Purpose: BankBazaar home loan offered by different banks can be taken to
|Apply for Home Loan||Top Providers||Interest Rates||Updates||Processing Fees||Application Status||Types of Home Loans||Eligibility Criteria||Factors that Determine Interest Rates||Documents Required||Fees & Charges||Faqs|
Follow Below Complete 10 Steps involved in the Home Loan Process.
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:
Banks and NBFCs such as HDFC Ltd., ICICI Bank, Axis Bank, Aditya Birla Capital & Indiabulls Housing Finance Ltd. are some of the top known home loan providers partnered with BankBazaar.
The table below will let you examine the best floating & fixed interest rates from various banks/financial institutions in India according to the tenure of the home loan.
|Bank Name||Home Loan Rates|
|PNBHFL Home Loan||9.00% - 9.50%|
|ICICI Bank Home Loan||8.90% - 9.10%|
|ICICI Bank Home Loan (Women)||8.85% - 9.05%|
|Karnataka Bank Home Loan||8.60% - 9.00%|
|HDFC Ltd. Home Loan||8.80% - 9.05%|
|Indiabulls Home Loan||8.75% - 11.0%|
|Sundaram BNP Paribas Home Loan||8.90% - 9.55%|
|Axis Bank Home Loan (Women)||8.80% - 11.75%|
|Axis Bank Home Loan||9.25%|
|DBS Home Loan||9%|
|Compare Home Loan Interest Rates with other banks >>|
As per the current rates, Karnataka Bank - ICICI Bank - Axis Bank offers the lowest home loan interest rates.
Cooperative union feels property card impedes home loan applications
18 February 2019
It is now compulsory, according to the Government, to have a property card in order to be able to register property in Mangaluru. The institutions that distribute home loans, like cooperative banks, feel that it is a rule that proves to be more of an impediment. They say that this is because a number of people are yet to get property cards. This causes problems when they apply for home loans. They say that the Government should look into this issue.
Banks generally charge a fee for processing your home loan request.
Below find noted banks offering lowest processing fees for their customers.
*Applicable tax could be applicable depending on banks.
Bankbazaar allows you to track your home loan application easily.
Depending upon the type of property being purchased and the quantum of the 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.
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, how home loan eligibility is calculated and criteria for most of the banks in India.
|Employment||The applicant should:
|Income||Applicant must have a minimum salary varying between Rs.5-7 lakh, depending on the type of employment|
|Residence||Applicant must have at least one year of stay at the present residence to display stability with respect to employment and financials|
|Credit Rating||Applicant should have good credit score (A CIBIL score of 750-900 is considered a good credit score)|
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.
Loan-To-Value is a ratio. This ratio is used to figure out how much of a loan a lender will finance. This is used as a way to assess risk in lending. There is a formula that is used to figure out the LTV and that is given here:
LTV ratio (in %) = (Amount being borrowed/Total value of purchase or property) * 100
In order to understand the significance of this ratio, you need to know how this works. Let us consider an example for the same. Assume that the total value of the property that you wish to purchase is Rs.50 lakh. If the LTV ratio of the lender you are receiving the money from is 50%, then, you have to come up with the rest of the 50% yourself. That is, Rs.25 lakh will be financed by the lender and the other Rs.25 lakh is the amount that you will have to finance by yourself.
The LTV ratio is important for both banks and borrowers. Banks use it calculate if they are providing a loan for an amount that is lower than the property value. Also, even though it sounds counterintuitive, the lower the LTV ratio the better it is for you as a borrower. This is because, the lesser the amount that you borrow from the lender, the lower the total amount you have to repay. The interest will also be lower and will be due for repayment over a relatively shorter period of time. The more you borrow from a lender, the higher your total repayment and longer your loan tenure.
It is clear that there can be several reasons for rejection of a home loan.
Documents to be submitted differ according to the eligibility requirements. The following, however, are commonly requested for from all the applicants:
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.
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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