Home loans are given to individuals who are interested in buying/constructing houses. It is supported by banks or financial institutions who loan a certain amount, based on the need of the individual(s). Loans can be applied for purchase, construction or improvement of homes.
A Home for everyone, times have changed when obtaining a Home was more of a Retirement planning than the needs for homes today. There could be many factors that have led to this paradigm shift of the need for owning a home. Primary facts of a self owned home leaving the worries of being a tenant and subject to a House owners control, factors such as evading Tax cuts and more deciding factors have fuelled the need for buying a Home of their own.
Property Rates have increased multifold within the last decade and also due to the mushrooming cities, causing the affordability of the home aspirant to be at the mercy of amounts crossing their budget. In such circumstances Home Loans through banks have been a boon to millions all around the world. Home Loans can be obtained from Banks and Financial institutions for many cases such as:
As one of the leading loan & finance based comparison portals in the country, RuLoans provides you with an unbiased platform to analyze and decide upon the available deals in the market.
Moreover, our Home Loan Calculator helps you to view the various types of home loans you are eligible for, analyzing details of your Monthly Income / Gross Yearly Income, Existing EMI, Rate of Interest and Loan tenure.
As all banks and financial institutions have different criteria or specifications, it is important that you first check and analyse which ones you are eligible for. Our rule based calculator informs you about the eligibility criteria, repayment options, interest rates types,processing fee etc. thus helping you in selecting higher loan amounts at lower EMIs, i.e. LMIs.
As mentioned earlier, the home loan eligibility is determined by various factors including income, employment status, loan tenure and so on.
• Any Indian citizen in good standing who is salaried, self-employed or business person with regular source of income can apply for a home loan.
• The applicant should be above the age of 21 years
• Professional stability and savings history play a major role in approval of the loan
• Bad credit history would prove to be a put-off, especially anytime within 3 months prior to applying for home loan.
• For Business men and Self-employed individuals, the value of loan you are eligible for is majorly determined by the profits and turn over earned by you.
*The eligibility criteria differ from bank to bank. The above details are generic, not specific.
If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.
For floating rate home loan, the rate of interest varies with the market conditions. They are tied up with a base rate plus a floating element added to it. Floating rate home loans are usually 1-2% cheaper than the fixed rate home loan.
Repayment of home loans in fixed equal installments over the period of the loan are categorized as Fixed Rate Home Loans. These rates do not change even with change in market conditions or with changes in loan rates by RBI.
Issue post-dated cheques for the tenure of the loan.
Deduction of amount from the salary
Deduction of the EMI directly from the bank (ECS)
Lump sum payment can be made. But in such cases, banks may charge a penalty of the range of 2-3% of principal amount standing subject to Terms and Conditions mutually agreed at the time of signing loan agreement. On the other hand, many banks do not charge that too, if the EMI are paid periodically
Though required documents vary from vendor to vendor, some of the major documents needed are as -
The tax benefit on home loan is divided into two sections-
Amortization schedule is a table showing amount of principal and the amount of interest that comprise each payment so that the loan will be paid off at the end of its term. The percentage of each payment that goes toward interest diminishes a bit with each payment, and the percentage that goes toward principal increases.The interest rates differ based on the profile of the customer.