A "low interest" loan shouldn't mean you have very little interest in paying it back!
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    We found 38 Calculate Home Loan Eligibility on Bankbazaar
    Bank Name
    Interest Rate Range
    Processing Fee Range
    Loan Amount
    Tenure Range
    8.35% - 10.25% Fixed/Floating
    Up to 0.5% (min. ₹5,900) One time fee
    5L Min
    1-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 8.85% Floating
    0.5% (max. ₹11,800) One time fee
    5L - 10Crs
    3-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free Paperless approval available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 8.85% Floating
    Up to 0.5% (max. ₹11,800) One time fee
    5L - 10Crs
    1-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.40% - 10.05% Floating
    Up to 0.5% One time fee
    2L - 3Crs
    1-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 9.25% Floating
    0.50% (min. ₹2,000) + applicable tax
    12L - 5Crs
    1-20 Years (10 yrs plot loan)
    Response Time : Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good To Know
    Eligibility Criteria
    8.35% - 11.75% Fixed/Floating
    0.50% (min. ₹10,000) One time fee
    5L - 10Crs
    1-30 Years
    Response Time : Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.25% - 8.25% Floating
    0 One time fee
    40L - 5Crs
    1 - 25 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Good to Know
    Eligibility Criteria
    8.55% - 8.99% Floating
    ₹5,000 to ₹10,000 + applicable tax One time fee
    20L - 10Crs
    1-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Think about
    Good to Know
    Eligibility Criteria
    10.67% Floating
    1% One time fee
    5L - 5Crs
    1-30 Years
    Response Time : Within 30 minutes
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    8.35% - 8.80% Floating
    0.5% (max. ₹11,800) One time fee
    5L - 10Crs
    3-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free Paperless approval available
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.25% Floating
    0.50% (min. ₹10,000)
    1Cr - 5Crs
    1-20 Years
    Response Time : Within 30 minutes
    What you'll love
    Documents
    Perks
    Think about
    Fees & Charges
    Good to Know
    Eligibility Criteria
    9.95% - 10.40% FIXED
    Up to 0.5% One time fee
    2L - 3Crs
    1-30 Years
    Response Time : Within 30 minutes
    Rs.5,000 Amazon voucher free
    What you'll love
    Documents
    Perks
    Fees & Charges
    Good to Know
    Eligibility Criteria
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  • Home Loan BYTES FROM OUR KITCHEN

    Calculate Home Loan Eligibility on Bankbazaar

    In today’s world, almost everyone opts for a home loan when it comes to buying a house. Bankbazaar allows you to calculate the home loan eligibility at ease.

    The steps to find out your eligibility towards a particular home loan product are mentioned below:

    • Click on this link: /home-loan.html?variant=slide
    • It will take to you to the page where you will be able to calculate your eligibility towards a home loan by simply following a few steps.
    • On this page, choose the city you reside in. Mumbai, Chennai, Delhi and Bangalore are already there on the page than be chosen by you. However, if you reside in a different city choose ‘Other City’ and select your city from the list that appears next.
    • You will be navigated to the next page where you must select your gender.
    • Next you must choose the city where the property that you wish to purchase is located. Mumbai, Chennai, Delhi and Bangalore are already there on the page than be chosen by you. However, if the property that you want to buy in a different city, choose ‘Other City’ and select the city from the list that appears next.
    • After this, you must click your type of employment from the options mentioned on the page. Depending upon your type of employment, the slides will keep changing. There are 7 options that you can choose from – Salaried, Salaried Professional, Self Employed Business, Self Employed Professional, Student, Retired, and Homemaker.
    Apply for Home Loan Online
  • Salaried
    • When you choose ‘Salaried’, you automatically move to the next slide that requires you to enter the name of your company where you are currently employed.
    • Enter the name of your company and click on ‘Continue’.
    • Enter your year and month of joining. On the slider below, select your experience and click on ‘Continue’.
    • On the next slide, enter your gross monthly income. You’ll see that the scale automatically takes the marker to the amount that you entered. Click on ‘Continue’.
    • You should enter the bonus amount, if you have received any. However, this is an optional input and you may choose to skip this step.
    • After you click on ‘Continue’ or ‘Skip’, you will be asked to enter your average monthly incentives. This data is also optional and you may choose to skip it.
    • Enter the total EMIs that you pay at present. If you have no ongoing EMI payments, skip this step.
    • On the next slide enter your age. As you move the marker on the scale, you will find your birth-year and month in a table below. Move to marker to your current age and then select the month and the year. Once you choose the month and year, another box will appear where you must choose your date of birth. Post this, click on ‘Continue’.

