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Frequently Asked Questions about Home Loans

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What is a Home loan?

Home Loan is a secured loan given by a bank against the security/hypothecation of an underlying property. In the event of failure to repay by the borrower, the bank can, subject to laws of India, attach/sell the underlying property and recover the principal amount and any outstanding interest thereon. A home loan can be availed for buying an under-construction property, resale property or even to construct a house on a vacant piece of land.

How is my loan eligibility calculated?

Loan eligibility is dependent on primarily the following factors:
  1. Cumulative net monthly salary of the applicant and co-applicant.
  2. Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current home loan that your are trying to apply for) exceeds 50-60% of your total net take home salary.
  3. Loan to asset Value (LTV) ratio of 75% which means that the customer has to fund the remaining 25% through his savings or any other source.

My loan got rejected even though I have a decent salary package?

The final decision to grant a loan lies with the credit department of a bank. Some of the reasons why a loan can be rejected are:

Possible Issue:
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.
Possible Way Out:
a)If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
b) Try to pay off some of your debt so that your leverage levels can come down or
c) Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be provided
Possible Issue:
Issues in your credit history as reflected in your CIBIL, Equifax reports.
Possible way out:
a) If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation.
b) If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team.
c) If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.
Possible Issue:
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.
Possible way out:
Finance Buddha can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to

Pre Closure vs part-prepayment?

Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when you loan is being processed.

Is pre closure/part payment allowed in Home loans?

Home Loan preclosures are allowed without any extra charges as long as the mode of repayment you have chosen is Floating rate of Interest and not a fixed rate of interest. Regarding part payment, some banks may have a restriction on the number of times you can do a part payment per year and also the amount that can be part paid in a year. Please ask for clarifications to our or the banks’ loan advisor on all these factors before signing the loan document.

How is the rate of interest, processing fee, pre closure fee determined on my Home loan?

Unlike personal loans, every bank has a single rate of interest for all customers and it does not vary from customer to customer. The Fixed rate of interest will be slightly higher than the Variable rate of Interest. So it depends on which option you choose.

How long does it take to disburse the Home loan?

Finance Buddha will work with the banks to try and get you the loan within 7 to 15 working days of submitting completed documents.

Documents required while applying for a Home loan?

The applicant and the co-applicant needs to provide the following documents:
  • Identity proof (PAN card)
  • Residence proof
  • Last 3 months salary slip
  • Last 6 months bank statement
  • 2 Passport sized photograph
  • Form 16
  • Property documents
  • Receipts for initial down payment

These are indicative list and more documents can be required depending on the bank.

How does Home loan repayment happen?

All home loans repayment happen in the form of an EMI (Equated Monthly Installment) through the customer’s bank account. The customer needs to give few PDC’s (Post dated cheques) and sign an ECS mandate in favour of the bank disbursing the loan.

What happens if I miss an EMI payment or there is an ECS bounce?

The bank will levy certain ECS bounce charges/penalties. In addition it will get reported in your credit report. Depending on the severity of the default it can have serious impact on your future credit possibilities like a home loan, car loan etc. In addition, the banks can also take legal action against the borrower.

What is the rate of interest and processing fee on Home loans?

The current rate of interest is varying between 9.40% to 9.70% depending on bank to bank. The processing fee is around Rs 10,000 which needs to be paid to the bank upfront at the time of submitting the application.

How much loan can I avail?

To calculate the borrowing limit, one can combine the earnings of oneself and the spouse or children. The combined income will then decide the borrowing limit. Minimum limit is INR 300,000 Maximum limit depends on the earnings combined For loan up to INR 2 Million - 15% of the property value in market For loan above INR 2 Million to up to INR 7.5 Million - 20% of the property value in market For loan higher than INR 7.5 Million - 25% of the property value in market

How can I apply for the Axis Bank Home Loan?

By applying online on Finance Buddha website. We will get in touch with you immediately to help you take your application forward.

What are the eligibility conditions to apply for the home loan other than the normal conditions?

Age of the applicants: The age specifically of the primary applicant. Dependents: Number of dependents in the family of the applicant Fixed Obligations: Assets and liabilities like existing loans, etc Income: Stability and income returns of the primary applicant's occupation.

Can I take a loan if I want to renovate my home or flat?

Yes, absolutely. You can avail the Axis Bank home loan for buying a home, constructing a home, repairs of your home, home improvement and its renovation.

Am I bound to pay only by the fixed rate of interest?

No, you get the opportunity to choose which kind of rate of interest you want to pay. You can pay through fixed rate of interest or you can pay by the floating rate of interest which depends on the MCLR and keeps changing.

What is the procedure of availing the home loan?

First of all, the applicant will fill in the details and with required documents, submit the application form. If the documents and all the eligibility criteria are met, the bank will sanction the loan and notify the customer about it within 30 days of the submission of the documents and the application form. The 30 day submission period starts from the day the customer gets the receipt of the application form. If the loan cannot be sanctioned, then that will be notified as well to the customer. Then, the legal proceedings shall follow. The Axis Bank representative will carry out the technical evaluation of the property.

Are there any fees to apply for the Axis bank home loan?

Yes, the application fees is charged in the form of processing fees which will be anyway be less than 1% of the loan amount to be availed along with the service tax that will be applicable.

How is an Equated Monthly Instalment (EMI) calculated?

It is calculated on the basis of the principal loan amount, the tenor of the loan and the interest (floating or fixed) that is charged. After part payment or interest rate changes, the EMI is also bound to change.

What is the due date of Equated Monthly Instalment (EMI)?

The due date will be fixed and told to you.

What do we mean by Pre-EMI interest?

It is the rate of interest levied on the part payment until the EMIs start to be paid.

What if my floating rate of interest increases? Does that mean I will have to pay bigger amount of EMI?

Whenever there will be an increase in the rate of interest floating, then Axis bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased.

