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Home Loan

Facts That You Need to Know About Home Loans

Change in lifestyle and living can be for renovations, expansions and purchase of new home/apartment/plots etc. The best way to opt for financial support is to seek the online loan aggregator that rewards the applicant with good benefits such as lower interest rates. The unique loan aggregator, Buddy Loan’s online home loan is the ideal solution for all your requirements. This housing loan is most apt for those who are looking at investing their finances in the housing sector with low interest rates. Buddy Loan’s home loan online acknowledges your request in 3 minutes.

A housing loan via Buddy Loan is free of collateral. Buddy Loan dispenses the loans with credible lenders. For more in hand benefits, discuss personal credit history and the added benefits that follow with the respective lender.

100% Digital And Paperless Application Process

Applying for a home loan online is extremely easy and quick. It requires minimal documentation and formalities. Buddy Loan home loan has a feature integrated, to help ease the application process.The applicant can repay the loan through EMIs over a tenure, from 6 months to 5 years. For a home loan via Buddy Loan, it is an absolutely paper free process.For more information, you could contact your lender.

Collateral Free Instant Home Loan!

Housing loans can be availed easily as there is no need for the applicant to submit any surety for applying the loan. However, it differs from organization to organization and hence we recommend discussing this over before applying. Please note, that if the applicant has a record of better credit score, the chances of getting the loan at a lower interest is high. The process is easy and faster.

Flexible Loan Tenures

The applicant can borrow as much as a maximum amount of Rs. 15 Lakhs and repay the loan amount through the EMI options over a tenure from 12 months to 5 years.

High Housing Loan Approval Rates

Buddy Loan gold loan provides an instant gold loan with zero hassle and hereby thanks to a wide range of loan providers for having dispersed.Therefore, if anyone is looking for an instant gold loan the first step is to gather the necessary documents and ensure they are up to date for quick loan processing.Consider the least hassle-free documentation and enjoy your instant gold loan.To stand a chance for a better approval rate, collate the necessary documents and ensure they are up to date.With this, expect a home loan with minimal and hassle-free documentation. Enjoy your instant home loan with no more worries.

Best Interest Rates For You!

Buddy Loan online home loan disburses loans at minimum interest rates starting at 11.99% p.a.The better credit scores the applicant has, higher are the chances to avail the loan with lower interest rates.Some banks charge fixed rates or variable rates (please double check with your particular lender).

Swift Home Loan Sanction

The housing loan online would be sanctioned within 48 hours of submitting the application. The disbursement time is however less than the expected time. Applying for instant home loans is easy and quick because of its expert processing. We connect as promised!

No Hidden Charges!

No prepayment charges, or any hidden fees to sort. There is no pre-booking of the loan that is assisted through a third party situation.Buddy Loan doesn’t encourage any fast/fake agreements to avail the loan with lesser interest and at a faster pace. To read and assert the documents, contact and discuss your respective lenders, carefully. Get your housing loan through good credit history!

Safety Of Your Online Home Loan

By law, the applicant’s information is held confidential with Buddy Loan from any other party apart from the lender. Buddy Loan aggregator has disbursed so many online housing loans instantly to the applicants who held good credit history. Therefore, if you are looking for a quick housing loan to expand and renovate the house, to get lower interests on those extra credit card bills and more Buddy Loan is the best choice.To stand a chance for a better approval rate, collate the necessary documents and ensure they are up to date.With this, expect a home loan with minimal and hassle-free documentation. Enjoy your instant home loan with no more worries.

It’s instant, seamless and paperless, one can avail a loan up to Rs. 15 lakhs. What’s more? Get competitive interest rates, flexible loan tenures and easy loan repayment options. When applying for a quick home loan online via Buddy Loan, is an indirect investment, check the personal credit history and apply for lower interest rates.

  1. Fill in your personal, home, financial, and employment details.
  2. Submit the required documents online, proof of identity and proof of income.
  3. Select the loan amount and tenor that you require, to get instant loan online approval.
  4. Receive the money in your bank account within 48 hours.

How far are you eligible for a home loan online? Know your loan eligibility instantly.

Please provide your personal details, loan requirements and company specifications to the specific lending company. Eligibility criteria differs for different organizations.

What is the benefit of having a good credit score?

  • Helps the applicant avail the loan at lower interest rates.
  • Has better chances for loan approval
  • No more bragging rights.

Apply for a home loan online with these basic documents:

  • Proof of Identity: Passport / Driving License / Voters ID / PAN Card (any one)
  • Proof of Residence: Leave and License Agreement / Utility Bill (not more than 3 months old) / Passport (any one).
  • Proof of income: Latest 3 months Bank Statement (where salary/income is credited).

Analyzing the lowest home loan interest rate beginning from 6.65% p.a. and applying for the best home loan. Here is the full list of current housing loan rate of interest in India from mostly all leading banks and financial institutions.