    Home Loan Eligibility

  • Self Employed Business
    • When you choose ‘Self Employed Business’, we will automatically go to the next page that asks for your profit amount after tax.
    • Enter the total EMIs that you pay at present. If you have no ongoing EMI payments, skip this step.
    • On the next slide enter your age. As you move the marker on the scale, you will find your birth-year and month in a table below. Move to marker to your current age and then select the month and the year. Once you choose the month and year, another box will appear where you must choose your date of birth. Post this, click on ‘Continue’.
  • After completing all the steps above (as per your type of employment), follow the next steps:

    • Choose how to use the home loan amount in the next slide. You can choose from three options – Purchase or construct on the property that you have already chosen/Transfer your existing home loan/Purchase a house although you haven’t zeroed-in-on on one.
    • If you choose any of the first two, you will have to elaborate about your property and select from the five options mentioned on the next slide:
    • Completed Project:
      • If you choose this, on the next slide you have to enter the name of the builder and project. (optional)
      • Enter the cost of the home or flat.
      • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
      • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
      • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
      • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
      • Click on ‘View FREE Offers’.
    • Under-Construction Project
      • If you choose this, on the next slide you have to enter the name of the builder and project. (optional)
      • Enter the cost of the home or flat.
      • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
      • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
      • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
      • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
      • Click on ‘View FREE Offers’.
    • Land/Plot Only
      • After you choose this type of property, on the next page select where the land is – Inside City Limits or Outside City Limits.
      • Post this screen, choose the type of transaction – Direct Allotment or Resale.
      • On the next page, mention who the seller is – Private/Government/Builder
      • Enter the cost of the land after choosing the seller.
      • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
      • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
      • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
      • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
      • Click on ‘View FREE Offers’.
    • Built/Building on Land You Own
      • Enter the cost of the land after choosing this type of property.
      • Enter the cost of construction on the next page.
      • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
      • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
      • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
      • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
      • Click on ‘View FREE Offers’.
    • You are Looking to Buy a Piece of Land and then Build on It
      • After you choose this type of property, on the next page select where the land is – Inside City Limits or Outside City Limits.
      • Post this screen, choose the type of transaction – Direct Allotment or Resale.
      • On the next page, mention who the seller is – Private/Government/Builder
      • Enter the cost of the land after choosing the seller.
      • On the next slide, choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
      • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
      • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
      • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
      • Click on ‘View FREE Offers’.
    • In case you choose the third option (I haven’t yet identified the property I’d like to purchase), choose if you want to own the property all by yourself or with a co-applicant. If you wish to get a co-applicant on-board, enter your co-applicant details. Click on continue and choose who will be your co-applicant – father, mother, spouse or children. Also enter his/her other details like type of profession, income, etc.
    • If you wish to be the sole applicant, click on ‘No, I’m applying alone’.
    • You will be taken to the next page where you need to enter your name, mobile phone number (optional) and email id (optional).
    • Check the box that authorizes Bankbazaar to SMS, call or mail at about the products that it offers.
    • Click on ‘View FREE Offers’.

    Similarly, when you choose other types of employment like Student, Retired or Homemaker, you need to follow the steps displayed on the screen to calculate home loan eligibility.