Can I get my EMI increased instead of getting my loan tenor increased?

It can happen in some cases. For this, the bank will have to check your loan paying capability. For this, the bank will need the below mentioned documents for verification: Salary slips for Last 6 months Bank statements indicating regular salary. Photo identity and address proof A letter for the change undersigned by you.

My EMI has been increased due to an increase in the rate of interest (flexible). Can the bank help me for lower EMI?

Whenever there will be an increase in the rate of interest floating, then Axis bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased. If you want to get your EMI reduced in the latter case, you must make some part pre payment to Axis bank.

After I availed a home loan from the bank, the rate of interest that I opted for has increased. Can the bank help me in this case?

Yes, the bank will help you. You can switch your rate of interest as per the following switching amounts: Fees while switching from higher floating rate to lower is 0.5% of the outstanding principal Switching fees from floating rate to fixed rate of interest: 1% and cannot be greater than INR 10,000 Fees while switching from higher fixed rate to lower fixed rate is 0.5% of the outstanding principal Switching fees from fixed rate to floating rate of interest: 2%

Do I get tax benefit through Axis bank home loan?

The citizens of India can get home loan under the IT act of the Income tax of India.

How do I remain updated about my balance payments, repayment schedules and interest certificates?

You can get detailed information about the same through the below mentioned two options: You can call at the phone banking numbers 1800 233 5577 or 1800 209 5577 or 1800 103 5577 You can write a mail to Axis bank on the email address: loans@axisbank.com

Can my home loan be disbursed if the loan is partly disbursed?

Yes, it can be paid partly. Since the loan is disbursed partly, the interest will also be proportional to this. Therefore, you can pay the loan at lowered rate of interest.

What are the options through which I can pay my EMI?

The EMI can be paid through various modes: Post dated cheques: You can submit post dated cheques by your due date of the EMI at the nearest Axis bank loan centers. Electronic Clearing Service: By this option, non Axis bank account holders can pay their EMIs automatically at the end of the month. Standing Instruction: If you have a savings, salary, or current account with AXIS Bank then your EMI can be automatically deducted from your account at the end of your monthly cycle.

Where do I submit the set of post dated EMI cheques?

You can pay these cheques at the nearest Axis bank loan centers.

Can I do pre payment of the loan?

Yes, you can pre pay your loan. For this, there will be no pre payment charges on the floating rates of interests. However, charges will be applied on fixed rate of interest.

Can I update my phone number and the email ID?

Yes, you can. Just contact use through the below mentioned ways: You can call at the phone banking numbers 1800 233 5577 or 1800 209 5577 or 1800 103 5577 You can write a mail to Axis bank on the email address: loans@axisbank.com

How can I foreclose my loan?

You can foreclose your loan by clearing all the dues. Charges are applicable.

After how many days of the foreclosure can I get my property papers?

You can get the loan papers after 16 days of paying the full loan.

How can I know if am eligible for a home loan with Bajaj Finance?

Make use of the Finance Buddha application to check your eligibility before applying for a loan.

What is the maximum limit of loan amount that can be availed from Bajaj Finserv?

Loan can be taken upto 15 crores for tenure of maximum 25 years.

Is there any fore-closure charges and when can I fore-close my business loan?

There is some amount of fore-closure charges and the home loan can be fore-closed any time after making the 1st EMI.

Are there pre-approved offers on home loans for customers of Bajaj Finserv?

Yes, existing customers can avail the option of pre-approved loans.

Are there any charges by Finance Buddha for the service offered?

No, there are no charges implied on the customers of Finance Buddha. This platform offers services for absolutely FREE for anyone who is looking for additional information!

What is the formula for EMI calculation?

Loan amount x Interest/12) x [(1+ interest rate/12)^loan tenure in number of months] / ([(1+ interest rate/12) ^ loan tenure in number of months]-1

Is it alright to make huge purchases for personal needs while availing for a home loan?

Huge purchases and outstanding debts will impact the loan approval, thus avoid the same. The rate of interest will be high for low credit rating.

How important in credit worthiness in loan approval?

It is advisable to not apply for too many loans, limit yourself according to the necessity. Credit score will go down as and when you apply for more and more loan.

What are the documents required along with a business loan application?

Complete loan application form with one passport size photograph Valid Proof of Applicant's Identity: Passport, Photo PAN card, Voter’s identity card , Driving license and MAPIN card Proof of Residence: Ration card Tel/ Lease agreement/ Electricity Bill/ Passport/Trade license /Sales Tax certificate Proof of Age: Passport, Photo PAN card, Voter’s identity card Financial Documents

Does online application actually work?

Through Finance Buddha you can simply apply for the loan and we will contact you directly to take the proposal to the next level.

What are the special features of Bajaj Finance Home loan?

Avail Attractive Interest Rates Hassle-free Loans - No Guarantor / Security or Collateral required Repay with easy EMIs Speedy Loan Approval Credit Shield Disbursal in 2 Days

What details are essential for checking eligibility of home loan through Finance Buddha?

Borrower name Company name Year of Incorporation Loan amount Turnover Choose the city Net profit after tax Mobile number Depreciation Email ID Partner salary

What is unique about Bajaj Finance?

While all banks are concentrated on giving low interest rates, this bank concentrates on low interest rates for its customers along with exciting offers. Home loan from this bank is a smart move if you are looking to take it anytime now.

Where can I apply for Citibank home loan?

You can apply by filling up the form above and clicking on the Apply Now button. Once we receive your application we will get in touch with you and help you through the application process until disbursal of the loan as per your requirements.

What is the loan limit?

You can avail a loan from INR 500,000 to INR 100 million.

I want lesser EMIs. Can I do that by increasing the loan tenure?

Yes, the maximum loan tenure is 25 years.

How much loan can I get as a percentage of my property rate?

