Hyderabad Home Loan

Hyderabad is one of the larger cities in India and it has a population of about 69 lakh people. Naturally, considering the number of people living in the city, demand for housing is high. Reports indicate that along with the increase in the demand for houses, there has also been a shift towards larger houses in general. The average house size that the people prefer in the city appears to be over 1,700 square feet as opposed to demands for smaller spaces in preceding years.

With increases in demand for housing and space requirements, the price of houses has also, quite naturally, increased. There is a report that indicates that the city has seen a close to 30% increase in housing prices. This necessitates a need for home loans. There are a number of financial institutions, both banks and non-banking financial companies that offer home loans in Hyderabad. These institutions are listed here.

Home Loan Interest Rates in Hyderabad

There are a number of banks and NBFCs in Hyderabad that offer home loans for those wishing to avail them for reasons ranging from the purchase of a home to purchase of land or renovation of an existing house. The lowest home loan interest rates in Hyderabad starts at 8.40% p.a.

Banks

Interest Rate (p.a.)

Union Bank of India

8.70%

Central Bank of India

8.35% p.a. to 9.35% p.a.

State Bank of India

9.15%

HDFC LTD

8.60%

LIC Housing Finance

8.45%

Bank of Baroda

8.60%

Home Loan Eligibility in Hyderabad

In order to be eligible for a home loan, there are some criteria that have to be fulfilled. These criteria are mostly common across all providers with minor changes being applicable. For instance, some may allow people as young as 18 years of age to avail a loan while some may require a minimum eligibility age of 21 years. The following table gives the generic eligibility criteria to avail such a loan:

Eligibility Criteria

Requirement

Minimum and maximum age

Minimum age: 18 Maximum age: 70

Net annual income

Depending on the type of employment, a minimum of Rs.5 lakh is required

Employment

Can be an employee of a company or self-employed

Residence

Own residence or rented residence but should have resided in the same place for at least one year prior to the loan application

Credit score/rating

A good credit rating is required and this should be obtained from a recognized credit bureau

One thing to note while availing a loan is that the bank or NBFC will not provide the applicant with the full amount required to finance the purchase or renovation. Instead, the institution will typically finance about 70-80% of the total amount required.

Home Loan Documentation

In order to avail any home loan, a person has to provide documentation to support their application. The following documentation is generally required:

Type of Documentation

Purpose

Permitted documents

Identity proof

This is to serve as a photo ID and for proof of address

  1. Driving licence (current)
  2. Aadhaar Card
  3. Voter ID
  4. Passport (current)

Income proof

This is serve as proof of income to indicate that there is a supply to repay the loan

  1. Salary slips for three months and IT return or Form 16 for applicants working with a business or organisation
  2. IT returns for preceding three years and income computation for the same period along with a balance sheet mentioning profit and loss, audited by a chartered accountant for self-employed applicants

Loan application form

To serve as a request for a loan application

  1. Signed and filled form with affixed photograph

Other documents

To serve as additional proof for the institution granting the loan

  1. A cheque made out to the amount of the processing fee
  2. Bank statements indicating payment for ongoing loans
  3. Photographs of all loan applicants and co-applicants

Types of Home Loans in Hyderabad

There are a number of different types of home loans available and some of the most popular ones are given in the following table:

Home Loan type/purpose

Details

Loan for new or pre-owned property

Can be availed by a person who wishes to buy a new or pre-owned property. This is the most commonly availed loan type. The interest rates can be either fixed or floating.

Loan for construction of property

Can be availed by a person in the event that they wish to construct a house instead of buying an already constructed one. The cost of the plot of land used will also factor into the loan approval process.

Loan for property expansion

Can be availed by a person who wishes to increase the size of their property.

Loan for home improvement/renovation

Can be availed by a person who wishes to modify or renovate their house.

Loan for NRIs

Can be availed by non-resident Indians in order to purchase property within India.

There are other facilities like home conversion loans and home loan balance transfers that can also be availed by a home loan applicant. Home conversion loans can be availed when a person has already made use of a loan to buy a property and wishes to avail another loan. Home loan balance transfers allow a person to move their loan from one financial institution to another in order to take advantage of benefits offered by the second financial institution.

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