Home Loan Interest Rate of all Banks 2022

banks Starting Interest Rate (p.a.) Processing Fees
Kotak Mahindra Bank 7.50% p.a. onwards 0.50%
Citibank 6.65% p.a. onwards Rs. 10,000
Union Bank of India 7.90% p.a. onwards -
Bank of Baroda 7.45% p.a. onwards Contact the bank for information
Central Bank of India 7.20% p.a. to 7.65% p.a. Rs. 20,000
Bank of India 7.30% p.a. onwards -
State Bank of India 8.05% p.a. onwards 0.35% onwards
HDFC Home Loans 8.10% p.a. onwards* 0.5% or Rs.3,000 whichever is higher
LIC Housing Finance 7.55% p.a. onwards Rs. 10,000 -Rs. 15,000
Axis Bank 7.60% p.a. onwards Rs. 10,000
Canara Bank 8.10% p.a. onwards 0.50% of the loan amount
Punjab and Sind Bank 7.50% p.a. onwards Full Waiver
IDFC First Bank 7.50% p.a. onwards
Bank of Maharashtra 7.30% p.a. onwards Rs. 10,000
Indian Overseas Bank 7.05% p.a. onwards 0.50% (Max Rs. 20,000)
Punjab National Bank 7.40% p.a. onward 0.35% (Max Rs. 15,000)
United Bank of India 7.50% p.a. onwards 0.59% (Rs. 1,180 - Rs. 11,800)
UCO Bank 7.40% 0.15% (Rs. 1,500 - Rs. 15,000)
DBS Bank 7.30% 0.25% (Rs. 10,000)
IDBI Bank 7.60% 0.50% (Rs. 2,500 - Rs.5,000)
HSBC Bank 7.35% 1% (Rs. 10,000)
Karur Vysya Bank E8.05% Rs. 5,000
Saraswat Bank Home Loan 7.50% p.a. onwards Nil
Jammu and Kashmir Bank 7.85% Rs. 500 - Rs. 10,000
South Indian Bank Repo Rate + 3.35% p.a. onwards 0.50% (Rs. 5,000 - Rs. 10,000)
PNB Housing Finance 7.50% p.a. onwards Up to 0.50%
Federal Bank 8.55% p.a. onwards Rs. 3,000 - Rs. 7,500
Standard Chartered Bank 7.25% p.a. onwards 1%
Aavas Financiers 8.00% 1.00%
Karnataka Bank 7.89% p.a. onwards Rs. 250
Sundaram Home Finance 6.95% Rs.3,000 (for salaried)
Dhanlaxmi Bank 8.35% p.a. onwards Rs. 10,000
Tata Capital 7.75% p.a. onwards 0.50%
Tamilnad Mercantile Bank 7.95% Rs. 15,000
IIFL 10.50% 1.25%
DHFL Housing Finance 8.75% Rs. 2500
Bandhan Bank 7.30% p.a. onwards 1% (Rs.5,000)
Yes Bank 8.95% 1% (Rs. 10,000)
Hudco Home Loan 9.25% NA
Indiabulls 7.60% 0.50% onwards
Aditya Birla 8.00% p.a. onwards 1%
GIC Housing Finance 8.20% Rs. 2,500
Reliance Home Finance 9.75% Rs. 3,000 - Rs. 6,500
Shriram Housing 8.90% NA
India Shelter Finance 13.00% 2.00%

As a major part of the upcoming festive season in the entire country , which will lead banks to provide offers for special home loans for the customers like you to avail home loans. For example : State Bank of India is offering attractive interest rates beginning at 7.55% p.a. for home loans of up to Rs.30 lakh.Bank of Baroda’s home loan rates start at 8.05%. Also, PNB Housing Finance,Bank of India and Central Bank are now offering home loans at low interest rates as well . Now, India has numerous housing finance companies which can offer home loans below 8.00% p.a. , Now, Bank of Baroda has cut the repo rate that is linked to the external benchmark by 15 basis points. The reduction of the interest rate has been seen in the home loan rates starting at 6.50%.PNB Housing Finance,Bank of India and Central Bank are now offering home loans at low interest rates. These particular home loans start at 6.75% p.a. and LIC Housing Finance offers home loans which start at 6.90% p.a. Now, India has numerous housing finance companies which offer home loans below 8.00% p.a.

There are mostly two types of home loan interest rates charged by the banks.

1. Fixed Interest Rate:

In this system of computation, here the rate remains the equal throughout the loan tenor. Also , there will be no change in the interest charges as the rate remains fixed. Based upon the offer, you are allowed to switch over to the floating rate system after successfully finishing a certain duration into the loan tenure.

Advantage: As the rate remains fixed, then you know how much interest charges you’re paying straight up . Your loan will be protected from rate fluctuations and saves money in the longer run if there is a hike in lending rates.

Disadvantage: The standard lending rates fall, and then you will not benefit since the interest component stays freezed.

2. Interest Rate ( Floating) :

The interest rates that are charged on your home are mostly subjected to the current lending rates of banks. The charge rate is usually linked to the current publishing rate of the bank that in turn depends on various factors like RBIs monetary policy and lending rate revisions, the bank’s response to the revision etc.

Advantage: The most exciting perk of going for the floating rate is that you have the advantage of being billed depending on the latest rate. If the rates fall, then you can save on interest charges.

Disadvantage: In rare scenarios, if the standard rates go up, then the loan has to bear the brunt of being billed a higher rate.

Generally, home loans are long term loan plans and are very significant to find long - terms as significant to figure out your overall interest liability towards the loan in the first place. However, you can calculate same using by following two methods listed below:

  • EMI Calculator: Calculating the interest amount is applicable to your home loan by simply using a home loan EMI calculator. You are to required to fill up the fields provided on the calculator with the following details – Your Home Loan Amount The Loan Repayment Tenure you have chosen Rate of Interest you are going for
  • After the details have been shown, then you can click the ‘Calculate’ button to get details of your loan that will include the amount payable towards interest.
  • EMI Calculation Formula: Also, if you can also use the following formula to calculate your EMI liability for your home loan.
  • EMI = [P x. r. x (1+r)^n]/[(1+r)^n-1] Wherein, P is Principal, r is rate of interest, and n is number of installments or loan tenure in months.a

The eligibility criteria of Home loan has very common parameters all around banks and Non-Banking Financial Companies (NBFCs). However, but , there can also be certain specific criteria that are only applicable for every lender according to their requirements. Understanding the criteria that is needed to be eligible for a home loan enables you to ensure that the process of application becomes smoother and easier accessible for you.