Up to 80% of the property rate amount can be availed as the home loan.

What if I need some extra loan?

There is an option for that, too. You can go for a top up loan. You can avail this after 6 months of successful payment of easy monthly instalments.

Can my interest amount be decreased?

Yes, you can opt for Citibank Home Credit for this.

I need a home loan sometime later. Can I get it approved now?

Depending on your monthly income and ability to pay back, this can be an option.

What is the minimum age to avail the loan?

The minimum age is 23 years and the maximum is 65 years.

I am doing an internship right now. Can I get a home loan?

You can not avail the home loan unless you have a work experience of 2 years or higher.

What if I want to foreclose the home loan?

You can surely do that with nil foreclose charges.

What is the benchmark that is applicable for ICICI bank home loans and what is the reset period for these?

The benchmark is 1 MCLR for 1 year. The reset period is annual.

What is the reset date of the loan and how will it affect the rate of interest applicable on the loan?

In such a case, the loan tenor will remain the same but there will be an increase or decrease in the rate of interest and hence the EMI.

If the loan is partly disbursed as per I-Base, which rate of interest will be applicable? I-Base or MCLR?

The loan will continue to be run as per I-Base. The customer will however, have the option of switching it to MCLR, if the bank agrees.

What is the minimum amount to be paid for part-pre payment?

: Equal to 1 EMI.

Going forward, the new loans will be charged as per which rate? MCLR or I-Base/FRR/PLR?

: The loans will be charged as per MCLR, unless requested by the customer and approved by the bank.

Can an increased EMI be decreased?

No, unless you do some kind of part-pre payment.

If the customer switched from I-Base/FRR/PLR to MCLR, will the rate of interest be the same?

Yes, it will remain the same and no switching fees will be charged.

Can a person fore-close the home loan? Are there any charges?

Yes, a customer can close it. The foreclosure charges are as follows: Nil-Floating ROI 2%-If borrower or co-borrower is Non-Individual on a home loan top-up 2%-Fixed rate of interest for individual borrowers 4%-Non individual borrowers or borrowers with fixed rate of interest to Individual borrowers

Can part payment of home loan be done through NEFT?

Yes, by mentioning the service request number.

What would be the home loan interest rate for different loan amount at Kotak Mahindra Bank?

Irrespective of what the home loan amount is, the rate of interest remains the same i.e., 14.5%.

What are some of the common and very necessary documents for home loan at Kotak Mahindra bank?

Proof of Income, Banking details, Proof of Residence, Proof of Age, Proof of Identity and Signature, Certificate of Educational Qualifications

What is the processing fee for home loan at Kotak Mahindra Bank?

If you have opted for floating rate of interest for your home loan, then the processing fee will be just 1.25%.

What is the minimum and maximum tenure for home loan?

The minimum and maximum tenure is 5 years and upto 25 years for home loan at Kotak Mahindra bank.

What is the age limit for applying for home loan at Kotak Mahindra bank?

The age limit for home loan is: Min 21 and Max 60 years for Salaried Min 21 and Max 65 years for Self Employed

Is it possible to club the income of my spouse along with mine while applying for home loan?

Yes, it is absolutely possible and there will be high probability of getting huge loan amount and lower interest rate as the CIBIL scoring of both is considered.

How does part payment work with Kotak Mahindra bank?

When you part pay your outstanding loan amount, the monthly EMI amount will reduce which will directly affect the interest rate as well. Thus it will help you to repay the loan amount faster with less EMI.

How to check my eligibility?

For eligibility, you need to either be an Indian citizen or be a PIO. The eligibility depends on the cost of your house, age, income amount, qualification, etc.

What is the process to apply for loan?

First of all, you need to submit your application which will be evaluated on certain parameters depending on loan type. Property valuation and title check follow. Then, if the application is accepted, you need to submit all the documents aforementioned.

What percentage of loan can I get against my property?

Up to 90% for home loan and up to 60% for an advance against property.

Can I get home loan if have already purchased property?

Yes, you can get a re-finance within 6 months of purchase.

What is EMI and pre EMI?

EMI is Equated Monthly Instalments (EMI) which is the monthly amount to be paid. Pre-EMI is just the Simple interest paid monthly till loan repayment commences.

What if floating rates change?

EMI remain same, tenure of loan will be adjusted.

What is the security I should give?

The security will comprise of the house against which loan is to be availed and it can also comprise any collateral provided by the customer. This lies to banks jurisdiction if they want to accept any other security.

Can I pre pay the loan?

Yes, you can with applicable charges.

When is loan disbursed?

The customer will have to pay his own contribution and other costs before the loan is sanctioned. The loan will be given to the builder or development organization or apartment (society) in a lump sum or as a part payment, depending upon their need. The loan will be sanctioned only after successful appraisal of the property. Also, legal documentation for the house is to be done beforehand.

I need my Income Tax certificate. How can I do that?

Bank sends the certificate to the customer which can also be collected from the branches.

Should I insure my property?

Yes, it is required.

Can I get the loan approved first and get it availed later?

Yes, SBI does provide this option. The bank will check your gross combined income and check your eligibility to repay the loan. The good part is that you will then have to search for only those properties that will be in your budget.

For how long can the in-principal approval period last?

This period lasts for a sufficiently long time of 3 months where the customer can choose the best house or flat or property or look at the cost of renovation, etc and get the amount sanctioned by the bank.

Can my wife and I be co-applicants?

Yes, this is a great feature introduced by the SBI so that an applicant's eligibility can be increased and he can apply for the loan on the basis of enhanced income and pay back capacity.

What is EMI and how is it calculated?

EMI means Equated Monthly Installments. It consists of principal and interest components as the instalments.

What security will the bank take from me?

The bank's security will comprise the land or property against which the loan is sought. The property should be available for the mortgage. If not, then an interim security will be sought.

What amount will I have to pay as the processing charges?

