A house door with your name on it is the ultimate dream of any living being. In India, owning your own house is considered as one of the major signs of success. As the average income ratio of Indians is increasing with of globalization and government pay commissions, the desire to buy own house increasing simultaneously. Along with them the price of property is increasing day by day, irrespective of urban and rural areas. Thus it becomes highly impossible for a common man to buy a house only with his or her savings. This has lead to an increase and extreme popularity in purchasing home loans from banks and NBFCs to live in a dream. Home loans are the highest selling banking product. It also assures a stronger and longer relationship with your bank. A home loan which is also known as housing loan refers to an amount borrowed by consumer/s from a bank or NBFC to buy, construct, repair or renovate a residential property. This borrowed amount or loan is lent on a fixed or flexible tenure and an interest rate on the borrowed amount. The borrower/s are supposed to pay off the principal amount of loan with the interest in the given tenure
The increase in the property rate across the nation (both land and building) has made it impossible for people to buy a home by only using their existing savings. There are many hidden charges and processing fees in the process of buying a house. So instead of buying a house by spending every last penny of your savings and living in constant pressure of being financially unsecured, you should definitely take a home loan.
Buying a property involves large scale financial transactions. At the time of buying a property, a buyer does not necessarily have the entire amount to his/her disposal. Here home loan covers the financial gap and helps you for a smooth financial transaction.
Under section 24 of the Income Tax Act, home loans are eligible for tax exemptions. You can claim up to Rs. 1.5 lakh out of the interest component of your home loan. Also, if you are staying in the house you got loan for, then you can claim exemption on the principal amount of home loan of up to Rs. 1,00,000.
When banks give away home loans, they finance you up to 85%-90% of the original house purchase price. The borrowers are supposed to pay only 10%-15% of remaining amount. This helps to loosen the financial burden on your shoulders. This way you don't have to spend all your savings purchasing a house.
The process of getting a best home loan can be made easier if you know exactly what documents you need to submit with your application. The documents are filed according to the eligibility criteria.
There are specific fees and charges applied by banks and NBFCs while processing the best home loans. These charges are different from the interest rates. These charges differ in value from lender to lender, but the types of charges are the same everywhere.
Borrowers can enjoy tax benefits under section 24 of the Income Tax Act. Via this you can claim tax exemptions of up to Rs. 2,00,000 for interest component of your EMI paid during the financial year. According to the Section 80 C of Income Tax Act you can also claim tax benefit of Rs. 1.5 lakh of principal paid during the financial year. If borrower has their spouse as a co-applicant with them in the home loan then both the applicants can enjoy double your tax benefits. The applicant and the co-applicants, both are separately eligible for both interest and principal tax benefits according to the above mentioned acts.
The followings are the best home loan interest rate as of March 2018.
| Bank Name | Interest rate* | Bank Name | Interest rate* |
|---|---|---|---|
| Axis Bank | 8.35% - 11.75% * | HDFC Bank Ltd. | 8.35% - 8.60% * |
| Aditya Birla Home Finance Ltd. | 8.55% - 8.99% | DCB Bank Ltd. | 10.44%* |
| Deutsche Bank | 9.35%* | DBS Bank Ltd. | 8.40% to 8.45% * |
| ICICI Bank Ltd. | 8.40% - 8.85% * | Edelweiss Housing Finance Ltd. | 10.50% to 10.90%* |
| Dewan Housing Finance Ltd. | 9.35%* | Indiabulls Housing Finance Ltd. (IBHFL) | 8.40% to 11.55%* |
| DMI Housing Finance Pvt. Ltd. | 12.75%-16.75%* | Fedbank Financial Services Ltd. | 8.95%* |
| Yes Bank | 9.35% to 10.50% * | Hero Fin Corp | 17%* |
| PNB Housing Finance Ltd. | 8.75%- 14.60% * | Tata Capital Housing Finance Ltd. | 8.70% - 8.80%* |
| IIFL (India Infoline Finance Ltd.) | 8.50%* | IDFC Bank Ltd. | 8.65% * |
| HSBC Ltd. | 8.35% - 8.70%* | Reliance Home Finance Ltd. | 10.00% to 11.75%* |
| Standard Chartered Bank | 8.55%* | L & T Finance Ltd. | 9.90% to 10.75%* |
| Shriram Housing Finance Ltd. | 15% * |
A. Repayment period of loan starts after the entire home loan is disbursed to the borrower. If the property is under-construction, then the banks allow payment of the partially disbursed amount. Towards this partially disbursed loan amount, borrowers are allowed to either repay the principal and interest amount both or just the interest amount or none of the above mentioned amount at all.
A. The home loan is sanctioned as soon as all the required documents are submitted and verified successfully. This procedure takes anywhere between 10 to 30 days..
A. Any property document that are submitted as security collateral are returned to the consumer only once the entire home loan amount is repaid and the home loan on his/her name is closed..
A. At present, up to 7 people can co-sign a home with the primary applicant. But, all of those need to be blood relatives of the family member..
A. It is not mandatory to apply for a bank account before taking a loan from it. But if you have an account with the bank, you become eligible for a relationship discount. Some banks also provide you additional services along with relationship discount.
A: Yes, you can track your application via SMS and email. We also provide the facility to track your application on our website via login menu.
A. For your loan-related queries, you can call our representative on 1800 2667576 or mail us at support@ruloans.com
