Overview

A home loan, also known as a mortgage, is a financial product provided by banks, credit unions, or other financial institutions that enables individuals to purchase or refinance a residential property. Home loans are a common means for people to fulfil their dream of homeownership without having to pay the entire property's value upfront.

Key Features of a Home Loan

• Loan Amount: Home loans provide borrowers with a substantial amount of money to purchase a home. The loan amount is typically a percentage of the property's purchase price, and borrowers are required to make a down payment as part of the transaction.
• Secured Loan: Home loans are secured by the property being purchased. If the borrower fails to repay the loan according to the agreed terms, the lender may have the right to take possession of the property through a process known as foreclosure.
• Repayment Term: Home loans have a specified repayment term, commonly ranging from 15 to 30 years. Borrowers make regular monthly payments to repay the principal amount borrowed, plus interest.
• Interest Rates: Home loan interest rates can be fixed or variable. Fixed-rate mortgages have a constant interest rate throughout the loan term, providing predictability. Variable-rate mortgages may have interest rates that fluctuate based on market conditions.
• Down Payment: Borrowers are typically required to make a down payment when purchasing a home. The down payment is a percentage of the property's purchase price and serves as a demonstration of the borrower's commitment to the investment.
• Amortization: Home loans are usually structured with an amortization schedule, where a larger portion of the monthly payment goes toward interest in the early years, gradually shifting toward paying more principal as the loan matures.
• Credit Check: Lenders assess the creditworthiness of the borrower to determine the interest rate and loan terms. A higher credit score often leads to more favourable loan terms.
• Closing Costs: Homebuyers may incur additional costs at the closing of the loan, including fees for processing, appraisal, title insurance, and other related expenses.

Home loans play a critical role in helping individuals and families achieve homeownership by spreading the cost of a home over an extended period. It's important for borrowers to understand the terms of the loan, including interest rates, fees, and repayment obligations, before committing to a home loan.

Benefits of our Home Loan

A vast array of institutions offer you the best home loan rates at the most competitive rates and affordable EMIs.

• Home Construction Loan: If you have a plot of land and lack financial support to construct a home on that piece of property, you may choose a house construction loan. Such borrowing is mainly made to construct or repair a major part of your home.
• Home Extension Loan: Should you already own a home, and feel the need to extend the building, add an annexe, or build another floor, etc., Home Extension Loan is your go-to option that finances such needs.
• Home Improvement Loan: All of us wish to improve and upgrade our homes for a better life. From your old-age furniture, fixtures to faulty lightning systems, Home Improvement Loan funds all your plans.
• NRI Home Loan: If you are a patriot, a Non-Resident Indian, and wish to own residential property in India, NRI Home Loan is your answer. Though the formalities for application may be a little different.

Home Loan Eligibility

The basic home loan eligibility criteria are as follows:

• Age: You must be above 21 years of age at the time of the commencing of your loan, and up to 65 years or less at loan maturity. Salaried Person - 21 years to 58 years. Self-Employed Person - 25 years to 65 years.
• Income: Salaried Person - Minimum Rs. 10,000 per month. Self-Employed Person - Minimum Rs. 2,00,000 per year.
• Employment: Salaried Person - Minimum 2 to 3 years of Experience in MNC, or a Private or Public Limited Company. Self-Employed Person - Minimum 3 years of Experience in the current field.
• Credit Score: A credit score of 750 is considered a good score for approval.

Documentation for Home Loan

Income Proof Documents

• Salaried Individuals: Form 16, Employee Identity Card, 3 Months Salary Slip, 6 Month Bank Account Statement, Duration of Employment Evidence.
• Self-Employed Individuals: PAN, Trade License, Partnership Deed, Article of Association, Memorandum of Association, Import Export Code, SEBI Registration Certificate, ROC Registration Certificate, Financial Statement Audited by CA, Profit & Loss Account Statement, Balance Sheet, 6 Months Bank Account Statement, Professional Practice License for Doctors, Consultants, etc., Registration Certificate of Establishment for Shops, Factories, and Other Establishments, Business Address Proof.
• Documents Required from all Non-Resident Indians (NRIs) Applicants: Income Proof Documents for NRI, Property Papers, Property Documents, Sale Deed, Stamped Agreement of Sale, Allotment Letter, No Objection Certificate or NOC, Housing Society, Builder, Possession Certificate, Land Tax Receipt, Construction Cost Estimate, Bank Account Statement of Payment Made to Seller or Builder, Payment Receipt of Payment Made to Seller or Builder, In case of resale property share certificate is required, Occupancy Certificate.