Home Loan

Factors affecting your Eligibility for a Home Loan

For a hassle free loan process, ensure you are up to the mark on each of these parameters

 

Monthly Income

The higher your income, the higher the loan amount eligibility and greater your chances of acquiring your dream home.

 

Age

Starting early has its benefits. Applying at age 30-35 years makes you eligible for a higher loan amount, as compared to applying when you are 40-50 years old.

 

Property Value

Quality adds to credibility. Choosing a good property in an approved society, colony or area is viewed more favourably by banks.

 

Credit History

Your Credit History can open or close the gate to your dream home. Always maintain a good CIBIL score.

 

Employment Status

As a Salaried person, you must have a minimum of 3 years work experience, to become eligible for a home loan.

 

Professional/Business Status

As a self-employed professional or a businessman, you must submit your professional details, business status record and bank statements as proof of your financial stability.

 

Relationship with Lender

A good understanding with the bank can go a long way in negotiating a good loan amount at lower rates.

 

Your Employer Category

Working at a well-regarded company not only adds to your reputation, but also your loan eligibility. A Fortune 500 Company on your visiting card really helps!

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About Home Loan

A home loan is given by a financial institution or bank for property purchase. You can buy/construct/renovate/extend your house with this money and repay it gradually within the chosen time period. Home loans are secured against the property and in case of failed repayment, the lender can use it for debt settlement. The eligibility for a home loan depends on an applicant’s income, credit history, property value and location, income proof, and property documents. On the basis of these factors, maximum loan amount is calculated. So, you can compare different lenders. Look at the additional benefits of a home loan:

Features & Benefits of Home Loan

  • Interest rate starting from 8.60% per annum
  • Special rates for women borrowers
  • Fixed EMI for the whole tenure period
  • Interest subsidy available via PMAY CLSS scheme
  • Tax exemptions of up to Rs. 1.5 lakhs and Rs. 2 lakhs on principal and interest portion, respectively, throughout the loan, even if the money is used for home renovation/extension/reconstruction 
  • Option to take top-up loan for the above purposes
  • Home loan balance transfer facility
  • The maximum tenure is up to 30 years    
  • Loan amount depends on the outstanding balance of the existing home loan subject to LTV ratio
  • Processing Fee – 0.35% of the loan amount plus GST onwards    
  • Availability of substitute income documents – ITR or annual turn over
  • Importance of additional income in loan eligibility.
  • Co-borrowers of the loan can also avail tax benefit if they are co-owners of the property as well.

Types of Home Loans

The different types of housing loans offered by banks/NBFCs in India are as follows:

  • Home Purchase Loan 
  • Land Purchase Loans/Plot Loan
  • Home Construction Loan
  • Home Improvement Loan
  • Home Conversion Loan
  • Home Extension Loan

What is the eligibility criteria for Home Loans?

Home loan eligibility is based on income, age, credit score, property value and location, etc. The table reflects general eligibility criteria at all banks/NBFCs.

ParametersSalariedSelf-employed
AgeShould be between 21-60 yearsMust be between 21-65 years
IncomeMinimum income of ₹1,80,000 p.a.Minimum income of ₹1,80,000 p.a.
Current Experience2-3 years of current job stability3 years of current business stability
CIBIL Score720 or above720 or above

You can also check your home loan eligibility to know the maximum loan amount you are eligible to plan your purchase accordingly. Other than your income, age and professional stability, your property location and CIBIL score are very important. Lenders demand CIBIL score of 720 or above with property in an authorized location. However, if you have a genuine reason for your credit score is lower than 720, some NBFCs can consider your application for the approval but a higher rate of interest. 

How much loan amount can you get based on your salary?

Lenders calculate the maximum loan amount eligibility based on your salary. Only 50% of your net take home salary is considered for calculating the eligibility which means you can get higher loan amount if your salary is high. Another factor considered while calculating the maximum loan amount is your existing loan EMI. If a home loan applicant is already paying an EMI, the EMI is deducted from this 50% of the salary and the remaining amount would decide your maximum loan amount eligibility.

