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Home Loan - Avail home loans up to Rs.10 crore with interest from 8.40% p.a., processing fees from 0.5%, and repayment tenure up to 30 years through BankBazaar.
Whether you are a first-time homebuyer or looking to upgrade to a bigger house, understanding the different housing loan options will help you make an informed decision.
The availability of different types of home loans allows you to choose from a range of features such as interest rates, repayment tenures, and loan amounts.
Avail home loans up to Rs.10 crore with interest rates starting at 6.50% p.a. with additional benefits such as extended loan terms and flexible repayment options. Simple documentation, quick processing, and excellent customer service with a response time of 30 – 45 minutes makes BankBazaar a go-to place for all your housing loan needs.
*All loans are at the sole discretion of HDFC Home Loans.Terms and conditions apply.
|Age||Minimum Age: 18 years and Maximum Age: 70 years|
The applicant must be (any one):
The applicant can be (any one):
|Net Annual Income||At least Rs.5-6 lakh depending on the type of employment|
The applicant must have (any one):
|Credit score||A good credit score of at least 750 or more obtained from a recognised credit bureau|
|Identity Proof (any one)||Residence Proof (any one)||Other Documents|
|Driving License||Copy of Electricity Bill/Water Bill/Telephone Bill||Employer Identity Card|
|PAN||Copy of valid Passport/Aadhaar Card/Driving License||Duly filled loan application form affixed with 3 passport size photographs|
|Voter ID||Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions|
|Valid Passport||Bank account statements for all the bank accounts owned by the applicant for the last six months|
|For Self-employed Applicant/Co-applicant||For Salaried Applicant/Co-applicant|
|Income Tax Returns for the last 3 years||Salary Slips for the last three months|
|Certificate of Qualification (for Doctors/CA and other professionals)||Copy of Form 16 or Income Tax Returns for the last two years|
|Balance Sheet audited by a certified CA and Profit and Loss account for the previous 3 years|
|Business License Details|
|Business address proof|
|Identity Proof (any one)||Residence Proof (any one)||Other Documents|
|PAN||Telephone bill||Attested copy of the applicant’s/co-applicants’/guarantor’s valid passport and visa|
|Valid Passport||Electricity bill||Proof of residence indicating the applicant’s current overseas address|
|Driver’s License||Water bill||Employer Identity Card|
|Voter ID Card||Piped Gas bill||If the applicant is employed in the Merchant Navy, the applicant is required to submit a copy of Continuous Discharge Certificate (CDC)|
|Valid Passport||PIO Card issued by the Government of India in case the applicant/co-applicant is a Person of Indian Origin (PIO).|
|Driving License||The completed loan application form duly filled with three passport size photographs of the applicant and co-applicants.|
|Aadhaar Card||The attestation of the documents can be done by: 1. Indian Embassy/Consulate 2. Overseas Notary Public 3. FOs/Representative Offices 4. Officials of Branch/Sourcing Units based in India|
|For Self-employed Applicant/Co-applicant||For Salaried Applicant/Co-applicant|
|Proof of income if the applicant/co-applicant is a self-employed professional/businessman.||Valid work permit|
|Business address proof||Employment contract (translated in English) attested by the employer/consulate/embassy/Indian foreign office if the contract is in another language.|
|Balance Sheet and Profit and Loss accounts audited by a certified CA for the last 2 years||Salary slips for the last 3 months|
|Individual Tax Return for the last 2 years – Not applicable to NRIs/PIOs located in the Middle East countries.||Bank statements indicating salary credit for the last 6 months|
|Bank statement of the individual’s as well as the business/company’s overseas account for the last 6 months.||Copy of the Identity Card issued by the current employer along with the latest salary slip (original).|
|-||Copy of the individual Tax Return for the last assessment year. - Not applicable to employees in the Merchant Navy and NRIs/PIOs located in the Middle East countries.|
Depending on the type of loan you are applying for, the following charges may be levied:
BankBazaar helps you track your loan application easily. Simply visit application status, enter your Application ID and your mobile number, and get the status.
Our EMI calculator helps you calculate the amount you have to pay the bank every month. Input your loan amount, tenure, interest rate, and processing fee to get your EMI and loan amortisation details.
