Thank you for your interest in Home Loan from TATA CAPITAL LIMITED. Unfortunately, we do not have a tie-up with TATA CAPITAL LIMITED currently.
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Thank you for your interest in Home Loan from TATA CAPITAL LIMITED. Unfortunately, we do not have a tie-up with TATA CAPITAL LIMITED currently.
Talk to our experts to apply for a similar offer from our partner banks instead
Are legally adult enough to handle it
Have still got it
Get a regular pay check
Make more than a basic buck
EMI limited to about 50%
of monthly income
Loan capped @ 75% - 85% on property value
EMIs of other loans lower
Making your spouse a co-applicant
Choose longer tenure loans of up to 30 years
Alternatively add your parents as co-applicants
|Interest Rate (Monthly reducing balance)||9.40% - 19.00%|
|Processing Fees||Varies with bank|
|Loan Tenure||1 Year to 30 Years|
|Partial pre-payment Charges||Varies with bank|
|Pre-closure Chargest||Varies with bank|
Home loan or housing loan is one of the most popular products offered by banks and NBFCs to customers. Home loan is also the largest selling banking product and the one that ensures the longest banking relationship with the lender. Owning a home of your own is generally an obvious as well as a major decision in a person’s life. However, the cost of construction or purchase of property is quite high and this is where home loans play a major, almost indispensable role for majority of home buyers. Home or housing loans are advances made to borrowers who require funds to purchase houses/flats/land. They can also be availed of for construction, extension and renovation of houses. Lenders can be banking or non-banking financial institutions.
In the last few years, real estate has been one of the most lucrative investment options for investors. No matter how profitable it sounds, the rising stature of real estate as an investment option has led to soaring prices of property in the country. Both land and buildings have become extremely expensive for customers to buy. This has led to a surge in the number of home loans that are applied for each day.
Depending upon the type of property being purchased and the quantum of loan being availed, home loans can be classified into the following different types. In India, banks and NBFCs generally offer home loans under any one of the following listed variants of housing loans.
As the name itself indicates, home purchase loans are specifically given for purchase of flats or homes. These are the most popular type of home loan and are availed by most home loan borrowers. Almost all banks and Non-Banking Financial Corporations offer home purchase loans.
Home loan for construction is offered to customers who want cash to construct their own house on an existing piece of land. The catch is that the land for construction should have been bought within a year of availing the loan for the cost of land to be counted as part of this loan. In case the land was bought earlier than one year, then the cost of land is excluded from the loan amount. The formalities for construction loan are slightly different than those for regular home loans. The loan applicant needs to give a lump-sum construction cost estimate to the lending entity and thereafter the lender evaluates and decides to sanction or reject the loan.
Plot loans are loans offered by banks for purchase of land or plot. These loans are not necessarily offered by all banks or NBFCs.
Home loans for extension or renovation of home are offered to those home loan borrowers who already have a house but are looking for further construction or renovation on their existing piece of property. For example, addition of an extra room or renovating a staircase etc.
Some of the most prominent features of home loans are outlined below.
This means that home loans are offered in turn for a security deposited by the loan borrower. Collateral is usually the property that is being funded. Existing property can also be put up as security.
Whether you need a house to stay in or for investment purposes, home loan can be availed from a bank of your choice.
Considering the cost of buying property as compared to any other commodity, the loan amount offered and sanctioned is substantial as compared to other types of loans. Hence, the loan tenures offered for home loans are also longer than those for other types of loans.
Since, the amounts sanctioned towards home loans are usually huge and the tenure also is long, the repayment of home loans is done in equal monthly installments.
Pre-payment of home loan is allowed by all banks, private and public. Earlier, some banks used to charge pre-payment fees for earlier than stipulated repayment of home loan amount. However, these days most public and private banks let borrowers pay off their home loan as and when convenient. Most banks have stopped charging any pre-payment charges for the same.
Since the loan quantum for home loans is generally greater than all other types of loans, the repayment period also is longer than that for any other loan type.
Home loans allow for joint loan applications. Since the loan quantum is high and the tax benefit also is good, banks allow for co-application or joint application of home loans.