    When you click on ‘View FREE Offers’, you will get to know about all the home loans that you are eligible for. Compare all of them and then choose the one that is the best for you.

    Example of Home Loan Eligibility Calculation: Let us understand home loan eligibility calculation with the help of an example.

    Chandra Patra is an employee of a leading company in India. His salary break up is mentioned below:

    Income Amount Deductions Amount
    Basic 32,000 Income Tax 3,300
    HRA 900 Provident Fund 2,200
    Conveyance 10,000 ----- -----
    LTA 9,000 ----- -----
    Special Allowance 55,000 ----- -----
    Medical expenses 2,000 ----- -----
    Total 1,08,900 Net Income 1,03,400

    Let us consider that Chandra has no loans or liabilities at present and his net available income is Rs.1,03,400. However, you one must always remember that Leave Travel Allowance is not taken into consideration by the bank while calculating the salary. The medical allowance is also excluded from the calculation. This is because, these expenses are not derived by an individual with his/her salary. In this case, Chandra will only get these amounts as reimbursements, in case he spends on medical needs or travel requirements.

    Thus, the bank or the lender will deduct that LTA and medical expenses from the net income. Chandra’s net income now stands at Rs.1,03,400 – Rs.(9,000 + 2,000), which is equal to Rs.92,400. Thus, the loan eligibility for Chandra Patra stands at Rs.92,400 x 60 = Rs.55,44,000 In case of a home loan, EMI is restricted to a maximum of 40% to 50% of the net income (monthly) by most banks. This suggests that you are eligible for a home loan where the equated monthly instalment is not more than 50% of your monthly income

    Home Loan Eligibility Criteria

    Age Minimum: 18 yrs. Maximum: 70 yrs. (depending on type of employment)
    Minimum Net Annual Income Rs. 5 - 7 lakhs depending on type of employment, EMIs offered up to 50% of net income, on average
    Type of Employment Salaried, Salaried Professional, Self Employed Business, Self Employed Professional, Student, Retired, and Homemaker
    Status of Employment Regular: at least 1 yrs. in current job/business/profession.; at least 2 yrs. of prior employment
    Type of Residence Owned/ Rented
    Status of Residence At least 1 yr. at current place of stay
    Credit Rating Good rating as per recognised credit bureau
    Type of property being purchased Affects loan amount eligibility

    Note:

    • Loan eligibility criteria differ for each banks/lender.
    • Approvals are based on borrowers' incomes, credit profiles and existing relationships with the bank.

    Documents Required for Applying Home Loan:

    Supporting documents vary according to lender requirements:


    • Signed application, photographs affixed
    • Identity Proof: Passport/ Voter ID / PAN Card
    • Residence Proof: Passport/ Voter ID/ Driving License/ Water Bill/ Electricity Bill/ Lease agreement
    • Income Proof:
      • Salaried individuals - Latest Salary Slips (3 months)/ Current Salary Certificate
      • Self-employed persons - Latest bank Statements (3 - 6 months)/ Audited financial statements
    • Tax Proof:
      • Salaried individuals - Latest Form 16
      • Self-employed persons - Latest ITR Form
    • Employment Proof:
      • Salaried individual - Employment certificate
      • Self-employed persons - Legal documents pertaining to establishment of the business/profession e.g. MOA/ Partnership Deed etc.
    • Property Documents
    • Processing Fee Cheque
    • Co-applicant's (if any) documentation

    Home Loan Eligibility Criteria for Some of the Top Banks:

    Axis Bank Home Loan Eligibility:

    • The age of applicants can range between 24 years and 65 years.
    • The minimum amount of loan that an applicant can avail with Axis home loan is Rs.5 lakh. The maximum home loan that can be availed stands at Rs.10 crore.
    • The minimum work experience for self-employed applicants must be 2 years.
    • If the applicant is eligible for Axis Bank home loan, he/she will be able to enjoy a tenure ranging between 1 year and 30 years.

