Buying your own house is a dream for many. But the sky-high price of real estates makes this dream a rare possibility for most of us. But don’t worry. Home Loan is your savior. With the help of a home loan, you can easily fulfill your dream of buying your own house. Home loan is a secured loan which needs collateral (the house you are buying) as a security to the lending institution. Also, you can use the home loan amount for renovating your house or constructing a new house. The home loan involves minimum documentation and easy approval process. With Equated Monthly Instalments (EMIs), you can easily repay your loan.
Here are some of the key features of the home loan-
- Home loan is a secured loan which requires collateral as security.
- Apart from buying the new house, you can take a home loan for – renovating your house, extending your existing home and so on.
- Easy paperwork with competitive interest rates and flexible tenure.
- Repayment period is maximum 20-25 years.
- No hidden charges are required.
Interest Rates of top 10 Home Loan Providers
When applying for the home loan, the most important thing that you consider is the interest rates charged on it. So, here is the list of top 10 banks and NBFCs who are providing a home loan at attractive interest rates in 2019.
|Banks/NBFCs||Rate of Interest||Processing Fees|
|State Bank of India Home Loan||8.30%-8.50% (for women)|
8.40%-8.75% (for others)
|HDFC Bank||8.40%-8.60% (for women)|
|Up to 0.5% of the home loan amount|
|LIC Housing Finance||7.35%-7.75%||Up to Rs. 1 crore- Rs. 5000|
Above RS. 1 crore- Rs. 10000
|ICICI Bank||8.40%-9.40%||0.5%-1% of the home loan amount|
|Axis Bank||8.30%-10.30%||Up to 1% of the home loan amount|
|DHFL||8.90%-9.80% (for self-employed)|
|Up to 1% of the home loan amount|
|Indiabulls||8.30%-11.55%||Up to 1% of the home loan amount|
|Tata Capital||8.70%-9%||0.2% of the home loan amount|
|PNB Housing Finance Ltd.||8.40%-10.55%||Up to 1% of the home loan amount|
Eligibility Criteria to apply for Home Loan
Before sanctioning the home loan, every lending institutions checks the eligibility criteria of the customers. Below criteria are checked by the banking institutions.
|Criteria||Salaried Customer||Self-Employed Customer|
|Age||Min- 24 years|
Max- 60 years
|Min- 24 years|
Max- 65 years
|Income||Rs. 1,30,000 per annum||Rs. 1,60,000 per annum|
|Employment Stability||Full-time job of at least 2-3 years of experience||Minimum 45-46 years of experience with good turnover|
|Co-applicant||Only family members||Only family members|
|CIBIL Score||750 or above||750 or above|
Documents Required to apply for Home Loan
Following are the set of documents that you need to submit to apply for home loan.
- ID proof- PAN card, AADHAAR card, Voter ID card.
- Address proof- Any utility bill such as Electricity or Gas bill, Driving License, Passport.
- Passport size photograph.
- Appointment letter and job continuity proof for a salaried individual.
- Form 16
- Last 3 months Salary slip
- For Salaried
- Balance Sheet, Profit & Loss A/C of last 2 years.
- Last 3 years Income Tax return
- Allotment letter by the Housing Board/Society.
- No objection certificate (NOC) from the concern Housing Board/Society.
- Estimate of the cost of the house.
Benefits to apply for Home Loan
Before applying for a home loan, just have a look at the benefits of applying for home loan.
- You need to submit minimum documents to apply for home loan.
- To repay the home loan, you get a maximum of 20 to 25 years.
- Interest charged for home loan is minimum of 8.30%, which is quite awesome.
- You can get tax benefit on home loan under Section 24 of Income Tax Act, 1961.
- Also, a home loan is applicable for tax deduction under Section 80C of Income Tax Act, 1961.