Eligibility criteria for Home Loan

Age 18 - 70 yearss
Income Rs.25,000
ICredit Score Above 750
Employment Status Salaried or Non-Salaried
Work Experience 2 Years
Loan Amount The lender decides this
Residence Type Permanent resident or Non-resident Indian (NRI)
LTV Ratio Up to 90%
Property Type Completed /Under Construction Project, Land/Plot, build on own Land, Buy Land and Build Home

Proof of Identity (any one)
  • Aadhaar Card
  • Valid Passport
  • Voter ID Card
  • Valid Driving License
  • PAN Card
Proof of Residence (any one)
  • Valid Passport
  • Voter ID Card
  • Aadhar Card
  • Employer ID Card
  • Utility Bills
Proof of Income
  • Income Tax Returns and latest Form 16
  • Salaried account statement that indicted salary credits for the last 6 months
  • Salary slips for the last 3 months
Property Related Documents
  • Encumbrance Certificate
  • Title Deeds of the Plot
  • Photocopy of the plan assigned by Local Authorities
  • Construction assessed by a Civil Engineer/ an Architect
Other Documents
  • Own Contribution Proof
  • Appointment of contract letter/employment t If the current employment period is less than 12 months
  • Bank account statements showing repayments that are made towards other ongoing loans ( if any)
  • Filling loan application form affixed with passport size photographs of all the applicants/co-applicants.
  • Processing fee cheque in favor of the lending institution

Proof of Identity (any one)
  • Voter ID Card
  • Valid Driving License
  • PAN Card
  • Valid Passport
  • Aadhaar Card
Proof of Residence (any one)
  • Aadhar Card
  • Utility Bills
  • Valid Passport
  • Voter ID Card
  • Employer ID Card
Proof of Income
  • Income Tax Returns coupled with the computation of income of both the applicant and the business entity (attested by a certified CA) for the last 3 assessment years
  • Balance Sheet and P & L account statements with Annexures/Schedules of both the business entity and the applicant (attest by a certified CA) the last 3 years
  • Savings account statements of the applicant and the current account statements of the business entity for the last 6 months
Property Related Documents
  • Title Deeds of the Plot
  • Estimate for construction assessed by a Civil Engineer/ an Architect
  • Encumbrance Certificate
  • Photocopy of the plan sanctioned by Local Authorities
Other Documents
  • Own Contribution Proof
  • Latest Form 26 AS
  • Business Profile
  • Memorandum and Articles of Association of the Company
  • Partnership deeds if the business entity is established as a partnership firm
  • List of Shareholders and Directors with their respective shareholdings if the business entity is established as a company (certified by a CA)
  • Bank account statements of both the individual and the business entity indicating details of ongoing loans if any
  • Processing fee cheque favoring the bank/financial institution
  • Duly filled application form affixed with passport size photographs of all the applicants/co-applicants and signed across.

A Home Loan EMI Calculator is an online calculator that lets you calculate your monthly loan installment amount with ease. All you need to do is enter your preferred loan amount, the interest rate offered, and loan tenure. Upon clicking the “Calculate” button, you will get 100% accurate results pertaining to your home loan EMI.

There are various advantages of using the home loan EMI calculator tool provided by BankBazaar. They are listed below:

Easy process:

You have to enter the loan amount, interest rate, processing fee and tenure. However, no complicated calculations are there to be done. The computation is usually taken care of by the home loan emi calculator.

Have the breakup of all finance charges:

This tool enables you to understand the financial charges such as total interest payable, and processing fee value that are associated with your EMI. The banks and financial institutes provide them as a percentage of the loan amount, knowing the actual value can help understand the true cost of the loan.

Comparing offers:

You can also use the home loan calculator to analyze and compare loans from different banks. The outcome shows your total number of loans along with their respective EMIs. This will enable you to narrow down on the most feasible option.

Get the right tenure:

Knowing about your EMI from a home loan calculator also enables you to choose the correct tenure of the loan. Also, you can also afford to pay a higher EMI, and you can choose a shorter loan period along with pay off your loan at the earliest. Otherwise, pay a more comfortable EMI and also extend your loan period. Choosing the correct tenure for yourself is equally important.

Helps in validating information:

Sometimes negotiating a housing loan deal with a bank, can help you verify the repayment schedule it provides. The repayment details from the home loan calculator can help you verify this. Also keep in mind that the numbers may sometimes differ. This is because lenders can also include certain other fees and charges in your EMI calculation.

Helps with loan management:

Sometimes, paying your EMIs, may have some extra funds to make prepayments. The home loan EMI calculator can help you to revisit the financials and see how prepayments can help to pay off the loan before the term ends.

While calculating your EMI, the calculator will include all the parameters that can impact it. So, now Let’s take a look at the other major aspects that impact your monthly repayments:

Principal:

The principal loan amount you initially borrow from the lender ,is directly proportional to your EMI. So, Higher the home loan amount, higher the EMI.

Rate Of Interest :

<>The Rate Of Interest is exactly what you pay after borrowing the loan. It displays you the cost of your loan.It differs from one bank to another. The more the interest rate, the higher the EMI will be. Searching for a lender can provide you with the lowest interest rates and can help you lower your home loan EMIs. So, the lower the rate of interest , the lower the total cost of your loan will be.

Tenure:

The duration to repay the amount you borrow is called the tenure or the period of the loan. The tenure will be inversely proportional to your housing loan. So, the longer the loan tenure, the lower it makes your EMI. The loan tenure is decided based on your age at the time of borrowing and your retirement age. The longest home loan tenure offered banks in India is 30 years

Processing Fee:

This value of your loan amount or a minimum or maximum fee understood by the lender. The fee the bank charges to process your loan application. You can also know about this amount from your loan documents. At least a part of this fee will be payable at the time of application. Also your lender might not refund this amount even if your application is rejected.

Prepayments:

As mentioned earlier, making prepayments on property loans can also enable you to reduce the outstanding principal amount. This, in turn, reduces your interest charges. Both together contribute to reducing your EMIs if you want to keep the tenure constant.

In some cases, when the lender disburses the home loan but in stages. Then you have to start paying your EMI only when you get the entire amount has been disbursed. Until that , you have to pay the interest applicable on the partly disbursed amounts. This is also referred to as pre-EMI. The loan gets fully disbursed, the pre-EMIs will stop and that you have to start paying your regular EMIs. However, usually opting for a full EMI payment will ensure that you have already paid down a portion of the remaining loan amount at the time of possession. And it is considered as wise

Your housing loan EMI is usually a fixed amount. But there are certain circumstances under which it can change. Let’s take a look at some of these instances:

Flexible Home Loan EMIs:

If you have opted for flexible EMIs such as in the case of step-up or step-down property loans, then you will have a change in your loan EMIs. Also, in the case of step-up loans, your EMI will increase over the tenure. But in case of step-down loans, then your EMIs will decrease as time passes.