    PNB HFL Home Loan Eligibility:

    • The age of the applicants can range between 23 years and 70 years.
    • The minimum loan amount that the applicant can borrow is Rs.5 lakh.
    • The tenure offered by PNB HFL home loan ranges between 1 year and 30 years.

    HDFC Home Loan Eligibility:

    • The age of the applicants can range between 21 years and 60 years.
    • The minimum loan that the applicant can avail is Rs.5 lakh and the maximum loan that can be availed stands at Rs.10 crore.
    • The tenure of HDFC home loan ranges between 1 year and 30 years.

    SBI Home Loan Eligibility:

    • The age of the applicants can range between 18 years and 70 years.
    • the tenure offered by SBI home loans range between 1 year and 30 years.

    ICICI Home Loan Eligibility:

    • The age of the applicants can range between 21 years and 65 years.
    • The minimum loan that can be availed with ICICI home loan is Rs.5 lakh and the maximum loan amount that can be availed stands at Rs.10 crore.
    • If the applicant is eligible for the loan, he/she can avail tenures ranging between 3 years and 30 years.

    Top 6 Factors Affecting Home Loan Eligibility

    1) Age: Age is the first and foremost factor a lender/ financier considers when one applies for a housing loan. Normally, financial institutions attempt to limit the house loan term to the primary applicant's age of superannuation. This means young professionals (20s and early 30s) can avail a loan with a term of up to 25 years with no trouble. But older applicants especially those beyond 40 can find it a tad tough to be eligible for an extended tenure. Many a time, single applicant aged 50 and above were denied home loans purely on this basis.

    2) Income: Let us categorize this into salaried, professional and self-employed. Whichever category the applicant falls into, a steady and regular source of income is must. Basically, there are fewer risks in loaning money if the applicant is an earning individual.

    • Salaried Individual: If you are working for any government department or at any registered private company, you belong to this group. Most banks insists that the applicant should have completed at least one year in the present firm at the time of application. Pay slips, Form 16, bank statements and employer reference letter are the documents almost all lenders demand. Proofs for the same is needed for co-applicant and guarantor too (if applicable).
    • Independent Professionals: Doctors, dentists, architects, engineers, management consultants, chartered accountants, freelance workers etc. belong to this category. Bank statements and ITR papers have to be submitted.
    • Self Employed: Do you have your own company/ business? Or do you have other source of income like rented properties or hold shares? Then you belong to this category. If you have bank statements and tax-related papers to show, you can certainly apply for a home loan.

    3) Rate of Interest: Home finance eligibility is always inversely proportional to the rate of interest. If the rate is more, eligibility will be less and vice-versa.

    4) Loan Term: If you opt for a longer tenure, your eligibility will improve. EMIs too will lesser and manageable. But the downside to this is, you will end paying more interest.

    5) Outstanding Loan(s): Indian banks and financial institutions always recommend keeping the EMI to Income Ratio between 50 or 60 percent. This is to leave window for future loans or to pay of existing loans if any. But unsettled loans could be a great damper on your eligibility.

    6) CIBIL Report: Banks also scrutinize your credit repayment history from CIBIL (Credit Information Bureau India Limited), which is country's regulator and first credit information bureau. They keep detailed records of every info regarding credit history relation between you and lenders/ creditors. A negative entry can bring down your eligibility significantly.

    7 Tips to Increase Your Home Loan Eligibility

    Eligibility is not an easy thing to assess. The banks and lenders will be considering your present liabilities, income, assets, etc. while calculating your home loan eligibility. In case the mortgage requirement is slightly higher that the eligible loan amount, some changes in the way you present yourself can help in increasing the eligibility factor. Tips to increase your eligibility for a home loan are mentioned below:

