Home Loan
HOME LOAN
Best DSA in Delhi NCR for Home Loan – Apnabusinessbadhao.com provide Home Loan from 60+ banks and NBFCs. For many Indian households, having a home of their own is a fundamental goal. It symbolizes not only a monetary investment but also stability, emotional security, and a feeling of accomplishment. But becoming a home-owner can be difficult, particularly in light of the escalating cost of real estate. This is where home loans come into play, making the goal of owning a house a reality. A home loan can be described as a loan provided by banks and financial institutions that use the property as collateral.
Home loans in India are designed to help individuals and families purchase, construct, or renovate their homes. To ensure that borrowers can comfortably repay the loan, lenders have set certain eligibility criteria.
Different Types of Home Loans Are Available:
In Home Loan in Delhi NCR, different types of loans for homes are offered to meet the diverse needs of people:
Fixed Rate Home Loans:
The interest rate remains the same throughout the entire loan period.
Floating Rate Home Loans
The rate of interest changes based on market conditions. We offer best out of best in the market.
Top-Up Loans
Additional amount on a existing home loan that is already in place. used to meet such as home repairs, furnishing.
Home Construction Loans
If you have been dreaming of building your own home from the ground up,we offer a home construction loan to potential loan seekers.
Balance Transfer Loans
Transfer existing outstanding loans from one institution to another for to get better terms & conditions. Main goal is to reduce your overall interest burden & make it easier to repay.
Home Improvement Loans
A home renovation loan can be used to remodel your property. i.e. including repairing flaws, painting, updating home interiors, waterproofing and much more.
Here are some key aspects of a home loan:
In Home Loan in Delhi NCR, different types of loans for homes are offered to meet the diverse needs of people:
Principal
This is the initial amount of money borrowed to purchase the home.
Interest
Fixed interest rates remain constant for the course of the loan, while variable interest rates fluctuate in line with market rates.
Down Payment
The down payment that the borrower makes for a house, this amount is typically stated as a percentage of the overall cost of the home.
Loan Term
The duration over which the loan is repaid. Common terms include 15 years, 20 years, and 30 years.
Monthly Payments
The borrower pays consistent, often monthly, principal and interest-bearing payments known as EMIs (Equated Monthly Instalments).
Amortization
The portion of each monthly payment that goes toward principal and interest is displayed on an amortization schedule.
Eligibility Criteria:
- Applicant must be between 21 to 65 years
- Salaried or self employed
- Collateral security
- Residence status (Indian or NRI)
- Assets, financial stability and occupational continuity
Reasons of Home Loan Rejection:
- Unpaid dues and other ongoing debts.
- Applicant’s address present on the defaulter’s list.
- Applicant’s age does not come within the eligible age range.
- Credit score below 600
- Multiple rejected loan applications
- Frequent job change
- Faulty repayment of ongoing debts
- Absence of required documents
List of Documents Required for a Home Loan:
When applying for a home loan in India, borrowers must submit a variety of documents to prove their identity, income, and the legality of the property they intend to purchase. Here is a comprehensive list of the documents typically required:
KYC DOCUMENTS
Identity Proof (Any one of the following):
Address Proof (Any one of the following):
- Aadhaar Card
- PAN Card
- Voter ID Card
- Driving License
- Government-issued ID card
- Aadhaar Card
- Passport
- Voter ID Card
- Ration Card
- Driving License
- Registered Rent agreement
- Property Tax Receipt
- Utility bills (Electricity bill, Water bill, Gas bill)
Age Proof (Any one of the following):
Photographs:
- Birth Certificate
- PAN Card
- Voter ID Card
- School Leaving Certificate
- Recent passport-sized photographs (2 to 4 copies).
Income Documents Proof:
- For Salaried Individuals:
- Last 3 to 6 months’ salary slips
- Latest Form 16 or Income Tax Return (ITR) of the last 2 years
- Bank statements of the last 12 months (salary account)
- Employment certificate from the employer
- For Self-Employed Individuals:
- Income Tax Returns of the last 2 to 3 years with computation of income
- Profit and Loss (P&L) statement and Balance Sheet of the business, audited by a CA
- Bank statements of the last 12 months (business account & saving account).
- Business registration certificate or trade license.