Lenders calculate Fixed Obligations to Income Ratio (FOIR) on the basis of your existing EMIs and net monthly income. The percentage of FOIR should be 75% or less. For instance, if your in-hand salary per month is ₹1,00,000 and you are currently paying a car loan EMI of ₹6000 and personal loan EMI of ₹10,000 and you want to know how much loan amount you can get for a home loan, your FOIR would be: 

Your disposable income for new loan is: ₹50,000 – ₹6,000 – ₹10,000 = ₹34,000

FOIR = Sum of existing obligations/Net take home salary*100

         = ((₹6000 + ₹10,000)/ ₹1,00,000) * 100

         = (₹16,000/ ₹1,00,000)*100

         = 16%

So, lenders will approve the loan amount for the monthly installment of ₹34,000 or less even for the longest tenure. Other factors such as your credit score help you fetch better deal from the lender.   

List of Banks and NBFCs Offering Home Loans in India
State Bank of India
state bank of indiaInterest Rate: 8.55% onwards
HDFC Bank
HDFCInterest Rate: 8.65% onwards
ICICI Bank
iciciInterest Rate: 8.80% onwards
PNB Housing Finance LtdpnbInterest Rate: 9.10% onwardsAxis BankaxisInterest Rate: 8.90% onwardsDHFL
dhflInterest Rate: 9.75% onwards
IDFC First Bank
idfc first bankInterest Rate: 9.15% onwards
LIC Housing Finance
lic housing logoInterest Rate: 8.80% onwards
Kotak Mahindra Bank
kotak mahindra bank logoInterest Rate: 8.90% onwards
Bajaj Finserv Ltd.
bajaj finserv logoInterest Rate: 8.80% onwards
Karnataka Bank
karnataka bank logoInterest Rate: 8.90% onwards
Standard Chartered Bank
scb logoInterest Rate: 9.41% onwards
Indiabulls Housing Finance
indiabulls logoInterest Rate: 8.80% onwards
DBS Bank
dbs logoInterest Rate: 8.85% onwards
YES Bank
Yes bank logoInterest Rate: 9.85% onwards
India Infoline
iifl logoInterest Rate: 9.50% onwards
Aditya Birla Housing Finance Ltd.
aditya birla logoInterest Rate: 9.00% onwards
Fullerton India Home Finance Co. Ltd.
fullerton india logoInterest Rate: 11% onwards
India Shelter Finance Corporation Ltd.
India shelter logoInterest Rate: 10.00% onwards
Piramal Capital & Housing Finance
piramalInterest Rate: 9.00% onwards
Citibank
citibank logoInterest Rate: 9.80% onwards

Note: The figures given in the table are indicative and are subject to change at the banks’ or NBFCs’ discretion without prior information.

Documents required for Salaried

  • Filled home loan application form
  • Identity Proof- Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License
  • Address Proof – Passport/Aadhaar Card /Utility Bill
  • Residence Ownership Proof – Property Documents/Maintenance Bill/Electricity Bill
  • Income Proof – Latest 3 months Salary Slips and Form 16
  • Job Continuity Proof – Current Employment Certificate /Current Job Appointment letter (if more than 2 years)/Experience Certificate (including your previous job certificate or appointment and relieving letter)
  • Bank Statements – Latest 1 year statement where your salary is getting credited
  • Property Documents – Copy of agreement executed / Sale Deed, Share Certificate, Latest Maintenance Bill, List of documents & sanction letter given by Existing Banker (If applicable)
  • Advance Processing Cheque
  • Investment Proof – Fixed Deposit/Shares/Fixed Assets, etc.
  • Passport size photograph/s

Documents required for Self-Employed (Professionals and Non-Professionals)

  • Filled home loan application form
  • Identity Proof – Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License
  • Address Proof – Passport/Aadhaar Card /Utility Bill
  • Residence Ownership Proof – Property Documents/Maintenance Bill/Electricity Bill
  • Income Proof – Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc.,
  • Business Existence Proof – 3 years old Saral Copy /Shop Establishment Act /Any Tax Registration Copy /Company Registration license
  • Bank Statement – Latest 1 year bank statement both current and savings.
  • Property Documents – Copy of agreement executed / Sale deed, Share certificate, Latest maintenance bill, list of documents & sanction letter given by existing banker (If applicable)
  • Advance processing cheque
  • Investment Proof – Fixed Deposit/Shares/Fixed Assets, etc.
  • Passport size photograph/s