Interest rate charged on any home loan scheme is one of the primary features. The rate of interest is what generally helps a customer decide in favor of or against a home loan scheme or lending entity. Fixed rate of interest and floating rate of interest are the two types of interest rates that banks normally ask customers to choose from at the time of home loan application. There are banks that give their home loan customers the flexibility to switch from one type of interest rate to another.
Home loans are secured advances and therefore the eligibility criteria for these loans is laid out differently by different banks. Here are some of the most important factors that feed into determining home loan eligibility criteria for almost all banks in India.
Documents to be submitted differ according to the eligibility requirements. The following, however, are commonly requested for:
India has a long list of both private and public sector banks that offer home loans. The main confusion which plagues most first-time home loan applicants is which bank to apply with. There are pros and cons applicable to every bank. Public sector banks are more stable and less likely to go bankrupt in the long run than private sector banks. Alternatively, private sector banks offer smoother customer service and processing time as compared to public sector banks.
One of the most popular strategies that customers employ is to avail home loan from the bank where their salary account or savings account is hosted. This eases out the approval process a bit since all the KYC details and financial data is already available with the lending bank.
Various surveys have come up with a list of most popular banks for home loans in India. However, the 5 names which are always present in these lists are State Bank of India, HDFC Bank, Axis Bank, LIC Housing Finance and ICICI. While SBI is the most trusted brand because of its public holding, HDFC despite being a private lender is popular since it is basically aimed at offering housing finance to customers in India. Most customers look for an established brand name before zeroing down on a particular bank name. The main reason for this is home loan as a product is a long-term offering and it is wise to choose a bank that has been around for some time and one that has a substantial customer base.
Apart from banks, there are several NBFCs or Non-banking financial companies which offer home loans to customers. These companies too, offer home loan to customers. The biggest differentiating factor is that the eligibility guidelines for NBFCs are slightly flexible than those of banks. Also, the loan amount sanctioned by an NBFC is generally greater than that sanctioned by any bank, public or private. Top NBFCs that offer housing finance to customers in India are India bulls Housing Finance, Dewan Housing Finance, Reliance Capital, Shriram Transport Finance, Muthoot Finance, LIC Housing Finance.
Apart from the rate of interest that is charged on home loan products, there are various fees and charges that are applicable to housing finance offered by different banks. These charges may differ in value from one bank to another, however, the types of charges remains the same for almost all banks.
Banks generally charge a fee for processing your home loan request. These charges vary with different banks. This fee is non-refundable and is either a specific percentage of the loan amount or a fixed amount of money. There are times when banks are willing to negotiate on the processing charges and lower this fee or waive it off completely depending upon certain terms and conditions.
Late payment charges are levied by almost all banks when a loan borrower is late in paying loan installment. There are times when financial crunch or some other financial liability or plain oversight might result in non-payment of home loan installment on time. This results in a late payment fee being levied by the bank.
Most banks have stopped charging any kind of fee for pre-closure of home loans. However, some banks still charge some percentage of home loan balance as pre-payment charges. This fee is typically levied when any home loan customer repays his/her home loan prior to the stipulated home loan tenure.
Typically, home loans are offered by banks either on a fixed interest rate or on a floating rate of interest. The customer does have a choice of switching between these two rates. Every time a customer applies for switching from fixed rate to floating or vice versa, conversion charges are levied by the bank. These charges are some specific percentage of the principal outstanding amount.
Legal fee is charged in order to pay the lawyer who does the task of verification of property that is being bought with the loan amount. Most banks do not have in-house lawyers and as such pay fees and recover it from home loan customers.
Some banks charge administrative fee separately from the processing charges. This fee is levied to pay for the administrative cost that the bank incurs for processing of home loan application. Broadly speaking, administrative fee is levied by banks to compensate for the back-end administrative processes that are performed while processing of home loan applications.
One copy of home loan statement is provided by the bank free of cost, more than that is chargeable. This fee is generally specific to the bank and hence varies from one bank to another.
The days of running from pillar to post to submit just one loan application form are over. Online home loan platforms like BankBazaar are the latest fad. You no longer need to perform the age-old task of going to each financier, finding out what offers are available, collating the information, calculating EMIs, submitting the required documents and following up on applications. The easiest way is to go online and compare various home loan offers in the market and then make a list of your chosen lenders. This saves a lot of time and effort of home loan borrowers as well as financial institutions.
