Everything You Need to Know About Home Loans

Last Updated : May 28, 2025, 3:57 p.m.

Buying a home is a dream for many Indians, and a home loan in India can make it a reality. Whether you’re a first-time homebuyer or looking to upgrade, understanding home loans is crucial for making informed financial decisions. Wishfin, India’s leading lending marketplace trusted by over 36 million customers, simplifies the process by helping you compare and apply for home loans from top lenders like SBI, HDFC, and ICICI Bank. This comprehensive guide covers everything you need to know about home loans, from eligibility to repayment. Let’s get started!

What Is a Home Loan?

A home loan is a secured loan provided by banks, housing finance companies, or NBFCs to finance the purchase, construction, or renovation of a residential property. The property serves as collateral, and loans typically have longer tenures (10–30 years) compared to personal loans. With Wishfin, you can compare home loans to find the best rates and terms tailored to your needs.

Why Choose a Home Loan in India?

Home loans offer several benefits:

• Affordable EMIs : Long tenures (up to 30 years) reduce monthly payments.
• Tax Benefits : Deductions on principal (Section 80C, up to ₹1.5 lakh) and interest (Section 24, up to ₹2 lakh) under the Income Tax Act.
• High Loan Amounts : Borrow up to ₹10 crore or more, depending on eligibility.
• Flexible Options : Choose fixed or floating interest rates based on your preference.

Explore competitive offers on Wishfin’s home loan interest rates page to secure the best deal.

Home Loan Eligibility in India

Lenders assess your financial profile to determine home loan eligibility . Common criteria include:

• Age : 21–65 years (varies by lender).
• Income : Minimum monthly income of ₹25,000–₹50,000 for salaried; higher for self-employed.
• Credit Score : A CIBIL score of 750+ ensures better rates and approval chances.
• Employment/Business Stability : At least 2–3 years of stable income or business continuity.
• Property Value : Loan amount is typically 80–90% of the property’s value.

Check your eligibility instantly on Wishfin’s home loan application page and get personalized offers from top lenders.

Types of Home Loans Available

India’s home loan market caters to diverse needs:

• Home Purchase Loan : For buying a new or resale property.
• Home Construction Loan : For building a house on owned land.
• Home Improvement Loan : For renovations or repairs.
• Balance Transfer Loan : Transfer existing loans to a lender with lower rates.
• Top-Up Loan : Additional funds for personal or property-related needs.

Wishfin’s comparison tools help you choose the right loan type by analyzing rates, tenures, and terms.

Home Loan Interest Rates in 2025

Home loan interest rates in India typically range from 8.5% to 12% per annum, depending on the lender, credit score, and loan type. For example:

• SBI : 8.5%–9.5% (salaried, high credit score).
• HDFC : 8.75%–10% (salaried/self-employed).
• LIC Housing Finance : 8.9%–11% (flexible tenures).

Floating rates may vary with market conditions, while fixed rates offer stability. Compare rates on Wishfin’s home loan interest rates page to find the best deal in 2025, especially with rising inflation.

How to Apply for a Home Loan Online?

Applying for a home loan through Wishfin is quick and easy:

1. Visit Wishfin : Go to the home loan application page.
2. Enter Details : Provide income, employment, and property details.
3. Compare Offers : Review personalized loan offers from top lenders.
4. Submit Documents : Upload KYC and property documents digitally.
5. Get Approval : Receive approval within 3–7 days, with funds disbursed soon after.

Wishfin’s platform ensures a seamless application process, saving you time.

Documents Required for a Home Loan

Lenders typically require:

• Identity Proof : Aadhaar, PAN, or passport.
• Address Proof : Utility bill, rental agreement, or Aadhaar.
• Income Proof : Salary slips (last 3 months), bank statements, or ITR (last 2–3 years for self-employed).
• Property Documents : Sale agreement, title deed, or builder NOC.
• Photograph : Passport-sized photo.

Wishfin’s home loan application page guides you through document submission for a hassle-free process.

How to Use a Home Loan EMI Calculator?

A home loan EMI calculator helps estimate monthly payments based on loan amount, interest rate, and tenure. For example:

• Loan: ₹50 lakh, Rate: 8.5%, Tenure: 20 years → EMI: ~₹43,391.
• Use Wishfin’s EMI calculator to plan your budget and avoid financial strain.

Tips to Get the Best Home Loan in India

• Boost Your Credit Score : A CIBIL score above 750 secures lower rates. Check your score on Wishfin’s home loan application page.
• Compare Lenders : Evaluate interest rates, processing fees (0.5–1%), and prepayment terms.
• Opt for Shorter Tenures : Reduces total interest but increases EMIs.
• Leverage Tax Benefits : Plan repayments to maximize deductions.
• Check Property Eligibility : Ensure the property is approved by the lender.

Common Mistakes to Avoid

• Borrowing Beyond Capacity : Ensure EMIs don’t exceed 40–50% of your income.
• Ignoring Hidden Costs : Account for processing fees, legal charges, or prepayment penalties.
• Not Checking Credit Health : A low score can lead to rejections or high rates.
• Skipping Property Due Diligence : Verify property documents to avoid legal issues.

Why Choose Wishfin for Home Loans?

Wishfin, a trusted omni-channel platform, offers:

• Free Comparison : Compare loans from 30+ lenders in minutes.
• Personalized Offers : Get loan options tailored to your financial profile.
• Fast Processing : Apply online and get approvals in 3–7 days.
• Expert Support : Access resources like our home loan interest rates page for informed decisions.

Start your home loan journey at Wishfin’s home loan page.

Conclusion

A home loan is a significant step toward owning your dream home, but choosing the right one requires understanding eligibility, rates, and terms. With Wishfin’s omni-channel platform, you can compare and apply for home loans effortlessly, ensuring the best deal. Start today by visiting our home loan page and make your homeownership dreams a reality!

For more financial tips, explore our Ultimate Guide to Personal Finance and Money Management in India or learn about credit scores in Demystifying Your CIBIL Score: What You Need to Know .