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Home Loan in India

You can take home loans in India, to fulfill your dream of buying a home. Owning a home is a dream, which many of us nurture; but most of us do not have lump sum money in hand, required to buy the home. This is where home loans in India come to the picture; the loan can help us in buying the house, which we dream to possess. Buying a home is a very important decision in your life, so before you set off for this journey, you must be clear about what you want. Research on the web, about the types of loan available and based on that decide the amount of loan money, you need. 

After you have decided on the amount required for home loans in India, use a home loan calculator to determine the Equated Monthly Installment or EMI, you have to pay for the loan. Once you have all these basic information with you, you will be in a better position to choose the type of loan you require. There are lots of sites on the web, which allow users to calculate their home loans in India EMI.
 



Types of Home Loans in India


 
There are various types of home loans in India, which you can take based on your requirements. You will have to examine your requirement carefully and based on that you will have to choose a loan. Some of the types of home loans in India are briefly given here:

·    Home purchase loan: this loan can be taken to buy a new home.

·    Home construction loan: you can take this loan, to construct a new home.

·    Home improvement loan: this loan can be taken to undertake any repair work in your home, which has already been purchased. 

·    Home extension loan: this loan can be taken, if you wish to extend your home by adding new room or rooms.

·    Home conversion loan: through this loan, you can purchase a new home by selling the existing home. Loan of the existing home will be transferred to the new home, with an increase in the loan amount based on the current eligibility. Thus, you will be saved from the hassles of repaying the first loan and then getting another loan to buy the new home.

·    Land purchase loan: this loan is available to those who wish to purchase land for both investment as well as construction purposes.

·    Bridge loan: this loan is for people who want to sell off their old home and purchase a new one. The loan helps in financing the new home, till a buyer is found for the old home.
 

Home Loan Agencies in India 


There are numerous banks and other financial institutions, which provide housing loans in India. Before you take any of the housing loans in India available in the market, it is very important for you to find out the housing loan interest rate, being offered by the bank. The various home loans offered by different banks to the public mainly include IDBI home loans, LIC home loans, SBI home loan and ICICI home loans.
Again ech financial institutions or banks in India have their own eligibility criterion, set of rules and regulations  to render home loans to each customer depending on their creditworthiness. Some of these parameters are:
 
 
LIC Home Loans

There are various schemes in LIC, through which you can take a home loan based on your requirement. A couple of schemes for house loans are Griha Prakash and Griha Sudhar. Eligibility for LIC home loans are given here:

o    Floating Rate of Interest varies from 8.75% to 9.25%, depending on the amount of your home loan.

o    You can seek the loan amount for a maximum of 85% of the total value of the property, including Stamp Duty and Registration Charges.

o    Security for the loan will be equitable mortgage house/flat and one guarantor.

o    For risk cover, any existing or a new life insurance policy in the name of the applicant, issued of LIC of India, having risk cover to the level of the loan amount is accepted.

o    The minimum loan amount, which an applicant can get, is Rs.50, 000, while the maximum is Rs.20, 00,000, depending on which scheme you choose.

o    1.00% of the sanctioned loan amount is charged as the processing fee.

SBI Home Loan

o    Loan applicant must be 18 years of age, on the date of loan sanction and the maximum age of repayment is 70 years, subject to certain conditions

o    Factors considered before granting home loans include age, assets, repayment capacity of the applicant, liability, and cost of the proposed home etc.

o    If the property can be mortgaged, the security for the loan will be the equitable mortgage of the property.

o    If the property cannot be mortgaged, other substantial security of sufficient value like NSCs, Life Insurance policies etc, will be security for the loan.

ICICI Home Loan

o    Loan applicant must be 21 years of age, on the date of loan sanction and the maximum age of repayment is 65 years or before retirement, whichever is earlier.

o    Resident Indians both salaried and self-employed can get the loan; salaried NRIs can also get the loan.

o    You can seek the loan amount for a maximum of 80% of the total value of the property.

o    0.5% of the sanctioned loan amount is charged as the processing fee.

o    You will have to pay 2% per month as late payment, if you fail to pay on the fixed date.

o    The charge for changing your interest rate from fixed to floating and vice versa is 1.75% on principal outstanding.
 
 
To get any of the home loans mentioned, you just need to analyze the home loan and find out, which is suitable to your requirements and then take it accordingly.
 
 
IDBI Home Loan

o    Salaried individuals, NRIs and self-employed businessmen or professionals are eligible for home loans.

o    The maximum period of loan repayment is 25 years, for salaried individuals; for self-employed people and NRIs, it is 15 years. 

o    You can seek the loan amount for a maximum of 85% of the total value of the property

o    The property’s title must be free from any legal issues about ownership

o    Factors considered before giving home loans to an applicant includes age, financial stability, and number of dependents, income, and income of the co-applicant.

o    A processing fee of up to 1% of the loan amount is charged by the bank. 

o    Fixed Rate of Interest for 3 years is 10.75% while for 5 years it is 11.00%

o    Floating Rate of Interest for up to 25 years on 30 lacs is 8.75%, between 30 – 50 lacs is 9% and for more than 50 lacs it is 9.25%.

o    Benchmark Prime Lending Rate (BPLR) for floating interest, up to 25 years on 30 lacs is 4.00%, between 30 – 50 lacs is 3.75% and for more than 50 lacs is 3.50%.