Interest rates are the charges a lender will levy on you for borrowing a certain amount over a specific period. They directly impact your EMI. These rates will differ from one lender to another.
This fee is charged by banks for processing your loan application. It is non-refundable and is charged before disbursal. It’s calculated either as a percentage of the loan amount or is a fixed amount.
Each bank has specific parameters, based on which they approve a property loan for you. These include age, income, employment status, where you work, what builder you’re buying a house from, etc.
For the housing loan to be sanctioned, you’ll have to provide your identity proof and address proof, income documents such as ITR and payslips, bank statements, and proof of house purchase.
Pradhan Mantri Awas Yojana (PMAY) is a Government of India initiative under the government provides an interest subsidy of 6.5% on housing loans availed by the beneficiaries.
Banks in India provide different types of housing finance options for different purposes. Here’s a list of the prominent types of housing loans in India, based on a study of products offered by some of the top banks:
|Ensure that you have researched on the loan you want to apply for||Do not blindly sign the documents before you read every term and condition on it|
|Read the fine print before taking the loan||Do not forget to compare interest rates offered by different loan providers|
|Look out for any charges applicable on prepayments and foreclosure||Do not default on your monthly payments|
|Make sure you pay the equated monthly instalments (EMIs) on time||Do not apply for a loan just for the sake of it|
|Ensure that you have a good credit score before you apply||Do not sign the home loan agreement before reading the clauses|
|Apply for a loan amount you are eligible for||Do not request for a change in tenure unless you have considered all the aspects|
|Submit all the necessary documents||Do not submit an incomplete or mismatched loan application|
|Ensure that you have stable employment||Do not have too many ongoing loans|
You can always re-apply for a home loan if your first loan application was rejected by the lender. However, there are a few aspects you must consider before doing so.
Credit score: Since housing loans are generally long-term retail loans, lenders look into the applicant’s repayment capacity before approving or rejecting a loan application. Your credit score plays a major role in deciding your repayment capacity against a loan.
If you have a poor score on your credit report, chances of your loan application being rejected are high. The unsatisfactory credit score gauges your creditworthiness which banks and financial institutions consider before processing your loan application. Hence, it is advised to go through your credit score and credit report before you apply for a loan.
In case you have a poor credit score, consider improving your score by making your debt repayments on time before you reapply for a housing loan again. If you do not know what your current score is, you can get your credit score along with the credit report on BankBazaar.
Loan Amount: Since purchasing/constructing a home is a one-time investment, we often tend to overlook the financial costs involved in it. Banks and financial institutions fix the maximum loan amount you are eligible for by taking your present monthly income. There is a high chance your application was rejected because of the loan amount you have applied for.
If the loan amount applied for exceeds your eligible loan amount, the lender can decide to reject your application. In such cases, you can consider increasing the down payment on your home loan to bring down the loan amount.
Other Ongoing Loans: Banks can also choose to reject your home loan application if you have too many other ongoing loans. Since home loan lenders see to it that not more than 50% of your monthly income is being contributed to your loan repayments, any other ongoing long-term loans can result in your application being rejected.
Having too many ongoing loans will not only impact your personal finances but also your repayment capacity. Hence, it is advised to clear the ongoing loans, if any, before you apply for a housing loan.
Co-applicant: There can be instances where applications are rejected due to low income. In such cases, you can consider adding a co-applicant such as a member of your immediate family. This will increase the maximum amount you are eligible for as the income and creditworthiness of the co-applicant will also be taken into account while deciding your eligibility.
Employment: In some cases, the employment of the applicant can act as the deciding factor on whether the loan application is being approved or rejected by the lender. Your application can be rejected if the lender learns that you have been switching between jobs frequently.
Unstable employment can sometimes prove to have a negative impact on your loan application. On the other hand, stable employment with a recognised institution on your application can have a positive impact.
In case your housing loan application was rejected, and you have only been working with the current employer for a short period of time. You can consider giving it some more time before re-applying for another one.
Documentation: Housing loans include a lot of documentation such as identity proof, residential proof, bank account statements, income tax returns, income proofs, property papers, documents approved by concerned authorities, etc. Your loan lender can reject your loan application even if one of the required documents are not submitted.
You can always consult the banks’ customer relationship executives to assist you with proper loan documentation.
