Key Highlights
Fastracked loan approval
Guidance to borrowing when investing in a house
Instant Home Loan Application
Get options from 25+ Banks/NBFCs for your Home Loan requirement
Quick Disbursal
What is Home Loan?
A Home/Housing Loan also called as mortgage, is a Long Term Secured loan taken from a Bank, NBFCs, or Housing Finance Companies by an individual for the purchase of land, construction of the home, renovation, property repair, or home extension.
A Home Loan can be taken for personal property. This property is counted as the security by the lending bank for the Home Loan. When the borrower fails to pay the dues, the lender possesses the legal rights to recover the outstanding loan amount by the sale of the said property.
Home Loans are exclusively taken to purchase, construct, renovate, or extend a personal property. The property in question is kept as collateral security until the loan is paid off. The loan can range from 10 to 30 years depending upon the Terms of Agreement. A short tenure has a higher EMI amount.
- Instant Home Loans - Usually the borrowers get themselves pre-approved for home loans based on their monthly income, CIBIL score, etc. Getting instant home loans becomes easy when pre-approval has been done.
- Flexible Loan Amount - A range of factors come in to determine the Loan Amount like Price of the Property, Cost of renovation/extension/construction, income of the person, loan repayment history, etc.
- Annual Tax Benefits - Claim a total tax deduction of about INR 5 lakh on the principal and interest components of your housing loan (under section 80C, 24b and 80EEA).
- Interest Subsidy under PMAY - First-time home buyers can save up to INR 2.67 lakh on interest through Pradhan Mantri Awas Yojana (Urban) Credit Linked Subsidy Scheme.
- Home Balance Transfer Facility - Re-finance your existing home loan through another lender offering lower interest rate or better loan term.
- Top-up Loan Facility : Borrow additional sum over and above your existing home loan and use it for any personal or business purposes.
What are the types of Home Loans?
There are different types of Home Loans designed to suit individual needs. Here are the types of Home Loans usually extended by Banks, NBFCs, or Housing Finance Companies.
Home Purchase Loan - Home Loans Taken to purchase any house or home as per your budget.
Home Construction Loan - Home Loans taken to cover the costs of constructing building a house on a piece of land.
Land Purchase Loan - Loans taken to purchase a land to construct house on it.
Home Improvement Loan - Home Loans for renovating your house, improving its construction, etc.
Home Extension Loan - Cover the expense of extending the Homebuilding and construct more space around it.
Home Repair Loan - Cover the cost of repair or restoration of your house
Bridge Loan - Short Term Home Loan suitable for individuals wishing to buy a new house with the sale proceeds of an existing home. Bridge Loan bridges the gap between the Cost of the New House and the Sale Proceeds of an existing House.
Interest Saver Loan - It is similar to home loan overdraft facility. In this, the borrowers' home loan account is linked to their bank account. Any amount deposited in the bank account over and above the EMI amount is used as prepayment towards the loan, thus, saving on the interest amount.
Step Up Loan - Yet another type of home loan in which borrowers pay lower EMIs during the initial years of the loan tenure. However, there is a provision of increasing the EMI amount over time. This makes the loan affordable for young professionals who just start their career.
Are you Eligible for a Home Loan?
A Home Loan can be availed by anyone who is looking to buy land, house, or covering their property-related costs.
Home Loan Interest Rates
Home Loan Interest Rates are of two types: Floating or Fixed. In the case of Floating Interest Rates, the interest rate is usually low in the beginning years and gradually increases in the later years. Here is a list of interest rates offered by top banks, NBFCs, and Housing Finance Companies.
| Banks | Interest Rates |
|---|---|
| Bank of Baroda | 6.85% |
| LIC Housing Finance Limited | 6.90% |
| State Bank of India | 6.95% |
| HDFC Bank | 6.95% |
| PNB Housing Finance | 8.60% |
| Aditya Birla Housing Finance Ltd | 9.00% |
| Apply |
Home Loan Eligibility with Top Banks/NBFCs and HFCs
| Age | 
Minimum 21 Years at the time of Loan Application & Maximum 65 Years at the time of maturity |
| Citizenship |
Indian National with no criminal background |
| Minimum Income (EMI, Rent etc should not cover more than 35% of the Monthly Income) |
For Salaried Employees, the income should be equal to or more than INR 25000 per month (varied across lenders and locations) For Self-Employed, Turnover/Sales for the Year is considered depending upon the loan amount |
| Professional Stability |
A Minimum Work Experience of 2 Years for Salaried Employees, and business continuity of at least 3 Years for Self-Employed |
| Credit Score |
Applicants must have a good credit score with a demonstration of good repayment history |
Documents required for Home Loan
Housing Finance Companies (HFCs), Banks, and NBFCs have specific guidelines on the documents required for Home Loans. These include:
- 1. Identity Proof - Personal Identity documents like PAN Card, Voter Card, Aadhar Card, Driving License. Passport, etc.