You will have to pay the processing fees and also the actual charges towards valuation fee, fees of the advocate on account of property search and amount for the title investigation report and stamp duty as well. The processing fees is calculated on the below-mentioned basis: Up to INR 2.5 million: 0.25% of loan amount, minimum INR 1,000/- Above INR 2.5 million till INR 7.5 million: INR 6,500/- Above INR 7.5 million: INR 10,000/-

What are the penalties if I pre pay my loan?

There is no penalty if you prepay your loan. In this case, your burden of EMI will become less too.

How can I avail the loan and approach SBI?

You can visit any of our bank branches to gather the information. Also, you can apply online for the loan and take appropriate information from the phone support representatives.

Should I avail the loan if I already have the amount to buy a house or get it constructed? What are the benefits?

yes, you can go for it. This is because you get income tax exemptions for investing your money in homes by opting for home loans. To get proper knowledge is the loan would help you or not, you must consult a CA.

Are there any tax benefits of availing a home loan? If yes, what are they?

Yes, there are tax benefits. By the Indian Income Tax Act of 1961, the citizens of Indians can avail a benefit on principal and interest components of the home loan. Under Section 24(1), interest repayment of INR.1,50,000/- per annum qualifies for tax saving. As per the IT act, a surplus advantage under Section 80(c) on repayment of the primary principal amount up to INR 1,00,000/- can be availed on the same loan.

What is the maximum amount of loan I can avail?

One can avail up to 10 Crore.

What is the minimum amount of loan that I can avail?

The minimum amount of loan that can be approved is 5 lakhs.

Can someone be the co-applicant?

Parent, children and spouse can be co-applicant. Your siblings can also be the co-applicants. For this, they need to also be the co-owners of the property on which the loan is to be taken.

What about the processing charges in case my loan does not get approved?

In case your loan is not approved, INR 2000 will be deducted and the rest of the amount will be refunded to you. If the loan has been sanctioned, no amount will be returned.

Can I take a top-up loan from the Standard Chartered Bank apart from the home loan?

Yes, of course. You can get a top-up loan apart from your sanctioned loan from the Standard Chartered Bank. However, this will also depend upon your case and the bank will take the final call for this.

How much can be the amount of top up loan that I can take?

You can get up to the 100% the amount of the original loan as a top up loan.

How can I make the payment for my home loan?

You can make payments by Electronic Clearing System (ECS) or via Standing Instructions in the Standard Chartered account.

How does the bank charge the rate of interest on the loan sanctioned?

The rate of interest is calculated by the Standard Chartered Bank on the daily reducing basis. However, it is charged on monthly basis.

I have not taken full dispersal and the land is not constructed yet. How will I have to pay the Easy Monthly Installments? (EMI)

In this case, you can pay pre-EMI. This means the EMI on the basis of the amount of loan that has been disbursed till now. Otherwise, you can pay full EMIs, too.

Does the bank offer conversion of fixed rate of interest to a varied rate of interest?

Yes, the bank offers the conversion. You can change the fixed lending rate to varied any time. Vice versa, you can change varied lending rate to fixed one too.

Are there any charges for the conversion of fixed rate of interest to a varied rate of interest?

Yes, there is a charge for the conversion of fixed rate of interest to a varied rate of interest. It is 1.5% of the total outstanding balance at that time.

Do I get the tax benefit if I avail this loan?

Yes, you do get a tax benefit under Indian Income Tax Act of 1961.

What benchmark is levied on the bank’s home loan?

6 Month MCLR is applicable on the home loan.

What is the maximum loan amount that can be availed?

The maximum loan amount that can be availed is INR 1 Crore for Indian customers and NRI applicants

Can my business partner be the co-applicant?

No, only the close family members can be the co-applicants like spouse/parents/children/ siblings.

What are the benefits of loans offered by TATA home loan?

The company offers good Loan to Value (LTV) Loans less than or equal to INR 2 Million: LTV can be up to 90% of the Market Value Loans greater than INR 2 Million and less than INR 7.5 Million: LTV can be up to 80% of the Market Value Loan greater than INR 7.5 Million: LTV can be up to 75% of the Market Value Also, you can add co-applicants while applying for the loan which increases your eligibility and the loan sanctioned. Other benefits are Easy loan disbursal, quick processing, affordable rates and easy documentation.

Will my processing fees be refunded if the loan is not sanctioned?

No, the processing fees which is INR 5,700 or INR 11,400 for loans more than INR 1 Crore is non-refundable.

In what time will the loan be processed?

The loan is processed in 4-5 days for salaried applicants and 7-8 days for self-employed applicants

What are the modes of repayment of instalments?

They can be paid by auto debit, ECS, PDCs, and DAS.

Can I opt for fixed rate of interest?

Yes, for the initial three years you can after which the loan will be transmuted to floating.

If my property is still in construction, how do I make EMI payments?

Till the time part payment is made, the borrower pays the simple interest. After an agreed upon date, he/she pays the full EMIs.

Can I make part-prepayment against the loan?

Yes, you can. Customers can pre-pay the loan amount partly with zero pre-payment charges. If they pay more than the 25% of the principal outstanding of the loan they will pay 2% pre-payment

What is the maximum loan tenor?

Loan tenor is 30 years of loan or 65 years of the borrower, whichever is earlier for salaried individuals Loan tenor is 20 years of loan or 65 years of the borrower, whichever is earlier for other borrowers

What are other advantages of partnering with TATA Capital?

The customer gets income tax benefits through the Income tax benefit act, 1961 and the insurance cover if you avail that.

How can I decrease the home loan tenor?

Make part-pre payment or increase EMIs.

What is the processing/application charge?

Maximum 0.50% of the loan amount sought

Can I get the top up loan as well?

Yes, it is subject to the loan and your eligibility. You can contact the bank.

Under what conditions can the lending rate change?

