Home loan is a loan product where the lender provides funding for purchase or construction of a house/ residential property. The housing loan may be availed either for buying a new house or resale of residential house. One can also avail a housing loan product, for the purpose of buying a plot of land and carrying out construction on the same, which is called composite loan.
Home loans in India are provided by the lenders up to maximum of 80% (90% for loan amount below Rs 20 lakhs) of the agreement value of the house. In case of home loan for resale flats, most lenders get the property valued independently and they will provide the housing loan based on their value rather than the cost mentioned in the purchase agreement. Frequently, the valuation as determined by the banker's valuer for the purpose of home loan is significantly lower than the actual cost and hence the requirement of the borrowers for down payment for the loan goes up.Also note that banks do not consider other charges like Stamp Duty, Registration Charges, etc. while considering the home loan amount eligibility.
Home loans are repaid through monthly instalments (EMI) spread over up to 20 years. The maximum tenure of any loan and home loan specifically is also restricted by the borrower's age at the end of the tenure so as to ensure that the loan gets fully paid by or before the retirement age.
The home loans in India are provided by banks and housing companies. The popular ones being SBI, HDFC, ICICI, etc. In turn RBI and National Housing Bank regulate these respectively, which issues guidelines governing home loans in India from time to time.
In case where you prepay your housing loan the lender cannot levy any penalty for prepayment of such loan where the loan is taken under floating rate of interest as per the guidelines issued by RBI and National Housing Bank (NHB).
We offer our services in the following area as:
- Home Loans
- Construction Loan
- Home Improvement Loan
- Home Extension Loan
- Commercial Property Loan
- Plot Loans
- Purchase of Offices
- Top up Loans
Home Loan CalculatorCheck how much will be your EMI
Loans ATM is a team of finance professionals dedicated to helping you make the right decisions in choosing a home loan for what may be "the biggest financial decision of your life"