With technology leading the way in almost every sector, online information gathering and application of home loans is gaining momentum. Online application is a time-saving and convenient way to apply for loans and is fast becoming the preferred mode of choice for many loan borrowers.
BankBazaar is India’s leading portal for financial services where different home loan offers from various banks can be compared at one place and applied for without having to visit any lending institution. Here’s what users can do:
Buying a house can be one of the most important financial decisions of an individual’s life and as such there are a host of things that one needs to be careful about while availing home loan.
Listed below are some of the most prominent points that should be kept in mind when one is looking to obtain housing finance.
The first and foremost point which marks the beginning of any home loan application is finding about various home loan schemes in the market and the various banks and lending institutes that are running those. A thorough research will give not just specific details about different loan schemes but will also help you understand the various pros and cons that lenders might have.
For any home loan borrower, there are two types of interest rates that they can choose from. These are fixed and variable interest rates. Choosing one of these and knowing why to choose it is a major step that determines your home loan repayments installments and the overall interest amount that you pay towards your home loan.
Different banks charge different amounts as loan processing charges. Apart from this there are various other types of fees and charges that banks levy from their customers. Checking on these charges can help you save quite a bit of money when applying for home loan.
Home loans are huge financial liabilities and as such banks make sure that you have the necessary financial capability to repay the same. This is why credit scores of loan applicants pay a huge role in deciding the home loan eligibility. Applicants with a mediocre or a poor credit score may end up with their home loan application being denied or with a higher rate of interest being charged.
Certain banks allow free pre-closure of home loans while other charge a specific pre-payment fee. Depending upon your preference, you should find out all about pre-closure terms and conditions and then apply for home loan with the bank of your choice.
Home loan is a huge as well as long financial liability. Hence, reading everything that is listed in the home loan document that you sign is a primary step. Most home loan applicants get their loan agreement reviewed by a private lawyer so as to ensure that all terms and conditions listed in the document are in-line with their understanding of the financial product.
Generally, a host of tiny but crucial information is listed in the fine print that comes along with your loan document. Reading through the full document is crucial to you not feeling cheated at any point of time, later.
Availing a home loan scheme that suits your financial stand and zeroing in on a house that is well-aligned with financial capacity is a sure way to ensure a comfortable loan tenure. There are times when customers make the mistake of buying a property that is way too expensive for their pocket. At other times, customers may end up availing a loan that has installments which are too high for them to pay. Any such situation will lead to delayed repayments and thereby a higher final amount being paid to the bank as interest and fees.
There is no particular right time for making your home loan application. As soon as you have figured out your budget and zeroed down on the property that you want to buy, you should apply for home finance.
Yes, mostly. Although a lot of loan processing work has been shifted to online platforms, still a loan applicant is required to visit the lending bank branch at least once to formally close the loan processing formalities. Many private banks have started sending their representatives to borrowers’ place to get documents and forms signed and verified.
No. Generally, banks only lend 80% of the cost of your property. The rest 20% is to be borne by the loan borrower. However, to ease out the process for customers, most banks have broken up this ration into 10-80-10 so that at the time of availing the loan, customers are only required to pay 10% of the total cost and the rest is paid by the bank.
Repayment of loan starts after the entire home loan is disbursed to the borrower. In case of under-construction properties banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, customers are free to either repay the principal and interest amount both or just the interest amount or none at all.
Yes. All banks allow pre-payment of home loans. Some banks charge a pre-payment fee for that while others do not.
Current home loan borrowers who have a running home loan account can choose to continue with base rate or switch to MCLR. New home loan borrowers need to avail the new MCLR rates which are subject to change every set interval of time as mandated by the RBI.
Your home loan will get sanctioned as soon as all the required documents are submitted and verified successfully. This may take anywhere between 10 to 30 days.
Yes. Home loans are a great instrument to avail tax benefit. This is offered to both the interest and principal components of home finance. Under section 24(1) interest repayment of Rs.1,50,000 is eligible for exemption and on the same housing loan a principal amount of Rs.1,00,000 is eligible for exemption from tax.