    1. Clearing Existing Loans: Ensure that you pay diligently towards your credit card outstanding or personal loan instalments. These can make the lender reject your application. The ideal thing to do is clear all dues and collect a no-due certificate before applying for a home loan. Ensure that your CIBIL report reflects these payments when you apply for home loan.
    2. Variable Pay: Ensure that you keep track of the variable pay that you get with your salary package. Calculation of eligibility towards a home loan also depends on this factor.
    3. Rental Income: If you have a house that is not being used by you, lease it out. The money that you earn as rental from this property can be used by you to show additional income source when you apply for a home loan. Your loan value can easily be enhanced by adding the rental income with our regular earnings.
    4. Increase in Tenure: The tenure of the home loan and the eligibility factor are directly proportional to each other. The eligibility increases upon increasing the tenure of the home loan. However, the maximum tenure that can be availed at present stands at 30 years.
    5. Income of the Spouse: In case your spouse has a regular source of income, then applying for a joint home loan can prove to be advantageous. The home loan eligibility goes up dramatically if you apply for a home loan with your spouse. This also suggests that both of you will have to repay the loan together.
    6. Take the Time You Need: Before making an application for a home loan, it is advisable that you take a look at your credit score. Look for errors on your report. In case, you find an error, ensure that it gets cleared by CIBIL. In order to get a loan quickly, do not apply with multiple lenders. Instead, find out the offers that you can get from different lenders. If the CIBIL score that you have is good, different lenders will be more than satisfied to offer the loan amount to you. Before you choose your lender, speak to an existing customer of that lender. Easy schedule of repayment, competent rates of interest and good services are the things to look at while choosing a lender.
    7. Step up Loans: Step up loans can be considered by you if you wish to increase your home loan eligibility factor. This is a great option for people face a lot of struggle initially, but get rewarded as they get established. Example – Chartered Accountants and Doctors. Under step up loans, lower EMIs will be offered with the loans. The instalments will go up gradually in the future.

    FAQs on Home Loan Eligibility:

    • What factors are considered by a lender/bank while approving a loan?

    There are several factors that are considered by banks or lenders to determine if you are eligible for a loan. These factors are mentioned below:

      • Applicant’s age.
      • Applicant’s income level.
      • Qualification of the applicant.
      • Income level of spouse.
      • Resident status.
      • Existing loan status.
      • Credit score and credit history.
    • Are my children eligible to be co-applicants for my home loan?

      Yes, your parents, children and spouse are considered eligible for being co-applicants for the home loan.

    • Am I eligible for tax benefits if I take a home loan?

      Yes, you can avail tax benefits when you take home loan from a bank or a financial institution under Section 80C and Section 24 under the IT Act.

    • Will I be eligible for a home loan if I have a bad credit score?

      In case you have a poor credit score, it will be difficult for you to get a home loan. Banks or financial institutions consider your credit report to be of great value while determining your eligibility towards a loan. If you have a good score, banks will be happy to offer you a home loan with attractive rates of interest. However, with a bad score lenders will doubt your repayment capability and might not consider you to eligible for a home loan.

    How to Use an EMI Calculator

    While applying for a Home Loan, there can be a lot of confusions with regard to your EMI Payments. However, technology has made it easier for borrowers and potential borrowers to now use the EMI calculator to accurately calculate the EMI one has to pay after availing a particular loan. By simply entering a few details about your loan tenure, loan amount, interest, etc., the EMI calculator will be able to accurately assess your EMI payments.

    Read on to know more about: Click Here

    How to Use Online Financial Calculators

    While applying for a Home Loan, there can be a lot of confusions that arise with regard to your EMI Payments, tenure, eligibility, etc. However, technology has eased this process for borrowers and potential borrowers. They can to now use financial calculators to accurately calculate the EMI one has to pay, your eligibility, interest, amongst other factors. By simply entering a few details about your loan tenure, loan amount, interest, etc., financial calculators accurately assess your loan details.

