50+ Banks
  Contactless KYC & Paperless Approval
  1,000+ Happy Customers
  Exclusive Offers & Rates

Home Loan Information

A home loan, also known as a mortgage, is a financial product used to purchase real estate. Borrowers receive a lump sum of money to buy a property and repay it over a fixed period with interest. Home loans usually come with lower interest rates compared to other loans because they are secured by the property itself.

Types of Home Loans

  • Fixed-Rate Mortgages: These loans come with a fixed interest rate for the entire term of the loan, making monthly payments predictable.
  • Adjustable-Rate Mortgages (ARM): The interest rate fluctuates over time, typically starting with a lower rate that adjusts after an initial fixed period.
  • FHA Loans: These loans are insured by the Federal Housing Administration and are designed for low-to-moderate income borrowers with less-than-perfect credit.
  • VA Loans: These loans are available to veterans, service members, and their families, with favorable terms and no down payment requirements.
  • Jumbo Loans: Jumbo loans are used to finance properties that exceed conforming loan limits set by the government.
Bank Name Interest Rate Processing Fee Loan Amount/Tenure
SBI Home Loan 8.50% p.a. – 9.65% p.a. (Floating Rate) 0.35% onwards (min. Rs.2,000; max. Rs.10,000), currently NIL during the campaign period At the discretion of the bank / 1-30 Years
HDFC Home Loans Special: 8.75% to 9.65% p.a., Standard: 9.40% to 9.95% p.a. 0.5% or Rs.3,000, whichever is higher Contact the bank / 1-30 Years
Union Bank Home Loan 8.35% p.a. to 10.75% (Floating Rate) 0.50% or ₹15,000 Maximum Contact the bank / 1-30 Years
PNB Housing Home Loan 8.40% p.a. onwards (Floating Rate) Up to 0.5% of the loan amount (min. Rs.10,000) Up to 90% of the property cost / 1-30 Years
LIC HFL Home Loan 8.50% p.a. for salaried, 8.75% p.a. for non-salaried Up to Rs.50,000 + GST depending on CIBIL score ₹ 10L - ₹ 3Crs / 5-30 Years
Axis Bank Home Loan 8.75% p.a. for salaried, 9.10% p.a. for self-employed Up to 1% ₹ 10L - ₹ 5Crs / 1-30 Years
Aditya Birla Capital Home Loan 8.80% p.a. to 14.00% p.a. for salaried, 9.10% to 14.75% for non-salaried Up to 1.00% of loan amount + applicable tax Contact the bank / 1-30 Years
Karnataka Bank Home Loan 8.58% - 11.43% p.a. (Floating Rate) Contact the bank Up to ₹ 5Crs / 1-30 Years
IDFC Home Loan 8.85% p.a. onwards Up to 3% ₹ 1L - ₹ 5Crs / 5-30 Years
Bank Of Baroda Home Loan 8.40% p.a. to 10.60% p.a. (Floating Rate) Contact the bank ₹ 1L - ₹ 10Cr / 1-30 Years
Canara Bank Home Loan 8.50% p.a. to 11.20% p.a. for women, 8.55% p.a. to 11.25% p.a. for others 0.50% (min. Rs.1,500; max. Rs.10,000) ₹ 1L - ₹ 3Cr / 30 Years
Kotak Mahindra Bank Home Loan 8.75% p.a. onwards 0.5% of loan amount ₹ 10L - ₹ 10Cr / 1-20 Years
DBS Home Loan Contact the bank ₹ 10,000+ taxes Up to ₹ 5Crs / 1-25 Years
Sundaram Home Finance Limited Home Loan 10.00% p.a. onwards Contact the bank ₹ 1L - ₹ 4Crs / 1-25 Years
Bank of Maharashtra Home Loan 8.35% p.a. to 10.90% p.a. 0.25% (One-time fee) Contact the bank / 1-30 Years

Key Features of Home Loans

  • Loan Term: Home loans typically range from 10 to 30 years. Shorter terms result in higher monthly payments but less interest over the life of the loan.
  • Down Payment: A percentage of the home's purchase price paid upfront. The more you pay upfront, the less you need to borrow.
  • Interest Rate: The rate charged by the lender on the loan. Fixed-rate and adjustable-rate options are available.
  • Loan-to-Value Ratio (LTV): This ratio compares the loan amount to the value of the property. A lower LTV ratio often results in better loan terms.
  • Private Mortgage Insurance (PMI): Required for borrowers who make a down payment of less than 20%, PMI protects the lender in case the borrower defaults.

Advantages of Home Loans

  • Build Equity: As you make mortgage payments, you build equity in your home, which can later be leveraged for other financial needs.
  • Tax Deductions: Interest paid on a home loan is often tax-deductible, reducing the overall cost of borrowing.
  • Fixed Payments: With a fixed-rate mortgage, monthly payments remain consistent, helping you budget more effectively.
  • Long-Term Financing: Home loans offer long repayment terms, making home ownership more affordable in the short term.

Disadvantages of Home Loans

  • Long-Term Commitment: Home loans can last for decades, which means a long-term financial commitment.
  • Risk of Foreclosure: If you fail to make payments, the lender can seize your property through foreclosure.
  • Interest Costs: Over the life of the loan, you may end up paying significantly more than the actual purchase price of the home due to interest.

    • Factors to Consider When Applying for a Home Loan

    • Credit Score: Lenders evaluate your credit score to determine your eligibility and interest rate. A higher score usually results in better loan terms.
    • Down Payment: The larger your down payment, the less you need to borrow, and the lower your monthly payments will be.
    • Interest Rate Type: Decide whether a fixed-rate or adjustable-rate mortgage is better suited to your financial situation.
    • Loan Term: Shorter loan terms reduce the amount of interest you pay but increase monthly payments.
    • Property Value: The appraised value of the property affects how much you can borrow and your loan-to-value ratio.

Steps to Take Before Applying for a Home Loan

  • Check Your Credit Report: Ensure your credit report is accurate and free of errors before applying.
  • Save for a Down Payment: The larger your down payment, the better your chances of securing a favorable loan.
  • Determine Your Budget: Calculate how much you can afford to spend on monthly mortgage payments, factoring in property taxes and insurance.
  • Get Pre-Approved: A pre-approval from a lender shows sellers you're serious and helps you determine how much you can borrow.

Conclusion

A home loan is a long-term financial commitment that allows you to own a property while spreading out the cost over many years. It’s important to carefully evaluate your financial situation, understand the terms of the loan, and choose a loan that fits your needs.

A small river named Duden flows by their place and supplies it with the necessary regelialia.

Useful Link

Loan

Investments

Contact Us

Copyright © All rights reserved | This template is made with by Your Reputation Consulting