No. 1 Property Verification Services & Property Management Services

Home Loan

Home Loans: Your Path to Homeownership

Buying a home is one of the most significant financial decisions you’ll ever make. Securing a home loan is a crucial step in the journey to homeownership. Understanding the various types of home loans, the application process, and the benefits can help you navigate this important milestone with confidence. This guide will provide you with the essential information you need to know about home loans.
A home loan, also known as a mortgage, is a loan provided by a bank, credit union, or other financial institution to help you purchase a home. The property itself serves as collateral for the loan. Home loans typically come with fixed or adjustable interest rates and are repaid over a period of 15 to 30 years.
Contact Now
Please enable JavaScript in your browser to complete this form.

Types of Home Loans

Discover the diverse range of home loan options available, each tailored to cater to the specific financial circumstances and long-term objectives of homebuyers. Whether you’re a first-time buyer, looking to refinance, or planning to upgrade, we have a solution for you.

Home Purchase Loan

Composite Loan

Home Construction Loan

Home Extension Loan

Documents Required for Home Loan

Identity Proof Documents: Copy of any one (PAN Card, Passport, Aadhaar Card, Voter’s ID Card, and Driving License)

Age Proof Documents: Copy of any one (Aadhaar Card, PAN Card, Passport, Birth Certificate, 10th Class Mark-sheet, Bank Passbook, and Driving License)

Address Proof Documents: Copy of anyone (Bank Passbook, Voter’s ID, Ration Card. Passport, Utility Bills (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Receipt

Income Documents for SalariedIncome Documents for Self Employed
Copy of Form 16Business License Details
Latest PayslipsProof of Business Address
IT returns (ITR) of past 3 yearsITR of last 3 years
Investment Proofs (if any)Balance Sheet and Profit & Loss Account Statement of the Company/Firm
Equated Monthly Installment:

0 INR

Total Interest Payable:

0 INR

Total of Payments (Principal + Interest):

0 INR

Home Loan Eligibility Criteria

Nationality: Indian Residents, Non-Resident Indians (NRIs), and Persons of Indian Origin (PIOs)
Credit Score: Preferably 750 and above
Minimum Age: 18 years with some lenders setting the minimum age of 21 years
Maximum Age: Usually 70 years at the time of loan maturity with some lenders extending the tenure till 75 years of age
Work Experience: At least 2 years (for salaried)
Business Continuity: At least 3 years (for self-employed)
Minimum Salary: At least Rs. 25,000 per month (varies across lenders & locations)
Loan Amount: Up to 90% of property value

Note: Apart from the above parameters, your home loan eligibility also depends on the property you are buying and the location of the property.

Documents Required for Non Resident Indian (NRI) Applicants

Proof of Identity: Passport with VISA stamps / PIO Card

Proof of Address: Government document mentioning the current overseas address

Proof of Income Documents:

Income Documents for Salaried

Income Documents for Self-Employed

Salary Certificate/ Latest Payslips (in English)

Latest ITR, Bank Statements of Overseas Account and Balance Sheets and P&L Accounts audited or certified by a C.A.

Latest bank statements showing salary credits NRE / NRO account (if any)

A copy of Continuous Discharge Certificate (CDC) for applicants employed in the merchant navy

Work Permit/ Employment Contract / Appointment Letter / Offer Letter (Duly attested by employer/ Consulate / foreign office / embassy in case it is in any other language)

Business License & Address Proof / License of Professional Practice (for Doctors, Consultants, etc.)

Form P60/P45 and latest employment contract (for salaried)

Registration Certificate of Establishment (For Shops, Factories & Other Establishments)

Property Documents:

  • Original title deeds tracing the title of the property
  • Encumbrance Certificate
  • Agreement for sale/ sale deed/ detailed cost estimate from the Architect/ Engineer for property to be purchased/ constructed/ extended/ improved
  • A copy of approved drawings of proposed construction/ purchase/ extension
  • Receipts for payments made for buying the dwelling unit
  • ULC clearance/ conversion order, etc.
  • Receipts for investing the margin money through normal banking channels from the NRE /NRO account(s) in India
  • Latest tax paid receipt
  • Allotment letter from the co-operative society/ association of apartment owners

Other Documents:

  • Credit Bureau Report (in case available in the country where you are residing)
  • If any previous loan from other Banks/Lenders, then Loan A/C statement for the last 1 year