- Proof of business existence (for the last 3 years)
- Office address proof (rent agreement, utility bill, or ownership documents)
Property Documents Required:
- Property Title Deed: Legal document that shows the ownership of the property.
- Sale Agreement: Agreement between the buyer and seller detailing the terms and conditions of the sale.
- NOC from Builder or Society: A No Objection Certificate from the builder or housing society.
- Encumbrance Certificate: Shows that the property is free from any legal liabilities or mortgages.
- Property Tax Receipts: Latest property tax payment receipts.
- Approved Building Plan: Copy of the approved building plan from the Municipal Corporation or Relevant Authority.
- Allotment Letter: If the property is being purchased from a builder, the allotment letter is required.
- Possession Certificate: Issued by the builder after the property is completed and ready for possession.
- Occupancy Certificate: Issued by the local municipal authority confirming that the building is ready for occupation.
Proof of Employement:
- For Salaried Individuals:
- Employment Offer Letter/Appointment Letter.
- Employment Contract.
- ID card issued by the employer.
- For Self-Employed Individuals:
- Professional degree certificate (for professionals like doctors, architects)
- Business address proof (utility bills, rent agreement,GST and Udyam Certificate).
Home Loan FAQs:
Home loan is a loan disbursed by a bank or financial institution (lender) to an individual specifically for buying a residential property. Here, the lender holds the title of property until the loan is paid back in full along with interest.
Home loans are long term borrowing instruments with a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure offered to you for your personal loan depends on the loan amount that is sanctioned to you by the lender along with other factors.
Bajaj Housing Finance offers attractive Home Loan terms and benefits to applicants who have strong credit profiles. To be eligible for such terms, applicants should ideally have a CIBIL score of 750+.
Anyone — whether self-employed or salaried individuals/professionals — with a regular source of income can apply for home loans. One must be at least 21 years old when the loan period begins and should not exceed an age of 65 years when the loan ends or at the time of superannuation. This is the generic home loan eligibility criteria and specifics such as the minimum and maximum age limits, minimum income level, etc. may differ from one lender to another.
Yes, both you and your spouse can be joint financial applicants for your Home Loan. There are several benefits of applying for a joint Home Loan, some of which are:
Increased Home Loan eligibility
Income tax savings
Increased ease of Home Loan repayment
The maximum number of joint borrowers in case of a home loan is fixed at 6. However, only family members such as parents, siblings and spouse can be co-borrowers for a home loan in India. Additionally, having a co-borrower who has a robust credit history and good credit score is preferable as compared to one with a low credit score.
A floating rate home loan is a type of home loan where the interest rate fluctuates based on changes in a benchmark rate (like RBI’s Repo Rate, MCLR, or external benchmarks like RLLR). Unlike fixed-rate loans, the EMI or tenure adjusts periodically (e.g., every 3–6 months) as per market conditions.
Key Features of Floating Rate Home Loans
Linked to a Benchmark
Rates are tied to benchmarks like:
RBI Repo Rate (for RLLR-linked loans)
Bank’s MCLR (Marginal Cost of Funds Based Lending Rate)
Example: If the repo rate increases by 0.5%, your loan rate may also rise.
EMI or Tenure Changes
Banks may either:
Increase EMI (monthly payment rises)
Extend Tenure (loan duration increases, EMI stays same)
Reset Period
Rates are revised at predefined intervals (e.g., every 3/6 months).
No Fixed Rate Guarantee
Unlike fixed-rate loans, the interest rate can go up or down anytime.
Key Features of Fixed Rate Home Loans
Stable Interest Rate
The rate is locked for a set duration (e.g., 3, 5, or 10 years).
Example: If you get a 7.5% fixed rate for 5 years, your EMI won’t change even if market rates rise to 9%.
Predictable EMIs
No surprises—your monthly payment stays the same during the fixed period.
Higher Initial Rate
Fixed rates are usually 0.5%–1.5% higher than floating rates initially.
Limited Fixed Period
After the fixed term (e.g., 5 years), the loan switches to a floating rate (bank’s MCLR/RLLR).
Prepayment Penalties
Some banks charge a fee for early repayment during the fixed period.