    Read on to know more about: Click Here

    News about Home Loan Eligibility

    • Travel Allowance and Housing Loan Increased For Lawmakers in India

      The department of law, justice and parliamentary affairs recently increased the travel allowance and housing loan limit for lawmakers in the country. This decision was made after increasing their salaries and after considering the money left to be spent in the Constituency Development Fund (CDF). According to the new rule, lawmakers and any member of his/her family can utilise travel allowance upto Rs.1.5 lakh in one financial year. Similarly, the motor car loan limit for lawmakers have also been increased to Rs.10 lakh which was Rs.5 lakh previously.

      The housing loan limit has been raised to Rs.10 lakh from Rs.5 lakh. If a lawmaker does not avail a car loan, then the borrower can avail a housing loan upto Rs.20 lakh provided he provides a letter from the concerned authority. If you are planning on availing a home loan, try one of the many online home loan eligibility calculators to determine your eligibility.

      4th December 2017

    • Bajaj Finserv Offers Interest Rates As Low As 8.30% p.a On Their Home Loans

      Since State Bank of India reduced their Marginal Cost of Lending Rates(MCLR) by 5 basis points few days ago and claimed them as the cheapest home loan providers in the country, many banks and financial institutions have been following the trend to gain the title. Bajaj Finserv, one of the leading Indian company that offer a wide range of financial services has recently announced that in their limited period offer, they are offering the lowest interest rates on home loans and home loan balance transfers.

      Home buyers can now expect an interest rate of 8.30% p.a. For home loan value above Rs.30 lakh. They also stated that currently, this is the lowest interest rate on home loans offered in the country. Bajaj Finserv is also offering a very high top-up loan for home loan customers upto Rs.50 lakh which can be used for any purpose like renovation, holiday, or wedding. This offer is valid for all new and old home loan customers who are looking to avail a home loan or transfer their existing home loan from 23 November 2017 to 29 November 2017.

      To check if you are eligible for a Bajaj Finserv home loan, use an online home loan eligibility calculator.

      29th November 2017

    • Cholamandalam All Set To Build An Extensive Home Loan Portfolio

      NBFC Cholamandalam Investment and Finance Company under Murugappa Group’s is known for for vehicle finance business. N Srinivasan, Executive Vice-Chairman and Managing Director who was recently appointed stated in an interview that they are now focusing on building a pure home loan portfolio. The current home loan portfolio size ranges from Rs.600 to Rs.700 crore. He further stated that currently they are lending to few affordable projects and the average ticket size is between Rs.15 to Rs.20 lakhs. They are going to focus on expanding home loan segment to potential borrowers.

      With over 700 branches, they are confident that they will succeed in the home loan industry. If you are planning to avail a home loan, do your research and compare various home loans before you finalize on one. You can also check your home loan eligibility using an online home loan eligibility calculator before applying for a loan. This way, you can negotiate better.

      17th November 2017

    • Smart Ways To Get The Best Deal On Your Home Loan

      State Bank of India, the leading public sector bank in the country made their home loan customers happy by reducing their interest rates by 5 basis points. Currently, their interest rate stands at 8.30% p.a. The bank also claims that this is the lowest interest rate in the market as of now. So, if you are thinking of taking a home loan, here are few smart ways that you can follow to get the best deal.

      Remember that you can negotiate the interest rate. Most of us think that the interest rate offered by the bank is the final offer. However, that is not the truth. Please use a home loan eligibility calculator to check if you qualify to apply for a loan. Once you know the loan amount you are eligible to receive, you can go ahead and negotiate the interest rate with the bank.

      Compare various home loans before applying for one. There are many websites like BankBazaar that allow you to compare various home loans. Use one of these websites and check your eligibility using an online home loan eligibility calculator. Do not be in a hurry.

      14th November 2017

    • SEBI Puts off its Bad Loan Until Further Notice

      Pre-festive season, the market regulator SEBI (Securities and Exchange Board of India) has postponed the implementation of its bad loan directive ‘until further notice’ . This news has come up as a big relief for all the listed companies. In response to this, top-notched banks of the nation have come up with attractive home loans. In fact, they have decided to cut their interest rates.

