A shelter is a basic necessity for all individuals. Having our own living abode, called Home is what we all aspire for. Home loan is what makes this dream of ours a reality by providing us with the much required financial assistance.
Home loan, also called housing loan is the finance borrowed from banks by an individual or joint applicants for a fixed tenure at a particular rate of interest. Home loans occupy the top selling product/service for banks & financial institutions, and multiple lending institutions provide home loans with attractive features.
At Value Money, we help you choose the right and the best home loan, which suits your requirement. So, you don't have to make any efforts, just fill in your requirement at Value Money, and we will choose the best for you.
Home Loan is not just for buying a new home, it can serve a myriad of other purposes too. Some of them are listed below:
You can avail this type of loan for purchase of plots on which you can later construct a home.
The most common type of loan usually borrowed for purchase of new or re-sale property with interest rates between 8.55% and 11.25%.
If you feel that the current loan provider is overcharging you then switch to another bank offering a lower home loan interest rate with balance transfer.
If you just want to make an addition to your existing property like an additional room then opt for a home extension loan to reduce the interest burden.
If you have a pre-existing loan and are moving into a new home then simply transfer the existing loan to a new home with the same financier along with the additional loan amount.
Indians settled abroad looking for a property in India can get NRI home loans at attractive interest rates from various banks in India.
These are short-term loans which allows you to pay for the short-term expenses that may arise while moving from an old home to a new home.
From applying for a home loan, to getting a loan scantioned, the entire process can sometime get cumbersome. We break down the home loan process to make it easy for you to understand the steps before applying
Step 1 : The bank assesses your eligibility depending on your credit history and income verfication and arrives at the loan amount you can avail
Step 2 : Your submitted documents are verified by legal authorities. This process may take time
Step 3 : Valuation of the property to be bought + valuation of the property kept as security with the bank is assessed by a legal officer
Step 4 : You will have to wait till your loan application is scrutinized and approved. Generally, you will receive approval in 7-10 days of time. Some schemes & banks do provide instant approvals too
Step 5 : Once the loan is sanctioned, you will have to sign the loan agreement accepting its terms & conditions. Once done, the loan is disbursed. The loan will be credited either as lumpsum or in installments as per the agreement
These are the major steps involved in the home loan process. However, the process can differ a little from banks to banks
Your eligibility decides the amount of loan you can avail. Your income, existing liabilities, CIBIL score all play a factor in deciding if you shall avail a housing loan or not
Min. age is 21 years. However the max. age can range from 55 years to 65 years depending on the banks
A steady income is what a bank looks for. You can generally avail 60 times of your net monthly income
A Cibil score of 750+ is usually considered a good score
A bank needs to verify if whether you can repay the loan. It takes into account the assests you possess and the liabilities you owe.
Your loan limit is restricted to upto 80%, for a property value above Rs.20Lacs
Please check the documentation requirement for home loan disbursal
The documents mentioned above are majorly indicative in nature. Additional documents if necessary can be asked for, as per the particular bank's requirement. For any more query get in touch with us.
Home Loan interest rates can be classified into fixed rate and floating rate. It also varies as per category of the borrower as follows
If you are a woman then you just got luckier! Most banks offer concessional home loan interest rates to women borrowers of at least 0.05%
Being a working professional has it’s own perks too. Some banks like HDFC offer special interest rates of 8.5%* on housing finance if you are working for a private firm, MNC, government company or other firm
If you are a businessman, in most cases, your business stability and income will determine home loan interest rates. Many banks such as State Bank of India and HDFC charge the same interest rate to self employed as well as salaried individuals
Home loans at a reduced interest rate of 6.5% is offered by banks to the economically weaker sections of the society under the Pradhan Mantri Awas Yojana