Home loan Money to buy a house proves to be very helpful in fulfilling your dream of owning a house. If you do not have money, then banks or non-banking finance companies (NBFCs) provide you long-term loans. You just need to raise only 10 or 15 percent of the total cost of the house.
Financial advisors say that if your monthly income is Rs 60,000, then the bank assumes that your personal expenses will be Rs 25,000 per month. If you have not taken any other loan like car or personal loan, then you can take up to Rs 35-40 lakh as a home loan at an annual interest rate of 9 percent for 20 years.
You get a home loan (SBI Home Loan) at the initial interest rate only if your CIBIL score i.e. credit score is excellent. CIBIL score is calculated between 300 to 900 points. According to experts,
If your CIBIL score is above 750, you get the loan easily and the bank also offers the loan (SBI Home Loan) at the initial interest rate. To improve CIBIL, you have to make financial transactions and payments on time.
Sometimes the situation is such that you can even take a double loan. When you take a joint home loan with a person who has a strong credit score and a good repayment capacity, it becomes easier to get a loan
Apart from this, you can get more loan if you take a joint home loan, because the bank will give the loan keeping in mind the income of both the applicants.
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What is Home loans
Through home loan you can buy house, flat, land. You can also get renovation and extension done. You can also take loan from the bank on your existing house to fulfill your needs.
How many types of Home loans
There are generally 6 types of home loans. These can be availed from both private and government banks in India. You can also avail home loan from NBFC companies.
Home Loan
According to Kalapaisa, let me explain to you that home loan here means a house attached to land which is ready to move in. (Flat, second hand house, floor) In this, you get a single loan for a built house and a plot.
Construction Loans
According to Kalapaisa, home contract loan is used for building a house. That is, you have a plot and now you want to build it according to your style.
Renovation Loans
According to Kalapaisa, home renovation loan is taken when you want to get your house painted, dented or demolished and a new design done. Then home repair loans are taken.
Plot Loans
Kalapaisa के अनुसार plot loan तब लिया जाता हैं। जब आप एक घर बनाने का सपना देख रहे हो । इस समय सिर्फ आपके प्लॉट/जमीन के लिए लोन दिया हैं ।
Home Extension Loan
According to Kalapaisa, home extension loan is taken when you want to add one more floor to your existing house. The room or toilet is used for other purposes.
Loan against Home
According to Kalapaisa, Loan on Home is taken when you need money the most, then you can take Loan on Home by going directly to the bank and submitting the house papers.
Balance Transfer Loans Housing Finance Companies (HFCs) provide you with a special service to transfer your existing home loan from one lender to another. Balance transfer is usually done to avail a loan at a lower interest rate, convenient repayment terms and some other benefits
What is the tenure of a home loan
Generally, the tenure of a home loan in India is 25 to 35 years. But it depends on the total loan amount taken by you, in how many years you want to repay the loan amount taken. If the EMI is high, it will take less time, whereas if the home loan EMI is low, it will take more time.
Home loan interest
house loan interest rates There are two types of interest rates offered.
Fix interest rates - In this, the interest rate charged on the home loan remains fixed for the entire period. Changes in the interest rate do not affect it.
Floating interest rates - In this, the interest rate keeps changing when you take a home loan. The loan has to be paid at the interest rate fixed by the bank.
Usually the interest rate of fixed rate home loan is high, whereas the interest rate of floating rate home loan is as per the market. That is why floating rate is considered good for home loan.
Home loan interest rate all bank
- Home Loan Interest Rate KMB Bank 8.75%
- Home Loan Interest Rate Union Bank 8.70%
- Home Loan Interest Rate BOB Bank 8.60%
- Home Loan Interest Rate CBI Bank 8.35%
- Home Loan Interest Rate BOI Bank 8.45%
- Home Loan Interest Rate SBI Bank 8.40%
- Home Loan Interest Rate IOB Bank 9.55%
- Home Loan Interest Rate PNB Bank 8.50%
- Home Loan Interest Rate UCO Bank 8.75%
- Home Loan Interest Rate IDBI 8.65%
- Home Loan Interest Rate HSBC Bank 8.75%
- Home Loan Interest Rate Karur Vysya 7.15%
- Home Loan Interest Rate Saraswat Bank 8.60%
- Home Loan Interest Rate Jammu & Kashmir 8.75%
- Home Loan Interest Rate Federal Bank 8.80%
- Home Loan Interest Rate Karnataka Bank 8.75%
- Home Loan Interest Rate Dhanlaxmi Bank 15.00%
- Home Loan Interest Rate Bandhan Bank 9.15%
- Home Loan Interest Rate Yes Bank 9.40%
- Home Loan Interest Rate Bajaj Home Loan 8.50%
- Home Loan Interest Rate Axis Bank 9.00%
- Home Loan Interest Rate Canara Bank 9.25%
- Home Loan Interest Rate Tamilnad Mercantile Bank 9.35%
- Home Loan Interest Rate HDFC Bank 8.45%
- Home Loan Interest Rate LIC Finance 8.45%
- Home Loan Interest Rate Punjab & Sind Bank 8.95%
- Home Loan Interest Rate IDFC First 8.85%
- Home Loan Interest Rate Bank of Maharashtra 8.60%
Here are some ways to reduce your interest rate
Short loan
Take loan for the shortest period possible so that banks and NBFCs charge minimum interest rate.
