Home Loan
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Factors affecting your Eligibility for a Home Loan
For a hassle free loan process, ensure you are up to the mark on each of these parameters
Monthly Income
The higher your income, the higher the loan amount eligibility and greater your chances of acquiring your dream home.
Age
Starting early has its benefits. Applying at age 30-35 years makes you eligible for a higher loan amount, as compared to applying when you are 40-50 years old.
Property Value
Quality adds to credibility. Choosing a good property in an approved society, colony or area is viewed more favourably by banks.
Credit History
Your Credit History can open or close the gate to your dream home. Always maintain a good CIBIL score.
Employment Status
As a Salaried person, you must have a minimum of 3 years work experience, to become eligible for a home loan.
Professional/Business Status
As a self-employed professional or a businessman, you must submit your professional details, business status record and bank statements as proof of your financial stability.
Relationship with Lender
A good understanding with the bank can go a long way in negotiating a good loan amount at lower rates.
Your Employer Category
Working at a well-regarded company not only adds to your reputation, but also your loan eligibility. A Fortune 500 Company on your visiting card really helps!
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Loans made pocket friendly
Choose your desired EMI first... then identify the loan that fits your pocket!
Special offers
Home loan rates as low as 8.50%*
zero processing fee on balance transfer for home loan disbursed till August 31, 2018.
Reduce your EMI burden
Your EMIs need not be so high! Trim your monthly burden using Balance Transfer Options suggested by our experts.
Compare Banks by their Interest Rates
Banks differ in terms of the offered Interest Rates. Now Rate your bank based on the Rate it offers.
A home gives you shelter and when you buy it through a housing loan, your savings remain untouched and you save tax as well. In addition to this, you save money you are paying on the house rent which makes a home loan even more beneficial. At Wishfin, you can choose among the top lenders on the basis of your income. You can also apply for a home loan via WhatsApp which is the most convenient choice a loan borrower can ever get. Read more to know about home loans such as:
- Top Banks Offering Lowest Home Loan Interest Rates Aug 2018
- Eligibility Criteria
- Documents Checklist
- Factors based on which the loan is approved
- Home loan on WhatsApp
Why to choose home loan or housing loan?
A home loan is the cheapest loan with can be taken for up to 30 years. You can buy a house with the money borrowed from a financial instituion and then repay it for the chosen time period. The maximum loan amount you can get varies from 75%-90% depending on the loan amount. You can compare different lenders on the basis of the interest rate, tenure and loan amount and then finalize the one that suits your purpose. Look at the benefits of applying for a home loan:
- Home loan is the cheapest loan with the starting rate of 8.45% per annum
- Women borrowers/coapplicants get special rates
- You can compare different EMIs and then decide
- You can also transfer the loan to other lender offering a lower rate
- You also get tax exemption on home loans
Top Banks Offering Home Loans in India 2018
Here is the list of top banks offering lowest housing loan interest rates in India. You can select the lender on the basis of the rate, processing fees, loan amount and approval criteria. Compare and apply online for best home loans.
| Banks | Interest Rate (p.a) | Processing Fee |
|---|---|---|
| SBI | 8.45%-9.00% | 0.35% + GST (Max 10,000 + GST) (No processing fees on balance transfer till August 31, 2018) |
| ICICI Bank | 8.55%-8.80% | 0.50% - 1.00% of the loan amount or ₹ 1500/- (₹2000/- for Mumbai, Delhi & Bangalore), whichever is higher + GST & Surcharge |
| Bank of Baroda | 8.50%-9.50% | Upto 0.5% of the loan amount or Max ₹7,500+GST |
| Axis Bank | 8.50%-8.85% | Salaried: Up to ₹1 Crore – ₹10,000 + GST Above ₹1 Crore to ₹2 Crores - ₹15,000 + GST Above ₹2 Crores - ₹25,000 + GST Self-employed: 0.50% Or ₹10,000 + GST, Whichever Is Higher |
| Citibank | 8.85%-9.60% | Up to 0.40% of the loan amount + GST |
| HDFC Ltd | 8.70%-9.40% | ₹10,000 + GST |
| Bajaj Finserv | 8.50%-10% | 1% of the loan amount + GST |
| LIC HFL | 8.45%-8.90% | Up to ₹1 Crore - ₹5,000 + GST ₹1 Crore & above - ₹10,000 + GST |
| Kotak Bank | 8.65%-8.75% | Salaried: ₹10,000 + GST Self-employed: Upto 0.50% of the loan amount + GST |
