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About Home Loan

Home loan is one of the most vital financial decisions of your life. In India, you can avail home loans mainly from two types of lenders: the housing finance companies such as LIC Housing Finance Ltd., DHFL and commercial banks like SBI or HDFC. However, most of the lenders sponsor 80% of the property value as a home loan. The remaining 20% needs to be capitalized as a down-payment from your side. Although most of the NBFC banks can provide funds up to 90% of the property market value, the amount of loan sanctioned totally depends on your eligibility. The best course of action before applying for a home loan is to first calculate the home loan EMI using the home loan EMI calculator at Afinoz.com and then choose the best available options from different lenders.

Features & Benefits

Avail Tax benifits on Loans

Enjoy the tax benefits up to 2 lakh on both principle loan amount and home loan interest payments under ...more

Improve your credit score

If you are paying your EMI on the due dates every month then you will see an increase in your credit score...more

Benefit from Lower Interest Rates:

With RBI's recent rate cuts by 0.25%, new home loan borrowers can get a greater advantage of lower interest rate.

Great Investments

Investing in properties has a great potential as the value of a property only increases over the long-term period....more

Joint Home Loan Advantages

Applying for a home loan with an earning co-applicant helps in increasing your home loan eligibility for a longer ...more

Quick and Easy Application

Using an easy and seamless online application processing as offered by Afinoz.com, you can apply for a home loan with...more
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Eligibility & Documents Required

Eligibility

In order to be eligible for a home loan in India, the individual must fulfill certain eligibility criteria and based on that, the decision for the amount of home loan is made. Following are some of the key factors that are taken into consideration when applying for home loans:

Age
Credit Score
Income Requirements
Co-applicant income
Employment stability and continuity

Age

Your age should be ranging from 21 to 60 years. Many times individuals in the age group of 30 to 50 are given more significance as they are considered more stable financially.

Documents Required

you would need to submit the following documents along with the completed application form for the home loan process:

Documents for salaried individuals:
Documents for Self-Employed Individuals:

Documents for salaried individuals:

Citizenship

  1. Loan application form: Completely filled loan application form attached with the recent passport size photographs of both the applicant and co-applicants.
  2. Identity proof: Aadhar Card / Voters ID / Passport / Driving License / PAN Card.
  3. Income proof: Last 6 months' salary slip or ITR, most recent Form 16 and past 6 months' salary bank statement, company ID card, appointment letter.
  4. Residence proof: Lease and License Agreement / Utility Bill (maximum three months old) / Passport.

eligibilty
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Interest Rate & Charges

As home loan interest rates are linked to the base rate dictated by RBI directives and with RBI's repo rate cut in basis point, borrowers can now avail the benefits of lowered home loan interest rates. Some additional aspects that may affect the interest rate on home loans include the loan amount, loan tenure, credit history and your reputation with the bank. Apply for a home loan with Afinoz and you can avail the best home loan interest rates.

Bank
Interest Rates*
Processing Charge
HDFC Limited 8.35% to 11.90% 0.50% of loan amount
ICICI Bank 8.40% to 8.85% for General Borrowers, 8.35% to 8.80% for Women Borrowers 0.50% of loan amount + Service Tax
Bank Of Baroda 8.35% to 9.60% Upto Rs.7,500
Axis Bank 8.35% onwards 0.50% of loan amount + Service Tax
Bank of India 8.55% to 8.60% 0.25% of loan amount
State Bank of India 8.30% to 11.40% 0.30% of loan amount
Canara bank 8.35% to 8.55% 0.5.% of loan amount
Syndicate Bank 8.75% NIL
Indian Overseas Bank 8.55% to 9.05% 0.53% of loan amount
Allahabad Bank 8.50% to 9.00% 0.40% of loan amount
IDBI Bank 8.35% to 8.65% 0.50% of loan amount
TATA Capital 8.75% to 9.05% 0.5% of loan amount
Punjab National Bank 8.60% to 10.75% 0.5% of loan amount
LIC Housing Finance 8.50% to 8.90% Upto Rs. 5,000
Bajaj Finserv 13.49% to 16% 2.25% - 3% of loan amount
Kotak Mahindra 8.35% 0.50% of loan amount
Indiabulls Housing Finance 8.35% to 11.75% 0.50% to 1.00% of loan amount
L&T Housing Finance 8.70 to 9.65% Upto 2% on loan amount + Service Tax
Oriental Bank of Commerce 9.70% 0.50% of loan amount
Central Bank of India 8.50% 0.50% of loan amount
UCO Bank 8.60% to 8.80% 0.50% of loan amount
DHFL 8.60% to 10.00% Upto Rs. 20,000 + Service Tax

Disclaimer: *Rates are subject to periodic changes. Home loan interest rates & other fees/charges are subject to regular review and can vary with each & every customer. These can differ depending on your creditworthiness & other factors. The final interest rate will be based on different criteria including the bank’s internal policies & applicable rates at the time of approval. Please note that the interest rates provided here are based on market research. To facilitate the comparison insight, a certain set of data has been reorganized/restructured/tabulated. It is advisable to recheck the same with the individual companies / organizations. This website does not take any responsibility for any sudden or uninformed changes in interest rates. Banks or Financial Institutions can contact us at info@afinoz.com for inclusions or updates.

For any further query, please contact us at +91-9899889816 or e-mail us at info@afinoz.com.

