Menu
CALL US : +91 9618623143
Home Loan
Our home loan services can turn your dream home into a reality. Housing Baddy has partnered with a variety of banks to provide mortgage loans that are agile and hassle-free. Get access to home credit loans that offer a variety of benefits, including low housing loan interest rates and smaller EMIs that can help you spread your payments over a longer period. Housing Buddy understands your financial requirements and offers home loans that can cover up to 95% of the property’s value. As your genuine mortgage loan specialist, we offer the most convenient methods to obtain affordable home loan interest rates, quick approvals, and minimal home loan eligibility requirements. Please take the next step towards your castle with our home loans that are approved quickly, disbursed quickly, and have flexible loan repayment periods.
Fill out form to enquire now
Home Loan Features and Benefits
The borrower has a variety of advantages when it comes to home loans, including lower interest rates, tax benefits, flexible repayment time frames, and more.
1) Interest rates are attractive
Compared to other types of loans, home loans have lower interest rates. Getting a home loan is more advantageous than applying for any other loan type to buy your dream property. The lenders offer housing loans at low interest rates because they don’t want to deal with missed EMIs and unpaid dues.
2) Performing due diligence on the real estate property
If you missed determining the property’s validity, the bank will carry out the process, which is the most advantageous aspect of housing finance. In addition, bank employees conduct legal checks while evaluating the house loan documentation to ensure that the borrower is not defrauded. The bank’s approval for the transaction is evaluated through due diligence, and you are alerted if your property purchase is risky in any aspect.
3) Tax benefits for housing loans
Income tax benefits are available to individuals with mortgages. Getting a property loan is a great way to save money on income tax. The interest paid annually is available. The income tax that needs to be paid is reduced by the amount of interest paid.
4) Availability of Home Loan Balance Transfer
The payback period is one of the distinguishing features of a home loan from other types of loans. When it’s most convenient for you, you have the option to request longer payback terms. The loan repayment term can be extended up to 25 to 30 years. The EMI burden on the borrower is eased as the repayment period lengthens, resulting in a decrease in monthly instalments.
5) Flexible repayment period for home loans
If you missed determining the property’s validity, the bank will carry out the process, which is the most advantageous aspect of housing finance. In addition, bank employees conduct legal checks while evaluating the house loan documentation to ensure that the borrower is not defrauded. The bank’s approval for the transaction is evaluated through due diligence, and you are alerted if your property purchase is risky in any aspect.
6) Capital Growth
Real estate data shows that the cost of properties has been continuously increasing over the last decade. The paid interest amount is significantly less than the capital appreciation of real estate properties, as indicated by analysts. Property owners can now sell their properties for a higher profit, making it a lucrative opportunity.
Home Loan Overview
NBFCs and banks lend a loan amount to buy a property through a home loan or mortgage loan. Purchases of apartments, new houses, and plots are eligible for house loans. In contrast, for renovations, extensions, and repairs of an existing home, you can opt for a home loan for renovation purposes. Before deciding on these products, it’s crucial to assess the interest rate on your home loan to prevent the EMI amount from becoming too heavy.
People are encouraged to apply for a mortgage to become homeowners as a result of the rising prices of real estate. The lender’s decision to maintain your property as a mortgage after you apply for a home loan is crucial. To acquire full ownership of the property, it is necessary to pay the debt amount in monthly instalments. In order to calculate the EMI for a house loan, the lender uses a home loan calculator or home loan calculator.
Home Loan Tax Benefits
The principal amount and interest rate are the two parts of the repayment of a home loan. The home loan interest deduction or tax deduction is used to claim these parts when filing income tax returns.
The interest component paid on a house loan can be claimed as tax benefits under Section 80 EEA. The interest rate that house loan borrowers have to pay is eligible for tax incentives of up to INR 1.5 lakhs in this section. Particulars Quantum Of Amount Deduction
Under Section 24
- For self-occupied property: Rs. 2,00,000
- For non-self-occupied property: No set limit
Under Section 80 C
- For self-occupied property: Rs. 1.5 Lakhs
- For non-self-occupied property: Rs. 1.5 Lakhs
Under Section 80 EEA
- For self-occupied property: Rs. 1.5 Lakhs
- For non-self-occupied property: Rs. 1.5 Lakhs
Home Loan Eligibility Criteria
Banks and finance companies have pre-determined home loan eligibility criteria to verify and provide maximum ease to loan borrowers. Apart from the eligibility criteria, banks look at the applicant’s credit history to establish creditworthiness and repayment patterns.
· Applicant must be between 21 to 65 years
· Salaried or self-employed
· Annual income
· Collateral security
· Assets, financial stability and occupational continuity
· Residence status (Indian or NRI)
How to Close Existing Home Loan?
Closing a home loan can be done either after the repayment period is over, and you have successfully paid off the entire loan amount or through foreclosure.
Once your repayment tenure is over, you can close your loan by visiting the lender and filling out the required form. Once you’re done, the lender will give you the loan closure certificate and your property documents that were kept as mortgages when the loan was approved.
