With our home loans you can be assured of

• Flexible Loan Tenure: Choose loan tenure from a Minimum of 3 Years to Maximum of 30 years, allowing you to select a repayment period that fits your financial plan.
• Maximum Loan Amount: Get maximum funding of up to 90% of the property/construction value with loan amounts starting from 10 Laks (1 Million) to 1000 Cr (10000 million) subject to meeting up of eligibility criteria.
• Competitive Interest Rates: Benefit from the lowest interest rates in the market, ensuring affordable EMIs.
• No Closure Charges: Home loans provided to individuals are charged Nill Fees for early or pre-closure at any point of time after the lock in period.
• Pre-Approval: Get pre-approved loans to streamline your home search and strengthen your bargaining position.
• Balance Transfer Facility: Transfer your existing home loan for better interest rates and lower EMIs.

Home loans are secured loans provided by banks and housing finance institutions. Loans are provided for Resident and Non Resident Indians for

• Individuals:

  Salaried, self-employed (like traders, distributors, suppliers…etc) and professionals (like doctors, chartered and cost accountants, consultants...etc).

• Non Individual Entities:

  Partnership, Private ltd and closely held public ltd companies

Home loans are available in different forms for different purposes: -

Home Loans are provided for

• Purchase Loan : For purchase of Land(Plots), independent houses, villas and apartments (ready to occupy and under construction projects) from individual’s, builders and developers
• Construction Loan : For construction/development of residential property.
• Home Improvement/ Extension Loan : For improvement or extension of existing property
• Balance Transfer Loan : To transfer / restructure an existing loan under different terms / with different bank or financial institution
• Composite Loans: For purchase of site or plot of land and construction thereafter.
• Top Up Loan : Provided over and above the existing loan based on the value of the property.Top up loans are given over and above the existing home loan for personal or business use. The end use of top up loans is generally not monitored and can therefore be used for any legal activity such as marriage, higher education, vacation, buying artefacts, home furnishing, closure of other loans, etc.

Eligibility Criteria at a Glance:

• To apply for Any property loan, applicants must meet two major general conditions or criteria which are income eligibility and property eligibility. Loan is sanctioned of the lower limit on comparing the two.
• The others being loan terms, conditions, and other criteria.
• Credit Score – A descent Score of 680 and above is desirable

Use our Eligibility calculator to know more

Income Eligibility Criteria
The loan eligibility on income depends on factors like your occupation, age, your monthly or annual income, the interest rate charged by the bank, Existing liabilities or serviced loans/EMI s, Credit/Cibil Score and the Tenure of the loan.

• Residential Status: Resident Indian and/or Non-resident Indians/OCI Card holders.
• Employment Type: Salaried, Self-employed Professional, and Self-employed Non- Professional, Pensioner.
• Age Limit: Minimum of : 18 years , Max: 60 Years for salaried and 70 years for self- employed at the time of loan maturity. Upto 10 % on Year deviation on max age subject to Approval
• Salary/Income: A minimum Net income of Rs. 12,000 per month. (1.5 lakh Per annum.)
• Work Experience: Minimum 1 year in the current organization/Business.

PROPERTY Eligibility Criteria - Loans are provided for and against purchase and construction/development of all kinds of residential properties.

• Property Type: Land, Residential, villa, apartments, flats - both ready and under construction
• Maximum Loan for your property: Loan is provided Up to 90% of the property /construction estimate or value.
• The property should be free from any disputes and litigations and should have clear and marketable title.
• The selected property must be approved by the banks/financing institution’s legal and technical advisory department or panel.
• The property will be inspected, verified, and valuated by the bank and certain times banks will also take help of external agents/professionals.
• Within the approved geographical limits of the bank or financial institution; the property must not be situated in any negative area.

CO –APPLICANT / GUARANTORS .

• Depends on the Bank/Financial Institution – (Mandatory with most of them, but can be optional as well)
• Preferably direct blood relative or spouse if married
• All co-owners of property necessarily are to be co-applicants.
• In case of company as borrowers all directors to be either co applicants or guarantors on individual capacity.
• Addition of co applicants with income can increase loan eligibility.