Interest rates change if there is a change in the Prime Lending Rate of the bank. Also, it can happen if your loan is transmuted from fixed rate to floating rate after an agreed upon time.

I want copy of my loan agreement. What should I do?

The copy is always attached along with the welcome kit by the company. If you need a duplicate of the same, contact the bank

What are the advantages of exchanging home loan from one bank to another bank/ home loan balance transfer?

● Decrease in the loan cost i.e. from high rate to as low as 8.35% for each annum. ● Decrease in month to month EMI by up to 5%. ● Provides Alternative to get benefit top up advance at same rate as home advance rate (8.35% to 8.85%). ● Lower loan fees and different rebates are offered by another bank. ● You also get facilities like max gain and smart saver home loan wherein you pay only the principal on the loan, when you transfer to a bank like SBI or Citibank.

What are the eligibility criteria for Home loan Balance transfer?

● The one who is applying must have an ongoing Home loan with some other Bank. ● No default EMI should be there with the original lender bank. ● The applicant should have paid at least 6-12 EMIs to the original lender bank before going to the home loan balance transfer ( this no. of paid EMIs varies for different Bank.). ● Registration of the property should have been complete if the property is ready or not under construction if you are going for a home loan balance transfer. ● The project must have been approved by the new lender bank if you are going for the balance transfer for a under construction house.

What is the process for home loan balance transfer?

These are the following steps involved in the process of Home loan balance transfer. ● Check your current interest rate and the current EMIs on which you are having your original home loan. ● Then go through different banks and compare their interest rates and EMIs for the home loan. ● Shortlist the best suited Bank for you. ● Take enclosure letter from the existing bank for your home loan. ● Take the list of documents of property which you have submitted to the original lender bank. ● Apply for the loan with the new Bank, submit the documents required and also submit the photocopy of the property documents which you have submitted to the original lender bank. ● If your loan is sanctioned then take the sanction letter. ● Take the Disbursement money from the new bank in form of cheque/ demand draft and deposit to the previous Bank i.e. the original lender Bank. ● Take the property documents from the previous bank and submit it to the new bank.

What are the charges you have to pay for the home loan balance transfer???

There are different types of cost and charges which are associated with the home loan balance transfer. ● You have to pay foreclosure charges to the previous bank if the interest rate is fixed, no charges is payable if your loan was having Floating interest rate. ● Second charge you have to pay is the processing fees and sometimes the administrative fee is also included, which ranges generally from 1% to 2.5% depending upon the Bank you choose. ● MoDT (Memorandum of Deposit of Title Deed) charges of 0.2% to 0.5% on contract payable in a few places including Mumbai, Pune, Maharashtra, Chennai, Tamil Nadu, Bangalore, Karnataka, Hyderabad, Telangana and Rajasthan among others. No such stamp obligation is payable in places in Delhi, Gurugram, Haryana, Noida, Uttar Pradesh.

What precautions should you take while applying for Home loan balance transfer?

● You should check the interest rate track of the bank from which you have applied to take loan. You should watch that the lower loan cost being publicized by the new bank is genuine and not a shot term contrivance. If it's not too much trouble approach your advance guide for the benchmark rate track record of the new loan specialist ● Fulfill yourself about administration nature of the new bank Watch that the administration quality offered by the new bank you are picking is up to your desires. Lower rate ought not to come at the cost of second rate benefit. ● Check the benchmark rate There are two usually utilized benchmark rates for home advances – MCLR rate in the event of banks and prime loaning rate (PLR) in the event of lodging money organizations. MCLR benchmarked credits are known to be more straightforward and consequently best finished PLR benchmarked advances. ● Is the spread variable or settled Financing cost on variable (floating) rate credits comprises of two sections – benchmark rate and spread above it. While the benchmark rate is relied upon to change after some time, the spread should stay consistent with the exception of if there should be an occurrence of a default. In any case, a few banks offer gliding rate advance with both the benchmark and the spread being variable. In the event of numerous such advances, borrowers see their credit loan costs rise forcefully following a couple of months. Along these lines, maintain a strategic distance from advances with variable spreads and rather choose gliding rate advances that shift loan cost just with change in the benchmark rate. ● You should estimate the total exchange cost Check the cost that you will acquire for affecting the change. These incorporate handling expenses, stamp obligation (in a few states like Maharashtra) and documentation charges. ● Issue notice to existing bank A few banks demand an earlier notice before you can prepay your home advance. Check your advance understanding precisely and guarantee that due notice is given to or postponed by your current bank.

What are the additional precautions to take while availing the home loan balance transfer?

● Check credit qualification (eligibility) according to new bank. Cost of property comprises of numerous heads, for example, fundamental cost, preferred location charge (PLC), outer advancement charges, inward improvement charges, security store, zap charges, control move down charges. Standards for consideration of each cost head contrast crosswise over moneylenders. In the event that your picked new bank does exclude a portion of the heads in the cost of property which were incorporated by the old bank, the credit qualification may descend and you may need to expand your own commitment. ● Select the right time to go for the credit exchange The procedure of advance exchange may take 10-15 days from the date you applied and you're existing bank may normally take another 10-20 days to handover property records to the new bank. You won't have the capacity to benefit additionally advance distributions in between this period. Thus, it is very important that you time the exchange you don't expect or want any new request from the developer for the following month.

When should you go for a home loan balance transfer?

When you are currently having a home loan and you find that you are paying more interest rate than what others are paying to another bank for the home loan and if the difference is more than 0.5% then you should go for a home loan balance transfer.

What is the maximum home loan amount that can be transferred from one bank to the other?

Maximum amount which you can transfer is equal to the outstanding money. In addition to this you can get additional top-up. However this additional top-up should not increase by the 75% of the market value of that property.

Is any guarantor required when going for a home loan balance transfer??

