An amount borrowed from banks or housing finance companies for purchase, renovation or construction of the home. It is repaid in regular installments along with interest. A rate of interest is almost uniform among banks and financial companies depend upon the rate of interest offered by RBI.
The eligibility mainly depends upon the paying back capacity of the individual. The repayment capacity is based on one’s monthly disposable/surplus income, which, in turn, is based on factors such as total monthly income/surplus less monthly expenses, and other factors such as spouse’s income, assets, liabilities, the stability of income, etc.
Most lenders require 10-20% of the home’s purchase price as a down payment from you. The rest, which is 80-90% of the property value, is financed by the lender (banks). The total financed amount also includes registration, transfer, and stamp duty charges.
One co-applicant is also necessary for home loan India. So, if you are the sole owner of the property, any member of your immediate family can be your co-applicant.
Interest rates for Home/Housing loan
Here is the list of some banks offering loan up to 20 lakhs for 15-20 years.
A mortgage is a loan where property or real estate is used as security for a loan. The borrower is obliged to pay back the so amount within the specified time. So mortgage loans are used by individuals and businesses to make large real estate purchases without paying the entire value of the purchase up front. Over a period of many years, the borrower repays the loan, plus interest, until he/she eventually owns the property. Mortgages are also known as “liens against property” or “claims on the property.” Mortgage loans are usually entered into by home buyers without enough cash on hand to purchase the home. They are also used to borrow cash from a bank for other projects using their house as collateral.
Mortgage loans are considered cheapest option just after home loans and it takes around 7 to 10 working days for approval so in general conditions. In India, Hence Mortgage loans are considered cheapest option just after home loans. It takes around 7 to 10 working days for approval in general conditions.
Interest rate charged on mortgage loan by different Banks / Home loan India
|Bank||Rate of Interest||Processing Fees|
|ICICI Bank||11.00% – 12.50%||1.00%|
|Axis Bank||11.00% – 12.25%||1.00%|
|Kotak||11.00% – 12.25%||1.00%|
|Deutsche Bank||10.25% – 12.25%||0.75 – 1.00%|
|DCB Bank||11.00% – 13.25%||1.00%|
|HDFC LTD||10.70% – 12.25%||1.00%|
|PNB Housing||10.90% – 12.25%||1.00%|
|Magma finance||12.75% – 14.25%||1.00%|
|L&T Housing||10.75% – 12.25%||1.00%|
|DHFL||11.00% – 12.50%||1.00%|
|Reliance||13.00% – 14.25%||1.00%|
|India Bulls||11.00% – 17.00%||1.00%|
Different ratings given to the banks on Home loan by borrowers as per ICRA (best bank for home loan India)