – In the present scenario, it is effortless to get a home loan for those whose profile and property are eligible for banks or NBFCs, but on the other hand, the customers must choose the best product and the best Bank for them. Because there are dozens of Banks and NBFCs in the market to approach you, and because it is not a short term loan, so it is necessary for you that devote some time to make a final decision. So I request you to please read each of the following points carefully, and if there are any questions you have, then feel free to ask. We will be happy to serve you.

      Home Loan Interest Rates Comparison
      BANK Interest rate Linked With RATE Processing Fee
      Bank Of Baroda RLLR 6.95% 10000
      Axis bank RLLR 7.00% 5000 to 25000
      Aditya birla RLLR 9.75% .50% to 1.00%
      Bank of India RLLR 7.25% .25% to 25000
      Citi bank TBLR 6.75% NIL
      DBS RLLR 7.30% 5000 to 10000
      DCB Bank MCLR 9.75% 5000 to 2%
      DHFL PLR 8.75% 0.50% to 20000
      Edelweiss PLR 10.00% 0.25%
      Federal Bank RLLR 7.65% 5000 to 10000
      GIC housing Finance PLR 10.00% 5000 to .25%
      HDFC LTD. PLR 7.00% 5000 to 10000
      ICICI bank RLLR 7.00% 1%
      IDBI Bank RLLR 7.25% 0.50%
      IDFC First MCLR 8.25%
      Indiabulls PLR 9.25% 5000 to 10000
      Kotak Mahindra RLLR 6.75% 5000 to 10000
      Lakshmi vilas Bank RLLR 9.70% 10000 to 20000
      LIC housing finance PLR 7.90% 0.25%
      L & T housing finance PLR 9.90% 5000 to 2%
      Piramal housing finance PLR 9% 5000 to .5%
      PNB housing finance PLR 8.50% 10000 to0 .5%
      RBL Bank MCLR 10.45% 5000 to 10000
      Standard chartered Bank MCLR 9.00% 5000 to 10000
      Tata Capital PLR 9.00% 0.50%
      United Bank RLLR 8.00% 10000
      Yes Bank MCLR 9.30% 1% to 15000
      Top Banks who provide better rates on Housing Loan
      Axis-Bank
      State-Bank
      idbi
      ICICI-Bank
      Various types of Home loans
      • In Terms of Property and Uses-There are various type of housing loan in terms of property and their uses which all are given below:-
        • New Home Loan-If you go to buy a new and “ready to move in property,” then you require to apply for a New Home Loan.
        • Loan for Plot Purchase-If you go to buy for residential land, then you require to apply for this.
        • Home Construction Loan-If you already have a residential plot and get approval for your sanction plan from your desired authority (Housing development authority or Municipal Corporation), then you should apply for this type of Loan.
        • Home Improvement Loan-If you already owned a constructed property and now want to expand them or renovate them, then you can apply for this, but in this case, sanction plan from your desired authority is also required.
        • Housing Loan on Builder Projects: If you want to purchase a construction-linked property of a renowned builder which project is already APF (Approved Project Financial) by the Bank or Banks, you go for this type of Loan. In this case, not every project needs to be approved by every Bank. So if you want to go for this, then please check project status from the Banks before applying for the Loan.
        • Home Loan top up-If you required funds for other than the housing purpose, then you can get this Loan because it’s cheaper than other loans like Personal or Business loans, and also, it is a long term loan, so the monthly obligation is also minimal to compare with other loans.
        • Home loan Balance Transfer-If rate of the interest of your existing Bank is higher than any other bank; then you can transfer your Loan from this Bank to reduce your EMI (Equated monthly installment) or Tenure.
      • In Terms of Home loan Repayment-When, you get a housing loan; you have two option to repay this:-
        • Housing Loan in the form of Term Loan-This is a simple loan in which the Bank makes an installment for a certain period, which you can give by ECS (Electronic clearing Service) from any of your bank accounts.
        • Housing Loan in the form of DOD-In this case, the Bank opens an account with its Bank and takes your installment from this account itself. In this case, whatever buffer amount you have in this account, the Bank will reverse your interest at the same rate charged by the Bank on your housing loan.
      Key Factors of Housing loan

      Home Loan Amount or Home loan Eligibility

      1. Based on your Employment-You can eligible to apply for a housing loan either you are a salaried or self-employed or working professionals.
      2. Based On Your Income
        • If you are a salaried-There are two methodologies followed by the Banks, some of them consider your take-home salary, and some of them consider your gross salary, and they also consider your incentives (average of last six months). You can drop a query to us to know more.
        • If you are self-employed– In this case, there are many methodologies followed. Some of them find the eligibility based on Net profit, some based on gross profit, whether some of them consider your industrial Margin while some of them take 2 to 6 times of your Net profit to calculate your financial eligibility. To know more about this, you can also contact us.
        • If you are a working professional, in this case, only two ways to find your eligibility either based on your net profit or based on your gross receipt.
      3. Based on the property you finalize to buy, there are various types of property on which Banks and NBFCs allow for funding
        • Sanction plan is approved by the “Housing Development Authority”– All Banks and NBFCs funds on such property.
        • Sanction plan is approved by respective “Municipal Corporation”– Except few banks major banks and NBFCs funds on such property.
        • Property situated in Regularize or Village area– Only NBFCs can allow funding on this type of property
        • LTV (Loan to Value) – It is depend upon your property value that how much loan you can get. It is ranging between 65% to 90% of the market value of your property.
        • Legal prospects– Legal reports should be positive for all the property mentioned above is also a mandatory factor.

      Home Loan Interest Rates:-

      1. Benchmark-Every Banks and NBFC follow a benchmark to find the rate of interest for their customers. (Applicable rate of interest = their benchmark + Margin). Nowadays four types of the benchmark are followed
        • RLLR (Repo rate linked lending rate) – The majority of Banks are following this.
        • MCLR (Marginal cost of funds (based lending rate) – Some banks are following this
        • TBLR (Treasury bill benchmark lending rate) – Only “CITI bank” follow this
        • PLR (Prime Lending rate) – All NBFCs follow this benchmark
      2. Floating vs. fixed rate of interest –
        • Floating rate – It is calculated as (Applicable rate of interest = Benchmark + Margin) Because the benchmark is variable, and the Margin will be fixed then in this option when the benchmark will change your applicable rate of interest will also change it may lesser or higher than the present rate.
        • Fixed-Rate – In this case, banks offer you the fixed rate for the whole Tenure or some period. In this option, your applicable rate of interest will unchangeable for the given period.

      Processing fee and other charges:-

      1. Login Fee – Major Banks charge this nonrefundable amount at the time of login. It is some around Rs.3000 to Rs.5000.
      2. Legal and Valuation fee – Most of the banks consider the login fee as legal valuation charges, but some are charged extra for this.
      3. the processing fee is the same as the legal valuation charges, mostly banks consider login fees as their processing fee, but some of them take some charges like processing fees so that it could also be depended upon Bank to Bank.
      4. CERSAI (Central registry of securitization asset reconstruction and security interest) Fee-It is a nominal fee that pays to the “Central online mortgage registry of India”. The government of India started this system to avoid fraud, like taking multiple loans on the same property.
      5. Prepayment charges – It is applicable when you decided to close your Loan before the completion of your loan tenure. If you are an individual, then there are no prepayment charges applicable to the housing loan. But if you are self-employed and your company is as co-applicant on your Loan then some NBFCs can create a prepayment charge.
      6. Insurance- Nowadays, all banks and NBFC want to secure their loans by “Loan insurance” some of them give some interest-rate advantage if you opt for this, while some banks give you the option to opt for this or not whether some of them have a mandatory condition to take insurance. It is better for you, too, but because you have to be liable for its premium, you can think about it.
      Documents Required For Home Loan
       FOR RESIDENT INDIAN FOR NON RESIDENT INDIAN
      Identity proof PAN card,AADHAR card,Driving license,Voter ID,Passport,ID card isuued by Governement institution Yours Passport, VISA copy, Residence proof, Copy of work permit, Offer or joining letter
      Address proof AADHAR card,Driving license,Voter ID,Passport,Bank statement,Electrisity bill,Mobile bill,Telephone bill,Water bill Salary slip for last 6 months, 6 months bank statement of your salary account, NRO/NRE bank statement of last 6 months
      Signature proof PAN card,Passport,Signature attested by your banker where is your salary account Official email id, Credit report, Photo
      Age proof PAN card,AADHAR card,Driving license,Voter ID,Passport,Birth certificate,Secondary board certificate Guarantor Identity and Residence proof, Photo
      Photo photograph-1 Power of attorney in favor of your local guaranter
      Other documents All loan schedules or their loan statement(if have any existing loan) Property Document Same as Resident indian
      Income Document for Resident Indian
      For Salaried For Proffessionals For Self Employed(Proprietor) For Company(Partnership/Pvt. Ltd/Limted/Trust etc
      3 months salary slip,Form 16 for last 2 years, 6 months of your salary account bank statement Office Address prof Office Address prof Office Address prof
      GST Registration certificate GST Registration certificate GST Registration certificate
      Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years Income Tax return with profit & loss account,Balance sheet,Annexure,and their Audit reports for the last 3 years
      GST return for the last 1 year GST return for the last 1 year GST return for the last 1 year
      All business account Bank statements for the last 1 year All business account Bank statements for the last 1 year All business account Bank statements for the last 1 year
      All loan schedules or their Sanction letters(If have any running Loan) All loan schedules or their Sanction letters(If have any running Loan) All loan schedules or their Sanction letters(If have any running Loan)
      PAN card of the Company
      Partenership deed/MOA/Bylaws(Any one which is applicable for Your company)
      Property Documents
      Property Documents
      Any one Agreement to sell
      Allotment letter
      Copy of Approved Sanction Plan(in case of Regularize area or in Village then may not be required)
      Copy of Occupancy Certificate in case of Ready to move in property
      Photocopy of all back chains with their Conveyance deed if the property situated in an approved area
      Photo copy of all back chains with their Khatauni in case of the property situated in a regularized area or in village area
      Step by Step Process to Get a Home Loan
      Apply for a loan and Submit your KYC, all income documents and Bank statement with the details of existing banking liabilities (if have any)
      Bank verify your documents
      They Check your CIBIL score and repayment History
      Bank check your financial eligibility
      Any underwriter of the Bank could contact you for a personal discussion on the phone or meet you personally at your working place to understand about your business module and to about the property which you decide to purchase
      If all the above factors are positive then you can get a financial sanction
      After that bank say you to submit the photocopy of your property documents which  you want to purchase
      Bank get a legal opinion of your property also get the valuation of this property
      If the above factors are positive then you get a final Sanction, in which they mention 1.Offered Loan amount 2.Rate of interest 3. All other conditions and also send an agreement to you
      Then you need to send an acceptance copy of this agreement with required documents  to the bank
      Then Bank Disbursed your loan
      Some essential factors you need to know before you go to apply for a Home loan
      • Check your financial eligibility
      • Check your property viability
      • Interest offered by the Bank on your home loan
      • Processing fee and other charges mentioned on your bank agreement
      • Stamp duty charges for registration of your property
      • RERA (Real Estate Regulatory Authority) – When going to buy a construction link property of any builder, it is beneficial for you to verify their RERA registration so that you can protect you from the builder’s scam. For the full list of RERA you can visit their sites it is state-wise websites so you can search “RERA with the name of the respective state” on Google search you can find this.
      FAQs

