Each one of us desires to buy a home one day. And to do it, you can avail a home loan from banks and non-banking financial companies. The home loan journey starts with you selecting a property to buy from the real estate developer or builder. The moment you choose the property, the next thing that you must do is to navigate through the home loan offers of lenders.

While checking the offers, the focus should be on the interest rate, the amount of loan available, the home loan eligibility criteria, EMIs, etc.

Home loan is available to buy a new home, resale flat, under-construction property, purchase of a plot for home construction, along with home renovation & extension. The loan tenure for each of these varies.

For buying the flat be it new or old, you can get a home loan for a tenure of 20–30 years. However, the tenure comes down to 15 years in the case of home renovation or extension.

Housing Loan Interest Rates:

The housing loan interest rates are based on both floating and fixed rates. With a floating rate mechanism, the lenders will keep changing the MCLR based on the market conditions, resulting in up and down of the lending rates from time to time. With fixed rates, the interest rate on a home loan will remain the same throughout the tenure of a loan.

The interest rate on a home loan ranges from 9.10%-13% p.a. across banks in India. Look below to find the home loan interest rates of major lenders in India.

State Bank of India (SBI)– 9.10%-9.65% p.a.

HDFC Bank- 9.10% p.a.

ICICI Bank- 9.10%-9.15% p.a.

Axis Bank- 9.10% p.a.

Bank of Baroda– 9.05%-9.55% p.a.

Punjab National Bank (PNB)– 9.30% p.a.

Eligibility Criteria:

Home loan eligibility or to say housing loan eligibility is an important consideration in your quest for a dream home. Though eligibility criteria differ from one lender to another, more or less it is similar to the points below.

  • Your age should be a minimum of 18 years at the time of application.
  • You should not be over 70 years by the time loan is set to mature.
  • The earning must be sufficiently higher and can easily accommodate the applicable EMIs on a loan.
  • You should be working in a public or private sector firm, or doing the business for about 2–3 years to get the nod for a home loan.

Home Loan EMI Calculator:

Even though you have 20–30 years to repay the home loan, you still need to know the EMI amount in advance for an easy and pleasant stay at your house. It is because of the money management you can do if you are aware of the EMIs payable.

If you know the amount of loan that you can get from the lender, the calculation of EMI gets easier via the calculator. You just need to enter the loan amount, home loan interest rates and tenure of the loan to compute the monthly installments that include a portion of interest and principal amount.

Documentation Required in Home Loan:

You need to be ready with a list of documents shown below.

Application Form Along with Photographs

Identity Proof– Aadhaar Card/Voter ID/PAN Card/Passport

Residence Proof– Latest Electricity & Telephone Bill/Passport/Property Tax Receipt/Aadhaar Card/Voter ID

Business Establishment Proof (For Self-employed Applicants Only)– Service Tax/VAT/Sales Tax Registration/Electricity & Telephone Bill of Shop

Income Proof- For Salaried ApplicantsSalary Slips of Last 3 Months, Form 16

For Self-employed Applicants– ITR, Profit & Loss A/C Statement & Audited Balance Sheet for Last 3 Years

Property Documents- Sale Deed, Agreement of Sale

Bank Statement– Last 6-month Statement Required



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