Disbursed Loan: In the case of half disbursed loans, the pre-EMIs might increase with every disbursement.

Prepayment: Also home loan prepayments can impact your EMIs as well. Now you can either choose to reduce the EMI for the same loan tenure or reduce the loan tenure and keep the EMIs constant. It is more beneficial since you will pay less interest.

The floating interest rate: The floating rate of interest will also change. However, if the floating rate increases, the lender will increase the loan tenure while keeping your EMI the same. If in case the tenure exceeds the maximum period permitted, then the bank might end up increasing your EMI.

With newly introduced technology in finance, now you can effortlessly understand the details and benefits that you would receive from transferring a home loan to another bank. One simple requirement to access the basic details of the existing loan like outstanding loan amount, interest rate, tenure, etc. Entering these details, the calculator becomes able to estimate the savings you incur by transferring your balance to another bank.

Why do you need to Transfer your Home loan?

  • The interest rate on your home loan also reduces the refinancing for your home loan.
  • EMI will be reduced and your tenure will remain the same. Otherwise your EMI will remain the same and the tenure might become shorter.
  • The overall cost of the loan will become lesser.

Refinancing a home loan will take into consideration the processing charges along with balance transfer fees. Also, if the new bank’s interest rate plus these additional charges still prove to be cheaper than the current loan, then only you should choose to refinance the loan.

Difference Between Home Loan and Home Loan Balance Transfer

Home loan –

A home loan is usually availed from a bank or any other financial institutions to purchase a house, land, construct a property or also to renovate a property. However, a lot of documentation and verification is required to get a home loan. It is considerably harder to get a housing loan application approved.

Home loan balance transfer –

Now, when you transfer an existing home loan from one bank to another. That actually called refinancing, also helps an applicant get lower interest rates with better services. However , here there are lesser documentation involved in home loan balance transfer and also easier to attain if compared to a home loan

Avail the Home Loan Balance Transfer - Why and When ?

Why?

  • You can get a home loan balance transfer if you are paying a higher interest rate towards a loan in a bank that offers a lower interest rate.
  • In case you are unwilling to reduce the interest rate despite the fact that you have a cordial relationship with the organization.
  • The other banks are offering lower rates of interest.

When?

A home loan balance transfer can also be availed 12 – 18 months, paying off your existing housing loan.

Procedure To Transfer your Home Loan

Your home loan can be refinanced by following the steps mentioned below:

  • All the necessary documents required to transfer your home loan balance from your current lender should be obtained
  • A consent letter from the existing bank and the outstanding loan amount is necessary.
  • Providing all these documents to the new bank that you are transferring the housing loan balance is important
  • Paying off the balance due to your old lender prior .
  • Then, your old loan account will be closed, and all payments towards the loan will have to be paid now to the new bank.
  • Also property documents will be handed over to the new bank, only after completing the process of transferring your home loan.

Procedure to Transfer Home Loan from One Bank to Another

  • Step 1: Visit the concerned bank’s website.
  • Step 2: Analyze the terms and conditions along with the interest rate along with the processing fee.
  • Step 3: If only you are satisfied with the scheme, then you should apply for balance transfer.
  • Step 4: Now you need to fill in the required fields, like your name, property type, tenure of the existing loan, and the bank’s name, among others.
  • Step 5: Upon completion, you will be able to have a view to your loan offer.
  • Step 6: Paying all the necessary fees and uploading your documents is important
  • Step 7: Completing your application and waiting for the approval is the final step.

Ways to Calculate EMI on Home Loan Balance Transfer

The amount of money you can save will based upon the following factors:

  • Principal amount of outstanding home loan
  • Latest EMI paid per month
  • The latest tenure of the outstanding loan
  • Rate of interest given by the new lender to that the loan will be transferred Required tenure in months of the new balance transfer home loan

However , If you opt for a shorter tenure, then you might not save a lot of money but you can pay off the loan faster while paying a similar amount of EMI as your existing loan.

What is Home Loan Transfer Eligibility Criteria?

  • Age: 23 to 65 years
  • Employment: Salaried or self-employed
  • Nationality: Resident Indians and NRIs

What are the Documents Required for Home Loan Balance Transfer?

  • Address proof
  • Identity proof
  • Documents shows the existing loan
  • Last 3 month’s salary slips
  • Last 6 months’ bank statements
  • Last 3 years’ balance sheet profit and loss account statements for self employed individuals.
  • Passport size photograph

Buying a house and settling down is one of the dreams that many people might dream of . There is hardly any person found who would not like to stay in their own house. But, the costs of apartments, flats, villas etc. are very high in most places all around the country.Therefore, most people cannot afford to buy a house for themselves, especially looking at their annual income or savings .So, they have to apply for a home loan to buy the house they desire. Nowadays, there are numerous private and public sector lenders in India offering home loans to consumers.

Overview of Bad Credit Home Loan:

In order to be eligible for a home loan, you need a good credit score. Many times people do not do not have a good credit history and fail to pay off their debts owing to financial troubles. But no doubt that people with bad credit find it very difficult to get a home loan. The banks and financial institutions consider those as high risk and likely not apt to offer them with credit. So, such people have to search for other ways through which they can get the required finances for buying a house. However,it is difficult, but it is not impossible to get a home loan with bad credit.

Bad Credit Home Loan - Advantages

The different advantages of a bad credit home loan are pointed out below.

  • It will help you to get the needed finances for borrowing the house that you desire.
  • It will offer you the flexibility of paying off the loan amount through easy monthly installments (EMIs).
  • Allows you to pre-close the loan and pay off the total loan amount by making a lump sum payment.
  • Also helps you to improve your credit score, if you make the EMI payments on time.

Bad Credit Home Loan - Disadvantages

The prime disadvantage of opting for a home loan with bad credit is that you will have to pay a higher rate of interest. Moreover, the fees and other charged will be associated with the loan that will bel most likely be higher for you. The fact that obtaining a home loan with bad credit is very difficult, and has disadvantages can certainly be ignored by the borrower. Also applying for a loan only after improving the credit score but that can take a long time and you might not get the loan especially when you need it.

