Home Loan

All about home loan, eligibility, process, necessary documents list, EMI comparison and transfer for lowest rates.

Here you can get information on current interest rates from all banks and apply for required loan amount. You will be able to check eligibility with more than 20 banks with a short & simple quick apply form.

We helps you to check the eligibility and understand the approval criteria of various banks for home loans within 1-2 min. You can compare processing fee, Rate of interest, other charges and turnaround time for the home loan approval with various banks and financial companies instantly.

Reserve Bank of India has cut the key policy rate by 25 basis points on 4 march 2015, setting the tendency for a reduction in lending rates by banks. This will push banks to drop interest rates on home loans by .25 %.

Should I take Home loan now or wait?

Home loan is a long term loan and is taken by customers on floating rates .Rates keep changing and timing on 20 year loan is impossible.

The Home loan rates will change in 20 years so thinking to start a loan at a lower rate has no relevance.

Right time to take a (Home loan) is when:

  • The Property you intend to buy is good and cannot be missed or it is expected that the price of property will rise.
  • The Emi that you have to pay per month is above your monthly expense budgets etc.

Latest Updates on Home Loan:

  • ICICI Bank & SBI Bank Offers home loans at 9.75% rate of interest.
  • Expect other banks may cut in rates, when the flow of funds is better in Banks.
  • We expect Home loans to stay under 9.75% for most part of 2015.
  • Rates can hit as low as 9% if RBI pushes for it.

Lets us Explain how this will go about and what are the Steps

The 1st step involved in the process / method is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria.

Know the Home Loan Eligibility: Banks offer the loan amount based on your Income and the property value .They will give you max amount in which your EMI of Home loan and others loans is 50-60% of your income.

Other factor is that value of property.

Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other charges like processing fees, Application fees, and legal charges mustn’t be neglected when comparing various loan offers. To check the rate of interest & other charges incurred by various banks, we has brought in a Home Loan Comparison Chart across various Banks. Banks offer Fixed and Floating rates in Home loans.

Most customers choose Floating rates

Applying for the Loan: After once you have been selected your lender, you have to fill in the application form wherein the lender requires complete information regarding your financial assets & liabilities; other personal & professional details together with the property details & its costs.

Documentation & Verification Process: You’re required to submit the mandatory documents to the bank which will be verified all together with the details in the application form.

Credit & default check: Bank checks out the borrower’s loan eligibility (through re-payment capacity) & the amount of loan is confirmed. The borrower’s re-payment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application.

Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.

Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter.

Bank checks the legal documents: The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.

 Signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.

Documents required in Home Loan

Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application:

  • ID Proof
  • Address Proof
  • Income Proof of the applicant & co-applicant
  • Last 6 months bank A/C statement
  • Passport size photograph of the applicant & co-applicant
In case of Salaried In case of Self-employed
Office ID card or Visiting card of company Copy of financial statements for the last 2 years
Copies of Salary slips (3 months) Copy of partnership deed (if it is a partnership firm or copy of memorandum of association and articles of association if it is a company)
Last 2 years Form 16 issued by employer Profit and loss account for the last few years
Income tax assessment order

How is (Home loan) Eligibility Calculated

The borrower’s eligibility of obtaining a housing loan depend upon his/her re-payment capacity & the banks establish this re-payment capacity by considering numerous factors such as income, age, spouse’s income, number of dependents qualifications , assets, liabilities, stability and continuity of occupation & savings history. Eligibility Factors in Housing loan Your Home Loan eligibility is determined by your re-payment capacity and also the value of the Property

  • Income
  • Qualifications
  • Age
  • Spouse’s income
  • No. of dependents
  • Stability & continuity of occupation
  • Assets / Liabilities.
  • Savings history.

The most important / necessary concern of banks in determining your loan eligibility is that whether or not you are contentedly able to pay off the amount you borrow.

The Second factor is the value of the Property

Banks are okay to fund 75-85% of property value but with the condition that you have income capacity that you can pay its Emi each month.

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