Guarantors - Generally Not Applicable. Insisted depending on case to case.

Longer tenure will have lower EMI so higher the loan eligibility. Additional income if any can be added back to enhance eligibility as per norms like rental, consulting …Etc, provided the proof is submitted. This income is added back only after validation and approval by the bank/Financial institution. Addition of co applicants with income can also increase loan eligibility. There are restrictions on who can be a co-applicant.

Use our interest calculator

Floating, Fixed Interest Rates: Banks or financial institutions generally offer floating rate of interest (Which change or fluctuate as per the change in Benchmark Lending Rate For Eg. RBI’S Repo Rate), whereas Fixed Interest Rate helps you to maintain a consistent amount of monthly payment or EMI throughout the tenure and is available on request.

Reducing Balance: The interest charged on loan is calculated generally on a monthly (or quarterly) reducing balance mechanism; meaning the interest is only charged for the principal outstanding as on each month (or quarter) and not for the entire loan sanction amount.

Fixed interest rates to be more expensive than floating rates for a similar tenure.

Below is the indicative rate of interest for Home Loans:

Applicable rate of Interest on loans depends on the quantum and tenure of the loan. It also depends on the applicant’s credit profile and the property selected. Interest rate also varies based on the type of loan taken and the financier.

Any loan availed needs to be repaid and that too with interest month on month. Loans are repaid in Equated Monthly Instalments (EMI), which includes principal and interest built into one single payment. EMIs are generally paid through online/electronically via standing instructions, from preset accounts on preset dates of the applicants. Very rarely and in certain specific conditions are these payments allowed through cheques.

Use our EMI calculator

• The interest component in the EMI would be larger in the initial months and gradually decreases with advancing tenure whereas the principal payment will be lower initially and increases as the tenure advances.

Things to remember

• Banks and financial institutions apply interest rate as on date of disbursement of loan; this may be different from the rate mentioned in sanction letter.
• When interest rate on home loans increases, banks generally tend to increase the tenure of the loan while keeping the EMI same. In this scenario, the principal portion repaid from the EMI reduces as the interest outflow is more.
• Consider taking a floating rate of interest when the rates peak and fixed rates at times of lower interest rate.
• Consider the fees or charges applicable for change from floating to fixed and fixed to floating
• Loans to companies for purchase, construction or improvement of properties are not treated as home loans but as commercial loans; therefore commercial terms and conditions are applicable.

Banks and Financial institutions generally ask documents of proof relating to identity, income, obligations, and property.

One needs to account for bank and government fees while finalising a home loan. The Primary fees Banks/Financial institutions charges for any loan application is processing fee. Apart from Bank’s Fees and charges and there are incidental charges incurred as well as govt fees and charges like stamp duty and registration fees which needs to paid towards execution of loan agreement, affidavits, indemnities and memorandum of deposit of title deed ..etc.

There are pre and post sanction fees and charges applicable while availing a home loan.

PRE-SANCTION- Login/application/Processing Fees

POST-SANCTION- Balance Processing/Administration Fees

DISBURSEMENT – Loan Agreement and Documentation Stamp Duty, Incidental Charges, Mortgage deed execution Stamp Duty ( 0.5 % of Loan amount ), Mortgage Registration Fees, Insurance Premium, Other additional documentation execution charges and stamp duty Like Affidavits, Declarations ..etc .

Post-Disbursement: Pre- EMI, EMI, Other Charges as per the List Below.

Note: All the applicable charges and fees for a loan is normally mentioned in the sanctioned letter, if not it will be mentioned in detail in the loan agreement and related documents that the bank sends you for signatures, so it’s very important and highly recommended that the applicants read the sanction letter as well as the fees and charges section with the most important terms & conditions sections of the loan thoroughly. Any dispute and claims that will arise in the future will all be referred to these documents.

Make sure that you go through the mentioned charges and clarify the same before your signatures.

Part or full wavier of the charges, as well as other deviations from standard terms and conditions are subject to approval from approving authority of the concerned bank/Financial institution. In case of such commitments from the bank/authority customers should make sure that it is communicated by way of a separate correspondence by email or letter from the concerned authority.