FAQ's

Q.
Who can apply for a Home Loan?
Any salaried individuals, self-employed person or businessmen who overcome the eligibility criterion set out by the lending institutions can avail the benefits of home loan.
Q.
Can I apply for the loan with a co-applicant?
Any immediate members of your family say your spouse/children/parents are allowed to act as your co-applicants in case of home loan.
Q.
What security do I need to provide to avail the loan?
The property deed of the house for which loan is being taken should be provided as security against loan. If the house is under construction and you are not able to provide the required documents, then any collateral as security such as bank deposits, government bonds, deeds of other immovable property you own would need to be provided.
Q.
How do I pay the EMI for a home loan?
Two options are available to repay your loan:-
  1. Post dated Cheques : In case you don’t have an account with the specific bank, then you can draw a cheque to pay the EMI’s at the end of the month.
  2. Debit from account : Your EMI amount will automatically be debited from your bank account.
Q.
What is the tenure of a home loan?
As home loans are related to long term loans their tenure ranges from a minimum of 15 years to the maximum of 30 years. It totally depends on your loan amount along with some other factors. Usually, the maximum tenure for salaried individuals is 25 years and for self-employed individuals, it is 20 years.
Q.
Can I save money by paying off my home loan early?
With prepayment, you will able to reduce the EMI, which in turn will result in the reduction of the principal loan amount. Low principal amount leads to lower interest. Thus, you will be able to save lots of money with lower interest payments.
Q.
Are there any penalties for pre-payment off a home loan?
Some banks such as SBI do not charge any penalty on pre-payment of home loans.
Q.
What happens if I don't pay the EMIs on time?
Banks will ask you to pay late payments penalty, you will be put on a high-risk loan borrower category and your CIBIL score will get affected.
Q.
What is the maximum amount of a loan that I can avail?

The maximum amount of home loan disbursed depends on two factors:

  1. Your credit score
  2. Your potential to repay the loan

Banks usually take into account 40 to 60% of your net annual salary for EMI and the market value of the property as a factor to decide on the maximum loan amount to be disbursed.

Q.
How can I estimate my monthly loan payments?
Your EMI is calculated using three main factors:
  1. Your borrowed loan amount
  2. Rate of interest
  3. Tenure of loan

You can easily calculate your estimated monthly loan payments by using this home loan EMI calculator available at afinoz.com.

Q.
Why should I apply for a Home Loan from Afinoz.com?
Applying for home loans from Afinoz.com has the following advantages:
  1. Convenient: Afinoz.com provides an online platform where you can do all your dealings with the lender online and you don't have to visit different banks for loans in person.
  2. Compare rates of different lenders at one place: Afinoz.com provides a fuss free loan comparison and application platform.
  3. No agent involved: Applying for a loan from Afinoz.com saves unnecessary expenses and delays with the loan procedure.
Q.
Should I go with the fixed or the floating interest rate?
Fixed interest rate means the EMI's are fixed for the home loan over the entire period of repayment of the loan. While in floating, the rate of interest on the loan borrowed fluctuates with the market conditions. Research thoroughly and do your inquiries before taking the loan as each one of them has their own benefits and drawbacks.
Q.
Can I trade my floating interest rate with fixed a interest rate?
Not many banks allow you to trade from floating to fixed interest rates. However, some banks can permit you to switch with a small penalty charge. Make an enquiry to your lenders about the requirements and the procedure.
Q.
Should I switch my base rate home loan to an MCLR lending rate?
Reserve Bank of India has introduced a new set of guidelines for banks called MCLR (Marginal Cost of Lending Rate) wherein banks are allowed to set their own convention of lending rates and give loans to the borrowers as per their creditworthiness. If you have taken a loan on the basis of base rate then it would be tangible for you to transfer to MCLR lending rates, as you can a save large portion of money with the drop of interest rate in the future.
Q.
How long does it take for the disbursement of the loan?
If all valid documents are submitted then the loan will be disbursed in 14-days. However, if you apply for a home loan online then after submitting all the prescribed documents online, it will take just 3 days for the approval of loan.
Q.
Does the bank disburse the loan amount in full or in installments?
Once the loan is sanctioned, banks will then dispense loan in 3 to 4 installments based on the sale deed and builders demand notes of payments.
Q.
Can I sell my property even before the loan amount is fully paid off?
You can sell your property after 7 to 10 years depending on the terms and conditions declared by the lender in the loan agreement.
Q.
Can a pre-payment of home loan affect my credit score?
Doing so will not have any effect on your CIBIL score, but it will definitely increase your eligibility for a home loan.
Q.
How can I apply for a Home Loan Online on Afinoz.com?

You can apply for home loan from Afinoz.com with these three hassle-free easy to understand steps:

  1. Enter all your personal and employment details such as your full name, employment type, contact details, date of birth and your new property details.
  2. In the next step, view and compare the specifications like tenure, EMI amount, processing fees of different lenders and apply to the one you find most suitable.
  3. Upload the specified documents and submit the application form to get the home loan approved.
Q.
What benefit can I get in terms of income tax on home loans?

You can get two benefits:

  1. 1. Tax benefits on interest - You can claim a benefit of maximum 2 lakhs on the interest amount paid on a home loan as stated in the section 24 of the income tax act.
  2. 2. Tax benefits on principal loan amount - You can also get a tax benefit of 1.5 lakhs on the repayment of principal home loan amount as per the section 80C of the income tax act.
Q.
Can I get a home loan if I have a low credit score?

Banks are very selective when it comes to credit score. A low credit score will make it difficult for you get a home loan. However, many NBFC’s can compensate your low credit score with higher interest rates for availing a home loan.

Q.
What are the top financial institutions providing home loans in India?

Some of the stellar housing financial institutions in India are: HDFC Bank, State Bank of India (SBI), Housing Urban Development Corporation (HUDCO), LIC Housing Finance Limited, IHFL, ICICI Home Finance Company Limited, DHFL, CHFL, PNB Housing Finance institution, GIC Housing Finance Limited, and others.

For any further query, please contact us at Afinoz.com, mo: +91-9899889816 , email info@afinoz.com