Any kind of property is considered an asset and hence buying a property is considered as a wise decision. Also, real estate prices have been appreciating on an annual basis. If you are confident that your income is sufficient to cover you for a long term liability like home loan then you can surely avail one to buy a property.
EMI stands for Equated Monthly Installments. An EMI is made up of two components, principal and interest. Any loan availed by a borrower is repaid in EMIs over the loan tenure.
Since home loan is a huge loan amount and the tenure also is long, hence, almost all banks ask borrowers to furnish some collateral as security against the loan. This include the papers of property for which loan is being sought, some other property papers, any fixed deposit schemes or insurance schemes etc. that are on the loan borrower’s name.
Yes. You can apply jointly in your and your spouse’s name. Both of your incomes will be considered for determination of loan quantum.
Generally, all banks ask for proof of address, proof of identity, bank account statements and salary details from home loan borrowers. This list may differ a bit from one bank to another.
Home loan EMI payments can be made to the bank either by using offline channels like cheque, demand draft and cash or by availing the net banking facility that all banks offer to their home loan customers. Post dated cheques and Standing Instructions are another popular way to make EMI payments.
Any property document that you submit as security collateral is returned to you only once the entire home loan amount is repaid and the home loan on your name is closed.
Yes. Home loans are offered under various sub-heads. Housing finance for renovation of property or construction of house is also offered by all major banks in the country.
Yes. Most banks allow switching between fixed and floating rates. However, customers may be charged a particular fee for the same.
Brick Eagle Capital Advisory LLP, one of the leading financial services platform in the country, which advises on affordable housing projects is all set to raise as much as Rs. 700 crore for easily accessible housing.
To do the same, the company had registered a category II Alternate Investment Fund (AIF) with the Securities and Exchange Board of India (SEBI).
The AIF which has Rs. 500 crore will come with a green-shoe option to raise Rs. 200 crore worth of funds if the need arises. This fund is primarily created to fund any and all affordable housing projects carried out by local builders across the country.
Currently, a pipeline of over Rs. 200 crore has already been identified in states like Gujarat, Maharashtra, Rajasthan, and Tamil Nadu.
Speaking on the occasion, Kirti Timmanagoudar, a partner with Brick Eagle, said that affordable housing is basically a $2 trillion industry and that the company has seen a massive shortage in affordable housing options. He also said that to offset the shortage the company is targeting investments in all the Top 20 cities and their sub urban areas.
26th October 2016
GST is a factor that will boost transparency and ease of business in the country as it is a single tax umbrella for around 17 indirect taxes. This will convert India into a single market, as opposed to 29 different markets that it is now.
Buyers and builders in the real estate realm will benefit immensely due to the increased clarity on taxes, against the current setup, where taxes vary between states. GST will also eliminate double taxation, as a single tax subsumes others. However, stamp duty will be required when a property is registered.
The benefits of GST will depend on the standard rate that is likely to be around 18%. Higher rates will have an inflationary and destabilising impact on the realty sector. A lower rate like the one that is proposed, will ensure higher tax compliance, as well. The clear audit trail that GST leaves encourages the organised and unorganised sector to comply equally.
In summary, improvement in credit and liquidity through GST ensures higher margins for builders and the higher transparency benefits customers.
19th October 2016
The interest rates for home loans have been at its lowest in the recent 3 to 4 years which gives ample opportunities to make the most out of the situation at this time. Although diwali is almost here and there will more promotional offers from builders, it is also advantageous to note that the slowdown of the real estate market as well as unsold inventory and the lack of housing demand are also reasons for the prices falling.
Buyers can use a home loan and have the interest rate calculated with the fixed or floating rates the bank is offering. However, interest rates are to dip further according to financial experts since people prefer fixed rate over floating rate at this time of lowering rates. This is mainly due to the fact that a small change in decimal for the interest in a floating rate will have a huge impact on the loan repayment amounts in the future for the home buyer.
13th October 2016
With Dussehra around the corner, many realty houses have been quick to up the price of their existing or highly anticipated projects. While Dussehra and Diwali is considered as a time that is very auspicious and major property buys are made during this season, many realty houses have hiked up prices and other have begun offering discounts to lure customers. Going by the prices of properties listed on sites like propertykhazana.com there has been a steady increase in realty prices since June. This could also be due to the fact that the realty market was down for a while and is only now slowly recovering.