- 2. Address Proof - Water Bill, Telephone Bill, Bank Account Statement, Electricity Bill, Property/Rent Agreement, Driving License, Aadhar Card, etc.
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3. Income Proof - The documents depicting proof of income can be:
- a) Salaried - Form 16/Bank Account Statements/Salary Slips, etc.
- b) Self-Employed - Bank Account Statements / P & L Statements of past 3 years / ITR of past 3 years/GST certificate / GST returns of previous years.
- 4. Business Documents - Documents for proof of business i.e. Partnership Document for firms, MOA & AOA, COI for companies, Certificate of Practice for professional.
How to apply for Home Loan at Loan Ki Dukaan?
Loan Ki Dukaan helps you build your home with the utmost efficacy and ease. Login to www.loankidukaan.com, click on the 'Home Loan' button, and follow the steps:
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Your Personal Details
Enter Details like the Home Loan Amount, Property City, Annual Income, mobile number etc., and upload the additional details required to provide you the best offer.
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Compare and Select
A list of best Home Loan interest offers from the top Banks / NBFCs / HFCs suited for your requirement will be displayed. Select the best offer as per your requirements.
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Apply for Home Loan
Apply for the Home Loan online and get conditional e-approval. Loan Ki Dukaan Experts will help you plan your Finances and get the documentation right.
How is your Home Loan EMI calculated?
As you plan to buy a land or build your own house, it's always better to plan your finances and then apply for the loan. Loan Ki Dukaan has a Home Loan Calculator that helps you calculate the EMI amount instantly as per your Home Loan Amount, Tenure, Interest Rates, etc.
Knowing your Home Loan EMI in advance helps you make informed decisions and plan your finances better.
Look at the table below to understand how Home Loan EMIs are calculated:
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Loan Amount
20 Lakhs
30 Lakhs -
Interest rate
10.25%
10.25% -
EMI for 10 Years
INR 26,708
INR 40,062 -
EMI for 15 Years
INR 21,799
INR 32,669 -
EMI for 20 Years
INR 19,633
INR 29,449
Home Loan Verification Process
Loan Verification for Home Loan is undertaken in key steps:
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Applying for the Loan
Once the application for Home Loan is made on Loan Ki Dukaan your chosen lender receives the application and starts processing it.
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Document Pickup And Verification
Lender's representative contact you to verify the e-application and arrange for pick-up of the documents required for Home Loan Verification.
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E-approval of Loan
Once the application and documents are collected and verified, the Home Loan is approved. Verification takes place after eligibility criteria are met. Lender representatives might take a visit to the property site to verify the loan application.
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Loan Disbursal
Loan Agreement is signed and confirmed. The Loan Amount is disbursed to the applicant.
How is your Home Loan disbursed?
Once the Home Loan has been sanctioned, the disbursal takes about 2-15 days. Banks, NBFCs, or HFCs can disburse the loan amount in entirety or installments depending upon the Terms of Agreement. Usually, the disbursal takes place through Direct Transfer of Funds. The Loan Amount is directly transferred to the Personal Savings/Current Account of the property seller.
FAQs
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Can I take 2 Home Loans at a time on same property?
No. CERSAI has restricted on availing two home loans for the same property. However, Individuals can opt for Home Loan Balance Transfer to refinance their existing Home Loan at low-interest rates.
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Can I get a 100% Home Loan?
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Can I switch from a fixed rate to a floating rate during my loan tenure?
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When does the home loan repayment period start?
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What are the Tax Benefits of Home Loan?
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How can I choose the best Home Loan Offer?
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How to reduce the Home Loan Interest burden?
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Why should I apply for Home Loan on loankidukaan.com?