What is Home Loan?
A home loan, also referred to as a mortgage, is a loan agreement between the borrower and a
lender where money is borrowed from a financial institution to purchase a home or property.
Repayments are composed of the amount borrowed, as well as Home Loan interest rate charged by the lender. The amount of Home loan interest you pay is determined by the interest rate set by the lender. The interest rate affects your repayment amount and is, therefore, the most critical part of the loan. Any property purchased is used as security for the Home loan, meaning the lender has the right to sell it should the borrower fail to make their loan repayments. This type of security enables the lender to settle the debt.
Home Loan Emi Calculator
With the help of the Home Loan EMI calculator,
it will be easy for you to calculate Monthly
loan installments and to have the exact bifurcation of principal and interest you pay for
the whole tenure. Home loan EMI calculator takes Home Loan principal amount, Home Loan
interest rate, and Home loan
tenure as input and provides you the payable monthly EMI’s. Therefore, before choosing a
particular loan, it is very important to have an understanding of these three parameters and
how do they relate to the loan EMI.
Why choose loans4you for Home Loan Application ?
Applying for a home loan online is easy and
convenient. Home loan providers have made available the Home loan application form on their
website. You can register on the website, fill in the Home Loan application and submit it
along with your documents in electronic form . You can make your Home loan application
payment online too.
The offline route requires you to visit the Home loan provider’s office, fill in the physical copy of the Home loan application form, which is more time-consuming, provide physical copies of your documents and make the Home loan application payment via cheque. All of this takes longer and more effort than the online route. Technology makes applying for Home Loan Online easy and convenient (all you need is a computer and an internet connection). In comparison, the traditional offline route is time-consuming and inconvenient, requiring you to commute along with your documents to the offices of the Home loan provider.
Dos and Don’ts while applying for a home loan
|1. Do your research about the home-property price, builder’s background, clearances for the project, etc. Also do your research about the home loan - interest rate, processing charges, repayment schedule, etc||1. Don’t apply for loans on multiple aggregator websites as it indicates you are loan hungry and may reduce the chances of your application being approved|
|2. Know the amount you have to pay such as down payment amount, processing charges, stamp duty, registration fees and make provision for the same||2.Don’t take too many loans before you apply for a home loan-such as a personal loan or auto loan. As home loan amounts are big-ticket loans this will impact your eligibility.|
|3. Ensure all documents are in place – salary slips, Income Tax Returns, property agreement, and registration, etc||3. Don’t go overboard with your credit card spends and don’t delay your loan repayments as this will impact your credit score negatively|
|4. Take time to improve your credit history, if required before you apply for a home loan as there are chances that the bank may offer you better terms and conditions||4. Don’t take a huge loan as you may find it difficult to repay. Affordability is key when it comes to home loan|
Get the right kind of financing for your every need.
As per specific bank norms, home loans can compose of any formulas given below.
1) Home loans = floating interest rate
2) Home loans = fixed interest rate
3) Home loans = fixed interest rate + floating interest rate
You can avail of home loans as per your specification & requirements. The following type of loans mentioned below is as per segmentation and requirements.
Purchase of New Home
Home loan for purchasing or resale of a new home. Home purchases are offered by all banks & housing finance companies. If you are looking to go for a house hunt, we recommend you meet our expert advisors, who can help you understand the technicalities of a home loan with ease.
Home Loan Transfer
Home Loan transfer allows you to transfer the balance on your current home loan to a new loan structure with the new bank. This step is generally taken due to the high rate with the current bank. A normal transfer of the loan from one bank/NBFC reduces the present higher rate with Bank/HFC.
Loan for Land Purchase
A land loan is usually preferred to acquire residential land for the construction of a house. Normally all Bank/HFC take an affidavit to start your construction from 9 month to 24 months. You can compare home loan rates with our agents and apply online for a home loan directly. We provide at-home services with the lowest charges and transparent solutions.
Assume it's a marriage or just a few new changes when the family is growing. Renovations Loans are necessary and inevitable changes for a better lifestyle. Renovation loan at times comes costly hence a home extension loan for extension in the present structure and sanctioned plan with permission from the competent authority.
Top Up Loan
Financial institutions provide top-up loans to borrow an eligible amount of money over & above your loan. A Home Loan top-up is provided for purposes of modification or construction of your house or to meet your personal expenses like funding for children's education, as well as business Purpose etc.
Balance Transfer + Top Up plan
Home Loan Balance transfer plus allows you to transfer your current home loan to a new loan structure with the new bank. The new bank also helps you with immediate financial needs in the form of a Home Loan top-up.
