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Getting Started

Frequently Asked Questions

A Home Loan stands for the amount of money that you borrow from a Bank or an NBFC for a certain period for home purchase, improvement, construction, or land purchase, which you repay in Equated Monthly Instalment with interest at a pre-decided rate. Your property becomes the collateral against which you avail the home loan. The lender reserves the legal right to the property, which may be personal or commercial, and he may recover the outstanding loan amount in case of default by selling off the property.

Listed below are the types of Home Loan available
  • Decide the Exact Amount to Borrow
  • Home Purchase Loan
  • Home Improvement Loan
  • Home Construction Loan
  • Land Purchase Loan
  • Home Extension Loan
  • Joint Home Loan
  • Home Loan Balance Transfer
  • Top Up Home Loan

Home Loan Balance transfers feature the following benefits.
  • Enhanced Interest Rate
  • Better Features
  • Extended Loan Tenure
  • Augmented Loan Amount
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Eligibility Criteria & Calculator

Frequently Asked Questions

The following are the eligibility criteria for a Home Loan
  • Age
    • Salaried Person - Minimum 21 years and 58 years home loan maturity
    • Self-Employed Person - Minimum 25 years and 65 years at home loan maturity
  • Income
    • Salaried Person - Minimum Rs. 10,000 per month
    • Self-Employed Person - Minimum Rs. 2,00,000 per year
  • Employment
    • Salaried Person - Minimum 2 to 3 years Experience MNC, or a Private or Public limited Company
    • Self-Employed Person - Minimum 3 years Experience in current field
  • Credit Score
    • Typically, a credit score of 750 may be considered a good score for approval

Your home loan eligibility will be determined after considering the prescribed eligibility criteria based on the following parameters

  • Net Monthly Salary
  • Tenure
  • Other Income
  • Current EMIs or Obligations

A home loan eligibility calculator happens to be one of the many easy methods used to determine your eligibility for a home loan. Monthly salary, loan tenure or period of loan, other monthly income, and your current EMIs and obligations are used in the algorithm of the online calculator to determine your home loan amount. When you input the required figures in the parameter form-fields, the results are displayed instantly. This gives you the opportunity to make an informed choice with much more accuracy than when you use the manual calculation method.

A co-applicant cannot be deemed as mandatory for a home loan application, yet a lender considers this as an added risk-lowering factor. A co-applicant adds a higher degree of credibility to your commitment to repay your home loan. A co-application thus has a better chance of home loan eligibility when you share the responsibility of loan repayment with another.
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EMI Calculator

Frequently Asked Questions

The principal portion and the interest of your loan makes up the EMI or Equated Monthly Instalment of your home loan. In other words, EMI = Principal Amount + Interest Amount. Paid on a monthly basis, the EMI remains constant throughout the period of your loan, when you choose the fixed interest rate method.

Your Home Loan EMI depends on three factors

  • Loan Amount or Loan Value
  • Rate of Interest
  • Loan Tenure or Period of Loan

Use the following mathematical formula to calculate you EMI.

EMI = P x r x ( 1 + r ) n / [ ( 1 + r ) n - 1 ]

Where,

  • P = Loan Amount
  • R = Rate of Interest
  • N = Loan Tenure in Months
Interest Rate & Processing Fees

Frequently Asked Questions

Interest charges range from 8.65% to 14.60 percent on home loans.

Processing fees are charges collected at the time of applying for a home loan. Most financial institutions charges process fees at application, while some do not charge any processing fee or just waive of the fee as a special offer. Process fees typically include:
  • Document Handling Charges
  • Lawyer Fees
  • Property Valuation Fees, etc.

The term home loan tenure indicates the period of the home loan, or the time by which the home loan has to be repaid in full, along with interest and other applicable fees, and charges.
Documents Required

Frequently Asked Questions

Documents you need to while applying for a Home Loan are listed below
  • Application Form - Completely Filled-Out with Signatures
  • 3 Passport Sized Photographs
  • Identity Proof
  • Proof of Age
  • Residence or Address Proof
  • Income Documents
  • Property Documents
Check the detailed List of documents required / Additional Documents required for Salaried Employees and Self Employed person.
Balance Taransfer & Topup

Frequently Asked Questions

A home loan can be transferred to one bank to another bank by availing a home loan balance transfer facility. The term home loan balance transfer refers to the process of moving your home loan outstanding balance from you current lender to a new lender. This you can do for better interest rates offered, and other benefits offered by you new lender.

A home loan balance transfer features a host of profitable benefits, which are as follows
  • Lower Interest Rates

    Most people go for a home loan balance transfer for reasons of reduced interest rates, which in turn lower EMIs, and lead to savings.

  • Reduced LoanTenure

    When you go for a home loan transfer at lower interest rates, which reduce your EMIs, this may also reduce the overall tenure of your home loan.

  • Top Up loan

    Many institutions offer you top up loan facilities when you request a home loan balance transfer. This top up facility may help you pay off your immediate debts to reduce debt burden, or use the same for home renovation purposes.

  • Other Offers

    Check with your lender if there are any additional offers on your home loan balance transfer facility to make the most of a balance transfer.

A one-time charge payable to a Bank or an NBFC to cover the cost incurred by the lender on the loan process may be known as a processing fee. This fee cannot be deducted from the loan amount, and you have pay this charge separately at the time of application.

Your home loan can be transferred by following the steps mentioned below:
  • Obtain Necessary Documents
  • Obtain Consent Letter from Existing Bank
  • Submit the Consent Letter to New Bank
  • New Lender will Pay your Outstanding Balance to New Lender
  • Your Old Account will be Closed
  • Old Bank will transfer Property Document to New Bank
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