Home Loan

A Home Loan is a secured loan taken from a Banks / Financial Institution to purchase, construct, build or renovate a residential property. The property serves as collateral until the loan is fully repaid through monthly installments.

A home loan helps you finance buying, constructing, or renovating a house, repaid over time in EMIs with interest, using the property as collateral; eligibility depends on age, income and credit score, while features include fixed/floating rates, loan-to-value (LTV) ratios, and tax benefits, requiring standard KYC, income and property documents for approval. 

Key Features & Benefits:

• Interest Rates: Typically 7.5% to 12% p.a., can be fixed (stays same) or floating (market-linked).
• EMI (Equated Monthly Installment): Fixed monthly payments covering principal and interest.
• High Borrowing Capital: Access funds up to 85-90% of the property’s market value.
• Extended Tenure: Lower your monthly financial burden with repayment timelines up to 30 years.
• Tax Savings: Deduct up to ₹2 Lakhs on interest (Section 24b) and ₹1.5 Lakhs on principal (Section 80C) annually.

Eligibility Criteria:

• Age Limits: Applicants must be between 21 and 65 years old.
• Credit Score: A credit score of 750 or higher guarantees the best interest rates.
• Employment Status: Minimum 2 years of work experience for salaried individuals; 3 years for self-employed individuals.
• Income Threshold: Minimum monthly income of ₹25,000 to ₹30,000 (varies by city and lender).

• KYC Proof: Aadhaar Card, PAN Card, Passport, or Voter ID.
• Income (Salaried): Last 3 months’ salary slips, 6 months’ bank statements, and Form 16.
• Income (Self-Employed): 2-3 years of audited Income Tax Returns (ITR) and 12 months’ bank statements.
• Property Papers: Signed Sale Agreement, Allotment Letter, and No Objection Certificate (NOC) from the builder.