Loan for Self Construction
Self Conmstruction loan is for the construction of a new home. For a Home Construction Loan, you need to produce a sanctioned plan and permission from the competent authority. Similarly, like renovation, any new construction's estimated costs must be produced by the architect or the contractor.
Land Purchase + Construction loans
Land Purchase and construction loans can be availed for purchasing residential land and construction of a house. For a Home Construction Loan, you need to produce an approved plan and approval from the responsible officials.
Refinancing may put you on a lower interest rate or give you a mortgage with cheaper fees. Refinancing your home loan may also be undertaken if you need to borrow more money for renovations, or consolidate debts.
NRI Home Loans
Are you an NRI? Do you need a Home Loan? NRI Home Loan for Non-Resident Indians who wish to build or buy a home or property in India can avail of the benefits of this loan.
Compare Home Loan Interest Rates of All Major Banks
An Important component and deciding factor in Home Loan is the Rate of interest. There are
different types of Home Loan Rates of interest
available in the market and before deciding on the rate
you should understand the advantages and disadvantages.
An Home Loan interest rate charged by a lender to a borrower for Home Loan is given, generally expressed in percentage. Interest rates are directly proportional to the amount of risk asssociated with the borrower.
The annual interest rate refers to the rate that is applied over one year. Interest rates can be applied over different periods, such as monthly, quarterly, or bi-annually. However, in most cases, interest rates are annual.
Compare Present home loan rate of Home Loan interest rates, Home Loan processing fees, Home Loan Maximum tenure of major banks like ICICI Bank Home Loan, Axis Bank Home Loan, TATA Capital Home Loan, HDFC bank Home Loan,SBI Home Loan Yes Bank Home Loan, PNB Housing Home Loan, and many more to choose from. We have provided you a table for home loan comparison among the best home loan in India at the lowest Home Loan interest rate.
|Bank Name||Floating Interest Rates||Per Lac Emi|
|SBI Home Loan||6.70% Onwards||Rs.645 Onwards|
|HDFC Home Loan||6.70% Onwards||Rs.645 Onwards||Apply Now|
|ICICI Bank Home Loan||6.70% Onwards||Rs.645 Onwards||Apply Now|
|Axis Bank||6.70% Onwards||Rs.645 Onwards||Apply Now|
|PNB Housing Finance||7.35% Onwards||Rs.689 Onwards||Apply Now|
|Bajaj Home Finance||6.70% Onwards||Rs.645 Onwards||Apply Now|
|IDFC First Bank||6.70% - 8.90%||Rs.645 - Rs.797||Apply Now|
|Indiabulls||8.99% onwards s||Rs.804 Onwards||Apply Now|
|Tata Capital Home Finance||6.70% Onwards||Rs.645 Onwards||Apply Now|
|Equitas||9.50%||Rs.841 Onwards||Apply Now|
|Standard Chartered||6.99% onwards||Rs.665 onwards||Apply Now|
How much Home loan amount can you get based on Your Income ?
Home Finance company calculates the maximum Home
Loan eligibility based on your
Yearly Income. 45 % to 70 % of your Monthly Income is considered for calculating the
eligibility which also depends upon individual profile & Housing Finance Company, which
means you can get a higher loan amount if your monthly income is high. Your present
obligation, if any, can also affect your home loan eligibility. If a home loan applicant is
already paying an existing obligation, that will be deducted from the monthly income and the
remaining amount would decide your maximum Home loan amount eligibility.
Housing Finance Company calculates Fixed Obligations to Income Ratio (FOIR) based on your existing EMIs and monthly income. The percentage of FOIR should be between 45-70% and less. For instance, if your in-hand salary per month is Rs 100000 and you are currently paying a personal Loan EMI of INR 6000 and an Auto loan EMI of INR 10,000 and you want to know how much Home loan amount you can get for a home loan, your FOIR would be:
Your disposable income for a new loan is (Considering FOIR-50%): Rs. 50,000 - Rs. 6,000 - Rs. 10,000 = Rs. 34,000
FOIR = Sum of existing obligations/Net take home salary*100
FOIR = ((Rs. 6000 + Rs. 10,000)/ Rs. 100000) * 100
FOIR = (Rs. 16,000/ Rs. 100000)*100
FOIR = 16%
So, Housing Finance Company will approve the loan amount having a monthly installment maximum of Rs- 34,000 or less even for the longest tenure. Other factors such as your credit score, experience, age, and other factors can also affect your Home loan amount.