Guarantors are not required by most of the bank for an existing home loan when you go for a home loan balance transfer.

What is the time taken to complete the process of a home loan balance transfer??

It might take 15-20 days to complete the process of home loan balance transfer.

Can two existing home loans be merged together to form a single home loan through home loan balance transfer?

Yes, two home loans can be merged together through the home loan balance transfer.

Can the tenure period of an existing home loan be increased by a home loan balance transfer?

Yes, the tenure period of an existing home loan can be increased by home loan balance transfer, but it can be extended up to the maximum tenure period of the new bank.

When should I not go for a home loan balance transfer even if I find a bank with low interest rate than the existing one?

You should not go for a home loan balance transfer when: ● You are planning to sell that property in the coming future. ● When you are having less than 2 years as the left tenure time.

Will the Existing bank charge a pre-payment penalty for transferring the home loan?

Pre-payment penalty is not charged by most of the banks. But if they charge you can ask the new bank to which you are transferring your loan to add the penalty amount to your account.

Does the transferring of the home loan also depend on the current CIBIL score?

Yes, the home loan transfer depends on the your current CIBIL score, if your CIBIL score is low then the new bank for which you have applied the home loan transfer they may not approve your application.

Which is the best bank for a home loan?

Every bank offers a home loan with some unique feature. Some banks may give you a higher loan amount whereas some other lender may come up with a low processing fee. So one has to choose a bank according to their requirements.

What is the eligibility criteria for a home loan?

The eligibility criteria of a home loan is as follows: Age: 24 to 60 years Income: Minimum of ₹20, 000 per month Employment: Full-time job with at least 2 years of experience CIBIL: Required 750 or above

What is home financing?

Home Financing is another name of home loan. One can take financial support from a professional lender to buy a home. The loan is repaid to the lender in installments with applicable interest.

What's the best type of home loan?

A regular home loan is the most preferred type of home loan. If you want additional benefits, you can opt for Loans for Purchase of Land, Home Purchase Loan, Bridge Loan, Top-Up Home Loan, Home Construction Loan etc., according to your need.

What type of loan should I get for a home?

The type of loan you should get depends on your need. If you want to purchase a ready to move home, you can avail a regular home loan. If you want to purchase land to construct a home you can avail a land purchase loan or home construction loan. So according to your need, you should select the type of home loan.

What benefits for first time home buyer?

If you are a first time home buyer, you get the benefit of PMAY subsidy. Under this scheme, a first time home buyer can avail a maximum subsidy of ₹267,000 on purchasing a home.

Who qualifies as a first time home buyer?

If you are buying a property individually for the first time, you will be qualified for the benefits of first time home buyers.

Will I get approved for a home loan?

Getting approval on a home loan depends on your eligibility. If you are eligible for a home loan, you will get approval without any difficulty.

How much income do I need to qualify for a mortgage?

The minimum income to get qualified for a mortgage loan is ₹20,000 per month.

How do home loans work?

Home loans are installment loans which help you to buy a home. The home loan amount is credited to the seller of the home and the sale deed of the home will be in the custody of the lender. Once the borrower pays off the loan, the lender gives a clearance certificate as well as the original home loan documents to the borrower.

Which bank gives the best home loan?

Every bank offers a home loan with some unique feature. Some banks may give you a higher loan amount whereas some other lender may come up with a low processing fee. So one needs to choose a bank according to their requirements.

What is the age limit for home loans?

The age limit of a home loan may differ from lender to lender. Most of the lenders offer home loans to applicants from the age of 21 to 60 years.

Can I take a 100% home loan?

None of the lenders grant a 100% financing on any property. The maximum loan amount you can avail is 80% of the property price.

Can NRI get a home loan in India?

Yes, NRIs can easily get a home loan in India. Some of the banks even offer special home loan schemes for NRIs. The eligibility criteria and documents required are slightly varied form a regular home loan but availing a home loan is not difficult.

What are the documents required for a Home Loan for NRI?

To avail a NRI home loan these documents are required: Employer Identity Card, Attested copy of valid Passport and visa, Address proof mentioning the current overseas address, Copy of Continuous Discharge Certificate (CDC)-for applicants employed in the merchant navy, PIO Card issued by Government of India. (in case of PIOs), The attestation of documents may be done by FOs/Rep. Offices or Indian Embassy/Consulate or Overseas Notary Public or officials of Branch/Sourcing outfits based in India, Loan Application: Completed loan application form duly filled with 3 Passport size photographs, Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card, Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card & Bank account details for the previous 6 months overseas account.

How can I get a bank loan for a house?

To avail a bank loan for purchasing a house, you will have to apply for the same. You can get a pre-approval before finalizing the property or can apply for the loan after you choose the property to buy. Before sanctioning the loan, the lender will verify your loan eligibility. If you meet all the eligibility criteria, you will get the loan.

What is the minimum salary to get a home loan?

The minimum salary to get qualified for a mortgage loan is ₹20,000 per month.

Which bank is best for buying a house?

Every bank offers a home loan with some unique feature. Some banks may give you a higher loan amount whereas some other lender may come up with a low processing fee. So one has to choose a bank according to their requirements.

Which type of home loan is best in India?

In India various kinds of home loans are available. A regular home loan is the most preferred type of home loan. If you want additional benefits, you can opt for Loans for Purchase of Land, Home Purchase Loan, Bridge Loan, Home Loan Top-ups, Home Construction Loan etc., according to your need.

Which home loan is best fixed or floating?

Both kinds of home loans have pros and cons. A floating home loan interest rate is always lower than fixed home loan rate but it may fluctuate along with the market dynamics. On the other hand, a fixed home loan comes at a higher interest rate but remains constant till the tenure ends.

Do you have to have a down payment for a construction loan?

Yes! A home loan down payment is required for a home construction loan. Minimum of 20% of the property price has to be given as down payment of the home loan.