Please note that income proof is the most important document to get a home loan approval. If you do not get your salary in a bank account, you can not apply for a home loan. Only a limited NBFCs will consider your application for approval at a higher rate of interest. Recently, Union Cabinet declared 10 per cent reservation for economically weaker upper castes recently and now ministry might bring in another surprise for the middle class people of India. The finance ministry might increase the savings limit under Section 80C of the Income Tax Act, providing tax benefits to pensioners and lowering of interest rates on housing loans. 

Home Loan Interest Rates Comparison in India

BankHome Loan RateProcessing Fee
SBI Home Loan8.05%0.25%
Max Rs. 10,000
HDFC Home Loan8.40%0.50%
Min Rs. 3,000 – Max Rs. 10,000
ICICI Bank Home Loan9.05%0.25%
Min Rs. 5,000 – Max Rs. 5,000
Axis Bank8.60%0.50%
Min Rs. 2,500 – Max Rs. 25,000
PNB Housing Finance9.25%1.00%
Min Rs. 10,000 – Max Rs. 10,000
Bank of Baroda8.45%0.50%
Min Rs. 7,500 – Max Rs. 25,000
LIC Housing Finance8.70%0.50%
Indiabulls9.25%Min Rs. 7,500 – Max Rs. 10,000
Citibank8.50%Nil
DBS Bank9.45%Max Rs. 10,000
DHFL9.75%0.50%
Min Rs. 2,500 – Max Rs. 20,000
Kotak Bank8.90%Max Rs. 10,000
Canara Bank8.75%0.50%
Min Rs. 1,500 – Max Rs. 10,000
IDFC First Bank9.60%Min Rs. 5,000 – Max Rs. 5,000
LT Housing Finance9.90%2.00%
Min Rs. 4,999
UCO Bank8.65%0.50%
Min Rs. 1,500 – Max Rs. 15,000
Reliance Capital10.00%1.00%
Min Rs. 3,000 – Max Rs. 6,500
OBC8.70%0.50%
Max Rs. 20,000
Jammu And Kashmir Bank8.85%0.25%
Min Rs. 500 – Max Rs. 10,000
IDBI Bank8.75%0.50%
Min Rs. 2,500
Federal Bank8.75%0.50%
Min Rs. 3,000 – Max Rs. 7,500
Dhan Laxmi Bank9.90%1.00%
Min Rs. 10,000
Corporation Bank8.80%0.50%
Min Rs. 1,000 – Max Rs. 50,000
Bank of Maharashtra8.50%0.50%
Tata Capital9.05%0.50%
Andhra Bank8.80%0.50%
Max Rs. 10,000
United Bank of India8.65%0.59%
Min Rs. 1,180 – Max Rs. 11,800
Standard Chartered Bank9.41%1.00%
Min Rs. 5,000 – Max Rs. 10,000
Syndicate Bank8.75%0.13%
Min Rs. 500 – Max Rs. 5,000
PNB8.50%0.50%
Min Rs. 20,000 – Max Rs. 50,000
RBL Bank10.45%Min Rs. 5,000 – Max Rs. 15,000
Karur Vysya Bank9.65%Min Rs. 5,000
Indian Overseas Bank8.65%0.53%
Min Rs. 8,900 – Max Rs. 13,350
HSBC Bank8.85%1.00%
Max Rs. 10,000
Edelweiss10.50%0.25%
DCB Bank10.24%2.00%
Min Rs. 5,000
Central Bank of India8.60%0.50%
Max Rs. 20,000
Piramal Housing Finance9.00%0.10%
Bank of India8.85%0.25%
Min Rs. 1,000 – Max Rs. 20,000
Yes Bank9.85%1.00%
Max Rs. 15,000
Allahabad Bank8.85%0.40%
Max Rs. 50,000
Union Bank of India8.70%0.50%
Max Rs. 15,000
South Indian Bank9.45%1.00%
Max Rs. 10,000
Punjab and Sind Bank8.85%0.25%
Min Rs. 1,000 – Max Rs. 15,000
Lakshmi Vilas Bank10.10%0.40%
Min Rs. 10,000 – Max Rs. 20,000
Karnataka Bank8.90%0.25%
Min Rs. 250
Indian Bank8.75%0.23%
Max Rs. 20,381
GIC Housing Finance10.25%Min Rs. 2,500