The Procedure Get a Home Loan with Bad Credit

The first thing you need if you have a bad credit score is to pay off your debts, for your credit score to be improved. If your husband/wife has a good credit score, you can apply for a joint home loan with them and it will increase the opportunity of getting the loan approved quickly .Also if you have defaulted on a loan or credit card, then you have to reach a settlement with the bank or financial institution . Also, paying off the settlement amount and obtaining a No Objection Certificate is equally crucial . After you get the NOC, it makes it easier for you to get a home loan. Making sure to check your CIBIL score and ensuring that there are no discrepancies that will correctly reflect your up-to-date credit history. Also , the bestest way to get a loan with bad credit is to approve the bank with your savings account and deposits. Being a loyal customer will be more likely to offer you a loan. It is more advantageous if you have a substantial amount of security with them in the form of account balance, Fixed Deposits, etc. Then they are more likely to offer you with attractive interest rates .

Remember These Points While Applying for Home Loan with Poor Credit Score:

A bad credit home loan offers you a lot of advantages and comes with a lot of risks. If you do not make the payments on the due date your credit score will become even worse. Also you might find it impossible to obtain credit after that. Therefore, you need to be very careful and make suer that you have paid the loan EMIs on time, without any delay. Also, you can also go for auto-debit and make your bank account funded in advance so that the EMI can be debited every month from your bank account automatically .

  • Interest concession provided to women borrowers
  • Loan amount can be repaid in 30 years
  • The processing fee is low
  • AInterest is asked on daily reducing balance.
  • Home loan is available as overdraft

BOB Pre-Approved Home Loan

  • Offers you flexibility in negotiations with builders/sellers
  • Assuring of eligible loan amount
  • In-principle approval is valid for 4 months from the date of issue
  • In-principle approval for the home loan is completed prior to identification of a specific house
  • Balance amount of unified processing charges will be recovered after sanction of the loan

IOB Subhagruha Pre-approved Home Loan

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  • Maximum repayment tenure can go up to 30 years
  • Can avail a maximum holiday period of 18 months from the date of first disbursement or completion of construction
  • Pre-approved loan arrangement letter is valid for a period of 3 months
  • Margin ranges from 10 – 25 percent of the estimated cost

Settling down is now synonymous with owning a home. However, in this busy world, all the dreams of owning a perfect abode where people can find solace is very common as it gives a sense of contentment to everyone. Purchasing a home is becoming a task especially these days owing to the mounting real-estate prices. However, home loan is an easy way to fund your house purchase given that it is not always a wise idea to burn your entire savings to buy a land or a home. Banks and other housing finance establishments offer different kinds of home loans. However, the demand for Home Loan is increased in recent years and people have different expectations with a home loan. Inorder to cater the requirements of different sections of society, number of banks have come up introduced different home loan schemes. A few, several banks offer specially crafted home loans for women as well , agriculturalists and loans for purchase of land.

Lenders now offer home loans that are not only for buying a house but also for a variety of other purposes. Some of the popular types of home loans available in the financial market mentioned below

Purchase of Land Loans

Loans for land purchase helps in purchasing a land is a flexible option. The buyer can save funds and construct a house if only his finances allow or just have the land as an investment. The cost of the land is Up to 85% as given by lenders .

Home Purchase Loan

A popular type of home loan is the loan to purchase a new or a pre-owned home. This loan is commonly available in many banks in different variants. The interest rate is either floating or fixed . However, it ranges anywhere between 9.85% and 11.25%. Also, 85% of the total amount is offered by many banks.

Construction of a House Loans

This loan is designed for people who want to construct a place according to their wishes . However, the approval process for this type of loan is different as it takes into account the cost of plot also. The clause when applying for a home construction loan is the plot that should be purchased within a year and included in the loan amount. The loan amount is based on a rough estimate of the construction cost. The amount may also get disbursed at one go or in multiple installments. Home construction loans provide the schemes offered by Bank of Baroda, UCO Bank and Canara Bank.

Loans for House Expansion or Extension

Want another balcony or an additional bedroom? No worries, some banks also offer loans for house expansion including alteration of current structure and construction of new rooms. HDFC Home Extension loan and house renovation loan offered by Bank of Baroda are popular in this category.

Home Conversion Loans

Availing a home loan to purchase a house with it but wanting to move to a new house is referred to as home conversion loans. Transferring the current loan to a new house can help borrowers fund the purchase of the new home and also not repay the previous home loan. However, this segment of home loan is also very expensive.

Home Improvement Loans

Renovation and repair works like external and internal repair, painting, construction of overhead water tanks renovation certainly will make your house look prettier. However, if you lack the finances for repair and renovation, many banks offer specialized home improvement loans.

Loans For Balance Transfer Home

When an individual wants to transfer his home loan from one bank to another , owing to reasons like lower interest rates. Then this can be done by repaying the remaining loan at a revised, or lower interest rate by the other lender.

NRI Home Loan

Inorder to support non-resident Indians in buying a residential property in India, this formalities and application procedure is required as this type of loan is different from the others. Generally, most of the private and public sector banks offer loans for NRIs for their housing loan portfolio.

Bridged Loans

These loans are short term loans that are designed for homeowners who are planning to purchase a new property. The borrowers can fund the purchase of a new house until any buyer is identified for the existing property. Also this type of loan usually requires the mortgage of a new house with the bank . However, several banks offer bridge loans.

Stamp Duty Loans

Not a popularly known segment of home loans, stamp duty loans cover the stamp duty charges during the buying of a property. Hence, home loan is becoming the norm of the day when it comes to purchasing a home, and has become equally important to identify your requirements and apply for the right type of home loan. Also, It reduces the paperwork and simplifies the loan approval process, it will also allow you to enjoy a loan at reduced interest rates. Also, ensure that you use an home loan EMI calculator to know your amortization plan and the finances better

As an urban but low - income focused financing company like , Micro Housing Finance Corporation is fashioned out of a beautiful dream- ‘home for all’. The main aim is to create a balanced ecosystem of housing in India especially for those who have not earned as much as the ‘usual loan applicants’. MHF mainly focuses on delivering financial aid to urban poor working those in unorganized sectors such as housemaids, weavers, rickshaw pullers, drivers, sex-workers, security guards and so on. The lowest interest rates offered possible regardless of the nominal income and applicant’s financial background, the Company has now succeeded in bringing joy to many families belonging to the lower rung of the economy.