      State Bank of India, Bank of Borada and Andhara Bank are few of the public sector banks to take the initiative. Even private bank like ICICI has bought in a new home loan product. The scheme offers the benefit of 1% cashback on every EMI to every borrower, for the entire tenure of their loan.

      19th October 2017

    • The ‘Big 5’ Lending Maximum Home Loan

      Going as per rating agency Icra, 5 housing finance companies (HFC) lend up to 78% of home loan today. The two big shots are HDFC and LIC, with each having an asset of over Rs.1 Lakh. The other three HFCs are DHFL, Indiabulls and PNB HFL, having a combined market share of 21%. While each one has an asset of Rs. 15,000 to 50,000 crore.

      The housing finance market is quiet fragmented in India. Since 2015, 25 HFCs have been set up to gradually change the scenario. However, the move might increase the risk of slippages and laxity in underwriting standards. With new companies coming in HFCs share is growing at a rapid pace and it is in a position to compete with commercial banks. HFCs share that was 33% in March 2012 is 37% in March 2017, whereas commercial banks share has dropped to 63% from 67% previously.

      16th October 2017

    • National Housing Bank May Fix The Maximum Loan Amount That Can Be Disbursed By The Housing Finance Companies

      The increasing bad assets may push the National Housing Bank to cap the loan amount disbursed by the housing finance institutions in India. Chairman of NHB, Sriram Kalyanaraman stated that home loans against properties is a real threat in case of high-value loans and commercial property. The banks find it difficult to possess the house and resell it at the market price as the value of the property quotes on papers may not be the same in the market.

      The banks are advised medium-sized home loan companies to be careful as they will be the first one to suffer if the market condition goes wrong. Kalyanaraman further stated that when a bank lends to an individual, the emotional attachment is high for the buyer. Thus, the borrower will make prompt payments. However, when it comes to builders and commercial properties, this emotional attachment is very low. This would make them default on their home loan easily.

      4th October 2017

    • Interruptions in the Housing Market have No Long-Run Effects

      The current sluggish real estate market has not been impacted by the recently introduced Goods and Service Tax (GST), says Keki Mistry, VC and CEO of HDFC. Even Real Estate Regulatory Act (RERA) leaves no impact. The demand for new houses and housing credit continues to rise and is coming from all parts of the country. The average loan size stands at 26 lakh similar to the previous year. The market is doing well in big cities such as Mumbai, Bangalore and Pune, he adds. In July and August, the launch of new projects were slow due to RERA. There are many ready-to-move-in projects that cannot be interrupted as not registered under RERA. Interruptions in the housing market have no long-term effects, he further mentions.

      27th September 2017

    • Repo Rate Recommended for Household Financing

      The Household Finance Committee that studies various aspects of household finance has recommended that banks use the repo rate and not the marginal cost of funds based lending rates (MCLR) while setting interest rates for home loans. According to the committee, this helps borrowers easily compare home loans of different banks.

      Furthermore, the committee had said that a fixed reset period of one month must be set for floating loans. With regard to MCLR, the rates applicable on the first disbursement remains the same till the next reset date, notwithstanding any changes in the policy.

      8th September 2017

    • Banks Offer Great Deals on Loan Products

      Many banks have started offering great deals on loan products after the Ganesh Chaturthi. From deals on home and car loans to discount on processing fee on gold and personal loan, many banks are also offering deals on their credit cards. While under Shubh Aarambh Home Loans, Axis Bank is offering a waiver of 12 EMIs on home loans up to Rs.30 lakh, other lending institutions are offering EMI waivers at the end of 4th, 8th and 12th year of the loan tenure (applicable for first time home buyers who pay their EMIs regularly). For car loans, State Bank of India (SBI) is waiving off the complete processing fee for loans booked before 31 December 2017. SBI is also offering a significant amount of waivers on gold loan and personal loan processing fee. There are other banks such as Punjab National Bank and ICICI Bank which are also offering waivers for various loan products.

      1st September 2017

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