As per the current rates, SBI offer the lowest home loan interest rate of 8.05%. These rates can vary depending upon the value of the property and your repayment capacity. Higher the loan amount, higher will be the rate of interest.
After the latest home loan rate revision announced by SBI in 2019, new home loan interest rates start from 8.05% for home buyers as well as for those who want to transfer their loan from other banks.

Quick Guide on Home Loan

Purpose : Home loan can be used for purchasing a new house, construction of house on a plot, home improvement, extension and renovation of your existing house.

Key Features :

    • Eligibility : Loan available for both salaried and self-employed borrowers within the age group of 18 and 70 years.
    • Security : Mortgage of home you are planning to purchase, renovate or construct.
    • Loan Amount : In the range of ₹ 1 Lakh to ₹ 15 Cr.
    • Loan to Property Value Ratio : Varies from 65% to 90%.
    • Loan Tenure : Can range from 5 to 30 years.
    • Interest rates : Home loan Interest Rates starting from 8.05%. Special rates for women borrowers.
    • Lowest EMI : Lowest EMI of ₹ 737 per lakh.
    • Processing Fees : Up to 1% of loan amount or Maximum Rs. 10,000.
    • Prepayment Charges : Nil charges on floating rate home loans
  • Other Charges : Legal charges, technical charges etc.
  • Documents Required : Address Proof, Identity Proof, Income Documents, Property Documents.

Top Home Loan Providers : Banks and Home loan companies such as SBI, ICICI Bank, HDFC Bank, Axis Bank, HDFC, PNB Housing, DHFL, Indiabulls Home Finance.

Popular Home Loan offers : Banks offer schemes for special category of borrowers including women borrowers, senior citizens, NRIs etc. Banks also offer overdraft facility to save interest on house loan. Some of the popular home loan schemes are SBI special rates for women, HDFC Reach, Axis Bank 12 EMIs offer, Bank of Baroda pre-approved loans, Indiabulls e-home loans etc.

Best Bank for Home Loan

New Home Loan does a detailed comparison of all banks and housing loan companies on parameters of interest rates, processing fees, prepayment charges, lending process and customer service of banks on a regular basis. Based on latest schemes, the following banks should be in your consideration list for getting a house loan.

Best Home Loans in India
Bank withName of Bank or Home Loan Company
Cheapest home loan in India at 8.05 – 8.1%SBI
Lowest EMI ₹ 737 per lakh of home loan for max loan tenure of 30 yearsSBI
Lowest Processing Fees of upto ₹ 5,000 on housing loanICICI Bank, IDFC First Bank, Syndicate Bank
Lowest Processing Fees as a percent of home loan of 0.10%Piramal Housing Finance
Customer Reviews Rating of 3.5 and aboveAxis Bank, ICICI Bank, Citibank, Standard Chartered Bank, Edelweiss, GIC Housing Finance, Reliance Capital, HDFC, PNB Housing Finance, Bank of Baroda, Corporation Bank, IDBI Bank, PNB, SBI, DCB Bank, Federal Bank, Canara Bank, Central Bank of India, United Bank of India, DBS Bank, LT Housing Finance

Tips to get Best Home Loan

 
 

How to Get Best Home Loan Rates in India

It has never been easier to get a housing loan, as today you can do online loan comparison based on interest rates, other loan terms and conditions of all banks before choosing the right loan offer.