Features & Benefits:

  • Loan Sum: Availing a maximum of up to INR 10 lakhs house loan from Micro Housing Finance is possible now
  • Loan to Value: MHFC usually does not grant more than 85% of the current market value of the property.
  • Rate of Interest: The Micro Housing Finance interest rate is between 12% and 13% as of now. Annual Percentage Rate ranges from 12.88% to 13.62%
  • Loan Term: MHFC enables a long tenure up to 15 years to customers to settle the loan.

Home loans are provided at a fixed rate of interest ensuring that the borrower only has to pay fixed equal installments as home loan repayment. Market fluctuations don't tend to affect fixed rate home loans, i.e., the interest rate remains the same no matter what . Monthly payments are made during the initial stages of home loan repayment and are used to pay out the interes . And when payments are made , but in the later stages of the monthly repayment of the loan, the principal is served .

Interest Rates for Fixed Rate Home Loans:

  • HDFC Bank provides between 7.40% p.a. and 8.20% p.a. that is fixed for a term of two years only .
  • Axis Bank’s fixed interest rate home loan scheme arrives at 12.00% p.a.

Benefits of taking Fixed Rate Home Loans:

  • No change in the rate of interest, irrespective of market fluctuations
  • A fixed-rate home loan helps in long-term planning by enabling a fixed monthly repayment schedule that is actually easy to budget .
  • Ensures financial security of customers for no need to expect any future risks.

Fixed Rate Home Loans and Floating Rate Home Loans:

Fixed rate home loans are fixed interest rates of the entire tenure of the loan . Also, this rate is not privy to change no matter what happens. Also floating home loan interest rates change with changes in market conditions. Home loans that are offered on floating interest are attached to a base rate as well as a floating element therein. Hence, with a variation in base rate, the floating interest rate varies as well. One of the highlights of a floating rate home loan is that it is cheaper than fixed interest rates. In a fixed rate loan wherein the interest rate is stable, the interest rate is higher than that of the floating rate home loan.

How does Fixed and Floating Rates Work?

Floating rate loans do not vary consistently. RBI instructed banks to bring down rates for all customers. However, banks offering lower interest rates for new customers change them later on with changes in the financial market. Loyal or old customers continue paying the interest rate set for the initial stages and do not enjoy the privilege of the lower interest rate as of the new customers. The interest rates come down, the EMI in a floating rate home loan is often kept stagnant and only the tenure of the loan is altered. Fixed rate loans also have terms and conditions reset clauses and riders which can affect the interest rate when there are market fluctuations. The 'reset clause', which is subject to revision. Though the nature of the clause depends on the Bank’s regulations after a fixed period or with a sharp hike in interest rates the interest rates can be revoked.

Borrowing a loan to buy a house can sometimes be non pocket friendly and expensive, but it also has benefits, especially when it comes to taxes. The government provides and offers tax reliefs via the Income Tax Act, 1961 on the EMIs you pay every year. They are mentioned below:

Section 80C:

Under this section ,now you can claim a tax deduction of up to ₹ 1.5 lakh every year especially on the principal amounts paid towards your property loan.

Section 24:

Under this section, you claim a deduction of up to ₹ 2 lakh on the interest component each year.

Section 80EE:

With this section, you claim an additional interest amount of up to ₹ 50,000 per year. If this is over and above the amounts mentioned in Sections 80C and 24. This deduction is usually subjected to certain terms and conditions.

Tax Benefits on Home Loan

Taking a home loan can enable you to save tax as per the provisions of the Income Tax Act, 1961. Even more so after the announcements are made during the latest financial budget. The deadline for availing additional deductions on interest payment on home loans to 31 March 2024. This comes after the government had in the previous budget extended the deadline to March 2022. The extension on home loans till 31 March 2024 is available for all home loans sanctioned till 31 March 2022. While a housing loan can help you get a house for yourself; it can also turn out to be a very expensive affair. The various tax benefits that come with such a loan help you save money every year. Now , you can also take a look at how you can make the most of these benefits. The following table gives you the tax benefits under the corresponding sections of the Income Tax Act, 1961. To know more about the tax benefits on Home loan, Click here

Income Tax Act Maximum Deductible Amount
Section 24 Rs.2 lakh per annum
Section 80C Rs.1.5 lakh per annum
Section 80EE Rs.50,000

New Updates (Union Budget 2022-2023)

The new updates from the latest union budget presented by Union Finance Minister Nirmala Sitharaman on 1 February 2022:

  • Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023 and increase the guarantee cover by Rs 50,000 crore to Rs 5 lakh crore. Under this scheme, the government offers collateral-free personal loans to struggling MSMEs. This will benefit fintech companies in the short and long term.
  • Eligibility period for claiming tax holiday for affordable housing projects is now extended for another year. The new extended deadline is till 31 March 2022.
  • Tax exemption was proposed for the notified Affordable Rental Housing Projects to promote the supply of Affordable Rental Housing for migrant workers.
  • Sometimes there were no major changes when it came to the deductions under home loans, the only major news worth noting was the allocation of Rs.48,000 crore to the Pradhan Mantri Awas Yojana .

Home Loan Tax Benefits under Section 80C - Principal Deductions

Section 80C deals with the principal amount deductions:

  • You can also claim for both self-occupied and let-out properties, up to a maximum of Rs.1.5 lakh every year from taxable income on principal repayment.
  • Stamp duty and registration charges may be included in it as well.However, it needs to be claimed but only once
  • You need to complete the construction of the land first, in order to claim it .
  • You can also sell your house within 5 years of possession to claim this deduction.
  • Any deduction if claimed will be reversed in the year in which you can sell it. This amount will also be added to your income for the year of sale.

