Home Loan

It is always a dream for an individual to have his/her own house. Not only is it considered as a security for the future but it is also a major investment. Home loan is a way which brings you more close to your 'dream home'. If you are planning to buy a house but have no information about housing loan then we are here to guide you at each step. Applying for a home loan can seem complicated but if you proceed systematically then you will soon be holding the keys of your own home. Our informative guides, tips, FAQs, articles and extensive case studies will certainly prove useful in getting a snapshot of housing loan market.

One crucial factor that throws a spanner in the planning while shopping for housing loans is the rate of interest. To find out best home loan in India, we advise you to use our comparison table and judge available options on the basis of varied parameters, including prevailing interest rate, loan amount, tenure, eligibility, net monthly income, etc.

To quicken the process of loan disbursement, we have categorized various available home loan products under 'Top Rated Products' on the basis of their services and charges. You can directly apply for these loan products online and can get a loan without any hassles.

Once, you have decided on the loan provider, you can also read the user reviews to find out the opinion of real customers on its services and hidden charges. Aimed at helping you in deciding the right home loan, we offer objective and transparent information about different home loan offers.

The strong presence of so many housing finance companies in the market has induced a healthy competition thereby helping the borrower to go for the best bargain. We have outlined features of over 15 banks, including SBI, ICICI, IDBI, ING Vysya, HSBC, Canara, PNB, Kotak Mahindra, BHW Birla, Axis, Indiabulls and many more. We promise you complete guidance throughout the loan process and will also be there to share your happiness of successfully getting a home loan.

The loan affordability calculator helps you calculate how much loan you can afford. Loan affordability depends upon how much EMI one can afford towards loan repayment. Income of the borrower is the key criterion that forms the basis of loan affordability and determining the loan amount. Complete income record of the borrowers income is examined by the lenders while processing his application and this includes past income, regular income and income from part time activities. Most lenders use an average rule of thumb to determine loan affordability. On average, your monthly home loan repayments should not exceed 40% of your gross monthly income to calculate an affordable repayment amount. This ensures that you maintain your lifestyle and still afford the loan repayments, in case, interest rates rise. If you save little and spend a high percentage of your income, you could struggle with taking on a hefty home loan and you might need to curb your spending.

It can be used for any type of loans including home loan, personal loan, car loan etc. This calculator doesn't tell you if you will qualify for the loan.

Home loan interest rates have inched up to an alarming degree in the last few months. This in turn, has certainly affected the loan eligibility. In such a scenario, it becomes pertinent for borrowers to re-evaluate their options on account of the new eligibility norms. Given below are some ways of enhancing the housing loan eligibility. 1) Increase the home loan tenure The elementary method of increasing the loan eligibility is by opting for a higher tenure. It is because the EMI (Equated Monthly Installment), which an individual has to pay, starts to decrease as the tenure increases. The reason being that other parameters, including, rate of interest and principal amount remain the same, despite the high tenure. However, the net interest outgo will increase with a rise in tenure. Since the individual is paying less EMI, his ‘ability to pay’ will automatically get increased. 2) Repay other outstanding loans An individual with ou...

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What is the budget impact on housing loans? The Union Budget 2011-12 has taken cognizance of the growth potential in the residential sector especially in the priority sector and has announced a laudable interest subvention.  The budget has redefined the priority housing sector to include property up to Rs 25 lakhs, from Rs 20 Lakh earlier, on account of rising real estate prices. Beside the budget has increased the 1% interest subsidy on housing loans of up to Rs 15 lakh, where the cost of house does not exceed Rs. 25 lakhs. The existing interest subsidy is on loans of Rs10 lakh where the cost of house is Rs20 lakh. Both incentives will result in more access to loan funds (Hike in upper limits) with more affordability (Reduced EMIs with lower interests) for house aspirants in lower income groups, likely to result in higher demand for home loans at individual levels. Also, the priority sector incentive will reduce the cost of the funds for ...Complete Case Study

Documentation of a home loan will also include various components related to the purchase of a property. This includes original copy of the loan agreement along with the copies of documents showing that there is a clear title to the property plus documents indicating that the transfer of rights in the property has been completed properly. This can include documents like the registration fee receipt, stamp duty receipt of the agreement plus a clear title report from a lawyer about the title to the land is cleared and so on. The availability of all these documents will help a lender to make a decision regarding a particular loan, making the entire loan application easy to clear.

• Loan application form along with your recent photograph
• Identity proof
• Residence proof
• Age proof
• Salary slip
• IT returns
• Bank statements
• Form 16

• One way of looking at this is by considering the amount of the equated monthly instalment (EMI) that a person has to pay with respect to the earnings that he/she generates.
• Every person should ensure that the percentage of the income paid as EMI does not go above a certain figure, say 35%-40% of the total income.
• A similar position has to be considered when the loan chosen is not a simple equal monthly payment loan. There are loans that might suddenly increase in the amount to be paid after a certain time period.
• With a credit database being prepared borrowers should ensure that they do not spoil their credit scores.

IDBI, the tenth largest development bank in the world has promoted world class institutions in India. A few of such institutions built by IDBI are the National Stock Exchange (NSE), The National Secur... Read complete review

The RBI's  final guidelines on base rate will ensure that existing home loan borrowers get the full benefit of any reduction in interest rates. While it is too complex to understand how the base rate will be determined, the essence seems to be that the banks cannot discriminate between old borrowers and new ones. This will also mean that borrowers can compare banks properly and not just on the rates they get in their first few months or years.This change will be effective from December 2010. Will the Banks really treat the borrowers favorably? Home loan EMIs take away more than 50% income of most borrowers. And default rates in India are very low. Hence this is also a source of very big profit for lenders in India. Bankers, led by private banks, but even including PSU banks have been coming up with very smart products that lure unsuspecting borrowers. The latest such product was teaser loans. And most borrowers who borrowed at 7% odd in 2005 would remember their rates going up to...Read complete blog

After RBI's decision to replace prime lending rates (PLR) with base rate for home loans, banks are expected to soon reveal their individual base rate. State Bank of India (SBI) is expected to replace its PLR with the base rate of 7.5-8.5%. The final base rate would be announced by June 15. Read complete

The video shows CEO& MD of Rupeetalk.com Mr. Satkam Divya addressing the issues of a woman with regards to home loan. A woman who has purchased a flat after selling her property in Vasai wants to know if she will have to pay the tax on her new flat. To this Mr. Satkam replies that she can get tax benefits as per home loan rules on both principal as well as on interest. Also Mr. Satkam shares his knowledge on what is Gain tax.