Home Loans in India:

Banks and financial institutions Provide housing loans or home loans in India to allow people to buy the property of their choice by keeping the same property as their collateral. Usually, up to 90% of the house’s cost is loaned to the applicant, and repayments are generally based on the long term extending to even beyond twenty years. However, Home loans in India’s interest rates are very competitive. With the government’s support for the concept of Housing for All by 2022, several schemes and subsidies are available for specific home buyers. Home loans in India Interest rates vary based on the tenure sought and vary from 6.9% to 11%.

Unlike a general belief that Home Loans in India can be obtained only for buying a new or dream home, one can get a home loan for various related purposes such as Home Purchase, Home Extension, Home Improvement, House Construction, buying plots, NRI Home Loans, Joint Home Loans, Top Up Loans, Affordable Housing Loans under PMAY Scheme, and for Balance Transfer.

Home Loan Calculator – Using a home loan calculator, one can calculate their EMI through the amount of loan, the interest rate sought, and the tenure. The home loan EMI calculator will help you know the total interest payable on the loan over the period desired. Being an error-free app from several banks and service providers, you can get to know about the particular home loan EMI you need to pay if you enter the home loan amount, the tenure, and the interest you are looking at.

Credit Score free – A decent CIBIL score above 700 is a good credit score and quickly gets a Home Loan. It is the first factor that a bank looks for in an applicant, and your credit history and repayment capacity also is assessed before the home loan application is considered.

Additional Charges on Home Loans – Banks usually charge fees such as Application fees, Legal fees, Technical fees, Processing fees, and a Franking fee on a home loan. There could also be a Prepayment or a Foreclosure fee.

Home Loan Eligibility – Borrowers must be between 18-70 years with a net monthly income of above Rs 25,000/- and can opt for a tenure of up to 30 years.

The applicant must have an employment history of at least three years and have a CIBIL score of above 650, with a Loan to Value – LVT ratio of between 75 to 90%.

Documents Required to Apply for a Home Loan:

Check out your Eligibility factor. You’ll then need your identity Address Proof, Income proof, age proof, proof of business existence, and the property documents that you wish to buy.

Essential Features of Home Loans and their Benefits:

• They are of a multi-purpose nature and can be available to purchase a new property, construct a new home, or renovate or expand one’s house.
• The tenure is usually between 10 years to 30 years, which allows the buyer to pay a comfortable Home loan EMI without much pressure on his monthly budget.
• The prepayment or foreclosure of a home loan has no prepayment penalty or such charges as per RBI, and banks may not levy any such payments for early closure of the home loan.
• People can save rent by using the same amount as their EMI to own a property.
• All home loans have several home loan tax benefits under section 80C, Section 24, Section 24B, and Section 80 EEA.
• Housing Loans are pretty Affordable as the Interest rate is pretty low, and repayment can be made in easy EMIs.
• The property value can gradually appreciate over time, and the investment done reaps significant benefits to buyers.

Note: In Hyderabad, the lowest interest rate for Home Loans is 6.90% and goes up to 11% varying from bank to bank. It usually takes a period of about a fortnight to a month to obtain a home loan. But if you have no specific property in mind, it might take even longer.