Home Loan Tax Benefits under Section 80EE

  • Enables you to avail tax benefits of up to Rs.1.5 lakh on the interest component paid on a home loan
  • The benefit are availed over and above the existing exemption of Rs.2 lakh under Section 24(b)
  • The value of property has to be less than Rs.45 lakh.

Home Loan Income Tax Benefits 2022

Under Section 80 EE an additional Rs. 1.5 Lakh tax deductions can be anticipated for interest paid on home loans and can be availed till 31 March 2022. This is applicable for loans that were sanctioned till 31 March 2024. However, the total income tax deductions can be availed would now be up to Rs.7 lakh for this time duration.

Home Loan Tax Benefits for Owning a Second Property

As per the current provisions, tax benefits are applicable on payable interest. So, you can claim the entire paid interest amount. It is also proposed that the second self-occupied home can also be claimed as a self-occupied one to enable borrowers to save more on taxes.

Ways to Claim Tax Benefits on Home Loans?

Claiming tax benefits on home loans is a very simple process.However, below are the steps to .get tax benefits on home loans

  • Step 1: Calculate and analyze the tax deduction to be claimed.
  • Step 2: Making sure that the house is in your name or you are the co-borrower of the loan.
  • Step 3: Upload your home loan interest certificate to your employer to adjust the tax deductibles
  • Step 4: In case you don't perform the above step, you might have to file the tax return on your own .
  • Step 5: If you are self-employed, you might be required to submit these documents anywhere. Keeping them handy in case the IT department raises queries in the future.

Ways to Calculate Tax Benefits on Home Loan

The most convenient way to calculate your tax benefits on a home loan is by using an online calculator. Also you can enter your home loan details by clicking on calculate along with the detailed tabulation . The details mentioned below will generally need to be mentioned :

  • Loan Amount
  • Tenure
  • Interest Rate
  • Loan Start Date
  • Gross Annual Income
  • Existing Deduction Under 80C/D

A joint home loan is a housing loan that is availed by more than one person who has repaid with equal financial responsibility. Being the co-applicants for the joint home loan it can be a family member, or spouses, parents, siblings and offspring. Taking a home loan in joint names helps you to avail a higher loan amount. Then your chances of home loan approval gets higher than loans applied for individually. Also the income tax exemptions are the major highlight that comes with applying for a joint home loan and the tax savings that can be higher than in the case of a single-name loan.

Taking a Joint Home Loan -Benefits

  • When you take a home loan jointly with your wife, mother, daughter or sister, and the property is owned by her either individually or jointly, there is a possibility to get lower fees.
  • The actual payment of EMI for a joint loan has to be made from a joint account owned by the co-applicants which makes it easier to check the contributions as well as enable ease of repayment.
  • Succession or any legal issues are less if the husband and wife jointly owns a property.
  • Since the bank combines incomes of the applicants proportionately with higher loan amounts. Now banks also offer you higher loan amounts if you opt for a joint home loan. Because of the higher repayment capacity as there is a higher chance one person can repay this loan.
  • If one of the applicants is unable to pay the amount due on the loan due to uncertain situations, then the Bank nor the customer has to fear defaulting on loan payment since there is another equally responsible borrower who can pay the EMI. The need of paying the equated monthly installments will be directly moved to the other co-applicant.

Advantages of Joint Home Loan in India:

The biggest loan you might ever take in your lifetime is the housing loan. Due to the booming real estate prices, a simple 2BHK house in an urban locality costs no less than Rs.25 lakh .The bigger the city, the more expensive the housing is . Naturally, you might end up taking a huge loan to purchase your dream house. Now you may have savings to invest in the house – but it is unlikely that you’d have anything more than half of the property’s price. But what would you do if the bank sometimes rejects your loan application claiming that your current salary is insufficient? This is where you should be thinking of taking a joint home loan.

Reasons to take a Joint Home Loan?

There are 2 advantages in taking joint housing finance. They are:

Higher loan amounts:

Inorder to buy a house costing Rs. 1 crore, for which you need a loan of Rs. 75 lakh. The EMI of this loan could be around Rs. 64,000 per month. But if your monthly salary is Rs. 60,000, that is actually below the EMI amount. So if you apply for a home loan, your application is sure to be rejected. In such a situation, having a co-applicant can boost your chances of getting the loan. If you apply with your husband/spouse whose monthly income is Rs. 70,000, than it can be easier for you to get the loans

Greater tax benefits:

Housing finance for self-occupied property comes with double benefits; the tax break on repayment of principal amount under Section 80C and deductions on interest payment under Section 24 of the Income Tax Act. Under Section 80C you can claim up to Rs. 1.5 lakh as tax deduction, and under Section 24, you can save taxes up to Rs. 2 lakh.

Conditions for Joint Home Loan:

Here are some points you must know before you decide on a joint housing loan:

No random joint applicant -

Applying for a joint housing loan with any random person, or even a business partner is not recommended . Joint loans should be availed with only close relatives – spouse, parents, siblings or children also you can bring a co-borrowers in a housing finance scheme.

No. of applicants -

You can have a maximum of 6 applicants and a minimum of 2 applicants in a joint home loan. However, the total number of co-borrowers depends on the bank’s discretion.

Status of the co applicant -

The co-borrower could be salaried or self-employed, engaged in business or a profession.

Conditions of the co - owner. -

To avail the benefits, your joint applicant also needs to be a co-owner of the house. The tax breaks will be made available based on the ratio of ownership – 50:50, 75:25, etc. – that can be confirmed by the lending bank in a certificate showing the distribution of the principal and interest for the EMI paid. So if your spouse has a higher income, it would be better to have a higher percentage of the loan amount and interest in her/his name so that she can get higher tax deductions.

Tax breaks -

The tax breaks are only available after the construction of the residence is complete. So if you are buying an under-construction property, then you might not be able to claim the tax benefits until you start living in the house.

Stamp duty and registration :

Joint owners can also claim stamp duty and registration charges of a property.

Application form:

Each co-applicant should fill in a separate application form and provide individual documents for the same loan.