10th October 2016
When looking at the overall growth in the credit aspect of the banking sector, a dull and muted single digit rise can be seen. However when one looks a little deeper, they can see that the housing sector is leading the charge with a sound 19% rise in the number of new accounts in housing finance companies and banks. The main reason for this increase is due to an increased demand in the Rs 10 Lakh loan category. National Housing bank believes that the growth can be further bolstered if there is a slight reduction in stamp duty. Certain states collect a stamp duty of 6 to 12% which can be quite high. A reduction in this duty can bring about an increase in transactions thus nullifying any loss of revenue to the state.
13th September 2016
According to real estate consultant Knight Frank India, housing sales in India are showing tell-tale signs of an upward trend, with the country’s eight major cities showing a rise in housing sales by up to 7 per cent. During the period of January to June of 2016, these cities recorded housing sales of 1.35 lakh units, which led to a marked decline in unsold inventories. Data collected from the eight major cities such as Delhi-NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, Pune and Ahmedabad, showed a rise in housing sales from 1.26 lakh units in the first six months of 2015, to 1.35 lakh units during the same period in 2016. However, the Delhi-NCR property market showed a drop of 8 per cent and 41 percent in housing sales and launches respectively, in spite of a 4 per cent decline in prices.
19th August 2016
June quarterly earnings report by private banks such as HDFC Bank, Kotak Mahindra and Axis Bank to be released this week is expected to indicate the asset quality conditions in the banking sector.
A report on July 11 by Motilal Oswal Securities predicted HDFC Bank to report a 20% annual growth in its net profits. Private banks, in general, are likely to do better than nationalised banks such as SBI and Syndicate Bank.
After Reserve Bank of India’s Asset Quality Review conducted recently, banks were asked to be more transparent about non-performing assets (NPAs), report more accounts as NPAs and allow higher provisioning against stressed assets.
10th August 2016
Minister of Housing and Urban Poverty Alleviation Venkaiah Naidu said the government is trying hard to boost the housing finance sector so as to help reach the target of ‘affordable housing for all’ by 2022.
Speaking at the ASSOCHAM-organised National Summit on Finance for Housing for All by 2022 in New Delhi on Wednesday, Naidu said the Housing for All mission aims at building a strong, healthy and prosperous community by providing people with access to safe and affordable homes.
Among the moves taken by the government to boost the housing finance sector are service tax exemption on houses up to 60 square metre, and 100% tax deduction on profits made on construction of affordable housing projects. Additionally, home loan applicants of economically weaker sections of society and low income group could get an interest subsidy of up to 6.5 percent for 15 years.
4th August 2016
The Ministry of Housing and Urban Development has requested state governments to reduce stamp duty for affordable housing projects to reduce the overall cost.
Inaugurating a national summit on ‘Finance for Housing for All’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), Urban Development Minister Venkaiah Naidu said he was confident of a real estate rally. He also said that interest subsidy under the proposed Real Estate Regulation Bill would be extended to the private sector as well if they selected beneficiaries through state agencies, in order to boost their participation in affordable housing programmes.
Among the perks offered by the government on affordable housing projects are: service tax exemption on houses up to 60 square metres, and 100% tax deduction on profits approved between June 2016 and March 2019 and completed within 3 years.
27th July 2016
State Level Bankers' Committee (SLBC), Gujarat, has said that the demand for home loans in the state has gone up by 27.8% in 2015-16 compared with the previous fiscal year. The amount disbursed is higher by 57.3% in 2015-16.
A total of 82,332 beneficiaries got new loans worth Rs. 9,616 crore in 2015-16 under direct housing finance, as opposed to 64,414 beneficiaries getting home loans worth Rs. 6,112.45 crore in 2014-15. This rise is attributed to better affordability, decline in prices and more number of affordable housing projects. An official of the Gujarat Institute of Housing and Estate Developers said, “With economic growth of Gujarat being consistent, there has been a rise in investment in the housing sector.”
20th July 2016