Home Loans

We bring you an online home loan application where all we need to process your application and get you in-principle approval are your details and soft copies of your KYC and income proof documents. You can use this home loan to buy a flat, a house, or land and even take the loan to construct your residence. You can get this loan whether you are salaried or self-employed.

Home loans are the longest-tenure loans offered by bankers. You can get loans for 15, 20 and even 30 years so you can easily pay the EMI. The interest rates are generally the lowest in the market and usually vary based on the bank’s base lending rates or as directed by the Reserve Bank of India. You have to offer upto 25% of the property price at most though banks sometimes ask you to provide only 15% while they offer loans the rest 85% of the property value. 

Home loan amounts approved by banks depend on a few factors. These include where the property is located, value of the property (but, of course), your income (family income is also considered by banks), and even government policies.

Home Loan – General Details

Amount

The home loan amount you get will usually be 75%-85% of your property value. The percentage varies from bank to bank.

Note: This factor is considered even for construction-linked plans. The bank releases the loan amount based on how much you have contributed.
In other words, if the developer asks for ₹10 lakh as part payment for a property priced ₹50 lakh, then the bank will release only 75%-85% of ₹10 lakh. Rest you have to contribute.

Interest Rate

The average interest rates are the lowest among all loans including education loans and range around 6.5%-10% if you have a good credit score. The rate is higher for those with lower credit scores due to their riskier credit profile.

Home Loan Tenure

Home loans come with the longest tenures, ranging anywhere from 10 to 30 years. Longer tenures give you a lower EMI though the overall interest burden is high. The reverse is true if you choose a shorter tenure. As a rule of thumb, an interest rate of around 8% for a 15-year tenure gives you an EMI amount of Rs 1,000 for every lakh of loan.

Minimum Age for a Home Loan

The borrower must be over 21 years old and earning an income. The upper age limit is around 60 years in most cases, though some banks may allow pensioners to apply if they can show a regular income with a surplus balance left over in the account each month. Banks usually do not give home loans to applicants aged 70 years and above.

Minimum Income Requirement

Banks assess the minimum income based on the loan needed. However, one can safely assume a minimum income requirement of Rs 5-6 lakh per annum.

Maximum Home Loan Amount Allowed

Some banks give loans up to Rs 10 crore while others usually have an upper limit of Rs 5 crore. In other words, if you can show income to pay off the EMI, you will get the loan.

Work Tenure Eligibility Criteria

For salaried, it is 3 years and for self-employed, it is 5 years. Moreover, you should have filed your income tax returns.

Documents Needed

Copies of the following documents are usually needed for home loan applications

• Passport Size Colour Photo
• PAN Card
• Aadhaar Card
• Driving License or Voter ID Card
• Bank Statement for 6 Months
• Salary Slips for Last 3 Months, or Form 16
• GST Certificate / Shop License for Business Owners

Paperless Home Loans Online

You can apply for home loans online through our paperless application process. You will have to submit the documents we have mentioned above. After you have applied, we check your documents to see if our partners will approve your loan and then forward your application. If we think our partners will not approve your application, we do not send it to them as it will affect your credit score if they reject your application.

Here is how the process will work after we send your application and bank is willing to give you a loan.

Once the bank or financial institution gives in-principle approval for your home loan, they will ask you to visit the branch nearest to you that is authorised to keep your papers. You will have to sign a few documents to safeguard your and the bank’s interests. Once you have completed the paperwork and got the receipt from the bank for your papers, the bank will release the funds to the builder once you show a payment demand notice.

You may apply for your home loan right now from the comfort of your home or office through our completely online application form. For the documents, all we need are soft copies. You only have to visit the branch to sign the papers and deposit your property papers once you have gotten approval.

Paperless Home Loans – Additional Criteria for Loan Approval

Since you can apply for these loans completely online and get approval, certain other requirements have to be met:

• How Salary Credited: You should receive your salary directly in your savings or salary account via online transfer and not by cheque or cash
• Net Banking Mandatory: You should have your Internet banking facility active for that account