What credit score is required to get a construction loan?

The minimum credit score required to get a home construction loan is 750.

How do you qualify for a construction loan?

To be eligible for a hoe construction loan the age of the borrower must be between 18 – 70 years at the time of applying. The applicant should have been a salaried employee for at least last 2 years. The applicant should have a CIBIL Score of 750 and above. The applicant should have an income of more than ₹180,000 per annum.

Can a first time home buyer get a construction loan?

Yes, a first time home buyer can easily get a construction loan provided they satisfy the required eligibility criteria.

What is the interest rate on a construction loan?

The interest rate on a home construction loan starts at 8% per annum. The interest rate may vary from lender to lender.

What does the housing finance company do?

The housing finance companies give finance to purchase homes. You can avail finance for purchasing a ready to move home, to purchase land or to construct a home.

What is the difference between a home loan and housing finance?

Well, there is no difference between a home loan and housing finance. Both are the names of a credit facility provided by almost all top lenders in India to buy a home.

Which is better home loan or loan against property?

A home loan and a loan against property are two different products. A home loan is a credit taken for purchasing a home whereas a loan against property is a multipurpose loan which is taken by collateralizing your property.

What is the home loan process?

The home loan process is quite a lengthy one. It starts with applying for the home loan. In the next step, the lender checks the eligibility of the loan seeker which is followed by taking inspection of the property you want to purchase. The lender also does check the property documents to find if there is any legal issue with the property. If the lender finds no flaws, the loan will be granted.

How do you get a loan for a house?

To avail a loan to purchase a home, you need to apply for the same. You can apply online for a home loan by visiting our home loan page and fill up a simple application form to apply online.

How much income do I need to qualify for a mortgage loan?

The minimum income to get qualified for a mortgage is ₹20,000 per month.

What is the lowest home loan amount?

At present date, PNB housing provides the lowest home loan amount which is ₹50,000.

What is the lowest home loan amount?

PNB Housing Finance Ltd. provides the lowest home loan amount which is ₹50,000.

Can you negotiate a better mortgage rate?

If you meet all the eligibility criteria and you possess an excellent credit history, you will be able to negotiate the interest rate.

How do I apply for a home loan?

You can apply online for a home loan by visiting the website of the lender. The next way of applying for a home loan is by visiting the branch of your preferred bank and filling up the home loan application form.

Can a housewife get a home loan?

A housewife can get a home loan only if there is a co-applicant who is earning. A housewife can apply for a joint home loan with her earning husband to get approval on the loan application.

Can I take a home loan on my wife's property?

Taking a home loan to construct a home on your wife's property is possible if your wife is a co-applicant of the loan.

Can I take a home loan on my wife's property?

Taking a home loan to construct a home on your wife's property is possible if your wife is a co-applicant of the loan.

Can a spouse claim home loan benefits?

Your spouse can claim home loan benefits only if he/she is a co-applicant and co-owner of the property.

How can I avail tax benefit on a home loan?

You can apply for a tax rebate on your home loan while filing ITR every year. One can enjoy tax exemption up to ₹150,000 as per Section 80C of the Income Tax Act. An additional exemption of ₹200,000 on interest payment can be enjoyed.

How much loan can I get on Rs.60, 000 salary?

With a monthly salary of ₹60,000, you will be able to pay EMI of ₹30,000. If you calculate in this way, you will be able to get a loan up to ₹3,500,000 for the tenure of 20 years.

Will banks negotiate interest rates?

In some cases, you can get an opportunity to negotiate the interest rate of a home loan. If you have a very good relationship with the lender or your credit score is excellent, you can take a chance of negotiating the interest rate on your loan.

How do I ask my bank to lower my interest rate?

You can request the bank officials to lower your interest rate if you possess an exceptional credit score. You just need to visit the branch manager and talk to him.

What is the current interest rate for home loans?

The current home loan interest rate starts at 8% provided by Axis bank. The higher interest rate can reach up to 11%.

Which bank is better for a home loan, HDFC or SBI?

Both the lenders are popular among the home loan borrowers. You will be able to enjoy different features with both the lenders. The better one between both depends on the requirements of the borrower.

What is the present mortgage loan interest rate?

The present mortgage loan interest rate starts at 8% provided by Axis bank. The higher interest rate can reach up to 16% with multiple lenders.

Which bank is offering the lowest interest rate on the home loan?

At present day, the Axis bank is providing the lowest interest rate on home loans which is 8%.

What is the current interest rate for home loans?

The interest rate on any kind of loan revised periodically. You can find the interest rate as well as all other information on home loans from different banks by visiting this link: https://financebuddha.com/home-loan-interest-rates

Which type of home loan has the lowest interest rate?

The lowest rates on a home loan can be availed if the principal amount of the loan is less than ₹3,000,000 and the loan is applied or co-applied by a woman applicant.

Which private bank is best for a home loan?

Every private bank offers a home loan with some unique feature. Some banks may give you a higher loan amount whereas some other lender may come up with a low processing fee. So one has to choose a bank according to their requirements.

What interest rate can I get with a 750 credit score?

With a credit score of 750, you are likely to get the best interest rate given by a lender. But the interest may alter depending on other criteria of your loan.

What do I need to know when shopping for a mortgage?

While shopping for a mortgage, first of all, you are to find the best lender for the same. Once you have finalized the lender, you are to know the suitable tenure for your loan. Getting knowledge of fees and charges like processing fee, late payment fee etc. should be done.

What is the base rate and MCLR?

The base rate is the minimum rate of interest set by the Reserve Bank of India. Banks are not allowed to offer any loan below base rate. The marginal cost of funds based lending rate (MCLR) is an internal benchmark for a bank. MCLR is actually a method by which a minimum interest rate for loans is determined by a bank.

What is the minimum base rate fixed by RBI?

