Home Loans in India

Overview:

Your Home is a place where you relax after coming back from your day’s tiring work, it is that place where you can give time to your family & spend beautiful moments with them. To acquire a home which can be christened your “Own House” is a life-time decision & has to be taken with a lot of planning & requires huge finances. Your Dream Home is not very far away with a Home Loan which will fulfill your Dream into a reality. We at LoanBroker.in are working constantly to get you the BEST Loan Deal.


Features:

  • Maximum loan – 80% of the cost of the property and based on the repayment capacity of the customer
  • Maximum Term – Most Banks offers home loan upto 20 years subject to your retirement age. There are some Banks who offer upto 25 years also
  • Applicant and Co- Applicant to the loan – Home Loans can be applied for either individually or jointly. Proposed owners of the property, will have to be co-applicants. However, the co-applicants need not be co-owners

 

Types of Interest Rates:

  • Floating Rate
  • Fixed Rate
  • Hybrid Rate or Teaser Rates

Get the current Home Loan Rates


Charges in Home Loan:

Acquiring a Home Loan doesn’t only involve the cost of home loan interest rates but it also includes other charges
& fee accompanying at various stages of taking the Home loan. You must consider all these charges while comparing
the cost structure across Banks. Following is the detailed fee structure incurred by Banks at different loan
stages:

  • Processing Charge – It is a fee payable at the time of submitting the loan application to the Bank which is normally non-refundable. For Salaried class and corporate customer it is usually limited to Rs.10,000/- + Service Tax. For Self-employed the fee ranges between 0.5 per cent and 1 per cent of the loan amount
  • Prepayment Penalties – When the borrower pre-pays the loan before the loan tenure, Banks charge a penalty which usually varies between 1 per cent and 2 per cent of the pre-paid amount. Thought Part-prepayment by the borrower (to a certain extent) does not attract any charges. There are a few Banks however who offer NIL pre-payment penalty. For instance Axis Bank does not have any kind of Pre-payment / foreclosure charges whatsoever under any circumstance and without any lock-in-period
  • Legal Charges – Banks also incur some charges from the customer for legal and technical verification of the property
  • Delayed payment Charges – When there is a delay in the payment of your EMI, Banks charge a late payment fee from the borrower which normally ranges from 2% to 3% of the EMI
  • Cheque bounce charges – Banks charge between Rs. 250 and Rs. 500 for every bounced cheque towards the loan payment because of lack of funds in your account

 

Home Loan Eligibility:

Home loan eligibility depends up on various factors. A few of them are listed below –

  • Income – Your income determines the amount of loan you are eligible for. Banks generally keep the EMI to income ratio at 45% to 60%
  • Tenure of the loan – The longer tenure you opt for, the more loan you are eligible for
  • Interest rate offered – If your interest rates are on a lower side, then the home loan eligibility will be higher and vice-versa
  • Existing loans – In case you have any existing loans, then the home loan eligibility amount will come down to keep the EMI to income ratio at 45% to 60%
  • Credit History – Banks also checks credit history of a borrower from CIBIL (Credit Information Bureau India Ltd.). CIBIL is India’s first credit information bureau, it is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its Members in the form of credit information reports. Individuals can also access their own credit reports from CIBIL. For information refer www.cibil.com

 

Tax Benefits in Home Loan:

The home loan borrower enjoys Tax Benefits on both Interest paid & the Principal re-paid. Under Section 24(d) of
Income Tax, the deduction of interest payable on the home loan is up to a maximum of Rs. 1,50,000.Under Section 80(c) of Income Tax, Principal amount for the repayment of loan along with other savings & investments is eligible for tax deduction up to a maximum limit of Rs. 1,00,000.

 

Documentation:

Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc.

Click for Home Loan Documentation details.

For more details on home loan & Home loan eligibility, Contact us now.