In the event that you choose to repay the loan amount before the loan tenure expires, i.e. if you are facing loan foreclosure, you will be required to pay the fees associated with it.
Your debts will be cleared once the outstanding amount and foreclosure are paid. After processing your foreclosure application, the bank will give you a loan closure certificate.
Home Loan: Service Charges And Fees
The following fees are associated with home loans throughout the loan tenure:
Processing Fees: It is a one-time charge that the borrower is liable to pay to the bank or finance provider. A processing fee is charged for recovering the expenses incurred to process the home loan. It is non-refundable and is paid in advance.
Application Fees: It is also termed administrative Fee or login fee. The administrative Fee is non-refundable and is charged before applying for a home loan. It is charged prior to loan approval. It can range from Rs. 2,500 to Rs. 6,500. In case of loan approval, the applicant will have to pay the applicable processing fee, which will be computed after deducting this amount.
Prepayment or Foreclosure Charges:
Lenders also term it as pre-closure Charges or home loan closure charges. Home loan prepayment charges are applicable when a borrower decides to pay the loan amount in one go prior to the end of their tenure. Many banks and financial institutions don’t charge foreclosure fees specifically for floating-rate loans. It can range from 2 to 6 per cent of the remaining loan amount.
Partial Prepayment Charges: Banks usually impose this charge when the borrower pays off a specific part of the outstanding balance amount. Afresh, floating interest rate home loans are exempted from this charge. If applicable, the part-payment charge varies from 0.5 to 2% of the outstanding loan amount.
Conversion Charges: Also known as Switching Fees, conversion charges are applicable when the borrower converts the floating-rate loan to a fixed-rate loan or vice versa.
Repayment Mode Swap Charges: This charge is imposed when you opt for a changed repayment method and dates. The charged amount for every request is Rs. 500.
Max Tenure of Any Home Loan: All major lenders offer house loans with a maximum repayment tenure of 30 years. The longer the repayment tenure, the lower the monthly instalments, which makes a loan tenure of 25 to 30 years quite appealing.
Maximum / Minimum Loan Amount From Bank :
The maximum and minimum home loan amounts that banks offer depend upon the property costs as per current market trends. At maximum, you can get 85% of the property cost as a loan amount based on property location and your credibility. At a minimum, you can loan 75% of the property price.
Types of Home Loan:
The purchase of a house is not the only purpose of a housing loan. Different interest rates are associated with different types of home loans.
1) Home Construction Loan
A lot of individuals choose to construct their own homes instead of purchasing one. The loan amount is determined by the overall building cost, the property’s age, and any other fees in such cases. The loan amount can be accepted either in full or in instalments as needed, which is another advantage. The loan amount determines the interest rate and usually falls between 6.85 and 9.50 per cent.
2) Home Loan
The bank can lend the borrower up to 85 per cent of the house’s cost at an interest rate that ranges from 9.85 to 11.25 per cent. The majority of banks that offer loans offer this type of home loan.
3) Land Purchase Loan
This option is available to borrowers from banks and NBFCs. Up to 85 per cent of the land’s value can be lent by the bank, with an interest rate ranging from 6.75 to 12.09 per cent, depending on the area and credit score. The construction of a home after substantial savings is possible with the help of land, making it a valuable asset. Moreover, loans for land acquisitions come with lower interest rates than other loan products.
4) Home Improvement Loan
Remodelling your property can be done with the help of a home renovation loan. It has a wide range of uses, including repairing flaws, painting, updating home interiors, waterproofing, and much more.
Required Home Loan Documents
To avail of a home loan with utmost ease, you need to prepare the below-depicted documents:
Documents for Identity Proof
· PAN and Aadhar Card
· Applicant’s Passport
· Voter ID Card
· Driving Licence
Documents for Address Proof
· Utility bills (electricity or telephone bill)
· Salary slips for last 6 months and Form 16
· Identity proof that contains address, like an Aadhaar Card
· Bank account statements
· Income proof and employment proof
Other Documents
· Passport-size photographs of the applicant
· For self-employed, business continuity proof will be required (5 years)
FAQ
The loan repayment tenure and interest rate offered by the lender will determine the EMI for a Rs. 20 lakh home loan.
In India, there are several premium banks (both private and public) that offer attractive home loans and related products. HDFC, ICICI, Axis, and SBI are some of them.
A home loan of up to Rs. 20.50 lakh can be obtained with a salary of Rs 30,000, depending on your credibility.
Depending on the chosen tenure and interest rate, the EMI for a Rs. 10 lakh home loan will be somewhere between Rs 8,000 and Rs 10,000.
To obtain a home loan at an attractive interest rate, it is necessary to have a credit score above 700.
You can either compute the EMI through the mathematical formula i.e. EMI = {P x (R/100) x (1+R/100)^n} / {(1+R/100) ^n-1} or via home loan EMI calculator.
Home loans without payslips are available from many banks and finance providers. You must provide bank statements, income proofs, and PAN card details.
To ensure easy approval, it is recommended to pay off your dues before applying for a home loan.