Home Loan

Home Dream with our Home Loans!

  • Benefits & Features of Home Loan
  • Eligibility Criteria
  • Factors affecting Home Loan
  • Fees and service charges
Benefits Home Loan

Benefits & Features of Home Loan

Home loan offers various benefits to the buyer such as low interest, tax savings and easy repayment term and much more.

Meager Interest Rate

Housing loans are much cheaper than all other types of loans because their interest rate is meager and repayment schedule is quite long, so you can easily afford the EMI. A House loan is given at a meager interest rate so that the lender can recover the loan EMI easily.

Legal Verification Of the Property

Another big advantage of taking a housing loan is that there is a legal verification of our property which gives us confirmation that our property is legal and valid. After collecting the property papers, the bank employees verify all the papers so that the person selling the property is not committing any fraud. After all the papers are verified, your loan is sanctioned by the bank and you also become tension-free regarding risk of the property.

Income Tax Benifits

The government gives a lot of income tax benefits to the person who takes a home loan by mortgaging the property. The one who pays annual interest on a home loan gets a lot of deduction in the income tax and the interest amount is subtracted from the income tax

Flexible Repayment Schedule

One of the biggest advantages of a home loan is its repayment tenure which makes it different from other loans, you can make the repayment tenure as per your requirement up to 20-25 years which will be quite relaxing for us. as the repayment tenure become longer will decrease the amount of monthly installment.

Transfer of Home Loan to another Bank

In housing loan, we can easily transfer our loan to another bank also for any reason like customer satisfaction or interest rates, etc..

Growth of Real Estate

As we know the rates of property in real estate have been increasing for a long time, if we invest money in any property by taking home loans, then our money grows more than the interest on home loans. Investing in property by taking a home loan proves to be a very good opportunity for the buyer.

Overview of Home Loan

A home loan is taken from NBFC-registered Banks to purchase property, in which the bank mortgages the papers of the property and gives you a loan through which you can buy the property and get money in its monthly EMI. A home loan is available only for buying a plot, house, or apartment, if you have to do renovation or repair of an already constructed house then you will have to take a home loan against the property. Before taking a home loan, you should decide after comparing the interest rates of several banks so that you do not face any inconvenience in paying the loan.

As we know the property rates are skyrocketing which makes the home loan borrowers very eager to buy a house. The most important issue in a home loan is that while taking the loan, your property and documents have to be mortgaged with the bank and when you pay the loan amount by paying monthly EMI then you get the right to full ownership of the house.

Tax Benefits of Home Loan

There are two sections in the home loan repayment, one is the Principal amount and another one is the interest rate. The govt of India has decided to extend the tax deduction of the home loan interest annually in income tax under 880 EEA and the borrower will get an incentive up to 1.5 lakhs on the interest.

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Eligibility Criteria for Home Loan

Eligibility Criteria for Home Loan

Finance companies and banks have already set standards for home loan eligibility criteria so that the buyer can easily get the loan. Before giving the loan, the bank checks your credit history to verify your repayment pattern.

  • Age of Applicant must be between 21 to 65 years
  • Salaried or self employed
  • Annual income of Applicant
  • Property Mortgage
  • Financial stability and occupational continuity
  • Applicant must me Indian

Factors affecting Home Loan

Reasons for home loan rejection
  • Outstanding dues and other ongoing debts
  • Applicant’s age less then 22 years
  • Credit score below 750
  • Applications rejected by multiple times
  • Frequently changing the job
  • Not giving payment on time
  • All documents are not complete
Home Loan Service

Home Loan: Service Charges and Fees

Fees and charges are applicable with home loans throughout the loan tenure:

Processing Fees

Loan Processing fees are one-time non-refundable charges taken from the loan borrower by the bank and finance providers to recover the expenses incurred during the loan application process.

Application Fees

The application fee is a login or administrative fee, which is non-refundable and is charged when applying for a home loan. The application or administrative fee range varies from 2000-8000 RS. The applicant will have to pay the applicable processing fees when the loan is approved.

Foreclosure & Pre-payment Charges

Pre-closure charges are applicable when the borrower decides to repay the loan amount before the completion of the repayment tenure. Many Bank and Finance companies don't charge foreclosure fees. The foreclosure charges of every bank are different, the charges vary from 1 to 4 %.

Partial Prepayment Charges

Partial pre-payment charges are taken by the borrower when he pays a specific amount of the outstanding balance. Partial pre-payment charges are only applicable in fixed-rate interest loans, and Partial pre-payment charges are not applicable in floating-interest loans, the charges vary from 1 to 2%.

Conversion Charges

Conversion Fees are also known as Switching fees, conversion fees are chargeable by the borrower when the he wants to switch their loan from a fixed-rate interest loan to a floating interest loan.

Repayment Mode Swap Charges

The Repayment Mode Swap Charges are applicable when you change the payment mode or Date, if you request for the change of payment mode or date, you have to pay 500 Rs.

Max Tenure of Any Home Loan

All Banks and Financial companies provide home loans with long repayment tenure of up to 25-30 years, and longer repayment tenure provides low monthly installments.

Maximum Loan Amount From Bank

he loan amount offered by the bank depends upon the salary and income of the borrower and on the total cost of the property. The maximum loan amount offered by the bank is 80% of the value of the property

Home Loan

How to Close Existing Home Loan?

Home loans can be closed only after the completion of the repayment tenure when you pay the entire loan amount or foreclosure of the loan.

Once your repayment tenure is complete, visit the Bank, fill out the loan closure form, and submit it, after submitting the loan closure form, the bank will provide the loan closure certificate and the mortgage proof documents of your property.

If you want to close your loan before the loan repayment tenure, you will have to pay foreclosure charges, your debts are cleared when you pay the loan outstanding amount and foreclosure fees and you are provided with a loan closure certificate.

Home Loan

Types of Home Loan

There are several types of home loans provided by the Bank and Finance companies, home loans is not only for purchasing a house each loan has a different rate of interest..

Banks and finance companies are also providing home loans for the construction of the house, home construction loan the loan is provided in 3-5 installments by the bank and finance companies to the borrower.

All the Banks and finance companies are providing home loans at an interest of 8.3% & to 13% annually, you will get 80% amount of the cost of the property from Bank.

Bank and Finance companies provide home loans for purchasing plots and Land, they will provide loans of up to 80% of the plot’s value at a 6.5 to 13 % rate of interest depending upon the credit score of the borrower.

A home renovation loan can be used to remodel your property. It can be used for a variety of purposes, including repairing flaws, painting, updating home interiors, waterproofing and much more. To avail of a home loan with utmost ease, you need to prepare the below depicted documents:

FAQ’S.

Frequently Asked Questions

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Which is the best bank in Bareilly for applying home loan

There are many private and Govt. banks, Finance Companies in Bareilly providing hassle free Home loan lie SBI, LIC & HDFC etc

You can get a home loan upto 18 Lacks in this salary depend upon your credit score.

The EMI will be around 9-10k for the loan of 10 lakhs.

Your Credit score must be min 700 to get a home loan.

It is better to close all credit card loans before getting a home loan, as it provides easy approval for home loan.

No, it is not essential that you will get loan 100%, it is only depend upon the eligibility and the credit score.

Around 90% of the Indian are taking home loan

Yes taking home loan can make easy to purchase home for you and it also benifical in income tax.

Minimum salary to get home loan is 20k.

Yes you can also take home loan for purchasing a Land

Yes you can cancel the home loan after sanction by making cancellation request to the bank