The list of fees and charges are detailed below and is mentioned in a range as it can differ from one lender to the other and are subject to change at their sole discretion.

Request you to read the below mentioned charges and details as an initial point of information and check the specifics while availing the loan.

Know all the detailed charges and fees. Expand the below table (Given as a separate document )

Loans are disbursed generally by way of pay orders (or demand drafts / banker’s cheques) and by online transfers favouring the beneficiary, only after clearly specifying the following:

It is recommended that applicants fix the loan amount prior to processing for disbursement even though the sanctioned limit may be higher than the loan amount that needs to be disbursed. This ensures that no commitment charges are levied later for the undisbursed /unutilised loan amount.

The beneficiary of the loan amount disbursement depends on the type and purpose of loan availed.

Loan amount disbursements are processed only on submission and acceptance of all documentation (which includes loan agreements, original property documents as prescribed by the lender, repayment/security cheques, affidavits, indemnities and other related documents in the given formats ) as prescribed by the bank.

• Interest is charged on the loan amount from the day or date of disbursement.
• Disbursements of part or full loan amount is subject to valuation and technical departments approval.
• Written consent from the applicant is mandatory for all loan disbursements including each part disbursement.
• All conditions mentioned in the sanction letter must be fulfilled/adhered before disbursement of loan.
• NOTE: it will take 2 to 7 working days to process (pay orders/demand drafts/Online transfers) of loan amounts post the submission of the required documents.

With our dedicated team of experts, we will make sure that you get the right financer as per your profile and the desired terms and conditions. we will also guide you in gathering and preparing the documents, while also ensuring a hassle-free completion of the entire loan process by timely follow-ups and coordination.

• Explore Your Options: Browse through our loan products and use our online calculators and tools to understand your need.
• Application: Gathering the required documents with a simple online /offline application form.
• Document Submission: Upload or submit the required documents for verification.
• Verification/Credit Appraisal – Legal and Valuation of the Property / Verify all the given documents for eligibility and other compliances. Personal Discussion.
• Approval: Loan approval based on eligibility and on verified documentation.
• Sanction Letter: Receive a sanction letter detailing the loan amount, tenure, interest rate, EMI and other terms and conditions.
• Documentation: Sign and Submit (Digital/Physical) loan agreements, original property, and other prescribed documents.
• Disbursement: Loan amount disbursed/credited to the beneficiary.
• EMI Payments – Payment of EMI/Pre-EMI starts till the loan closure.
• Loan Closure – Once the loan is closed the original Property Documents with a No Due Letter is returned back to the customer.

TURNAROUND TIME – Sanctions for salaried home loan can be processed within 2 to 5 days, whereas self-employed loans may take around 4 to 10 days for sanction. Post sanction process of disbursement of the loan amount may take anywhere between 2 to 5 days depending on the additional documents required, sanction conditions and other factors.

View/download in-depth process flow.

The property for which the loan is provided is retained by the bank or financial institution as security against the loan. Sometimes additional security may be insisted for reasons assessed by the bank/institution. The loan is secured by way of deposit of the original title deeds and other important documents of the property with the bank for which a memorandum is executed by paying stamp duty and fees.

Once the loan is closed the deposited original property documents with a No Due Letter is returned to the borrowers.

Collateral for loans is generally executed by equitable way of mortgage.

Banks/financial institutions hold and create security of the provided property in two different methods.

1. Equitable Mortgage: This is the generally followed method of holding security in property loans where loans are disbursed by way of equitable mortgage, wherein the borrowers submit all the prescribed original property documents with a memorandum of deposit of title deeds (with the stamp duty paid) to the lending institution who in turn returns them along with a No Objection Certificate or closure letter on complete closure of the loan.
   There is no registration of the memorandum at the sub-registrar’s office in this form of mortgage.
2. Another method, of securing a loan is a Registered Mortgage wherein the property/finance facility is registered in the name of the lender (through a memorandum of equity registered with the jurisdictional sub registrar) till the financial obligations are fulfilled. Once the loan is fully closed, the original title documents of the property, along with a no objection certificate/ closure certificate and mortgage release deed is executed with the jurisdictional sub registrar and is handed over to the applicants. This mode of transfer is rarely used for home loans unless specified by the bank and is more applicable for mortgage, commercial and secured Working Capital/Business loans.