Home Loan offered by Top Banks & HFCs in India

Home loan interest rates offered to the applicants would depend on their credit scores, monthly income, loan amount, LTV ratio, job profile, employer’s profile, etc. Here are the interest rates on home loans offered by top banks and HFCs.
Name of Lender Interest Rate (p.a.)  
State Bank of India 8.50% – 9.85%
HDFC Bank 8.70% onwards
ICICI Bank 8.75% onwards
Bank of Baroda 8.40% – 10.90%
Punjab National Bank 8.40% – 10.25%
Axis Bank 8.75% – 13.30%
Kotak Mahindra Bank 8.70% onwards
LIC Housing Finance 8.50% – 10.75%
Federal Bank 8.80% onwards
Bajaj Housing Finance 8.50% onwards
IDFC First Bank 8.85% onwards
PNB Housing Finance 8.50% – 14.50%
Tata Capital Housing Finance 8.75% onwards
L&T Finance Limited 8.65% onwards
Standard Chartered Bank 8.60% onwards
Godrej Housing Finance 8.55% onwards

FAQs on Home Loan

Ans. For most consumers, a lender offering the lowest home loan interest rate would be the best as it will help them save on the overall interest cost. However, besides considering home loan rates, parameters such as the loan tenure, loan amount, LTV ratio, processing fees and time taken for loan approval and disbursal must also be looked into while searching for the best bank for home loan. Instead of visiting the websites of respective home loan lenders, consumers can make their search easier by visiting online financial marketplaces like Paisabazaar.com to check and compare home loan rates and other loan features such as tenure, processing fees and other related costs from various banks and HFCs.

Ans. No, you cannot get a home loan for the entire property value as the Reserve Bank of India (RBI) has capped the Loan-to-Value (LTV) ratio of housing loans. As per the RBI guidelines, the LTV ratio can go up to 90% of the property value for loan amounts up to Rs 30 lakh; for loan amounts above Rs 30 lakh and up to Rs 75 lakh, the LTV ratio limit is up to 80% of the property value and for loan amounts above Rs 75 lakh, the LTV ratio can go up to 75% of the property value. This implies that at least 10% of the remaining value must be shelled out by the borrower as down payment.

Subject to the caps set by the RBI on LTV ratios, banks/HFCs further fix the LTV ratio on the basis of the risk assessment and credit profile of the loan applicant. Those with lower creditworthiness are usually offered lower LTV ratio.

Ans. Some lenders use the Multiplier Method for determining your maximum home loan eligibility, wherein the eligible loan amount is calculated based on a predetermined multiple of an applicant’s net monthly income. They usually offer loan amounts of up to 72 times of an applicant’s gross monthly income or 6 times of their gross annual income (in case of applicants other than salaried). Others use the EMI/NMI Ratio, wherein the total EMI obligations of the applicant should be within a predetermined proportion, usually 50-55% of the applicant’s income. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.
Ans. Home loan features such as interest rates, loan amount, tenure and processing fees can vary widely across lenders depending on their cost of funds and credit risk assessment of their loan applicants. Thus, visiting Paisabazaar.com will allow you to compare home loan offers by its 20+ partner banks and HFCs based on your monthly income, repayment capacity, credit score, occupation profile, employer’s profile and other applicable eligibility criteria.
Ans. Lenders consider the repayment capacity of home loan applicants while evaluating their loan application and loan amount eligibility. house loan lenders usually prefer lending to home loan applicants having total EMIs, including EMI of the proposed home loan, to be within 50-60% of their monthly income. Hence, home loan applicants can use online home loan EMI calculator to find out the optimum house loan amount and tenure based on their repayment capacity.
Ans. It is difficult to say which home loan you will get with a low credit score as different lenders have different credit risk policies. Hence, consumers with poor credit scores should visit online marketplaces like Paisabazaar.com to check and compare housing loan rates and other loan features such as tenure, processing fees and other related costs from various banks and HFCs.
Ans. Lenders prefer sanctioning housing loans to applicants having credit scores of 750 and above as such high credit scores reflect responsible credit behavior and reduce credit risk for lenders. This is also the reason why many lenders offer lower home loan rates to applicants having high credit scores. However, some lenders offer home loan to applicants having low credit score at higher interest rates. Therefore, one must check their credit scores at regular intervals.
Ans. EMI calculation for a Rs. 20 lakh home loan would depend on the interest rate and tenure. Let’s assume the interest rate and tenure on your Rs. 20 lakh home loan is 8.50% p.a. and 20 years, respectively. In such a case, your home loan EMI would be Rs. 17,356. For calculating EMI based on other tenure and interest rate values, you can use a home loan EMI calculator.
Ans. Your spouse or blood relatives such as your father, mother, siblings and children can co-sign a home loan with you. Also, all co-owners of the property must be co-applicants in housing loan.
Ans. In the case of floating rate home loans, lenders don’t charge a pre-payment penalty as per RBI directives. However, lenders may levy prepayment penalty in case of prepayment of fixed rate home loans.
Ans. Home loan balance transfer allows existing home loan borrowers to transfer their outstanding home loans to a new lender at lower interest rates and/or better loan terms. This facility is especially helpful for those borrowers who had availed housing loans at higher interest rates but are now eligible for lower interest rates due to their improved credit profile or reduction in market interest rates.