A home search can be full of drama, emotion and surprises. The builder, with whom you are dealing to buy a home, may promise you a loan without any deposit just to take you on the board. And when that gets denied from the lender’s end, you start to ponder and wonder whether you can buy a home or not if you do not have any cash on hand to pay the shortfall. Definitely, you would want to find a lender that can finance 100% to relieve you from any deposit amount liability. But the irony is that the lenders generally provide a loan of upto 75%-90% of the property value. The extent of finance can’t be more than 80% in the case of loan amounts over ₹ 75 lakhs. The rest amount has to be paid as a down payment from your pocket. So, the answer to your question, can I get a home loan without a deposit, is ‘No’ in most cases. But there can be possibilities of a 100% finance. Explore all that and more as we move through this article.
Procedure to Avail a Home Loan without Deposit
A home loan without a deposit means 100% finance from a lender. Generally, it’s the first time buyers with zero or very low savings that go for such kind of a loan. And, I guess, many may not be able to deposit the difference between the agreed price and the loan amount sanctioned by the lender, due to the elevating property prices that normally remain above Rs. 20 lakhs and so. So, you have to be a little smarter and use the options below to be within a chance of accessing 100% loan.
- You can borrow the remaining amount from family or friends.
- You can use an insurance policy to get 100% loan.
- The personal loan can also be availed as a cover for the shortfall amount. However, you must choose a lender that offers a loan at reasonable interest rates, which in the case of a personal loan can go up to as high as 25% p.a. across banks in India.
- You can also sell any asset & investment to accumulate funds or pledge the securities to procure a loan.
These pointers will be the medium to address your question, can I get a home loan without a deposit.
However, if you have some savings available, you can glance through the below table to find out exactly the amount you can get from the lenders as a home loan.
|Lenders||Loan to Property Value (LTV)||Interest Rate (p.a.)|
|State Bank of India (SBI)||75%-90%||9.15% - 11.30%|
|HDFC Ltd.||75%-80%||8.50% - 9.40%|
|ICICI Bank||Upto 85%||9.00% - 10.05%|
|Axis Bank||75%-85%||8.75% - 9.15%|
|Bank of Baroda (BoB)||75%-90%||8.50% - 10.60%|
|Bank of India (BOI)||75%-85%||8.85% onwards|
|PNB HFL||75%-80%||8.50% - 11.95%|
|LIC Housing Finance||75%-80%||8.50% - 10.75%|
|Bajaj Finserv||75%-80%||9.05% - 11.15%|
|Indiabulls Housing Finance||75%-80%||9.30% Onwards|
|Allahabad Bank||75%-90%||8.75% - 9.90%|
|Kotak Mahindra Bank||Upto 80%||8.70% onwards|
|DHFL||80%-85%||9.05% - 9.95%|
|IDBI||75%-90%||8.80% - 12.25%|
Documents Required to Obtain a Home Loan
Get ready with a list of documents that the lenders will ask you to submit for accessing a home loan. Below is a table providing the information about the documentation for both salaried and self-employed for a home loan.
|Age Proof||PAN Card/Voter ID/Aadhaar Card/Passport/College Leaving Certificate||PAN Card/Voter ID/Aadhaar Card/Passport/College Leaving Certificate|
|Identity Proof||Passport/PAN Card/Aadhaar Card/Voter ID/Driving License||Passport/PAN Card/Aadhaar Card/Voter ID/Driving License|
|Residence Proof||Latest Telephone & Electricity Bill/Insurance Policy/Aadhaar Card/Passport/Voter ID||Latest Telephone & Electricity Bill/Insurance Policy/Aadhaar Card/Passport/Voter ID|
|Income Proof||Salary Slip of Last 3 Months, Form 16, Last 6-month Bank Statement||ITR, Profit & Loss A/C Statement and Balance Sheet of Last 3 Years|
|Business Establishment Proof||N.A.||Service Tax/Sales Tax/VAT Registration, Electricity & Telephone Bill of Shop|
|Filled Application Form||Applicable||Applicable|
So, if you can do what stated above to acquire a 100 % loan, then you should go ahead. Else wait for the savings to accumulate so that you won’t have to drain out on, can I get a home loan without a deposit.