Home Loan:- Generally you can take a home loan for buying a house/flat, plot or renovation. Buying your own house or flat is the dream of everyone from the guise to the man. Sometimes a home loan is also taken for renovation. But it is very difficult to repay such a huge amount in one go to buy a house. In such a situation, banks or non-banking finance companies provide you loans for a long time period.
What Is Home Loan:- Which you have to pay in the form of instalments. A loan is a secured type of loan, so in this, you have to mortgage your property with the bank or loan institution. Then the bank or loan institution decides the price, interest and tenure of the loan based on the value of that property. You only need to pay up to 12-15% of the total loan value.
Home Loan Interest Rate Options
There are two main types of loan interest rates.
- Fixed 2. flexible
The interest rates in fixed are pre-determined, and inflexible the interest rates keep on changing.
Generally, the home loan interest rates start from 6.65 per cent per annum, which is sanction from 75% to 90% of the value of the property. The property is mortgage with the bank or institution.
Home Loan Tenure
The tenure of the loan ranges from 30 to 35 years, in such a number of years the consumer can easily repay the loan amount.
Home Loan Interest Rate
With different schemes in all the banks, the interest rates are also different. The information about the banks giving home loans in India and their interest rates is shown in the table below.
|Banks Name||Interest Rates|
|Bank Of Baroda||6.68%|
|Kotak Mahindra Bank||6.65%|
|Central Bank Of India||7.85%|
|Punjab National Bank||9.60%|
|Union Bank Of India||9.65%|
The interest rates mentioned in the above table are shown as examples, which can be change by the banks at any time. All bank interest rates are decide by your loan repayment and credit score.
You cannot take more than one loan at the same time if you are already a borrower of any loan. So the bank will approve the loan only after the time period of that loan.
The loan of the loan should be repaid as much as possible in the down payment, due to which you have to pay less interest rate.
You must have any business of your own or you may be doing a job somewhere, only then the bank will give you a loan.
In whichever company you are working for, it should be 2 years or more.
If you are self-employ, that is, you have your own business, then it should be two years old.
Documents Required for Home Loan
- Before taking a home loan, you need to have some documents, only then the bank provides you with the loan. Following are the documents require for a loan.
- Identity Card:- Aadhar Card, Pan Card, Voting Card and Passport
- Application Form:- Loan Application Form
- Applicant’s passport size photograph
- Age Proof:- Birth Certificate, Driving License (Photocopy of anyone).
- Residence Proof:- Light Bill, Mobile Bill, Address of Home or Office
- income certificate,
For self-employment. for the employed:- ITR for last 6 months, the balance sheet of profit and loss of last 2 years in business, business license, business address and bank details.
Income Certificate for Employed:- ITR of last 2 years, copy of Form 16 and salary slip.
Documents relate to the property:- All the documents relate to the property on which the loan is being taken.
Apart from this, the bank can take any other document from you.
Tax Benefit in Home Loan
If you are taking a loan for the first time, then you can save Rs 2.67 lakh under the credit subsidy scheme linked to the Pradhan Mantri Awas Yojana.
Under Section 80C, 24B and 80EEA of the Income Tax Act, you are provided with a small exemption in the income tax return for paying the principal and interest on your loan.
How to apply for a home loan
- Paisa Bazar. You can easily apply on .com, and also get the benefit of low-interest rates with home loans.
First of all, you go to Paisabazar.com.
2. There choose the option of a home loan.
3. Then enter the details like cost of the property, employment details, your name, email id, date of birth, PAN and Pincode etc.
4. Check out offers on home loans from top banks and housing finance companies. Which of them will be good for you, choose it.
5. You will be ask your name, address, income, age etc. information, which should be entered correctly.
Then complete the further process.
6. Once your home loan process is complete Paisabazaar.com. You are given a reference number. After that people from that bank or institution will come to contact you. Then after verifying the information given by you, you will proceed with the loan process.
How to Check Home Loan Subsidy
If you take a home loan under the Pradhan Mantri Awas Yojana, then you can check the loan subsidy as mentioned below.
To check loan subsidies, first of all, you have to go to the official website of Pradhan Mantri Awas Yojana.
Now a home page will open in front of you, you will have to click on Citizen Assessment.
After this click on Track Your Assessment Status. First click on Assessment ID or By Name, Fathers Name, Mobile Number one of these.
Afterwards, you will be ask some information, enter it correctly and click on submit.
Now the application status will open in front of you, in this way you can easily check home loan subsidy.
Home Loan Calculator This calculates the monthly instalments. The loan calculator gives you an idea of what your monthly EMI will be for the tenure of the loan. You can also check your EMI by visiting the loan calculator at Paisabazaar.com. There you just have to enter the loan amount, loan tenure, interest rate, then the calculator will give you information about your EMI.
FAQ for Home Loan
- What should be the credit score for loan.
If you are taking loan and you need loan with low interest rate. So it is very important to have a good credit score in this. Your credit score should be above 700-750.
- What is the value of mortgaged property to get loan.
Generally, the loan interest rates start from 6.65 per cent per annum, which is sanction from 75% to 90% of the value of the property. The property which is mortgage with the bank or institution.
- Will there be any benefit in the loan under the Prime Minister’s Scheme?
Yes, If you are taking a loan for the first time, then you can save Rs 2.67 lakh under the credit subsidy scheme linked to the Pradhan Mantri Awas Yojana.
- What is the tax benefit in loan?
Under Section 80C, 24B and 80EEA of the Income Tax Act, you are provided with a small exemption in income tax return for paying the principal and interest on your loan.
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