Step 1 : Check loan EMI and calculate eligibility

As you decide to take a home loan, always estimate your loan amount eligibility to know the loan amount you will be eligible for and can apply for. Also calculate the monthly EMI that you can comfortably service given your net take home salary and other existing fixed obligations including rent and EMIs on other existing loans, if any. Your house loan eligibility is calculated based on your age, net income, existing obligations, property type, LTV ratio and other factors. EMI is dependent on the loan amount, interest rate and tenure. Once you understand your minimum loan requirement, your eligibility and monthly EMI you can comfortably service, shortlist the banks which offer you maximum loan amount to meet your requirements

Step 3 : Decide on type of home loan interest rate offers

As you narrow down the list of banks in Step 2 and 3, you need to conduct an interest rate on home loan comparison of the loan offers of various banks. Some of the interest rate offers that needs to be checked are:

  • Choice between fixed and floating rates – Fixed rates come at a slightly higher rate of interest compared to floating rate loans and interest rate remains constant during the tenure of home loan. In floating rate loan, interest rates are reset at periodic intervals in response to changes in MCLR and PLR rates of banks or NBFCs. Majority of housing loans in India today are floating rate loans as it allows the borrowers to get home loan interest rate in line with the current interest rates.
  • Decide if you need a home saver loan – This is a loan with overdraft facility which allows you to deposit surplus amount in your home loan overdraft account as and when available, allowing you to reduce your overall interest amount. This loan is highly recommended for salaried individuals with high bonuses and self employed business which is seasonal and has fluctuating cash flows. The interest rates on overdraft loan is slightly higher than that of a regular housing loan interest rate.
  • You can also evaluate a mortgage guarantee house loan as it covers any default risk and allows the lender to give you loan at low rate of interest. You will however need to pay a mortgage guarantee fee to the bank.
  • Check and compare the current home loan interest rates of the banks on various types of loan products and take an informed decision.

Step 4 : Compare shortlisted banks

In addition to interest rates, banks also charge many other fees on home loans. Along with interest rates, you should check other associated costs with a your loan which include prepayment charges, processing fee, insurance premium and other charges offered by the shortlisted banks. You should calculate all inclusive costs on home loan to be able to further shortlist the banks and reduce your choice to 2-3 banks.
You can take the help of loan advisers of online marketplaces like new home loan to be able to get details on home loan rates of all banks and take an informed decision.

Step 5 : Select the bank based on other service related parameters

Finally as you decide to take the loan, also consider other service and transparency related parameters of the chosen banks. Some of these factors are turnaround time offered by the banks, quick loan delivery, doorstep services, transparency in the loan process. You also need to understand the trends and changes in MCLR rates over a period of time. Last but not the least, read reviews of existing customers on banks on their services, interest rates and transparency to take your decision to borrow from a bank.

Home Loan Schemes

While, all banks and HFCs in India offer multiple home loan schemes, some new schemes are quite popular in India due to their unique features and special discounted rates. Home Loan Banks like SBI, Axis Bank, Citibank, BoB and finance companies like HDFC, PNB Housing, Indiabulls are currently running many attractive schemes for housing loan borrowers. Some of the popular housing loan schemes have been captured in table below:

BankSchemeFeatures
SBIFor Women BorrowersLoan is offered at concessional rate starting @ 8.35%.
 MaxgainHome loan with overdraft facility @ 8.40%
Axis BankHome Loan Top UpLoan to get additional loan amount. Interest rate of top up loan starts @ 8.90%
 ShubhAarambh Home LoanAvail 12 EMI waiver offer at 8.90%
HDFCHDFC ReachHome loan with less documentation starting @ 9.95%
IndiabullsIndiabulls e-Home LoanApply loan online @ 9.25% and get facilities like IB chat, e-sign, Digi Locker integration
Bank of BarodaPre-approved Home LoanLoan pre-approved by the bank @ 8.65% before the property is purchased by the applicant with a validity of 4 months
CitibankHome Credit LoanHome loan with overdraft scheme @ 8.60%
 Citibank T-Bill Home LoanInnovative scheme in which floating rate home loans are bench marked to 91 days Govt. T-Bill rate, thus making them completely transparent

Types of Home Loans

The table below summaries the popular types of home loans in India based on their purpose and interest rate.