| Punjab National Bank | 8.65%-8.90% | NIL |
| PNB HFL | 8.99%-10.75% | ₹10,000 + GST |
| Standard Chartered Bank | 8.51%-8.60% | ₹10,000 + GST |
| DHFL | 9.05%-9.95% | Salaried: ₹5000 + GST – Upto ₹30 Lakh ₹10,000 + GST – Above ₹30 lakhs and upto ₹75 Lakhs ₹15,000 + GST – Above ₹75 Lakhs ₹20,000 + GST – Above ₹75 lakhs and up to ₹1 Crore Self-employed Non-Professional: Up to 1.5% of the loan amount + GST |
| Indiabulls Housing Finance | 8.70%-9.45% | Loan Amount Up to ₹30 lakhs - ₹5,000 or 0.50% of the loan amount (whichever is higher) + GST Loan Amount above ₹30 lakhs = ₹15,000 + GST |
| Bank of India | 8.50%-8.60% | Up to 0.25% of the loan amount + GST |
| IDBI Bank | 8.50%-8.80% | Up to ₹30 Lakhs : ₹2500 + GST ₹30 Lakhs to ₹75 Lakhs : ₹3,500+ GST ₹75 Lakhs : ₹5,000 + GST For Inward BT irrespective of the amount & PMAY proposals– Nil |
| Reliance Home Finance | 8.75%-10% | Up to 0.75% of the loan amount + GST |
Types of Home Loans
The different types of housing loans offered by banks/NBFCs in India are as follows:
- Home Purchase Loans
- Land Purchase Loans/Plot Loans
- Home Construction Loans
- Home Improvement Loans
- Home Conversion Loans
- Home Extension Loans
What is the eligibility criteria for Home Loan?
Home loan eligibility means the criteria set by the bank to decide whether you can get the loan or not. The table shows the criteria in general for a home loan at all banks.
| Parameters | Salaried | Self-employed |
|---|---|---|
| Age | Age should be between 21-60 years | Age must be between 21-65 years |
| Income | Minimum income of ₹1,80,000 p.a. | Minimum income of ₹1,80,000 p.a. |
| Current Experience | 2-3 years of current job stability | 3 years of current business stability |
| CIBIL Score | Above 650 | Above 650 |
You can also check your home loan eligibility to know the maximum loan amount you are eligible for so that you can plan your finance accordingly. Also, other than your income, age and professional stability, your property location and CIBIL score are very important. Lenders, in general, prefer CIBIL score of 650 or above and a authorized location before approving your loan.
What are the documents required for a home loan?
The documents required to apply for housing loans is different for salaried and self-employed applicants. Below is the list of documents a salaried and self-employed applicant has to submit:
List of documents for Salaried Home Loan Applicants
- Filled home loan application form
- Identity Proof- Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License
- Address Proof - Passport/Aadhaar Card /Utility Bill
- Residence Ownership Proof - Property Documents/Maintenance Bill/Electricity Bill
- Income Proof - Latest 3 months Salary Slips and Form 16
- Job Continuity Proof - Current Employment Certificate /Current Job Appointment letter (if more than 2 years)/Experience Certificate (including your previous job certificate or appointment and relieving letter)
- Bank Statements - Latest 1 year statement where your salary is getting credited
- Property Documents - Copy of agreement executed / Sale Deed, Share Certificate, Latest Maintenance Bill, List of documents & sanction letter given by Existing Banker (If applicable)
- Advance Processing Cheque
- Investment Proof - Fixed Deposit/Shares/Fixed Assets, etc.
- Passport Size Photograph
List of documents for Self-Employed Home Loan Applicants
- Filled home loan application form
- Identity Proof - Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License
- Address Proof - Passport/Aadhaar Card /Utility Bill
- Residence Ownership Proof - Property Documents/Maintenance Bill/Electricity Bill
- Income Proof - Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc.,
- Business Existence Proof - 3 years old Saral Copy /Shop Establishment Act /Any Tax Registration Copy /Company Registration license
- Bank Statement - Latest 1 year bank statement both current and savings.
- Property Documents - Copy of agreement executed / Sale Deed, Share Certificate, Latest Maintenance Bill, List of documents & sanction letter given by Existing Banker (If applicable)
- Advance Processing Cheque
- Investment Proof - Fixed Deposit/Shares/Fixed Assets, etc.
- Passport Size Photograph
Why to Apply for Home Loans at Wishfin?
Home loans are offered by almost all the top banks/NBFCs.So, choosing the best lender might be a little confusing. Wishfin is a great platform to get rid of that confusion. Here are the reasons to choose Wishfin:
- 10 Million Satisfied Customers - More than 10 million customers have fulfilled their wishes through Wishfin, so can you.
