Home loan for resident Indians are offered by the Housing Finance Companies (HFCs) which range from buying a house either from the developer - built, un-built or under construction or from a second owner or for the improvement and renovation of the existing building structure.
With the latest boom in the Real estate, and investment market in India, many venture capitalists are coming forward to have their share invested in so called rich dividend paying projects. And so has been the mushrooming of banks and financial institutions that are coming forward to offer to the customers a variety of deals to choose from.
And since Home being the integral part of an individual, who since his birth and childhood, dreams to have a living space of his own in India. Once in a lifetime investment requires loan to accomplish it, and that is how the home loans comes into the scheme of things.
With so many private sector banks, and private as well as public sector's housing financing companies lending their shoulders out, it's becoming gradually uneasy for the consumers to choose the best deal as well.
For an Indian resident to avail loans, certain factors including eligibility criteria, documentation need to be considered, and of course you must know about some Home Loan Tips before applying for Home Loan, which are discussed in this section, which includes eligibility, amount of loans, types of interest, tenure of interest, the documents required, rate of interest, and even disbursal of loans.
Loans provided by different Banks and Housing Finance Companies in India
- Bank of India - Home Loans
STAR HOME LOANS
Provides loans to purchase a Plot for construction of a House, to purchase/construct house/flat, as well as for renovation/repair/alteration/addition to house/flat, furnishing of house, Takeover of customer's housing loan extended by other Banks/F.Is /NBFCs at highly flexible and liberal terms and conditions. Learn More... - Citibank Standard Home Loan
What is the eligibility for salaried individuals? - Gross annual income of Rs 1,00,000 or above.
- 23 years of age and above maximum age of 58 years or retirement age, whichever is higher at the time of loan maturity. Learn More...
- Dena Niwas Housing Finance Scheme
You can avail of Dena Niwas Home Loan to purchase a plot, construct a house, buy a ready built house or buy one under construction. The loan even helps you build an extension to your existing house or purchase a house that is up to 25 years old. Besides you can take this loan for repairs and upgradation, which includes the cost of fixtures, POP works, retiling, fittings etc. Learn More...
- HSBC Home Loans
HSBC Home Loans make it easier for you to move in as soon as possible without putting a strain on your wallet.
Features & Benefits - Your dream home, a reality
- Loan Requirement: We offer you loans ranging from Rs. 5 lakhs upto Rs. 3 crore. Learn More...
- Construction or purchase of house/ flat.
- Purchase of house/ flat on First Power of Attorney basis from the original allottee.
Carrying out repairs/ renovations/ additions/ alterations to existing house/ flat. - SBI Housing Loan
SBI Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes! 'SBI-Home Loans' Learn More...
- Standard Chartered India Home Loans
While you decide upon a house that suits your family, let us help you with a home loan that suits your pocket. With not just a low rate of interest, but also an unmatched level of service … Learn More...
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Home Loan Tips
The home buying process can seem complicated, but if you take things step-by-step and you know how to choose the right home loan, you will soon be holding the keys to your own home!
Ten steps to buying a home
Step 1: Figure out how much you can afford. What you can afford depends on your income, credit rating, current monthly expenses, down payment and the interest rate. The calculators can help, but it is best to visit a lender to find out for sure. A housing counselor can help you figure out how to manage and pay off your debt, and start saving for that down payment!
Step 2: Know your rights
Step 3: Shop for a loan. Save money by doing your homework. Talk to several lenders, compare costs and interest rates, and negotiate to get a better deal. Consider getting pre-approved for a loan.
Step 4: Learn about home buying programs
Step 5: Shop for a home. Choose a real estate agent, Wish list - what features do you want, Home-shopping checklist - take this list with you when comparing homes.
Step 6: Make an offer. Discuss the process with your real estate agent. If the seller counters your offer, you may need to negotiate until you both agree to the terms of the sale.
Step 7: Get a home inspection. Make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.
Step 8: Shop for homeowners insurance Lenders require that you have homeowners insurance. Be sure to shop around.
Step 9: Sign papers. You're finally ready to go to "settlement" or "closing." Be sure to read everything before you sign!
Step 10: The House is yours now. Have Puja or hawan.
Terms used in Housing Finance
- EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal
- Floating Rate of interest: Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up
- Monthly Reducing balance: In this system interest reduces monthly with repayment of Principal amount
- Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back
- Fixed rate of interest: Rate of interest remains unchanged throughout the period of the loan
- Processing charge: It's a fee payable to the lender on applying for the loan
- Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment
- Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned
- Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges .
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