Find the home loan best suited for you

Overview

Home Loan

Home loan is a short to medium term unsecured loan granted to an individual. It is commonly used to meet such financial needs as debt consolidation, wedding expenses, unexpected medical costs, home renovation and others. Flexibility of usage, minimal documentation and quick processing make personal loan a preferred financing option. Unlike other loans, it usually has a shorter repayment tenure ranging from 1-5 years. Depending upon the individual applicant's profile and lender, the APR (Annual Percentage Rate) of a home loan may vary from 11.29% to 35%.

For example, if you take a loan of Rs. 4.5 lakhs at the rate of 15.5% with repayment tenure of 3 years, your EMI will be Rs. 15,710. The total payable amount at the end of 3 years would be Rs. 5,65,553. Therefore, you are paying total interest amount to the tune of Rs 115,553. This, however, excludes other applicable charges which can be quantified as under:

Loan Processing Charge@2% = Rs.9000

Documentation charges = Rs. 500

Amortization Schedule charges = Rs. 200

In case of change of payment mode or swapping your Post Dated Cheques, additional charges are applicable. Also, depending upon the lender bank, prepayment options may or may not be available and the applicable charges may vary accordingly.

What is a Home Loan?

Everyone has a dream of owning their own house. However, not everyone has the necessary monetary support to purchase one. If you want to own a house for residential purpose, then you can opt for home loan at finkosh.com. Home loans are secured loans. The financial institute will retain the property documents as collateral. You can simply compare top banks and NBFCs (non-banking financial companies) offers on housing loan and apply for the loan.

It takes less than 2 minutes to complete the application. Loan amount available is up to Rs. 1 crore or less with interest rate starting at 8.35%. The loan can be applied by salaried, professionals, self-employed, and businesspersons. The tenure can extend till 20 years to 30 years. The repayment options are flexible and suited to fit your repayment capacity.

Why Choose a Home Loan?

You can take home loan for purchase of old or new property of residential purpose. It can be a flat, a piece of land, or any residential property. Agricultural, industrial, and commercial properties are excluded from the scheme. The housing loan can be used for home extension, construction, repair, and renovation as well. Sometimes, you want additional loan on existing loan, and opt for a top up home loan.

There are no unsecured home loans as in the bank or NBFC will keep the property documents as collateral. However, you can stay in the house and use it for residential purpose even while the repayment tenure is ongoing.

  • You must be a Salaried Employee
  • Age: 23-55 years old
  • Net Monthly Income must be more than Rs. 20,000.
  • No defaults in the last 24 months.
  • You must be residing in Delhi/NCR, Bangalore, Pune, Chennai,Mumbai or Hyderabad.
  • Aadhaar Card
  • PAN Card
  • 4 Cheques from your Salary Account
  • Current Address Proof
  • Permanent Address Proof (in case the permanent address is different from the address on Aadhaar card)

The Home loan interest rates bases on marginal cost of lending rate (MCLR) plus a spread on the MCLR that depends on lender’s risk perception about the borrower. At loanbaba.com, you can get loans online for purchasing residential property starting at 8.35%. Almost every financial institute offers competitive interest rates to attract customers. You can compare home loans interest rate at loanbaba.com to get the lowest rates possible.

EMI calculator

Finkosh.com provides you free-of-cost home loan EMI calculator so that you can take an informed decision and choose the right loan option at affordable rate. Additionally, you learn to manage your finance by knowing the monthly cash-outflow towards the loan repayment. You can check EMI for housing loan within seconds with this financial tool. The EMI calculator considers the loan amount, interest rate and tenure to show the exact equated monthly instalment you have to pay.

You will also receive a complete amortization sheet to understand the EMI payment schedule through the loan tenure for every year. The instant results from using this tool helps in saving time taken to calculate manually using the formula: EMI = [P x R (1+R) N]/ [(1+R) N-1], where E is the EMI, R is the rate of interest estimate on monthly basis, P is the principal loan amount.