Prepayments
If you repay any loan amount before time, then banks and NBFCs do not charge you further interest rate because you are paying it before time.
Compare banks and NBFCs online.
If before taking an online loan, you compare it with other banks or NBFCs through the internet then you will know at what percentage the loan is being given in the market.
Transfer Home Loan Balance
You can transfer your home loan only after the lock-in period is over. This period is usually between six months to one year. It is generally recommended to transfer a home loan when the outstanding loan amount is high.
Pay a higher down payment
In home loan, you should try to make as much down payment as possible so that you get a loan at a lower interest rate and the loan is for a shorter period. For a lower interest rate, the down payment should be 40% to 55% of the total loan amount.
Look for better offers
You should look for a better offer because offers of all banks and NBFCs are different. If you feel that the interest is too high then wait for RBI to reduce the repo rate.
Increase emi amounts
If you pay more EMI on your home loan, then you will have to pay the lowest interest rate. By paying more EMI, your loan will be over soon. However, you will have to compromise on some things in your life.
Lowest interest rates The shorter the period for which you take a loan, the better it is and the longer the loan period for banks and NBFCs, the more beneficial it is for them because the interest rate on long term loans is higher. This is the main source of earning money for banks, these are also famous home loans, personal loans, car loans.
Home loan eligibility
- Nationality (must be Indian)
- Credit score (must be more than 750)
- Age limit (must be between 18 to 70)
- Work experience (3 years continuous job experience)
- How old is the business. (must be 3 years old)
- Minimum salary (should be around 30k)
- Loan amount (can be availed up to 80% to 90%)
Home loan for necessary required documents
Home loan documents required Apart from the documents given below, the bank can also ask for other documents like school leave certificate, address verification, Affidavit, Pradhan Certificate, current rent agreement and character certificate etc.
Identity Proof
- Passport
- PAN Card
- Aadhaar Card
- Voter ID
- Driving License
Age Proof
- Birth Certificate
- High School Certificate
- Bank Passbook
- Aadhaar Card
- PAN Card
- Driving License
- Passport
Residence Proof
- Telephone bill
- Electricity bill
- Bank pass book
- Voter ID card
- Ration card
- Utility bill
- Copy of LIC
Income ratio
A - Salary Person
- Copy of Form 16
- Last 3 months salary slip
- Last 3 years (ITR)
- Investment proof (optional)
B - Business
- 3 years ITR,
- Balance sheet and profit and loss account statement of the company
- Firm's business license details
- Proof of business address
Property related documents
- NOC from society/builder,
- Construction cost estimate,
- Registered sale agreement,
- Allotment letter,
- Copy of building plan approval,
- Property papers,
- House design (model)
Some Benefits of Home Loan Balance Transfer
Home loan balance transfer is a facility offered by a lower interest rate. Under this, an existing home loan borrower can transfer the outstanding amount of his existing home loan at a lower interest rate or for a longer period.
You can transfer the loan to a new bank or loan institution. Home loan balance transfer is beneficial only if the other bank is willing to give you a loan at a lower interest rate. Balance transfer interest rates are usually the same as regular home loan rates.
Home Loan Balance Transfer
- Lower EMIs
- Better customer service
- Transparency in charges like processing fee, transition fee etc
Transfer required documents
- KYC papers
- Property papers
- Loan balance papers
- Interest papers
After the whole process is completed, you will be asked for the consent letter from the old bank. Based on that, the loan will be closed. After this, your EMI will be started from the new bank.
How to apply for a home loan
Home loan process Before starting, you should understand whether it will be better to apply for home loan online or offline. If I tell you straight away, whether you do it online or offline, the verification will be done offline only.
That is why it would be better to understand the home loan process online and then go to the bank and talk to the bank manager regarding this. Take a photo of the property on which you want to take a loan and take the documents related to the property seller in 3-4 different ways.
Home loan calculator
Home loan emi calculator - Here you have to enter the full amount of your loan, for how many years you want to take it, enter at what percentage you want to take it, then you will get all the information, go to the link given below.