Apply for a home loan of up to Rs.20 crore on BankBazaar with interest rates starting at 8.30% p.a. As a one-stop solution to your property loan needs, BankBazaar offers simple documentation procedures, quick processing, customised repayment schemes, and dedicated customer service with a response time of 30 to 45 minutes.
|Interest Rate||Min. 8.30% - Max. 22.00%|
|Processing fees||Upto 3.00%|
|Loan Amount||Min. ₹ 1L to Max. ₹ 20 Crs|
|Loan Tenure||Min. 1 Year to Max. 30 Years|
|Partial pre-payment Charges||Nil|
|Compare Home Loan Interest Rates with other banks >>|
BankBazaar brings you a simplified way of applying for housing finance of your choice online.
Follow the below 6 steps for a hassle-free experience:
Here’s what happens after you apply for a loan on BankBazaar:
As India’s leading online portal for financial services, applying for your housing loan through BankBazaar can benefit you in many ways. Take a look at some of them:
BankBazaar helps you track your property loan application easily. Simply click here, 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.
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.
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:
Buying a house is one of the most important financial decisions of your life. There are a host of things you need to be careful about before choosing a housing loan package. Here are some of the significant points to keep in mind when looking for housing finance:
You are never given the full value of your property as loan by a bank or NBFC (Non-Banking Financial Company). The maximum loan amount you’ll be given for a house purchase is known as the Loan-to-Value Ratio. LTV, therefore, is the ratio of the amount you can borrow against the value of the house. LTV is usually represented as a percentage of the total value of the house.
For example, if your house costs Rs.50 lakh, and your lender says the LTV is 80%, then the loan sanctioned to you will not exceed Rs.40 lakh. You will have to put in the remaining money as down payment from your own sources. LTV may include GST charges, but may exclude stamp duty and registration fees.
The LTV ratio is important for both the lenders and borrowers. For banks, a higher LTV means a greater risk in lending, because they may not be able to recover the loan amount in case of default on the loan or fall in value of the property. Therefore, a higher LTV might lead to a higher interest rate.
For borrowers, the LTV ratio determines how much money will have to paid as down payment out of their own pockets.
While most banks give an LTV of 70% to 80%, some banks/NBFCs may also give you up to 90% of the house value.
If you’re looking for a higher LTV, you could try negotiating with the bank/NBFC. Having a healthy prior relationship with the bank, a high credit score, or a high income are factors that may help you in this negotiation.
Home loan interest rates are dependent on a number of economic factors as well as customer-specific factors. Let’s first look at how banks determine the interest rate to offer to you:
Now, here are the economic factors that affect the rates advertised by the bank:
Interest rates are just one type of extra payment you have to give the bank. There are several other fees and charges applicable to property loans of different banks. Each bank may have their own charges and range of the fees levied. The main fees sought by Indian banks and NBFCs on property loans are:
Here are some of the reasons why a property loan could be rejected in India:
Haven’t found your reason here? Here are some more detailed reasons for home loan rejection.
To increase your chances of getting your housing loan approved, here are some things you can do:
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.
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.
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