What is Home Loan or Housing Loan?
Home Loan is a Secured loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Home Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property.
Acquiring a home which you can proudly call as your “Own House” is a life-time decision. It requires a lot of research, planning about your exact necessities (your family matters a lot on coming up to a conclusion regarding necessities) and finally requires huge finances. Your home has to be a place where you can easily relax after coming from a day’s tiring schedule, a place where you can spend a fruitful time and beautiful moments with your family.
List of major Home Loan companies in India
|SBI Home Loan
||Indian overseas Bank Home Loan
|LIC Housing Finance
||State bank of Travancore Home Loan
|HDFC Home Loan
||PNB Housing Finance
|ICICI Bank Home Loan
||IndusInd Bank Home Loan
|HSBC Home Loan
||Punjab National Bank Home Loan
|IDBI Home Loan
||Dhanalakshmi Bank Home Loan
|DHFL Home Loan
||Jammu kashmir Home Loan
|Axis Bank Home Loan
||IDBI Home Finance
|ING Vysya Home Loan
||DCB Home Loan
|Bajaj Finance Home Loan
||Uco Bank Home Loan
|India Bulls Home Loan
||Federal Bank Home Loan
|Bank of Baroda Home Loan
||GE Money Home Loan
|Central Bank of India Home Loan
||Citi Financial Home Loan
|Kotak Mahindra Home Loan
||Bank of India Home Loan
|Deutshce Bank Home Loan
||Canara Bank Home Loan
|Bank of Maharashtara Home Loan
||Allahabad Bank Home loan
|Royal Bank of Scotland Home Loan
||Union Bank of India Home Loan
|Andhra Bank Home Loan
||United Bank of India Home Loan
|Punjab & Sind Bank Home Loan
||Dena Bank Home Loan
|Syndicate Bank Home Loan
||Standard Chartered Home loan
|Vijaya Bank Home Loan
||Corporation Bank Home Loan
|Indian Bank Home Loan
Types of Home Loan
There are different types of home loans available in the market to cater borrower’s different needs.
New Home Loans:
This is the basic type of a home loan which has the purpose of purchasing a new house.
Plot Loan & Construction Loan:
It is that loan which is taken to purchase a land for construction & investment purposes.
Home Construction Loan:
This type of loan taken when the borrower wants to construct a new home.
Home Loans Balance Transfer:
The most well-known approaches to decrease interest rates is to either go for a balance transfer of the loan or converse with the bank that has given you the loan to reduce it. Balance Transfer: Balance transfer of a loan happens when the whole unpaid essential loan amount is transferred to another bank for a lower rate of interest.
Home Extension Loan:
This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc.
Home Renovation Loan:
This type of home loan is for the renovation or repair of the home with a contractor like Johnson Construction Company.
Pradhan Mantri Awas Yojana:
Pradhan Mantri Awas Yojana is a program by Government of India to guarantee “Housing for all by 2022”. Under this program, there is a Credit Linked Subsidy Scheme on home loans for properties in urban market having a place with Economically Weaker Section (EWS), Middle Income Group 1 and 2 (MIG) and Low Income Group (LIG).
NRI Home Loan:
NRI Home Loan allows numerous NRIs (Non Resident Indians) to have home loans when putting resources into properties. Financially, it bodes well to buy a property through home loan as opposed to through individual financing especially when you can contribute your own assets elsewhere for better returns.
Home Conversion Loan:
It is that loan wherein the borrower has already taken a home loan to finance his current home, but now wants to move to another home. The Conversion Home Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfills the money required for the new home.
This type of loan helps finance the new home of the borrower when he wants to sell the existing home, this is normally a short-term loan to the borrower & helps during the interim period when he wants to sell the old home & want to buy a new one, It is given till the time a buyer is found for the old home.
Documents Required for Home Loan:
The following Documents to be submitted for to check eligibility:
- The application form to be signed and affixed a required number of photos.
- Proof of identity (Copy of ID/Driving License/PAN Card/Passport/Voter).
- Proof of address (Copy of latest Passport/Telephone Bill/Property Tax Receipt/Electricity Bill/Voter ID).
- Book/Bank Account Statement of Last 6 months.
Documents Requested from Guarantors:
- Business proof.
- Detailed Statement of Personal assets and liabilities.
- Signatures for Identification from the Present bankers.