A home loan is a secured loan taken from a financial institution for the purpose of buying a residential property. You can avail a home loan to buy a ready-to-move in house or apartment or one that is under construction. Home loans can be availed from both banks and Non Banking Financial Companies (NBFCs).
These have varying interest rates which are often linked to your credit score. Home loans typically have a tenure of up to 30 years and have to be repaid as Equated Monthly Installments. You can also get tax deductions on both the principal and interest component of your home loan under Section 80C and Section 24 respectively of the Income Tax Act.
Before signing up for a home loan product, it’s best that you compare loans offered by different banks and lending institutions. While comparing, consider the interest rate, Loan-to-Value (LTV) ratio, processing fees, and tenure offered by the bank. Use a home loan EMI calculator and calculate your EMI based on these factors. Compare multiple home loan products by various banks by using this method. Also, certain lenders roll out home loan offers with reduced interest rates from time to time. Keep an eye on that too while looking for a loan. Also, know your requirements first before applying. You can go through the above list to get an idea regarding which bank’s home loan would suit your requirement.
Usually, it takes 3 to 4 weeks to get home loan sanctioned. However, you need to keep a few factors in mind for a better understanding. First of all, you need a pre-approval of your home loan from the concerned lender to get your loan sanctioned. However, pre-approval doesn’t always mean that your loan will be disbursed immediately and depends on certain external as well internal factors. For instance, your loan sanction can be delayed if there’s delay in submission of property or income-related documents.
Banks/financial institutions consider the following factors such as your age, annual income, occupational stability, resident type, number of co-applicants, credit score, ongoing loans if any, etc.when determining your loan eligibility.
The rate of interest associated with fixed rate loans remain unchanged during the entire tenure of the loan. On the other hand, the interest rates applicable on floating rate loans can be revised from time to time depending on the RBI key policy rates. The equated monthly instalments can increase or decrease depending on the prevailing RBI rates in the case floating rate type loans.
Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure. While banks do not charge any prepayment fee on floating rate loans, fixed rate home loans attract a penalty up to 2% of the loan amount if prepaid through refinance.
Yes, you can avail tax benefits on both the interest and principal component paid against your home loan. As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakh on the principal amount repaid annually.
Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.
The co-applicant can be an immediate family member such as your spouse, your parents or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.
Pre-EMI is defined as the interest that is to be paid to the loan provider until the entire loan amount is disbursed. The Pre-EMI is payable on a monthly basis until the last disbursement, post which the regular EMI will be applicable comprising the principal and interest components.
Marginal Cost of funds-based Lending Rate is the benchmark rate set by a lending institution below which they cannot provide loans to their customers.
Yes, you can switch from a fixed to floating rate of interest on your home loan during the repayment tenure. However, you will be charged a conversion fee by the lender in such cases.
The loan repayment period begins only after the loan provider has disbursed the entire home loan amount. However, you will be required to pay the interest i.e. pre-EMI on the partially disbursed loan on a monthly basis, in most cases.
Yes, you can take 2 home loans at the same time provided that your lender approves your eligibility to manage 2 Equated Monthly Instalments (EMIs) at the same time. However, the tax benefits on the second house will be different and you will be required to establish the property as self-occupied or let-out property.
No. Banks/financial institution do not grant 100% of the property value as home loan. Home loan lenders establish a margin on their loan i.e. the percentage of the cost that the lending institution will be covering. For example, if the margin on the loan is set at 10%, the bank will cover 90% of property value. In such cases, you will be required to a make a down payment of the balance amount, i.e. 10% in order to cover for the rest of the cost.
When determining your home loan eligibility, the lender makes sure that your monthly repayments are not being affected by any other ongoing loans such as personal loan, two-wheeler loan, etc. However, other ongoing loans ultimately tend to affect your eligibility as your overall spending power is reduced. If your other loan commitments exceed 50%-60% of your monthly income, your home loan application may be rejected.
If you are buying a house, home loan is the best option. Usually you will not be eligible for a personal loan for as high an amount required for the purchase of a house. If you want extra money for non-specific personal needs, then go for a personal loan. Home loans also have an added advantage of top-up loans wherein you can request a top up on your loan amount to cover additional needs such as furnishing your house.