Bank Name
Interest Rate
Processing Fee
Loan Amount/Tenure
9.0% - 9.50% (Floating Rate)
Up to 0.50% (min. ₹ 10,000 + GST)(Processing Fee)
₹ 8L Min Loan Amount 1-30 Years Tenure Range
8.80%- 9.20% (Floating Rate)
₹ 12,000 (inclusive of GST) (Processing Fee)
₹ 20L - ₹ 5CrsLoan Amount1-30 YearsTenure Range
8.95% - 9.15% (Floating Rate)
₹ 10000+GST (Processing Fee)
-Loan Amount1-20 YearsTenure Range
8.70% - 9.00% (Floating Rate)
Up to 0.5% (max. ₹ 11,800) (Processing Fee)
₹ 5L - ₹ 10CrsLoan Amount1-30 YearsTenure Range
8.90% - 9.50% (Floating Rate)
0
(Not applicable on plot loans) (Processing Fee)
₹ 12L - ₹ 5CrsLoan Amount1-20 YearsTenure Range
8.80% - 11.75% (Fixed /Floating Rates) 9.25% (Floating Rates)
Super Saver Plan*
0.50% (min. ₹ 10,000) (Processing Fee)
₹ 5L - ₹ 10CrsLoan Amount1-30 YearsTenure Range
9.00% (Floating Rate)
₹ 10000+ taxes (Processing Fee)
₹ 50L - ₹ 5CrsLoan Amount1 - 25 YearsTenure Range
8.55% - 8.99% (Floating Rate)
₹ 5,000 to ₹ 10,000 + applicable tax (Processing Fee)
₹ 20L - ₹ 10CrsLoan Amount1-30 YearsTenure Range
8.75% - 11.0% (Floating Rates) 8.70% - 10.95% (Female) (Floating Rates)
Up to 0.5% (max. ₹ 11,800) (Processing Fee)
₹ 2L - ₹ 3CrsLoan Amount1-30 YearsTenure Range
8.95% - 9.05% (Floating Rate)
Up to ₹ 1 Cr - 0.25% (max ₹ 10,000 + GST)
1 Cr to ₹ 5 Cr - 0.25% (max ₹ 25,000 + GST) (Processing Fee)
₹ 30L - ₹ 5CrsLoan Amount5-30 YearsTenure Range
8.90% (Floating Rate)
₹ 5,000 + Applicable Tax (Processing Fee)
₹ 30L MinLoan Amount5-30 YearsTenure Range
8.30% - 8.65% (Floating Rate)
₹ 2,000 to ₹ 10,000 + applicable tax (Processing Fee)
-Loan Amount1-30 YearsTenure Range
8.30% - 9.35% (Floating Rate)
₹ 7,500 to ₹ 20,000 (Processing Fee)
₹ 1L - ₹ 2CrsLoan Amount30 YearsTenure Range
8.35% - 8.55% (Floating Rate)
₹ 1,500 to ₹ 10,000 (Processing Fee)
-Loan Amount30 YearsTenure Range
8.85% - 9.05% (Female) (Floating Rate) 8.90% - 9.10% (Floating Rate)
0.25% (max. ₹ 11,800) One time fee (Processing Fee)
₹ 5L - ₹ 10CrsLoan Amount3-30 YearsTenure Range
  • Processing fees

    This is a one-time non-refundable fee that is to be paid to the home loan provider after the loan application has been approved. The processing charge varies depending on the bank and the loan scheme you are applying for.
  • Prepayment charges

    Prepayment penalty is the fee you will have to pay the lender if you plan on repaying your home loan before the completion of the loan tenure.
  • Conversion fees

    Some banks also charge a conversion fee when you decide to switch to a different loan scheme in order to lower the interest rate associated with your current scheme.
  • Cheque dishonour charges

    The fee is levied when the loan provider find that a cheque issued by the borrower is found to be dishonoured due to reasons such as insufficient funds in the borrower’s account.
  • Fees on account of external opinion

    In some cases, you might want to consult an external expert such as a lawyer or a valuator for his/her opinion on the loan. This fee should be paid directly to the concerned person and not the lending institution.
  • Home insurance

    The premium should be paid directly to the concerned company during the term to ensure that the insurance policy is running during the home loan tenure.
  • Default charges

    Loan providers also charge a penalty on delayed repayments i.e. if you fail to make your Equated Monthly Instalments (EMIs) or Pre-EMIs on time. The defaulting charges vary from one bank to another.
  • Incidental charges

    This charge covers for the expenses incurred by the bank to recover dues from a borrower who has failed to make his monthly instalments on time.
  • Statutory/regulatory charges

    The fee includes all charges associated with Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), Memorandum of Entry and Deposit, and stamp duty. You can visit www.cersai.org.in to know more about these charges.
  • Photocopy of documents

    The fee is payable to the bank if you require a photocopy of your home loan documents for any personal needs.
  • Change in loan term

    Some banks also charge a nominal fee if you wish to change the tenure associated with your loan.
  • Maximum Loan Amount

    You can get 60 percent to 80 percent of the house’s purchase value. However, you need to pay 20 percent as down payment.
  • Flexible Tenure

    The tenure of home loan is one of the longest. You can repay between 1 year to 15 years and sometimes up to 20 years to 30 years. Repayment tenure depends on the home loan borrowed and other factors.
  • Low Interest Rate

    Since the loan is secured, the home loan rate of interest is low. At our website, you can get rates as low as 8.35%. The rate can be either fixed or floating or combination of the two.
  • Tax Benefits on Home Loan

    Under Section 24 of the Income Tax Act, you can claim exemptions in tax of up to Rs. 2 lakhs for EMI’s interest component paid in a financial year. Additionally, you can claim tax benefits of up to Rs. 1.5 lakh on principal amount paid under Section 80 C of the Income Tax Home loan tax benefits are valid for co-applicant as well.
  • Improve Home Loan Eligibility with Co-applicant

    You can add your spouse or blood relative as co-applicant for the loan and improve your eligibility for securing home loan.

