Personal Loan
Looking for a Home Loan?
Let us help you search the most suitable offers for your dream home. Banks and other financial institutions offer home loans for the purchase of the property. You can also buy/construct/renovate/extend your house with this money and repay it gradually within the chosen time period. Home loans are secured against the property. The eligibility for a home loan depends on an applicant's income, credit history, property value and location. Based on these factors, the maximum loan amount is calculated.
Frequently Asked Questions
Will the EMI Change with the Change in Home Loan Interest Rates?
The Equated Monthly Installment (EMI) would most likely remain unaffected with the change in home loan interest rates. The change in rates would, however, ensure a change in the proportion of interest and principal over the years. If the lender raises the interest rate, the interest portion of the EMI will increase. The principal portion would decrease in such a case. When the lender cuts the rate, the interest portion will come down. The principal portion of the EMI would increase. Apply Home Loan Now
What are the benchmarks used by lenders to price Home Loans?
Since October 2019, banks have started following the external benchmark i.e. Repo-linked Lending Rate (RLLR) to price floating rate home loans. So, whenever the Reserve Bank of India (RBI) makes a change to the Repo Rate, the rate at which the central bank lends to commercial banks, there will be a change in the home loan rate in the same proportion. A spread will be charged over the external benchmark rate and will remain fixed throughout the loan tenure unless the credit profile of the borrowers undergoes a substantial change. Since October 2019, the RBI has slashed the repo rate by as much as 140 basis points (1.40%), including the latest 40 basis point reduction on May 22, 2020.
Before 2019, banks used to offer floating home loans on the basis of the Marginal Cost of Lending Rate (MCLR), a loan pricing mechanism that was introduced by the Reserve Bank of India (RBI) in April, 2016. Before that, banks used to charge home loans on the basis of base rate. Housing Finance Companies (HFCs), on the other hand, benchmark Retail Prime Lending Rate (RPLR) or any other reference rate. The actual rate is arrived by deducting a few percentages from the said benchmarks.
What is a Teaser Home Loan and should you apply for it?
A teaser home loan is an offering where the rate of interest will remain fixed for the first few years before floating rates will apply to the outstanding loan balance. As these loans are offered at higher rates than a full-fledged floating rate loan, having them won’t be good. Currently, as the economy continues to face challenges due to weak demand that has got accentuated further by the COVID-19 induced lockdown, floating rates will come down even further. The RBI, which advanced its monetary policy meet scheduled to be held in June to May 20-22, 2020, has lowered the repo rate by a further 40 basis point to 4%. So, possibly from June 1, 2020, you could see floating interest rates coming down to even below 7%. The weak demand may continue for some more time. This could only widen the difference of interest rate between a teaser home loan and a complete floating rate loan. So, choosing a teaser home loan will translate into massive interest payments which can be avoided using the repo-linked floating rate home loan.
Will the Interest Rate Change whenever the Lender Changes the MCLR?
No, the interest rate won’t change whenever the lender changes the MCLR. For example, if the lender has provided you a loan on 1-year MCLR, the rate will be subject to change after a year from the date of home loan sanction. The same pattern will follow afterward. When the reset date arrives, the loan will be repriced according to the prevailing MCLR.
What is Pre-EMI Interest on Home Loans?
The concept Pre-EMI interest is applicable to partly disbursed home loans. A borrower has to pay only the interest portion of the loan till the time it is fully disbursed.
What is a Plot Loan?
It is a loan extended by banks and housing finance companies to individuals wanting to buy a plot. However, this loan would be given when you construct a home on the plot. Apply Now
What are the documents needed to Buy a Property?
You need to submit the following documents
- Title Deed
- Sale Deed
- Approved Building plans
- Completion Certificate (For Newly constructed property)
- Commencement Certificate (For Under-construction property)
- Conversion Certificate( If agricultural land is converted to non-agricultural)
- Encumbrance Certificate
- Latest Tax Receipts
- Occupancy Certificate
How much Loan can I get to buy a Home?
The home loan amount would depend on a variety of factors such as your income, age, property value, etc.
What is Loan to value ratio?
It means the amount of home loan you can get on the total value of the property. Loans up to 30 lakh can be financed at up to 90% of the property value. Loans above 30 lakh to 75 lakh can be granted at up to 80% of the property value. Loans above 75 lakh can be offered at 75% of the property value.
Can I avail Home Loan Balance transfer?
Yes, you can avail the home loan balance transfer facility to save on the overall interest outgo. The balance transfer is a process by which the outstanding loan balance gets transferred to another lender at lower rates of interest.
How much tax can I save on a Home Loan?
Home loans come with tax benefits for borrowers to avail. The tax benefits apply to both principal and interest repayments. You can get a maximum tax savings of up to 1.5 lakh on principal repayment in a financial year under Section 80C of the Income Tax Act. On the other hand, you can get a maximum tax savings of up to 2 lakh on interest repayment in a financial year under Section 24 of the IT Act.
When should you make a Home Loan Balamce transfer?
A home loan balance transfer will be ideal when there’s a lot of time for the repayment to be over. More repayment period means a scope for massive interest payments is prominent. For example, you still have more than 10 years left to repay a 20-year home loan, you can transfer your home loan to a new lender and make significant savings. You also need to ensure the new lender offers you the balance transfer facility at an interest rate at least 0.25%-0.50% lower than the existing one.
How will the Home Loan Repayment Change Post Balance Transfer?
The balance transfer will result in a reduced EMI that you need to pay every month. This will also reduce the overall interest payments on a home loan.
Proud to be associated with We are thankful for the immense support from our channel partners in helping millions fulfill their wishes.