      Which is better to opt for that Floating rate or a fixed rate for a home loan?

      It all depends upon the market scenario. If you feel that interest will be increased regularly, then it is better to opt fixed rate, but if the scenario is the opposite of that, you should go for a floating rate. But if you think for a long time, I understand that the floating rate is better.

      Who is eligible for a co-applicant?

      For the PSUs banks, anyone can be eligible for a co-applicant who full fill all criteria of the Bank, but if you go for any private sector banks or NBFCs, then they are strict for this point also in these institutions only blood relation and wife can be eligible for the co-applicant.

      Who liable for the EMI if we availed a Housing loan on a joint name?

      Bank fix a proportionate liability for all applicant and co-applicant/applicants as per their financial eligibility. They all are open a joint saving account from this they serve their EMI, or they all serve proportionate share of EMI from their savings or current accounts.

      Can existing loans affect my housing Loan eligibility?

      Yes, any existing loan or even your credit cards outstanding can affect your home loan eligibility. So it is better for you to either close these loans or prepare to take the less amount of home loan.

      What is pre-EMI?

      There are two scenarios for this.

      1. If you decide to take a loan for a construction linked property, then the Bank charged only interest part till the completion of this property (Completion date is considered as per builder buyer agreement).
      2. In the usual case suppose your Loan disbursed on the 20th of any month and EMI date can be 10th of every month then the Bank charged you only interest for 20 days (20th of this month to 10th of the next month) for this month, it is also called Pre EMI.

      Can I avail income tax benefit on my Home Loan EMI?

      From the current financial year, it depends upon you that you can avail of this benefit or not.

      Can I switch from a fixed rate of interest to a floating rate of interest?

      Yes, you can be switched, but the Bank can take some charges for this.

      What is the difference between a home loan and Loan against property?

      When you take a loan to purchase residential property, it is called a home loan, while taking credit on your existing property, whether it is a residential/commercial or industrial property, is called a Loan against property.

      Which Bank is best for Home loans?

      In present scenario these are the best Banks for home loans:-

      1. Bank of Baroda
      2. State Bank of India
      3. HDFC Bank

      What is the EMI for 20 lakhs home loan?

      It depends upon Bank to Bank and also your Tenure it can be as follows:-

      How much home loan can I get on 20000 salaries?

      It depends upon your age as well as the Bank from which your property has been approved. However, you are eligible for 5 Lakhs to 16 lakhs for a home loan.

      How can I get an instant home loan?

      You can contact Loanbhumi to get an instant home loan. Our expert advisors can help you to choose the best Bank in respect of your income and property. Because if you go to different banks to search for all things, it gets much time and also expensive, but at Loanbhumi, you save your time and money.

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