Q. Can I get a home loan for the entire property value?
Ans - No. Banks usually keep a 20% margin when providing individuals with a home loan. This means that the lender may agree to provide you with 80% of the property value as a home loan, while you will have to shell out the rest 20% by yourself. In some cases, the lender can agree to provide you with up to 90% of the property value as a home loan.

Q. Are there any tax benefits of a home loan?
Ans - Yes. Both the loan principal amount and the interest paid towards loan repayments provide tax benefits under Section 80C and Section 24 of the IT Act respectively.

Q. Who can co-sign a home loan with me? Can my friend co-sign a home loan for a flat?
Ans - Your family members like father, mother, siblings, etc. can co-sign a home loan with you. Other than that your spouse or adult children can also be co-signatories in case you are applying for a home loan. In India, as per existing rules, your friend cannot co-sign a loan as he/she is not a blood relative or otherwise related to you.

Q. How many people can co-sign a home loan with me?
Ans - At present, up to 7 people can co-sign a home with the primary applicant. However, all of them need to be blood- relatives of the family member.

Q. Are there any prepayment charges in case of a home loan?
Ans - In case of a floating rate home loan, lenders don't charge a pre-payment penalty as per RBI directives however a penalty may be applied in case of prepayment of a fixed-rate home loan. You can visit the Home Loan FAQs page for additional details on home loans.

Q. How home loan EMI is calculated?
Ans - Equated Monthly Instalment (EMI) is the amount that you repay each month against your home loan principal amount and its interest amount. So, while calculating the home loan EMI, both the principal amount and the accrued interest on the loan is taken into consideration.

Q. How to use Home Loan EMI calculator?
Ans - Home loan EMI calculator is an effective tool for comparing different loan options which are available to you from different banks and financial institutions. You can use the home loan EMI calculator on Paisabazaar to calculate the EMI which you will have to pay for your home loan. Paisabazaar's home loan EMI calculator will provide you instant results to help you take an informed decision. You only need to provide few details like loan amount, interest rate and tenure of the home loan. You can check your EMI by following the below-mentioned steps:

  • There are three sliders in the EMI calculator – Loan Amount, Rate of Interest and Tenure
  • All you need to do is choose the desired loan amount, rate of interest and tenure of the home loan, respectively, on the sliders
  • After you adjust these sliders, Paisabazaar.com will display your monthly EMI amount.

Q. What are the important points to remember while choosing a home loan?
Ans - Home loan is a long term obligation to fulfil. One should always stay aware and keep in mind the following points while choosing a home loan in India online:

  • Factors Affecting Eligibility Criteria
  • Negotiate the Interest Rate
  • Check hidden cost while comparing different lenders like processing fees, foreclosure charges, prepayment costs, valuation costs etc.
  • Compare different lenders to get the best home loan at affordable rates
  • Longer the tenure – Costlier the Home Loan
  • Choose floating rate of interest over fixed interest rate
  • Read all the terms and conditions carefully
  • Check your credit score. People with low credit score may face loan rejection or if it is accepted, it may come with a higher rate of interest.

Q. What are the reasons for home loan rejection?
Ans - Factors that can play a crucial role in home loan rejection are mentioned below:

  • Bad or low credit score
  • Incorrect personal details in credit report
  • Rejection of loan by other banks
  • Unstable income
  • Age factor
  • Location of the property
  • Poor repayment capabilities
Do's Don't
Ensure that you have researched on the loan you want to apply for Do not blindly sign the documents before you read every term and condition on it
Read the fine print before taking the loan Do not forget to compare interest rates offered by different loan providers
Look out for any charges applicable on prepayments and foreclosure Do not default on your monthly payments
Make sure you pay the equated monthly instalments (EMIs) on time Do not apply for a loan just for the sake of it
Ensure that you have a good credit score before you apply Do not sign the home loan agreement before reading the clauses
Apply for a loan amount you are eligible for Do not request for a change in tenure unless you have considered all the aspects
Submit all the necessary documents Do not submit an incomplete or mismatched loan application
Ensure that you have stable employment Do not have too many ongoing loans