Home LoanPurpose
New Home LoanTo buy a new flat, apartment or house from a builder or seller.Also includes loan for construction of house on an existing plot.
Home Improvement LoanTo renovate your existing home like tiling, flooring, painting etc.
Home Extension LoanTo expand the house by adding new space like floor, room, balcony etc.
Land Purchase LoanTo purchase a plot and build a house. Interest rates are 1.5-2% higher than a home loan, with pre specified time limit for construction
Home Conversion LoanScheme to allow borrowers to transfer their existing loan from fixed rate to floating rate or vice-versa A conversion fee is levied on the outstanding principal to switch your loan.
NRI Home LoansHome Loan for Non Resident Indians to buy, construct or renovate a home in India.
Home Loan OverdraftBorrowers can add surplus funds in an overdraft account for any period to reduce interest liability. Interest rates are 0.15-0.2% higher than regular housing loan.
Home Loan Top UpTo borrow additional amount on existing home loan from same bank or at the time of balance transfer up to a percentage of property value. Interest rates are 0.25-1% higher than regular housing loan.
Home Loan Balance TransferTo transfer your home loan from to another bank offering lower interest rate to save interest and to get top up loan
Pre-approved Home LoanLoans that are approved even before you complete property transaction based on credit history, current EMI obligations etc.Interest rates are low and pre-approved offer is valid up to 6 months
 

List of Documents for Home Loan

Documents requiredSalariedSelf Employed
Application FormSigned with photographsSigned with photographs
Identity ProofPAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-cardPAN card, Passport, Driving License, Aadhaar Card, Voter id, Govt issued i-card
Certificate and Proof of Business Existence PAN, Sales tax/ Excise/ VAT/ Service tax registration, Copy of partnership deed, Trade license, Certificate of practice, Registration certificate issued by RBI, SEBI
Address ProofPassport, Driving License, Election ID card, Electricity/ Telephone/ Mobile bill/ Bank statement (not more than 3 months old)Bank statement, Utility bill, Registry copy, Lease or rent agreement, TAN allotment letter
Income ProofForm 16, Latest 6 months salary slip, Last 6 months bank statementLast 2 years ITR, Last 6 months bank statement
Age ProofPAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificatePAN card, Passport, Driving License, Voter id card, Birth certificate, Employee ID card (only for PSU/ Government employees), School/ college leaving certificate
Property DocumentsPast title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extensionPast title chain – Conveyance deed, Sales deed, Allotment letter, Possession letter, Latest property tax receipt, Copy of approved plan for construction/ extension

Compare Home Loan Processing Fees and Other Charges

  • Home Loan processing fees –Most banks charge processing fees of up to Rs. 10,000 or up to 1% on house loans, whichever is higher. To get lowest fee, comparison of home loan rates, offers and cashback, apply online through New Home Loan.
  • Home Loan prepayment and foreclosure –Nobody wants to keep paying interest on a loan when you have surplus money available to repay it. When you want to repay your loan partially before time, it is called part prepayment. In case you decide to pay the entire loan amount before time, it is called foreclosure. Banks typically levy prepayment or foreclosure charges in such situations and these can range from nil to up to 5%. So, check carefully if the low rate of interest you are getting comes with high prepayment or foreclosure charges. Note that some home loans cannot be repaid before time.
  • Special interest rates for specified category of borrowers –Banks launch attractive schemes with low interest home loans on housing loans on a regular basis, especially for women borrowers. Hence, always check for home loan offers from multiple banks to get the cheapest rates.
  • Other Charges –Bank charges legal and technical fee from the borrower which are explained at the time you apply for loan.

Frequently Asked Questions on Housing Loan

How can I apply for home loan?

You can apply for loan in several ways. You can directly visit the bank branch and meet the sales person, contact a loan agent or apply online at any bank or NBFC’s website. You can also check and compare best interest rates of all banks online at New Home Loan and apply for loan.