No, you cannot avail two home loans for the same property. Any such practice will be considered fraudulent. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) ensures that fraudulent practices such as availing two housing loans for the same asset/property are prevented.
A joint home loan can be availed by adding a co-applicant such as your spouse, parents, or an immediate family member on your application. Adding a co-applicant will increase your home loan eligibility as the lending institution will also be considering the co-applicant's income and credit score when determining your loan eligibility. All co-owners of the property are required to be the co-applicant for a loan. However, the co-applicants need not necessarily be the co-owner of the concerned property.
The Reserve Bank of India (RBI) has made an announcement about a 14 day variable rate reverse repo (VRRR) operation which is a tool that is used by the central bank to distribute surplus liquidity from the banking system. The central bank has stated that it conducts a 14 day VRRR auction that is worth Rs.2 lakh crore on 2 June. The date of reversal of the VRRR is 16 June.
03 June 2023
The key interest rate is expected to remain unchanged at 6.50% by the Reserve Bank of India (RBI). The repo rate is predicted to remain lower than the 6.75% terminal rate for the rest of 2023, despite the fall in inflation rate to 4.70% in April 2023.
31 May 2023
On 16 May 2023, LIC Housing Finance announced its net profit for the fourth quarter of the financial year. As per the announcement, the company has registered a gain of 6% compared to the profit earned in the corresponding period last year. For the January-March quarter, the Non-Banking Financial Company (NBFC) has reported Net-Interest Income (NII) as Rs.1,990.3 crores. The NII previous year for the corresponding period was Rs.1,630. Moreover, for the financial year 2022-23, the company has suggested a dividend of Rs.8.50 per equity share of Rs.2 each. The equity share’s dividend is expected to be paid on or after the day of the company’s Annual General Meeting (AGM). As per the reports, LIC has registered a revenue growth of 21.04% this year. The revenue earned in January-March 2023 quarter was Rs.6,415.11 crores compared to Rs.5,299.66 crore in the corresponding quarter previous year. The gross income earned by NBFC in the last quarter of the financial year 2022-23, was Rs.6,415.17 crores in comparison to Rs.5,308.9 crores earned in the same quarter previous year, registering a rise of 20.83 per cent year-on-year.
18 May 2023
Canara Bank has enforced a reduction in the interest rates for vehicle loans and home loans provided to its customers. Under the revised rates, vehicle loans will be available at an interest rate starting from 8.80% p.a., while the bank will offer home loans at an interest rate beginning from 8.55% p.a.
15 May 2023
One of India’s non-banking finance companies, Bajaj Finserv, reduced the home loan interest rates to 8.50% p.a. Customers can avail themselves of the reduced interest rates, apart from other benefits, such as higher loan amount of Rs.15 crore; quick disbursal in 48 hours; low EMI amount of Rs.769 per lakh; zero foreclosure charge; and many more.
13 May 2023
The home loan interest rates have been slashed by 40 bps by Bank of Baroda.Following the revision,the new interest rates start from 8.60% p.a.
10 May 2023
The Reserve Bank of India (RBI) has issued new guidelines making it mandatory for banks and financial institutions to guarantee detailed information regarding the beneficiary and the originator for wire transfers across India and globally. This move has been made to avoid transfers for terrorist financing or money laundering. Moreover, the RBI has asked the banks to handover complete details of the remittance to law enforcement authorities and the Financial Intelligence Unit of India (FIU-IND) upon receiving the information.
For cross-border wire transfer, banks must have the beneficiary and the sender information if the sender does not hold an account with the ordering regulated body. Banks now must consider Financial Action Task Force (FATF) recommendations along with instructions regarding Know Your Customer (KYC).
09 May 2023
The Union Budget announced on 1 February 2023 has impacted the home loan interest rates and repayment. Taxpayers can avail themselves of a tax deduction on the Equated Monthly Installment’s (EMI) principal component under Section 80C of the Income Tax Act, 1961. Apart from that, taxpayers can also avail themselves of a tax deduction under Section 80EEA and Section 80 EE up to Rs.1.5 lakh and Rs.50,000 p.a. respectively on home loan interest payments. If the home loan was opted for by a first-time home buyer between 1 April 2019 and 31 March 2020, they can avail themselves of a deduction of up to Rs.3.5 lakh interest payment. For self-occupied property, Section 24b allows the taxpayer to avail deduction of up to Rs.2 lakhs on interest payment.
