Home Home Loan Quick Home Loan for Your 1’st Dream House

Quick Home Loan for Your 1’st Dream House

by Expert
3 Minutes read
home loan

Home loan, The name reflect its purpose very clearly. If you are willing to own a Home, but you don’t have much money in hand, then you can go for a home loan. Today you can easily borrow money from any bank or NBFC institutions. Leander take mortgage as guarantee until you repay the loan amount.

Today bank charges very low interest rate against Housing loan. You can borrow up to 90 percent property value as loan. Interest rate start from 6.55 Annum. Home Loan repayment tenure is very long. You can take this loan for maximum 30 years.

In this article you will get in-depth concept of home finance steps. Your dream house is just one step away.

Home Loan Interest rate comparison

Not only this loan but interest can impact on overall loan cycle. Low interest rate always proffered by most people. along with high repayment tenure. Here, you will get most popular home loan schemes offered by different bank and NBFC’s.

SL.Bank or NBFC organizationLatest Interest Rate
1State Bank of India6.70%
2ICICI bank6.70%
3Bank of Baroda6.75%
4Kotak Mahindra6.65%
5PNB Bank6.75%
6Union Bank India6.80%
7Central Bank of India6.85%
8Kotak Mahindra6.65%

Home Loan Eligibility criteria self checking

Before Appling for a loan always make a check-list that reflect your loan eligibility. here we are giving you common housing loan eligibility criteria.

  1. Applicant Resident- Should be Indian citizen for applying this loan.
  2. Applicant Age- Home finance age criteria is 18 to 70 years.
  3. SIBIL Score- Higher SIBIL score is always good. for applying loan for a home your SIBIL score record should meet 750.
  4. Secure Earning- At least 2 years service record with reputed company. for business at least 3years business record.
  5. Loan amount- You can borrow up to 90% of property as loan.
  6. Legal Fee– Leander may charge you a legal fee against your housing loan.

Documents required to apply home loan

Leander provide home loan application form. In the application form they clearly mention all required documents for applying the same. Read that portion carefully. Bank or NBFC organizations always check all documents carefully. If there is any issue, you may not eligible to get the loan from Leander. Below are the common must have documents you need to arrange.

Loan documents list
  • Loan Application Form- Collect Loan application form from financial organization. Fill the form carefully.
  • ID proof (KYC purpose)- Any legal documents issued by govt. of India. like PAN card, Voter Card. Driving License, Aadhar card etc.
  • Passport size picture- 2 copy of your recent passport size picture.
  • Age proof- Any one document where clearly mentioned your date of birth. Like Voter Card, PAN card, Birth Certificate, Aadhar Card etc.
  • Income proof- It is most vital, you need to show your earning proof as from 16. Need your salary sleep, IT returns of last 3 years. for business man you need to submit your business registration deed, ITR of last 3 years, Profit & Loss statement along with balance sheet.
  • Documents of property– You need to submit your approved building plan, NOC from builder, Estimate of construction cost of house.

Home Loan Tax benefit

As per Indian Tax Act 1961 you can get Tax benefit against your housing loan. This information can save your money on your EMI which you have to pay to Leander against your loan. Please check below for Tax benefit details.

  • As per section 24(b) you can get tax deduction benefit for up to Rs.2 lakh.
  • Section 80C offer you stamp duty and registration fee benefit up to Rs.1.5 lakh.
  • If you purchase house first time, then you can be benefited Rs. 50000 on section 80EE.
  • Section 80EEA offer additional Rs 1.5 lakh Tax deduction benefit.

Requirements Charges for Home Loan

As you are going to to take housing loan you must understand this additional factors too. Not only interest rate, you have to pay several types of amount along with your housing loan interest. Overall it increase your total loan repayment amount.

  1. Application fee– with your loan application you have to pay application fee to the Leander.
  2. Processing fee– there many leaders who charges additional processing fee.
  3. Administrative fee– after loan sensation Leander may charge administrative fee.
  4. Stamp Duty– also known as franking fee, you have to pay stamp duty also.
  5. EMI bounce– If you somehow miss your EMI then you have to pay extra fee as EMI bounce charge to Leander.

How to apply home loan?

Apply loan
  • To apply home loan, you first visit your nearest any government bank and consult with loan manager.
  • Search internet and tally interest rate. Find low interest rate option and long period that suits you.
  • Read loan agreement carefully before sign the application form.
  • Then apply online. or form bank, simply fill-up the home loan application form under loan manager guidance.

You may need Car Loan also- See how to get car loan easily.

FAQ’s related to Home Loan

What is the amount of EMI for 20 Lakh Home Loan?

Your Loan EMI amount will depend upon Interest rate. Suppose you have taken housing loan at 6.75% of interest rate, then for loan amount Rs. 20 lakh, your estimated EMI will be Rs. 19,300.

Which bank provide lowest interest on housing loan?

If you are searching for low interest rate then SBI Housing loan is best for you.

How can I migrate to new interest rate of housing loan?

You can easily migrate to new interest structure if you are in floating rate home loan. Bank will charge additional fee approx Rs.5000.

How do I apply for a home loan from bank?

It is very simple. Just collect application form from a reputed bank and fill the form carefully.

What is EMI?

EMI means ‘Equated Monthly Installment’. That you will pay against your loan amount each month to your Leander.

Can I pay loan amount in advance

Yes, you can repay your loan amount in advance. You may charge additional fee for that.

What is balance transfer loan?

Transferring outstanding loan balance to another bank is known as transfer loan.

What is home extension loan?

If you are willing to extend your room flor then you can avail home extension loan.

How can I get instant home loan from bank?

Yes, you can get instant loan applying online through this link from SBI. https://onlineapply.sbi.co.in/personal-banking/home-loan

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