If your home loan is linked to MCLR (Marginal Cost of Funds Based Lending Rate), here’s how changes in MCLR will impact you:
How MCLR Works:
Banks set their MCLR every month based on their cost of borrowing.
Your home loan interest rate = MCLR + Bank’s Spread (e.g., MCLR = 8.50% + Spread = 0.50% → 9% interest).
RBI’s repo rate indirectly affects MCLR (but not as directly as RLLR. loans).
How MCLR Changes Affect You
If MCLR… | Impact on Your Loan |
|---|---|
| Increases (e.g., from 8.5% → 9%) | EMI goes up (or tenure extends) |
| Decreases (e.g., from 9% → 8.5%) | EMI goes down (or tenure shortens) |
| Stays the same | No change in EMI/tenure |
When Will Your EMI Change?
MCLR-linked loans have a reset period (usually 6 or 12 months).
Your EMI/tenure adjusts only after the reset date, not immediately when MCLR changes.
MCLR vs. RLLR (Repo-Linked Loans)
| Factor | MCLR Loan | RLLR (Repo-Linked) Loan |
|---|---|---|
| Rate Change Speed | Slower (banks adjust monthly) | Faster (directly tracks RBI repo rate) |
| Transparency | Less transparent (bank decides) | More transparent (RBI-driven) |
| Best For | If RBI rates are stable | If RBI is cutting rates |
What Should You Do?
Check Your Loan Agreement
Is your loan MCLR-linked? (Look for terms like “MCLR + spread”).
What’s your reset frequency? (6/12 months).
Track MCLR Trends
Prepay if Rates Rise
If MCLR increases, even a partial prepayment can reduce tenure/EMI burden.
Negotiate with Your Bank
Ask for a lower spread (e.g., if your credit score improved).
A home loan top-up is an additional loan offered by your existing lender on top of your current home loan, using the same property as collateral. It’s like a pre-approved loan boost for extra funds at lower interest rates than personal loans.
Who Should Take a Top-Up Loan?
✔ Need funds without selling assets.
✔ Want lower interest rates than credit cards/personal loans.
✔ Prefer longer repayment over high EMIs.
Who Should Avoid It?
✖ If your home loan repayment history is poor.
✖ If property value has dropped significantly (may reduce eligibility).
How Much Top-Up Can You Get?
Most banks offer:
Up to 75-85% of property value (minus existing loan balance).
Example: If your home is worth ₹1 Cr and you owe ₹50L, you may get ₹25-35L top-up.
How to Apply?
Check Eligibility – Good repayment history & property value matter.
Compare Lenders – Some banks offer better top-up terms than others.
Submit Minimal Docs – Income proof, property papers, loan statement.
Get Disbursement – Funds arrive in 3-7 days.
Yes, prepayment of home loans is allowed in India, but rules vary by bank and loan type. Here’s what you need to know:
1. Prepayment Rules for Floating vs. Fixed Rate Loans
| Loan Type | Prepayment Rules |
|---|---|
| Floating Rate | ✅ Allowed without penalty (RBI mandate for most banks). |
| Fixed Rate | ❌ Penalty may apply (usually 2-5% of prepaid amount). |
Exception: Some banks waive penalties after 1–3 years of loan tenure.
2. How Much Can You Prepay?
No upper limit for floating-rate loans.
For fixed-rate loans, check your bank’s policy (some cap at 25% of outstanding loan per year).
3. When Should You Prepay?
✔ If you have surplus funds (saves interest).
✔ When interest rates are high (reduces long-term burden).
✔ Before retirement (to become debt-free faster).
🚫 Avoid prepayment if:
You lack emergency savings.
Your loan interest rate is below 7% (investing may give better returns).
4. How to Prepay?
Check outstanding loan balance (via bank app/Customer Care).
Submit a prepayment request (online or branch visit).
Pay the amount (via cheque/online transfer).
Choose adjustment:
Reduce EMI (keeps tenure same).
Reduce tenure (keeps EMI same, saves more interest).
6. Bank-Specific Prepayment Policies (2025)
| Bank | Floating Rate Penalty | Fixed Rate Penalty |
|---|---|---|
| SBI | Zero penalty | 2% after 3 years |
| HDFC | Zero penalty | 1-2% (varies) |
| LIC | Zero penalty | 3% before 5 years |