How can I apply home loan in my city?

Yes, you can apply home loan in your home town provided you have sufficient income to pay the EMIs on time and have good credit history. You can also compare home loan offers for different cities online at New Home Loan and apply for the loan at lowest rates.

What is the minimum and maximum tenure of house loan                                                                                                                                                                                                                                       These are generally taken for a longer period of time. The loan tenure for housing loan ranges from 5 years to 30 years.

What is the minimum CIBIL score required for home loan?

CIBIL score ranges from 300 to 900. A score of 650 and above is considered as good credit score to get housing loan. Higher the credit score, higher the chances to get loan approved.

How do I calculate the interest rate on my Home Loan taken some time back? Has it gone up or down?

In case your loan was taken as a fixed rate loan

  • Most fixed rate loans would offer fixed interest rate for a period ranging from few months to 15 years. From your sanction letter and loan agreement, check the period for which the interest on your house loan is to remain fixed. If your loan is still in the fixed rate period, your current rate of interest is same as what it was originally taken at
  • In case your loan has converted to floating rate, the loan agreement would specify the formula for the same. The formula may be either MCLR base rate plus a given spread (in case of banks) or PLR minus spread (in case of housing finance companies). For MCLR rate plus spread housing loan, just read the spread mentioned in the loan agreement and add it to the current MCLR rate of the respective bank. For PLR minus spread loan, check the negative spread mentioned in the loan agreement and subtract it from the PLR of the respective home finance company. You can find the current MCLR rate or PLR of your bank or housing finance company at Current MCLR Base Rate and PLR

What are the property documents required by Banks/HFC?

You will need to submit copies of the following property documents

  • Past title chain– Conveyance deed, sales deed, allotment letter, possession letter
  • Receipt of advance payment towards purchase of property in case of resale or booking with builder
  • Latest property tax receipt
  • Copy of approved plan for construction/ extension

Can I apply for housing loan jointly with my spouse?

Yes, you can apply home loan jointly with an earning co-applicant (either be your spouse or your parents). Adding co-applicant can increase your eligibility and you can also avail for a higher amount of loan as your co-applicant’s income also gets added to your income and that total is taken into consideration for calculating the loan amount you will be eligible for.

Does it affect my co-applicant if I default in home loan?

Yes, if you fail to pay the loan on time then it will also affect your co-applicant as default in loan will affect his/her CIBIL rating as well.

Can I do balance transfer on house loan?

Yes, if you are getting higher interest rate and paying higher EMI than other banks, then you can opt for housing loan balance transfer and reduce your monthly burden.

Can I take top up on my existing home loan?

Yes, you can avail top up on their running house loan only if you have made timely repayment of EMIs accrued on existing home loan. The interest rate charges on a top up loans are comparatively 0.25 – 1% higher than a housing loan. The loan can be availed with minimal documentation.

Can I get a home loan with a bad credit score?

Yes, you may be eligible for qualifying a home loan even with a low CIBIL score. But, the lenders may charge a higher rate of interest on your loan and may ask you to apply for loan along with a co-applicant to improve your credit worthiness.

What are the tax benefits available on home loans?

Yes, a home loan borrower may avail tax benefit on their home loans both on the principal as well as on the interest rate on home loans:

  • Tax exemption on repayment of home loan principal (under section 80C)– The individual is eligible for a maximum annual tax deduction of Rs. 1,50,000 (Rs. 2 lakh for senior citizens).
  • Tax benefit on the interest rate for home loan (under section 24):– The individual can avail the tax benefit on the amount of interest paid on their housing loan to the maximum limit of Rs. 2 lakh (Rs. 3 lakh for senior citizens) for a self-occupied property.
Why New Home Loan???

Nowadays, almost all banks offer attractive schemes on Home Loan at competitive rates with many customer friendly features. You can do rates comparison, check your eligibility, calculate EMI, apply online and get the best Home Loan rates. New Home Loan helps you throughout the loan process from the day you apply to the time you get disbursement. You can register with us, track your loan status on a regular basis and get an option to earn attractive cash backs and refer and earn benefits.