Home Loan Apply Online: Buying a house is a big dream in everyone’s life. But the truth is that most people need financial help for this, which usually comes in the form of a home loan. A home loan, also known as a mortgage, is an amount of money that is lent to you by a bank or financial institution so that you can buy a house. It charges interest and has to be repaid on time. In this article, we will explain the process of home loan, its types, features, and important information in simple language.
A home loan is a formal contract in which an individual borrows funds from a financial organization in order to purchase or renovate real estate. Over a number of years, the borrower repays the loan in installments.
What is a home loan and how does it work?
A home loan is a type of secured loan, which means that this loan is taken against the value of your house. You repay it in easy Installments (EMIs), which include both principal and interest
Note: To choose the right home loan, it is very important to compare the offers of different banks.
Comparative Details of Important Home Loan Offers
| Bank Name | Interest Rate | Processing Fee | Loan Amount |
| HDFC Bank | 8.50% – 9.75% | Up to 1.0% of loan amount | Up to ₹10 Crores |
| SBI (State Bank of India) | 8.45% – 9.55% | 0.35% of loan amount (Min ₹2,000) | Up to ₹7.5 Crores |
| ICICI Bank | 8.50% – 10.00% | Up to 1.0% of loan amount | Up to ₹5 Crores |
| Axis Bank | 8.55% – 9.75% | Up to 1.0% of loan amount | Up to ₹5 Crores |
| Kotak Mahindra Bank | 8.60% – 9.80% | Up to 1.0% of loan amount | Up to ₹5 Crores |
| Bank of Baroda | 8.50% – 9.60% | 0.50% of loan amount (Min ₹8,500) | Up to ₹10 Crores |
| Punjab National Bank (PNB) | 8.45% – 9.55% | 0.35% of loan amount (Min ₹2,500) | Up to ₹5 Crores |
| Union Bank of India | 8.50% – 9.60% | 0.50% of loan amount (Min ₹7,500) | Up to ₹10 Crores |
| Canara Bank | 8.45% – 9.75% | 0.50% of loan amount (Min ₹5,000) | Up to ₹10 Crores |
| IDFC First Bank | 8.60% – 10.00% | Up to 1.0% of loan amount | Up to ₹5 Crores |
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Types of Home Loans: Different Solutions for Every Need
Indian banks have a variety of home loans to cater to the various needs of customers. Let’s take a brief overview of these:
- New Home Loan: For first-time homebuyers.
- Pre-approved Loan: A pre-approved loan based on your income and credit score.
- Top-up Loan: Option to get additional funds on an existing home loan.
- Extension/Renovation Loan: To extend or renovate the home.
- Balance Transfer Loan: Transferring an existing home loan to a bank with a lower interest rate.
- Construction Loan: To build a house on land.
- Plot Loan: To purchase land.
- NRI Home Loan: For Indians living abroad.
Home Loan Features
Before availing a home loan, it is important to know its features:
| Loan Amount | Up to 80% of the total property value. |
| Interest Rates | Fixed, Floating, or Mixed. |
| Repayment Tenure | Up to 30 years. |
| Processing Fee | Small percentage of the loan amount. |
How to ensure eligibility for a home loan?
There are some basic requirements to avail a home loan – Home loan eligibility:
- Credit score: Better score means better interest rates.
- Income level: Meet the minimum income limit of the bank.
- Age limit: 18 to 70 years.
- Job type: Salaried, businessman, or self-employed.
- Documents required: For Indian and NRI customers
For Indian nationals:
- Identity proof (Aadhaar card, PAN card)
- Address proof (Electricity bill, lease agreement)
- Income proof (Salary slip, Income tax return)
- Property papers
For NRI customers:
| For self-employed NRIs: | For salaried NRIs: |
| Income proof (last 2 years financial statements) | Work permit |
| Business address proof | Job contract |
| Bank statement (6 months) | Salary slip (last 3 months) |
| Bank statement |
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How to apply for a home loan?
Research: Compare loan schemes from different banks.
Check eligibility: Find out eligibility with the help of online tools.
Prepare documents: Gather all the required documents.
Apply: Online or in person.
Property inspection and loan approval: The bank approves the loan after inspecting the property.
Charges to look out for while availing a Home loan
There are various charges that one may face while availing a home loan, including:
Processing fee: A fee charged after loan approval.
Prepayment charge: A fee charged for repaying the loan early.
Default charge: A penalty for not repaying the EMI on time.
Document photocopy fee: For photocopies of loan papers.
Tips for home loan borrowers
- Use an EMI calculator: To estimate the monthly payment.
- Choose short-term loans: To reduce the interest burden.
- Make prepayments: Try to repay the loan early, whenever possible.
How to avoid home loan rejection?
Do’s:
- Do proper research.
- Pay EMIs on time.
- Submit all documents in full.
Don’ts:
- Do not sign documents without reading them.
- Do not take too much loan.
- Do not apply for loan at many places.
Conclusion:
Home loan can be a great help in fulfilling the dream of buying a house. But it is important to have the right information and planning before taking a loan. Choose the right bank, submit all the documents, and secure your financial future.