An amount of money provided to you by any financial institution for purchasing a house is called a home loan. Home loan may consist of fixed or adjustable payment terms. You may have it for buying, construction, renovation or extension of any house/ flat or plot. Types, features/benefits, elgibility criteria, documents required , FAQs. and form to apply now are next tabs.
Make a house your home ​
The loan that is offered to you to buy a residential property consisting of flat, row houses or bunglows. Here, you get 90% of the market value of the asset.
When you own a home then you are provided a loan to construct your place and that loan is called Construction loan. One may obtain a loan for unfinished house too and so for commercial complexes.
Your pre-existing home has the potential to borrow money for its renovation. The sum provided for refurnishing home at lower interest rate falls under this umbrella.
At the time of purchasing a plot or during its construction, the crunch of the capital is overcome by having this loan and it is also given for investing.
When a Non-Resident Indian seeks money to construct or renovate an old piece of land property in India then he/she may be provided with NRI home Loan and its tenure may go upto 30 years with possible fixed or floating rate of interests.
The process by which an existing home loan can be channelised to some other bank in order to pay less interest rate is calleNRd Balance transfer. The major reason of having a balace transfer is to have a new lender for lower interest rate and to avail top-up facility.
Range of home loans available is 20-2000 lacs.depending on the eligibility criteria
To buy a house and make it a home/ resale and consturction/ extension of one.
Home loan is a secured loan wherein collateral are required.
30 years is the upper limit of any Home Loan Processing fees varies from 0-2% of the sanctioned amount of loan, it differs with bank.
Varies periodically(may not be fixed) as per the RBI guidelines.
No prepayment charges:- Generally there are no such charges on paying your loans early except in a few cases like a floating home loan and in case taking over of the loan from one bank to another.
Under Section 24, one gets tax benefit upto Rs.2 Lacs for a self occupied house. One gets Rs. 1.5 Lakh from the principal including stamp duty and registration fee. The another Section 80EE there is an additional interest for the first time buyers of about Rs.50000.
A home loan has the highest/longest repayment tenure that goes upto 30 years. The extension of tenure helps the repayment easier.
One gets benefited in price of the property over the period of time.
Ans. For this obvious question the answer is yes. You can easily do the prepayment of home loan and it can be done bye making a lump sum payment. Although a few banks may apply some charges of 2%-3% on the remaining principal amount but some banks and non banking financial companies generally do not charge any penalty over prepayment of home loans.
Ans. Before opting for home loan one should compare the various interest rates that would be applicable on oneself. When you apply for a home loan through O.S credits then we help you getting the the loan at least rate of interest. Though rate of interest is not the only charge that banks levy but a few charges including processing fee and other related fees also should be taken into account before applying.
Ans. A facility provided by banks and NBFCs to the customers to check there eligibility for whether they can apply for the loan for the the desired property or not is called home loan pre approval.
Ans. The basic formula used to do the valuation of a property by most of the banks is done by simple multiplication of the total built up area with the cost of construction per square feet.
Ans. Structure of house along with its contents and possessions are covered by home insurance policies. Moreover various personal insurance features are also included and combined by many insurance policies.