- Instant Quotes from Top Lenders - You get instant quotes from top banks and NBFCs and choose the most suitable one.
- Expert Advise- You get expert advise from the learned and experienced members of the team.
- Transparent Process - Experts are there to answer any query related to your home loan application.
- End to End Service - You get 100% assistance for the loan application ensuring no delays.
- Free CIBIL Score and Report - Wishfin gives you free CIBIL score and report with your home loan application.
How to Apply for Home Loans Online at Wishfin?
The process of applying is simple as the team here makes sure that you get the best deal. The expert advise is helpful in getting lowest interest rates as per your eligibility. Some of the top lenders for home loans are SBI, HDFC, DHFL, ICICI Bank, PNB HFL, LIC among others. The steps you need to follow at Wishfin are as follows:
Steps to follow at Wishfin to apply for a home loan
Fill up the following information in the form you can see at the top of this page:
- Enter desired loan amount
- Select employment status (salaried/self-employed) and mention monthly income
- Enter city name, your full name, date of birth, contact number and email ID
- Accept terms and conditions
- Click on get quotes
As soon as you submit the form, you will get another form where you have to mention your property details such as property value, applicant's gender, residence address, PAN number, and then click on get quotes. After completion of this form, you will get the list of banks where you are eligible to apply for a home loan.
How to Apply for a Home Loan on WhatsApp?
Wishfin has partnered with WhatsApp to enable consumers apply for a home loan on WhatsApp. You can now apply on WhatsApp just like you chat with your friends. Your have to answer only a few basic questions related to your loan and the chatbot will show you the list of options available for home loan on WhatsApp. The process is simple and instant which makes it convenient and mass-friendly.
How can you calculate home loan EMI?
You can compare different home loan EMIs based on these details and then choose the best one. The calculator takes into account basic details such as the loan amount, interest rate and tenure. Once you mention these, the calculator will give results of the monthly installment (EMI), total interest outgo and total repayment amount. People generally choose a longer tenure as it reduces the monthly installment, but it increases the total interest you pay to the lender. Using this calculator helps people select a suitable home loan EMI for the tenure they want to opt for. Also, this tool is very helpful at the time of balance transfer. You can check how much amount you still have to pay and how much you will save if you transfer your home loan to another lender which is offering a lower rate. There are no charges for using this tool and since it is available online, you can use it as many times as you want for variable values. The formula used for the calculation is given below:
Home Loan EMI Calculation Formula
The calculation in the EMI calculator is done through the below-given formula:
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
where,
EMI = Equated Monthly Installment
P = Principal Loan Amount
R = Monthly Interest Rate
N = Number of Monthly Installments
Home Loan Balance Transfer
The facility of balance transfer is of two types. The one is to transfer your home loan from base rate to MCLR rate within the same bank. The other is to transfer from one lender to another. The former is important and might be free of cost whereas if you transfer your home loan to another lender, there is a fee involved. At SBI, this facility is free of cost till August 31, 2018. Other banks have a balance transfer fee associated. The borrowers have the choice to transfer their expensive home loans to a lower interest rate providing bank or NBFC.
Impact of Increased Repo Rate by RBI on Home Loans
Reserve Bank of India (RBI) has inreased its repo rate by 25 basis points to 6.50% due to inflation concerns. Repurchase rate or repo rate is the rate at which RBI lends money to commercial banks in case of lack of funds. The impact of the same would be direct on home loans majorly. Almost all centralized banks may now hike their MCLRs and hence the increase in linked home loans is likely to take place.
Pradhan Mantri Awas Yojana (PMAY) - CLSS Details
The PMAY affordable housing scheme under PMAY is for providing houses to all the eligible families/beneficiaries by 2022. Through Credit Linked Subsidy Scheme (CLSS), the purpose is to expand the credit flow to the housing needs of the urban population. Credit linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for acquisition, construction of house. The Housing for All is categorised as mentioned below:
- CLSS - EWS / LIG
- CLSS (MIG-I/II)
Credit Linked Subsidy Scheme (CLSS) EWS / LIG
Under this scheme credit linked interest subsidy at 6.50% will be provided to the eligible borrowers for 15 years or actual tenure of the home loan, whichever is lower, in EWS/LIG category as per the Government of India.
Credit Linked Subsidy Scheme (CLSS) - MIG
Credit Linked subsidy Scheme (CLSS) for Urban Areas under the ambit of Pradhan Mantri Awas Yojana (PMAY) is for the borrower belonging to the middle-income group (MIG). The scheme is now available for the customers for 15 months more that is till March 2019. Read below the criteria required to avail this interest subsidy scheme.
