Home Loan Types

Purpose:

♦  Purchase of Ready Flats / Apartments / Floors / Bungalows

♦  Purchase of Under-construction Flats / Apartments / Floors / Bungalows

 

Maximum Loan:

♦  Upto 30 lacs:                     Upto 90% of Cost of Property

♦  From 31 lacs - 75 lacs:   Upto 80% of Cost of Property

♦  More than 75 lacs:          Upto 75% of Cost of Property

 

Maximum Term:

♦  Upto 30 years Mortgage Home Loans are available depending on various Bank Policies subject to the retirement age.

 

Rate of Interest:

♦  Home Loans command the lowest interest rate in the Banking Industry. 

♦  All Banks link their interest rates to external Benchmark rate of RBI - Repo Rate

♦  At present Home Loan rates vary from 7.50% to 8.50% depending on Loan Amount, CIBIL Score, Income Profile and the Lender.  

Click Here to know the ongoing Home Loan Rates...

  Purpose:

♦   Purchase of a vacant Plot of land for construction or investment purpose

 

  Maximum loan:

♦   Upto 75% of the cost of plot 

 

  Maximum Term:

♦   Upto 15 years Mortgage Plot Loans are available depending on various Bank Policies subject to the retirement age.

 

  Rate of Interest:

♦   Plot loans usually attract 0.25% - 0.50% higher rate as compared to a Normal Home Loan.

Click Here to know the ongoing Home Loan Rates....

  Purpose:

This type of home loan is for the renovation or repair of the home which is already owned. This renovation loan facilitates internal and external repairs along with other improvements like Painting, Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring, Wooden Fixtures, Aluminum Windows and so on.

 

  Maximum loan:

♦   Upto 80% of Improvement Estimate as assessed by the Bank

 

  Maximum Term:

♦   Upto 20 years Home Improvement Loans are available depending on various Bank Policies subject to the retirement age.

 

  Rate of Interest:

♦   Home Improvement Loans attract the same rate of interest as Home Loans.

Click Here to know the ongoing Home Loan Rates....

  Purpose:

This type of loan is taken when the borrower wants to construct a new house over a self-owned plot of land. This also serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra floor. Disbursement of loan is done in stages as per the construction progress at site as visited and vetted by the technical team of the Bank.

 

  Maximum loan:

♦   Upto 30 lacs: Upto 90% of Construction Estimate approved

♦   From 31 lacs - 75 lacs: Upto 80% of Construction Estimate approved

♦   More than 75 lacs: Upto 75% of Construction Estimate approved

 

  Maximum Term:

♦   Upto 30 years Mortgage Home Construction Loans are available depending on various Bank Policies subject to the retirement age.

 

  Rate of Interest:

♦   House Construction / Home Extension Loans attract the same rate of interest as Home Loans. 

Click Here to know the ongoing Home Loan Rates....

 Purpose:

Office Premises Loan (OPL) or Non-Residential Premises (NRP) Loan is taken to purchase / construct an Office / Shop / Clinic by a self-employed person.

 

  Maximum Loan:

♦   Upto 70% of the Cost of Property

 

  Maximum Term:

♦   Upto 15 years Mortgage OPL / NRP Loans are available depending on various Bank Policies subject to the retirement age.

 

  Rate of Interest:

♦   NRP Loans are commercial loans in nature, so attract a higher interest rate

 ♦   NRP Loans interest rates are comparable to Home Equity / LAP Interest rates.

Click Here to know the ongoing LAP Rates....

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A Top-up Loan means an additional loan which you can get on your existing Home Loan or Loan Against Property or Business Loans. This is given based on a clear track record of the existing EMIs being paid and also based on property market valuation. The rate of interest is slightly higher or the same as compared to the existing home loan or loan against property or business loan. The Top-up loan funds are paid in the account of the Loan borrower itself unlike a Home loan where the funds are paid in the account of the seller. These top-up funds can be utilized for any personal or business purposes.

 

Purpose:

A Top-up loan can be availed on your existing loan to meet any of these purposes:

♦  To meet any personal requirement say marriage in family, vacation etc.

♦  To acquire any personal asset like white goods, car etc.

♦  To meet any business expansion for working capital

♦  To meet any business requirement for machinery loan or equipments

 

Top-up Maximum Loan Amount:

♦  Upto 10% to 100% of the Home Loan Amount is treated as Top-Up

♦  Above is subject to Income criteria, Property Market Value and Existing loan tracd record

 

Top-up Loan Tenure: 

 ♦ Upto 30 years depending upon the remaining period of your existing home loan or loan against property

 

Applicant and co-applicants for a Top-up loan:

♦  Same set of applicants and co-applicants as in the main Home Loan or Loan Against property need to apply for a Top-up loan

 

Tax Benefit on Top-up Loan: 

♦  Tax benefit is available u/s 24 only if the Top-up is utilised for the purpose of Home Improvement or renovation or extension. 

♦  A Businessman profile can avail deduction of interest paid on Top-up loan u/s 37 if the funds are utilised for Business purposes.

 

Eligibility

To get a Top-up loan, some eligibility criterias need to be fulfilled as follows:

♦  Top-up is available on a running home loan or loan against property

♦  You should have paid atleast 6 EMIs to be eligible for a Top-up loan

♦  The EMIs paid track record should be clear with negligible number of bounces

♦  The property in question should be 100% complete

♦  Income Criteria will be checked like normal

♦  LTV or Loan to Value ratio should be upto 75% of the Property Market Value. This includes both the existing loans principal outstanding and the Top-up loan.

 

Home Loan Top-up Interest Rate and Fees:

♦  Interest rate on Top-up is very competitive as compared to a Loan Against Property or Unsecured Business Loan. Following are the rates being offered by few key Banks:

Bank	Top-up Amt	Rate of Interest	Fees
HDFC	Upto 100% of Home Loan Amt upto 50 lacs	8%	0.5%
Axis Bank	Upto 30% of Home Loan Amt	8.25%	5000/-
	30% to 100% of Home Loan Amt	8.75%	0.50%
ICICI Bank	Upto 100% of Home Loan Amt	8.60%	0.30%
SBI Bank	Upto 100% of Home Loan Amt	8%	0.40%

To know all Banks Home Loan + Top-up Interest Rates, Click here…

 

Top Up Loan Documentation:

Documents required for a Top-up with Balance Transfer or Internal Top-up is the same as for normal Home Loan.

Click here to view the Documentation for Top-up Loans

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