Additional Documents required from Salaried Applicants:
- 2 passports sized photos.
- Identity and address proof.
- Proof of business.
- Statement of Personal liabilities & assets.
- Signatures for Identification by their present bankers.
- Salary certificate.
- Form 16 for last 2 years or Copy of ITR.
- Additional Documents required from Self-Employed/Non-Salaried/Other IT Assesses/Professionals:
- Challan copy proving that Advance Income Tax paid.
- Assessment Orders of 3 years/Copy of ITR.
Frequently Asked Questions
You can apply for a loan in a few different ways. You can straightforwardly visit the bank office and meet the salesman, contact a loan operator or apply online at any bank or NBFC’s site. You can likewise check and think about best interest rates of all banks online at policyandfunds.com and apply for a loan.
These are generally taken for a more drawn out timeframe. The loan residency for housing loan ranges from 5 years to 30 years.
CIBIL score ranges from 300 to 900. A score of 650 or more is considered as a great FICO assessment to return the home loan. Higher the FICO assessment, the higher the odds to get loan application endorsed.
In the event that your loan was taken as a fixed rate loan
- Most settled rate loans would offer settled interest rate for a period extending from a couple of months to 15 years. From your endorse letter and loan assertion, check the period for which the interest on your home loan is to stay settled. In the event that your loan is still in the settled rate time frame, your present rate of interest is same as what it was originally taken at
- In case your loan has changed over to gliding rate, the loan assertion would determine the formula for the same. The formula might be either MCLR base rate in addition to a given spread (in the event of banks) or PLR short spread (if there should be an occurrence of housing account organizations). For MCLR rate in addition to spreading housing loan, simply read the spread said in the loan assertion and add it to the current MCLR rate of the separate bank. For PLR less spread loan, check the negative spread said in the loan understanding and subtract it from the PLR of the individual home back organization. You can locate the current MCLR rate or PLR of your bank or housing fund organization at Current MCLR Base Rate and PLR.
In the event that your loan was taken as a fixed rate loan
- You should submit duplicates of the accompanying property archives
- Past title chain– Conveyance deed, deals deed, allotment letter, ownership letter
- Receipt of propelling instalment towards buy of property if there should be an occurrence of resale or booking with developer
- Latest property assess receipt
- Copy of endorsed anticipate development/expansion
Indeed, you can apply together with a gaining co-candidate (either be your life partner or your folks). Including co-candidate can expand your qualification and you can likewise profit for a higher measure of the loan as your co-candidates salary additionally gets added to your pay and that aggregate is mulled over for figuring the loan sum you will be qualified for.
Indeed, on the off chance that you neglect to pay the loan on time then it will likewise influence your co-candidate as default in the loan will influence his/her CIBIL rating also.
Indeed, on the off chance that you are getting higher interest rate and paying higher EMI than different banks, at that point you can decide on home loan balance transfer and diminish your month to month trouble.
Truly, you can profit top up on their running house loan just in the event that you have made convenient reimbursement of EMIs gathered on existing home loan. The interest rate energizes on the best loans are relatively 0.25 – 1% higher than a home loan. The loan can be benefited with insignificant documentation.
Indeed, you might be qualified for qualifying a home loan even with a low CIBIL score. In any case, the banks may charge a higher rate of interest on your loan and may approach you to apply for loan alongside a co-candidate to enhance your credit value.
Truly, a home loan borrower may profit tax break on their home loans both on the primary and on the interest rate on home loans:
- Tax exclusion on reimbursement of home loan foremost (under section 80C)– The individual is qualified for a most extreme yearly assessment conclusion of Rs. 1,50,000 (Rs. 2 lakh for senior natives).
- Tax advantage on the interest rate for a home loan (under section 24):– The individual can profit the tax cut on the measure of interest paid on their home loan to the greatest furthest reaches of Rs. 2 lakh (Rs. 3 lakh for senior natives) for a self-possessed property.
These days, all banks offer appealing plans on Home Loan at focused rates with numerous client agreeable highlights. You can do rates examination, check your qualification, ascertain EMI, apply on the web and get the best Home Loan rates. PolicyAndFunds.com encourages you all through the loan proceeds from the day you apply to the time you get dispensing. You can enlist with us, track your loan status all the time and get a choice to win appealing cash backs and allude and gain benefits.