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 8.30%*
Zero processing fee for Central & State Govt employees, Defence Personnels.
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.
Are you tired of paying rent for your house? There is no doubt that paying an EMI may prove to be a better option is you can control your unnecessary expenses till the loan repayment is done. Here are some of the top banks offering lowest housing loan interest rates and tenure along with the processing fees which altogether is going to help you in making the right choice.
| Banks | Maximum Tenure(in years) | Interest Rate (p.a) | Processing Fee |
|---|---|---|---|
| SBI | 30 | Salaried Borrowers: 8.35%-8.70% (for women) and 8.40%-8.75% (for others) Non-Salaried Borrowers: 8.50%-8.85% (for women) and 8.55%-8.90% (for others) | 0.35% + GST (Max 10,000 + GST) |
| ICICI Bank | 30 | 8.35%-8.85% (for women) & 8.40%-8.85% (for others) | 0.50% - 1.00% of the loan amount or ₹ 1500/- (₹2000/- for Mumbai, Delhi & Bangalore), whichever is higher + GST & Surcharge |
| Bank of Baroda | 30 | 8.40%-9.40% | Upto 0.5% of the loan amount or Max ₹7,500+GST |
| Axis Bank | 30 | 8.40%-8.75% | 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 | 25 | 8.60%-9.35% | Up to 0.40% of the loan amount + GST |
| HDFC Ltd | 30 | 8.40%-9.35% | ₹10,000 + GST |
| Bajaj Finserv | 20 | 8.30%-8.50% | 1% of the loan amount + GST |
| LIC HFL | 30 | 8.45%-8.90% | Up to ₹1 Crore - ₹5,000 + GST ₹1 Crore & above - ₹10,000 + GST |
| Kotak Mahindra Bank | 20 | 8.35% | Upto 1.25% of the loan amount + GST |
| PNB | 30 | 8.50%-8.60% | NIL |
| PNB HFL | 30 | 8.40%-8.99% | ₹10,000 + GST |
| Standard Chartered Bank | 20 | 8.51%-8.60% | ₹10,000 + GST |
| DHFL | 30 | 9%-10% | 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 | 30 | 8.45%-9.75% | 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 | 30 | 8.35% - 8.50% | Up to 0.25% of the loan amount + GST |
| IDBI Bank | 25 | 8.35%-8.65% | 0.50% of loan amount or a maximum of ₹2,500 + GST |
How to Apply Online at Wishfin?
There are various mediums by which you can apply for a home loan. However, applying through Wishfin has many advantages. The process of applying is simple and the team here makes sure that you get the best deal in the market. The expert advise helps you in getting lowest interest rates on home loans to buy your dream home. Some of the top lenders that people choose for home loans are SBI, HDFC, DHFL, ICICI Bank, LIC among others. Presently, the lowest interest rate on a home loan is 8.35% per annum and at SBI, you not only get this rate but the nationalized bank is also charging no processing fee on a home loan. Other lenders are also providing low-interest rates which result in lower home loan EMIs. Who would not want that? So, if you want to instant approval for your loan and get the best rate, you can apply online through Wishfin.
What is the eligibility criteria for Home Loans?
Your home loan eligibility means the amount of loan you are eligible to get from a lender so as to fulfill your wish of buying a dream home. Different lenders have different eligibility criteria. However, below is the table showing general eligibility criteria required for a home loan.
| 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 |
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.
What are the documents required tp apply for home loans?
Generally, the documents you must have for the loan are as follows. Proper documentation would help you get instant approval and lower rate of interest.
| Proofs | Salaried | Self-Employed |
|---|---|---|
| Identity Proof | Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License | Aadhaar Card/ Passport /PAN Card/ Voter ID Card /Driving License |
| Address Proof | Passport/Aadhaar Card /Utility Bill | Passport/Aadhaar Card /Utility Bill |
| Residence Ownership Proof | Property Documents/Maintenance Bill/Electricity Bill | Property Documents/Maintenance Bill/Electricity Bill |
| Income Proof | Latest 3 months Salary Slips and Form 16. | Latest 3 years Income Tax Returns including Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report, etc., |
| Business Existence Proof | NA | 3 years old Saral Copy /Shop Establishment Act /Any Tax Registration Copy /Company Registration license |
| Job Continuity Proof | Current Employment Certificate /Current Job Appointment letter (if it is more than 2 years) /Experience Certificate (including your previous job certificate or appointment and relieving letter) | NA |
| Bank Statement | Latest 1 year statement where your salary is getting credited | 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) | 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 | Required | Required |
| Investment Proof | Fixed Deposit/Shares/Fixed Assets, etc. | Fixed Deposit/Shares/Fixed Assets, etc. |
| Passport Size Photograph | Required | Required |
How can you calculate home loan EMIs?
A housing loan or home loan EMI calculator is a simple online tool to check the EMI. The calculator takes into account basic details related to the loan like the loan amount, the interest rate and the tenure for which the borrower is planning to take the loan. Within a few seconds, the EMI, the total interest outgo, and the total repayment amount (interest+principal) can be checked. Other than this, there is an amortization table which the balance amount after each year for the whole tenure period. Thus, the borrowers can compare different home loan EMIs based on the rates offered by banks and NBFCs and then choose the best suitable rate as per their repayment capacity.
What are the factors affecting the home loan eligibility?
Monthly Income
The higher your income, higher the loan amount eligibility and greater your chances of acquiring your dream home. Before disbursing the loan, lenders do check your monthly income in order to be assured that you can repay the loan without any default. Your monthly income can either make or break the situation for you.
Age
Age is another factor that majorly affects your home loan eligibility. You need to meet the specific criteria to become eligible for a loan. Though different lenders set a different age limit for applicants, but 21-65 years is common amongst most home loan lenders. So, to make yourself eligible for a home loan, it is important that you fit into the age eligibility criteria.
Property Value
Choosing a good property in an approved society, colony or area is viewed more favorable by banks. Actually, the value of your property also gives its contribution when it comes to home loan eligibility. The net value of the property is the main parameter depending upon which lenders decide the loan amount for the applicant.
Credit History
Your credit history can open or close the gate to your dream home. Even though you may earn good, but a bad credit score can almost shut the door for you to buy your dream home as lenders can reject your loan application in this case. For a hassle-free loan journey, it is very important to maintain a good credit score of 750 or above so that lenders can easily approve your application. You can also check your credit score in two minutes at Wishfin.
Employment Status
If you are a salaried person, you must have minimum 2-3 years of work stability in your current organization. Whereas, in case of self-employed, a minimum 3 years in current business is required in order to become eligible for a smooth home loan journey.
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. Once you meet the criteria, your loan eligibility automatically increases.
Relationship with Lender
A good understanding with the bank can go a long way in negotiating a good loan amount at lower rates. Through this way, you can easily avail a high loan amount and that too at competitive rate of interest without any hassle.
Your Employer Category
Working at a well-regarded company not only adds to your profile but also your loan eligibility. A Fortune 500 Company on your visiting card helps in enhancing your eligibility among various lenders.
Home Loan FAQs
Here are some of the frequently asked questions that might pop-up in your mind while you think of home loans.
Q. 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.
Q. 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.
Q. 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.
Q. 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.
Q. 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.
Q. 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.
Q. 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.
Q. 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.
Q. Real estate comes under which GST slab?
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.
Q. 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%. The facility is available from January 25, 2018 onwards.
Q. 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.