Any mode of security creation will incur charges like stamp duty and registration charges (depending on the type of document executed) and needs to be borne by the applicants.

Acknowledgement for the deposit or submission of all the original property documents will be provided by the bank/Financial Institution.

Note. The original documents of the property are not to be laminated, mutilated, or lost. If so the same needs to be informed to the bank in advance (at the time of login to the system or prior verification) if not the proposal will be rejected.

*Please consult your chartered accountant or financial accountant for more information on tax implications with reference to your income and obligations. Request you to use the below write up as a basic or general information to taxation and not specific to your income.

Apart from building up an asset-base, investment in houses through home loans helps reduce tax outgo through tax benefits. The government offers tax benefits to salaried and self-employed individuals for home loans availed in India. NRIs can also claim these benefits provided they have taxable income generated in India through salaries, business, interest income, consultation fees or rentals.

The govt of India allows deduction of income for Tax advantages through two sections of the income tax act.

1. Deduction under Section 80C – For principal repayment
2. Deduction under Section 24(B) - For interest repayment

NEW TAXATION

As per the new tax structure there is no direct tax benefits that can be availed for home loans, whereas tax benefits are applicable for non-home loans for self-employed depending on the accounting pattern and end use of the loans.

No deduction is allowed under section 80 C towards principal payments, stamp duty, registration charges also section 80ee and 80eea is also not allowed.

No deduction under section 24 B for the payment towards interest is allowed for self- occupied property

For let out properties’ deduction is available under section 24B if only there is loss in let out property can be offset against the profit from other let out properties but not against any other income like salary or business income.

OLD TAXATION

Apart from the applicant, co-applicants can equally claim income tax deduction under section of 80(C) and 24 (B) if proof of contribution (like the interest certificate from the financer reflecting name) for the EMI’s is duly submitted.

Given the risks and uncertainties our lives are fraught with, it is a good idea to obtain an insurance cover for the life of the borrowers as well as for the constructed building / home.

Though life insurance is optional, banks and financial institutions do insist on the same, whereas property insurance has been made mandatory by the governing body, nevertheless both are highly recommended.

Both life and home insurance cover or policies are available as part of the loan package. The premium can be added back to the loan amount and can be financed if the policy is taken as a package with the home loan.

Applicants can opt for three types of Insurance options.

1) Life Insurance: life insurance as single premium term polices are offered for the applicants against any eventuality of his or her Life because he being the breadwinner for the family. In the event of eventuality to the life of the applicant this policy will work as a shield against the burden of the loan by enabling repayment of outstanding loan liability and makes sure that the asset can still be enjoyed by the surviving members of the family as before.

The premium paid for the life insurance with the home loan is deductible under the section of income tax act 80(c) act..

2) Property Insurance or Home Insurance* is available against any damages caused for the building/structure and its contents* against any natural or man-made hazards or calamites. Any completed standard constructed property can be insured for a value not exceeding its reconstruction value. In case of damage to the property, only the reinstatement value – or the cost of reconstruction - is reimbursed to the applicant subject to the maximum insured amount; cost of land is nor insured nor reimbursed at any time of claim. Insurance cannot be done for market value as market value of any property includes land and other factors which determine the same.

3) Home Content Insurance is available against any damages caused for the contents and valuables against any natural or man-made hazards or calamites including theft or burglary. This policy can be taken to insure the contents of a home such as furniture, household appliances, jewellery and other valuables

NOTE :-

*Home insurance and home content insurance are two different types of policies and need to be taken separately as the one will not cover the other.

The home insurance and the home content insurance does not have any direct tax benefit for the premium paid under the income tax acts

The availability of property and life insurance depends from location to location depending on banks/Financial institution. Certain banks and financial institutions may provide both life insurance and property insurance at certain locations and may only provide either one of them at certain other locations.