Home Loan

If you are looking for home loan then the best bank has to be decided based on comparing details of all leading banks across parameters of interest rates, processing fees, pre-payment charges and also the documents which are required to process home loan and also the service which customer need from the bank on regular basis.

Sample Home Loan Calculation

Loan Amount Interest Rates Loan Term Monthly EMI
₹20,00,000 6.75% 120 Months ₹ 15,207/-

*The associated fees shown are for representation purposes only. Actual associated fees will differ depending on individual profile. Processing Fee ranges from 0% to 1% of the loan amount. We do not charge any fees to our customers.

Home Loan Details;

Purpose: Home loan are used for construction of house, renovation or extension of your house and also used for purchasing a new ready to occupy house / flat / bungalow.
Key features:
1. Eligibility: Home loans are eligible for both Salaried and Self-Employed borrowers. Home loans are eligible with the age group of 18 to 70 years.
2. Loan amount: Home loan is provided in the range from Rs. 10 lakhs up to Rs. 15crore.
3. Loan tenure: Home loan tenure is ranges from 5 to 30 years.
4. Interest rates: Home loan starts with interest rates of 8.35%. Also, there are special rates for women borrowers.
5. Lowest EMI: Lowest EMI for home loan is of Rs 741 per lakh.
6. Interest rates benchmarks: As per RBI guidelines, most of the banks have opted to link the interest rates on loans to RBI’s repo rate. Most of the banks have also shifted to Repo Rate linked lending Rate [RLLR]. NBFC’s uses PLR [ Prime lending Rate] as benchmarks.
7. Prepayment charges: Home loans are having NIL charges on floating rate.
8. Processing fees: Processing fee for home loan is up to 0.5% of loan amount.
9. Loan tenure: Higher the tenure means lower the EMI and more eligibility. Normally maximum home loan tenure is 60 years minus the current age of a borrower . For e.g. the borrowers age is 42 years then the maximum tenure should be for 18 years.
10. Other charges: When you take a home loan, you don’t just have to pay EMI on the home loan. There are many different charges which are as follows:
a. Technical evaluation: For high valuation properties two valuation are to be paid and the lower of the two valuations is considered for sanctioning of the loan.
b. Documentation fees: For getting loan agreement signed and getting ECS activate and also other formalities some of the banks charge fees i.e. Rs 500-Rs 2000.
c. Legal Fees: Most lenders engage with legal firms to scrutinize the property / borrower’s legal documents. Most of banks include this legal fee in the processing fee, but some of the banks charge this fee separately.
d. Notary fee: If the customer is an NRI customer then certain documents are needed from Indian Embassy. Documents are KYC and the POA [power of attorney].
e. Adjudication fee: To process for a home loan, if you are the POA of an NRI, the power of attorney needs to be adjudicated in Indian before submitting to the lender.
f. Administrative fees: Some of the lenders split the processing fee into two different parts, the one fee which is charged after the loan is sanctioned is known as administrative fee.
g. Documentation: Documentation which are required to process the loan are Address Proof [Aadhar Card, Electricity bill, Voter ID, rent agreement, etc.], Identity Proof [Aadhar card, Voter ID, Income proof, property documents] and Income Proof [salary slip, bank statement, 2-yrs ITR for self eomployed].
h. Home loan offers: Bank offers a special scheme for special category of borrowers, i.e. women, senior citizens, NRI’s. Overdraft facility is also offered by banks to these borrowers to save interest rates on home loan