Home Loan Eligibility Criteria for PMAY
You have heard about banks offering home loans under PMAY - Housing For All. So, people who come under the below-mentioned criteria are eligibile to avail the benefits of interest subsidy.
- You are eligible if your immediate family members (except parents) do not own a ‘pucca’ home anywhere in India.
- Your income is up to ₹6,00,000 per annum [to avail CLSS: EWS (Economically Weaker Sections) or CLSS: LIG (Low Income Group)]
- Your income is from ₹6,00,000 to ₹12,00,000 per annum [to avail CLSS: MIG 1 (Middle Income Group 1)]
- Your income is from ₹12,00,000 to ₹18,00,000 per annum [to avail CLSS: MIG 2 (Middle Income Group 1)]
Home Loan FAQs
Here are some of the frequently asked questions that might pop-up in your mind while you think of home loans.
What is a home loan?
A home loan or a housing loan is a debt facility offered by banks and NBFCs in order to help you buy your property.
What is the interest rate offered by the lender?
Banks and NBFCs offer home loans at both floating rates and fixed rate wherein the former is considered to be more beneficial as the rate is consistent until and unless there is a change in the MCLR. The applicants choosing a floating rate of interest get to pay the same EMI for the whole tenure.
What is the maximum tenure for this loan?
The maximum tenure available under this loan is 30 years and it is your choice to select the tenure. The longer the tenure is the lower will be the EMI and vice-versa.
How much loan can you get on your salary?
A home loan is offered based on the factors such as the property value, age of the applicant, monthly income (including spouse's), monthly savings, and credit history. If an applicant has all these factors matching which the requirement of the lender, the chances of getting a desired loan amount increases.
What are the other charges involved in the loan?
Other than the interest rates on home loans, there are additional charges like processing fees, documentation charges, etc. that are deducted from the disbursal amount. However, there are no prepayment charges on a housing loan based on the floating rate of interest and also some of the top lenders like SBI and PNB have no processing fee at present.
What are the different ways to pay the EMI?
You can either pay your EMI through post-dated cheques for the tenure of the home loan wherein the amount will be deducted automatically from your salary account. Otherwise, you can do it via ECS (Electronic Clearing System) wherein the EMI is automatically deducted from your bank every month.
How many co-borrowers can you have in a home loan?
The maximum number of joint borrowers in case of a home loan is fixed at 6. However, Indian lenders only consider family members such as parents, siblings and spouse as the co-borrowers. Lenders often suggest you to have a co-borrower who has a robust credit history and good credit score so that it can help in getting a better deal.
What is the best way to get the lowest rate?
Even though there is no magic spell that can bring in the lowest rate if you match the criteria, have a good credit history, maintained all the property documents properly, good repayment capacity, your chances of getting desired rate increases. The other way round is to transfer your existing home loan to a lender which is offering a lower rate. Some of the top banks such as SBI are presently doing balance transfer without any additional cost involves.
Can you get 100% home loan?
The maximum loan amount a home loan borrower can get is defined by RBI and is as follows:
| Loan Amount | Loan to Value | Property Value |
|---|---|---|
| Up to 30 Lakhs | 90% | 33,33,333 |
| Above 30 Lakhs and Up to 70 Lakhs | 80% | Above 33 Lakhs to 93.75 Lakhs |
| Above 75 Lakhs | 75% | Above 93.75 Lakhs |
How much GST is applicable on real estate?
At present, the real estate is under the 18% tax slab of Goods and Servcice Tax (GST) Act with 1/3rd less for the land.
How much GST is applicable on affordable housing schemes?
Recently, the GST Council of India had declared that if a borrower is eligible for affordable housing schemes - PMAY CLSS, he or she will get double benefit. The one is of course the interest subsidy under the scheme and the other is the reduced GST. From now onwards, if you are eligible for CLSS scheme, you no longer have to pay the 12% tax but only 8%.
How much can you save tax on home loan?
Under Section 80C, a home loan borrower can avail deduction of maximum ₹1.5 lakhs in a financial year from his/her taxable income for payment towards home loan principal repayment.
How is Budget 2018 for home loan borrowers?
Finance Minister has announced an allocation of ₹27,5000 crore for affordable housing plans in FY19 in Budget 2018 which is expected to increase the demand of home loans. From the borrowers side, the government also said that it would build 1 crore houses in the rural areas and that the affordable housing fund for housing purposes will be now under National Housing Bank.