A home loan is a loan taken for buying or constructing a home or to make improvements to a residential property. You can get a loan from from banks and registered housing finance companies. Your home loan is secured against the property that you buy. This means that in case you are unable to repay the loan, the lending bank will have the right to take possession of your home.
TYPES OF HOME LOAN
EMI (EQUATED MONTHLY INSTALMENT)
EMI (Equated Monthly Instalment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.
To qualify for a home loan, most of the lending institutions in India require you to be :-
An Indian resident or NRI
Above 24 years of age at the commencement of the loan
Below 60 or retirement age when the loan matures
Either self employed or salaried
Interest rates are different from institution to institution and generally range from about 8.75% to around 12 %. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.
TYPE OF INTERESTS
OTHER COSTS THAN ACCOMPANY A HOME LOAN
FREQUENTLY ASKED QUESTIONS
HOME LOAN DOCUMENTS
Generally, the documents required to process a loan application are almost similar across all banks, however they may differ depending upon specific requirements and other factors. The following documents are required by financial institutions to process a loan application: