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Home Loan

HOME LOAN

Achieve Your Dream Home with a Home Loan

Your dream house may come at a price, but it doesn't have to be out of reach. With a home loan, you can step closer to building or buying the home you've always envisioned.

What is a Home Loan?

A home loan is a secured loan designed to help you purchase a residential property or construct a new house. Additionally, home loans can be used for renovating, expanding, or upgrading your existing home. When you take out a home loan, your property serves as collateral, meaning the lender holds the deed to the house until you fully repay the loan amount, including both principal and interest.

Eligibility Criteria for a Home Loan

A Home Loan can be availed of by anyone, whether you are a salaried employee, government employee, or a working professional. All you have to do is fulfill basic eligibility conditions laid out by banks and NBFCs. While personal loan eligibility conditions can differ across banks and NBFCs, here are some standard criteria you must be:

Aged between 21 and 60 years

Salaried or a working professional

Having a job and a minimum of 3 months experience

Having a minimum of Rs. 25,000 net income per month.

Documentation Required

Photo Identity Proof

  • Voter ID
  • Aadhaar Card
  • Passport
  • PAN
  • Driving Licence

Proof of Residence or Address Proof

  • Aadhaar Card
  • Driving Licence
  • Passport
  • Registered Rent agreement
  • Latest gas or electricity bill
  • Bank statement with current address

Income Proof

  • Income Tax Returns for the last 3 years
  • Business Licence Details
  • Balance Sheet audited by a certified CA and Profit and Loss account for the last 3 years
  • Business address proof
  • 6 month bank statements of current and savings accounts
  • A copy of Form 16
  • 6 month bank statements of salary account
  • Last 3 months’ salary slip

Others

  • Allotment Letter
  • Sale Deed
  • No Objection Certificate or NOC
  • Stamped Agreement of Sale
  • Possession Certificate
  • Construction Cost Estimate
  • Bank Account Statement of Payment Made to Seller or Builder
  • Occupancy Certificate
  • Land Tax Receipt

Home Loan Balance Transfer

If you’re struggling with high home loan EMIs, you might want to think about a home loan balance transfer. This process, also known as home loan refinancing, involves moving your remaining home loan balance from your current lender to a new one. There are many benefits to this, such as getting lower interest rates and better repayment terms. Plus, if you need some extra money, you can apply for a top-up loan when you transfer your home loan.

The eligibility criteria and required documents for a balance transfer are the same as for a home loan. You can get complete assistance from Better Loanz expert home loan advisors throughout the process. To see how much you can save with a balance transfer, use our home loan balance transfer calculator.

 

Documents required for a balance transfer

  • Identity proof – Passport, Aadhar Card, Driving License, etc.
  • Address proof – Aadhaar Card, Passport, Voter’s ID, etc.
  • Bank statements - Last 12 months’ statements for current and savings accounts
  • Income proof - Balance sheet and Profit/Loss Account audited by a registered CA for the last two years, last three years of ITRs - both company and individual
  • Property documents - Allotment Letter, Sale Deed, NOC, Allotment Letter from Society, Stamped Agreement of Sale, Possession Certificate, etc.

Eligibility

Different financial institutions use their own set of eligibility criteria. Check home loan eligibility online of your chosen lender before you make a decision. These are some common eligibility criteria laid out by banks and NBFCs that you must fulfill:

  • Be a salaried or a working professional or self-employed
  • Be a Resident Indian, Non-Resident Indian (NRI), or a Person of Indian Origin (PIO)
  • Aged between 21 and 65 years
  • Having a minimum work or business experience of 1 year
  • Having a minimum monthly income of Rs. 20,000

Conduct a home loan eligibility check online to understand if you can apply for a loan with the lender of your choice.

Benefits of a Home Loan

Affordable Interest Rates

Home loans generally offer lower interest rates compared to unsecured loans, making them more affordable over the long term.

Tax Benefits

You may be eligible for tax deductions on the interest paid and the principal repayment under various sections of the Income Tax Act.

Flexible Tenure

Home loans come with flexible repayment terms, allowing you to choose a tenure that suits your financial situation.

Property Appreciation

Real estate typically appreciates over time, potentially increasing the value of your investment.

Application Process

Step-1

Connect with us and explain your needs. We curate a bunch of loan products most suitable for your profile

Step-2

Next, we help you compare several home loan products so you can choose the best one.

Step-3

Once you've picked a lender, we help you with the application process. You need to apply for the loan online and submit all necessary paperwork.

Step-4

Once you submit your application, the lender takes some time to process it and verify your documentation.

Step-5

Finally, you receive the loan amount in your account.

Navigating the terms and conditions of a home loan can be challenging, especially for first-time borrowers. However, with the right information and careful planning, you can make the process smoother and more manageable, bringing your dream home within reach.

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Loan EMI Calculator

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Interest Rate (R) (in %)
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FREQUENTLY ASKED QUESTIONS

Find Answers to Common Questions

    While different financial institutions use different criteria, the most commonly used factors ar

    1. Age
    2. Net Annual Income
    3. Type of employment
    4. Resident type [Indian Citizen, Person of Indian Origin (PIO), Non-Resident Indian (NRI)]
    5. Number of co-applicants
    6. Credit score
    7. Co-applicants' income
    8. Other ongoing loans (if any)

    A CIBIL score of 600 or above is essential to qualify and apply for home loan online. However, if you have a score of 750 or above, you can get a competitive interest rate and better terms on the loan. So, try to boost your score before applying.

    Technically, you will have to wait until marriage to apply for one. This is because only immediate family members and spouses are allowed to take a joint loan.

    Most financial institutions extend a home loan to applicants with a monthly income of Rs. 25,000 and above. They must also not have fixed obligations exceeding 50% of the salary. However, the criteria may vary for different lenders.

    In most cases, financial institutions will ask you to pay at least 20% of the property’s market value as down payment. The rest of the 80% is financed by them.

    No, home loans don’t cover the registration charges. They also don’t cover the stamp duty charges and transfer charges.

    A pre-approved home loan is typically valid for three months. You have to finalize a property in this period or the lender will forfeit the offer. In that case, you’ll have to pay a nominal fee to get the application appraised.

    Interest rate is one of the most critical factors to consider when applying for a home loan. Our network of banks and NBFCs offer two types of interest rate on home loans.

    Floating rates of interest: Floating interest rates, or variable interest rates, are linked to the Repo Rate. As a result, they tend to change when the market lending rate changes. Your home loan EMI may increase or decrease according to the fluctuations in the interest rate.

    Fixed rates of interest: Fixed interest rates, as the name suggests, remain constant throughout the duration of your loan. Since they do not change, your home loan EMI amount remains the same for the entire tenure.