Repayment: The repayment

for a joint housing finance plan can be done either through a joint account of the co-borrowers, or by splitting the EMI proportionally among them. You can also go for cheque or electronic clearance/standing instruction as per your convenience.A dispute repayment of loan can affect both the applicants, even if only one of them is at fault. Hence, It would be wiser for each applicant to have a separate life insurance policy in order to cover the loan burden in case of owing up to an unforeseen situation the borrower dies. Unless you completely distrust all your close relatives, you shouldn't consider taking a joint home loan. It enables you to have a higher eligibility for the finance scheme and enables you to claim more tax deductions. None of the other loans give you so many benefits!

Tax Benefits on Joint Home Loan:

The main highlights of taking a home loan is that it helps you in making tax savings, especially when you invest in a fixed asset. This can ultimately reduce the overall cost of loan considerably. Tax regulations, under Section 80C and Section 24 of the Income for those who are availing home loans are eligible to get tax rebates. So, in order to claim the tax benefits on property, you must satisfy certain conditions like - the borrower must be a co-owner in the property , the co-borrower stated in the loan application should be eligible. But, these tax benefits are usually divided between the co-applicants in a joint loan and the division will take place in proportion to the manner in which the property is owned by each co-applicant.

There are two types of tax benefits on repayment of their housing loan. These are:

  • Borrowers are eligible for a tax deduction of up to Rs. 2 lakh per annum on interest paid on home loan, under Sec 24.
  • Tax deduction on the amount paid as Principal amount repayment is eligible for deduction under Sec 80C.
  • A loan repayment amount of up to Rs. 1.50 lakh will be considered for the deduction.

Tax Benefits for joint home loan are -

  • The co-owner of the property is the co-applicant in the loan as well, and can claim a tax deduction in their IT Returns, for an amount of up to Rs 2,00,000 as interest on the home loan.The property should be the only property owned and it should be self–occupied or vacant. For a property offered on rent, the whole interest can be claimed as a deduction.
  • Under section 80C, the co-owners can claim a tax deduction within the limit of Rs 1,50,000/- towards principal repayment.

Deduction for Joint Home Loan

In case , the housing loan is availed by two or more persons, each of them is eligible to claim a deduction on the interest paid up to Rs.2 lakh each. Tax can be deducted on the principal paid. However, all the applicants should be co-owners of the property in order to claim this deduction. Therefore, a joint home loan can provide you greater tax benefits.

Here is the list of deductions you can claim for a joint home loan:
Deductions Maximum Deduction Section of the Income Tax Act Terms
Interest Rs.2 lakh 24b For buying or constructing a new house which must be completed within five years from the financial year end in which the loan was availed.
Interest Rs.1.5 lakh 80EEA For property which has a stamp value of up to Rs.45 lakh.
Interest Rs.50,000 80EE For loan amount of up to Rs.35 lakh and for property value of up to Rs.50 lakh.
Principal Rs.1.5 lakh 80C Sale of property should not be done before 5 years of possession is completed.
Stamp Duty Rs.1.5 lakh 80C Should be claimed in the same financial year as it was spent.

The article should help you further to get yourself the preferred home loans for yourself. Now that you know that one of the major features of the tax redemption is that, tax benefit of deduction on home loan interest as well as principal repayment can be claimed only once construction of the property is completed. If the property is still under construction, the benefits are not applicable . It should be easier for you to get the desired joint home loans. However, if you are looking for quick fund coverage to purchase a property or home of your choice then you can avail a personal loan to purchase the same . Hence, you can log in to the Buddy Loan website to get a quick personal loan form the most trusted lenders in India.

Faqs

An online home loan is an unsecured loan, which means the applicant need not produce pledge any collateral to avail home loan.

Availing one is easy – one can apply online – & can use the money to meet almost any expense, relatively.

One can apply during any purchases such as home, apartment, or renovations, etc.

The applicant can also the avail the loan to undertake construction or of a house, relatively. The applicant can consult the lender for further specifications.

Getting approval on your Buddy Loan home loan application is easy.

Please hold the documents required by the organization you claim the loan from via Buddy Loan as the requirements differ from each organization. However, most often the approval is mostly dependent on the credit history.

With Buddy Loan home loan, one can expect approval for application in under 48 hours.

You can borrow up to Rs.15 lakhs for a tenure ranging from 6 months to 60 months.

Buddy Loan aggregator offers home loans with a range of attractive benefits including:

Buddy Loan aggregator offers home loans with a range of attractive benefits including:

  • Instant approval
  • Minimal documentation
  • Flexible tenure
  • No hidden charges

Complete the application form online and avail your home loan now.

A personal loan will influence your credit score in both a good way or a wrong way. Unsecured loan does not have a negative impact on your credit score by itself . But if you score negatively you will have trouble obtaining additional credit.

There are many factors that will affect your credit score. In the list of the few factors that can affect your credit score:

  • You might take a high number of unsecured loans
  • You will have fil in l several loan applications
  • Taking out too many credit cards
  • Be consistent and punctual with your EMI repayments.
  • You want to Increase your credit limit

It is very easy to get an Experian free credit report, as you will just need to complete the Credit Report Application Form and forward it to Experian. Thereafter, your application is received and validated, you will then receive your Experian credit report.

Unless it is incorrect, no details can be erased from your credit report. The credit report will give an insight of your credit history and lending worthiness. Every lender vastly depends on the credit reports to assess the lending risks.

If you notice any error or wrong entries in your credit report, then you can get in touch with the credit report provided to get it corrected . The process is very simple, you can get in touch with your credit report provider through phone, email, and other ways too.

No, the Credit Information Report includes details of credit history and inquiries, CIBIL, like various other credit rating companies have their own way of calculating the score based on the information on the credit report. The Credit Information Report has the details of an individual’s credit date while the credit score indicates the credit worthiness. The credit score is derived from the information available in the Credit Information Report.

Your credit report can be accessed by you, lenders, along with government recognized regulating bodies.

The lenders will also determine your creditworthiness . As it will help the lenders or the banks to understand the risk factors in lending out money to an individual.

Yes, your credit report is accessible for you along with lenders, financial institutions and government regulatory agencies.

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