Complete Home Loan Guide
Everything you need to know about home loans - from eligibility to approval and smart borrowing strategies.
Home Loan Basics
A home loan is a secured loan provided by banks and financial institutions to help you purchase, construct, or renovate residential property. The property itself serves as collateral for the loan, making it one of the most affordable borrowing options available.
Loan Amount
Up to ₹10 Cr
Based on income & property value
Interest Rate
6.5% - 9.5%
Varies by lender & profile
Tenure
Up to 30 Years
Flexible repayment options
Types of Home Loans:
- • Home Purchase Loan: For buying ready-to-move properties
- • Home Construction Loan: For constructing a house on owned land
- • Home Improvement Loan: For renovation and repairs
- • Plot Purchase Loan: For buying residential land
Eligibility Criteria
Salaried Individuals
- • Age: 21-65 years
- • Minimum income: ₹25,000/month
- • Work experience: 2+ years
- • Credit score: 750+
- • Stable employment history
Self-Employed
- • Age: 25-70 years
- • Business vintage: 3+ years
- • Annual income: ₹6 lakhs+
- • ITR filing: Last 3 years
- • Profit margins: Consistent
Key Factors Affecting Eligibility
Income Considerations
- • Fixed obligations ratio <50%
- • Stable income source
- • Co-applicant income inclusion
Property Factors
- • Property location and type
- • Builder reputation and approvals
- • Property valuation report
Interest Rates & Types
Fixed Interest Rate
Interest rate remains constant throughout the loan tenure, providing predictable EMIs.
Floating Interest Rate
Interest rate fluctuates based on market conditions and lender's base rate changes.
Factors Affecting Interest Rates:
- • Credit score and history
- • Loan amount and tenure
- • Income stability and profile
- • Property location and type
- • Loan-to-value ratio
- • Relationship with lender
Required Documentation
Identity & Address Proof
- • PAN Card (mandatory)
- • Aadhaar Card
- • Passport/Voter ID
- • Utility bills for address
Income Documents
- • Salary slips (last 3 months)
- • Bank statements (6 months)
- • Form 16/ITR (last 2 years)
- • Employment certificate
Property Documents
- • Sale agreement/allotment letter
- • Property title documents
- • Approved building plan
- • NOC from builder/society
Additional Documents
- • Property valuation report
- • Insurance documents
- • Existing loan statements
- • Investment proofs
Application Process
Pre-Approval Assessment
Check eligibility and get pre-approved loan amount based on income and credit profile.
Property Selection
Choose property within approved loan amount and ensure all legal clearances.
Formal Application
Submit complete application with all required documents and property details.
Verification & Valuation
Bank conducts income verification, credit check, and property valuation.
Loan Approval & Disbursement
Final approval, loan agreement signing, and fund disbursement to seller.
Smart Borrowing Tips
Do's
- Compare rates from multiple lenders
- Maintain good credit score
- Save for higher down payment
- Read all terms and conditions
Don'ts
- Don't exceed 40% of income as EMI
- Don't ignore hidden charges
- Don't skip property verification
- Don't compromise on location
Tax Benefits
Section 80C - Principal Repayment
Deduction up to ₹1.5 lakhs per year on principal amount repaid.
Section 24(b) - Interest Payment
Deduction up to ₹2 lakhs per year on interest paid for self-occupied property.
Maximum Annual Tax Benefit
Start Your Home Buying Journey
A home loan is often the largest financial commitment you'll make. Take time to research, compare options, and choose the best deal that fits your financial situation and long-term goals.