05 May 2023
For the first time this fiscal year, the Reserve Bank of India (RBI) is going to release its bi-monthly monetary policy review on 6 April. Experts predict that the monetary policy committee (MPC) may increase interest rates by another 25 basis points (bps) before taking a break. Since May of the previous year, the central bank has increased the repo rate by 250 basis points in an effort to control inflation. Retail inflation in India was 6.44% in February compared to 6.52% in January.
07 April 2023
With Reserve Bank of India’s announcement of recent hikes in home loans, the hike rates has jumped over 50 years for many.
16 March 2023
To attract new customers and boost loan growth before the end of the fiscal year,the Bank of Maharashtra has reduced its home loan interest rates by 20 basis points to 8.40%, positioning it as one of the most competitive rates in the industry.
Bank of Maharashtra lowers home loan interest to 8.4%
15 March 2023
HDFC bank, one of the largest private sector lenders in India, has raised the interest rates on home loans by 25 basis points. The HDFC bank customers can avail themselves of the new rates from today, 1 March. The home loan rates offered by the mortgage lenders start from 8.70% for borrowers with credit scores above 780, and this rate is for a limited period till 31 March 2023. The rates will start from 9.20% after the end of the festive season offer is withdrawn.
1 March 2023
The Reserve Bank of India (RBI) has proposed to replace 'penal interest' with 'penal charges' for loan defaults by borrowers in an effort to assist customers. The regulator stated on 8 February that penalties for loan default or any other non-compliance of material loan terms by borrowers should be transparent and reasonable 'penal charges' and not 'penal interest', which is added to the interest rate on advances. The RBI also stated that any penal charges should not be capitalized but collected separately and not added to the principal outstanding. However, if a credit risk profile declines, regulated entities can adjust the credit risk premium under existing interest rate guidelines. According to the RBI, 'penal interest' was not intended to be a revenue enhancement tool beyond the contracted rate of interest but rather to promote credit discipline among borrowers. As per supervisory reviews, regulated entities have implemented excessive 'penal interest' practices, resulting in customer grievances and disputes. Draft guidelines outlining these changes will be posted on the RBI website for stakeholder feedback soon.
23 February 2023
Karnataka Chief Minister Basavaraj Bommai presented the Karnataka Budget 2023 where he announced funds for the expansion of roads and Namma Metro in Bangalore.Bommai said that all aspirational taluks would receive Rs.500 crore to construct homes for the homeless,and the state government plans to create roughly 30,000 properties for public distribution and purchase over 2,000 acres of land for housing projects.The Karnataka Housing Board will allocate 10,000 sites,or one-third of its developed sites,to the EWS under the "Namma Nele" programme.There will be 19 employee state insurance claims in the state.
17 February 2023
Over 800 people visited Confederation of Real Estate Developers’ Association of India (CREDAI)’s home loan mela at Chennai Chapter in T Nagar in the first two days. The event was inaugurated by Vijay Mahal on 10 February and it concluded on 12 February. Over the event, loans worth Rs.425 crore got sanctioned. Not only this, popular banks, including State Bank of India, HDFC Bank, LIC Housing Finance Ltd., Indian Bank, and Canara Bank have taken part in this home loan mela.
15 February 2023
Bank of Baroda and Punjab National Bank (PNB) hiked their lending rates by up to 25 basis points (bps).PNB has hiked its Repo Linked Lending Rate (RLLR) by 25 bps.On the other hand,Bank of Baroda has hiked its Marginal Cost of Funds Based Lending Rate(MCLR) by 50 basis points.The new interest rates will be effective from 12 February.
13 February 2023
The marginal cost of fund-based lending rates (MCLR) for home loans increased by 10 basis points by the State Bank of India. SBI has raised the MCLR for home loans with one-year tenure to 8.40% from 8.30%. The rates are in effect from 15 January 2023, while the overnight, one-month, three-month, six-month, two-year, and three-year MCLR remains the same.
27 January 2023
Two major cryptocurrency companies have started borrowing billions of dollars from Federal Home Loan Banks to provide the withdrawal amount to its customers.
24 January 2023
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