The base rate fixed by RBI at present is 8.65/9.45%

How is MCLR calculated?

The calculation of MCLR depends on these four factors: The marginal cost of funds, Operating cost, Tenure premium & Cost of maintaining the cash reserve ratio (CRR).

What are MSF and LAF?

The Marginal Standing Facility (MSF) is a policy of RBI which refers to the penal rate at which banks can borrow money from the central bank. Liquidity Adjustment Facility (LAF) is another monetary policy of Reserve Bank of India which allows banks to borrow money from the central bank through repurchase agreements.

How much of home loan will I be qualified for?

The home loan amount you can be qualified for depends on your income and repayment capacity.

What is the 28 /36 rule?

The 28/36 rule is a calculation done by lenders to find the maximum amount of lending to a particular borrower. According to this rule, an individual should spend a maximum of 28% of its gross monthly income on total housing expenses and 36% of the income in servicing credits of all kinds.

What is LOD in a home loan?

The LOD stands for 'List of Documents' in a home loan.

Can I get a loan for buying a plot?

Yes! One can easily get a loan for buying a plot which is called land purchasing loan in banking terms.

Is plot loan tax exempted?

No, the plot loan does not exempt tax until and unless the construction is completed on the plot.

Which loan is best for purchasing a land?

The best loan to buy land is a land purchasing loan as after the construction is completed, one can avail the tax benefits.

Can you buy land with no down payment?

No, Down payment is mandatory for a land purchase loan.

How can I get money for a down payment?

The ideal way to fund your down payment is by tour savings. If your savings are not enough, you can avail a soft loan like a secured loan or a loan from employer to pay the loan down payment.

What is a top-up loan?

A top-up loan is an exclusive benefit only for the existing borrowers. The existing borrowers can avail extra fund on the top of the existing home loan which is called the top-up loan.

What is processing fee cheque?

The processing fee cheque is the cheque given to the lender from the borrower to pay the processing fee of the loan.

Do banks give loans to build your own house?

Yes! You can avail a home construction loan to build your own home. A home construction loan is disbursed in 3 to 5 parts.

Is it cheaper to build a house or buy one?

Building a home is cheaper than buying it from a builder. But buying a ready-made home is much easier than building a home.

Can I pay EMI in advance?

No. The advance EMI payment option is not available in India.

What is the minimum salary for a home loan?

The minimum salary required for a home loan is ₹20,000 per month.

What are the minimum requirements to buy a house?

If you are planning to buy a home with a home loan, the minimum requirement of buying a home includes the loan eligibility, low FOIR and adequate documents.

Is there a minimum mortgage loan amount?

The lowest mortgage loan amount is offered by PNB Housing Finance Ltd. which is as low as ₹50,000.

How does a bridge loan work?

Bridge Home Loans are temporary loans taken by a property holder to bridge the gap between the selling of an existing home and purchasing of a new home. In the case when the existing property is not sold. The bridge loans are secured to the buyer's existing property. The money from the bridge loan is used for the down payment of the move-up home (new home).

Do I qualify for a bridge loan?

To qualify for a bridge loan, you are to meet the mentioned these eligibility criteria: The applicant should be a resident citizen of India. The applicant should have a minimum age of 18 years and maximum age of 70 years at the time of applying. One can opt for a bridge loan only for up to 2 years. The minimum loan amount that can be availed is ₹2,000,000 and the maximum loan amount is ₹20,000,000.

Do bridge loans still exist?

Yes! Bridge loans are indeed very popular among individuals who want to upgrade their homes. There are more than 31 lenders offering bridge loans at varied interest rates in India.

What is the interest rate for a bridge loan?

The present bridge loan interest rate for residential property starts at 12.50% and in the case of commercial property, the interest rate starts at 13.10%.

What is the present MCLR rate?

The MCLR rate varies from bank to bank. Moreover the MCLR rate revise from time to time depending on the repo rate of Reserve Bank of India. You can visit this link to find the latest MCLR of all banks: https://financebuddha.com/loans/mclr

What questions should I ask a mortgage lender?

Before you apply for a mortgage loan you must ask some important questions. What is the interest rate? Is there any prepayment penalty? Can I balance transfer my loan? Are there any hidden charges?

What documents do you need for a home loan?

The documents required for a home loan are: 1. Complete Home Loan Application Form with one passport size photograph. 2. Photo Identity Proof: Passport/ Driving License/ Voter ID/ PAN 3. Residence Address Proof: License/ Registered Rent Agreement/ Utility Bill 4. Residence Ownership Proof: Sale deed or rental agreement 5. Income Proof: salary slip, bank statement and Form 16 6. Job Continuity Proof: Appointment letter at employment and validation letter from HR 7. Bank Statement: Past 6 months’ document 8. Property Documents: Sale deed, Katha, transfer of ownership 9. Advance Processing Cheque: A cancelled cheque for validation of bank account 10. Investment Proof: LIC, mutual funds, property document etc. 11. Financial Documents: • For Salaried Individual: 3-month salary slip, Form 16 and bank statement • For Self-Employed Individual: IT returns for the last 2 years along with computation of income tax for the past 2 years certified by a Chartered accountant. • For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for the past 2 years certified by a Chartered accountant.

ReviewsView All

Prakhar Singh

5 / 5

HDFC required very less documents physical documents for my home loan in Delhi. The interest rate charged was 8.65% per annum and I had to pay ₹10,000 as processing fees. Overall a good experience.
Vipra Singh

5 / 5

The executive assigned for my home loan by HDFC was not good, he provided me wrong information about the product so, that I can purchase it and he can get his commission. Apart from the executive, everything went well.
Anirudh Chawla

5 / 5

DHFL charged me comparatively less rate for my home loan. Executives were good and polite they also provided me information about the processing and regarding government scheme too. Because of them, I was able to avail the PMAY government scheme which made my home loan cheaper.
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