1. Who can avail a home loan?
    Salaried or self-employed individuals and pensioners can avail a home loan provided they satisfy the other eligibility requirements. NRIs would also be able to avail home loans.
  2. I am a Non Resident Indian (NRI). Can I avail a home loan?
    Yes, there are banks that provide home loans for NRIs. Please refer to the NRI home loans page for more information on the same.
  3. What can I use a home loan for?
    You can use a home loan for a variety of purposes. The below list contains the details about the same.
    • Purchase of ready property
    • Purchase of property under construction with a developer
    • Purchase of land
    • Purchase of land and construction on the same
    • Take over of existing home loans
    • Take over enhancement, wherein the existing loan gets repaid and an enhanced funding is provided to the applicant
  4. Are there any age limits for availing a home loan?
    Normally, the minimum age for availing a home loan is 23 years, while the maximum age for availing the same is 65 years. The maximum age pertains to the age at the time of maturity of the loan. Individuals may be able to apply for the loan along with co-borrowers, in case they don't satisfy the age limits.
  5. Is it possible to avail a home loan for buying a commercial property?
    No, it is not possible to buy commercial property using a home loan. Mortgaging an existing property could be an alternative to aid in buying a commercial property. For more details about mortgages, please refer to the loan against property (LAP) page.
  6. I own a residential property. I would like to extend my construction in the first floor. Would I be able to get a home loan for the same?
    Yes, you would be able to get a home loan if you have the plan approval for the new construction.
  7. Can a home loan be availed to aid in home improvements?
    Yes, some banks allow the home loan to be used for home improvement also.
  8. I work in Mumbai. Can I avail a home loan for constructing a building in Coimbatore?
    Yes, you would be able to do the same.
  9. Is it possible to get home loans to settle property takeovers inside a family?
    No, most banks do not allow home loans for the same.
  10. Are home loans available for purchase of leasable property?
    No, most banks do not allow loans for purchase of leasable property.
  11. If I am currently repaying an existing loan, would it in anyway affect me while getting a new home loan?
    All your existing loans' EMI outgo would be deducted from your net take home salary to calculate your disposable income. And this disposable income would determine how much loan amount you would be eligible to get. So your existing loans would affect the maximum loan amount which you would be able to get.
  12. Would it help if I have a co-applicant for the loan?
    A co-applicant would help you in increasing the maximum loan amount which you would be able to avail as a home loan, as both your incomes would be taken into account. Also, you may be able to share the tax benefits coming out of the home loan with your co-applicant.
  13. Who can be a co-applicant for my home loan?
    Your spouse and your parents can be considered as co-applicants for the loan without any constraints. Your sibling can be considered as a co-applicant only if the property is registered under both the applicant's names. NRIs who fulfill other requirements can also be co-applicants for a home loan.

    The person under whose name the property gets registered should definitely be one of the applicants for the loan, in case there are multiple applicants.
  14. Can I have my mother-in-law or father-in-law as a co-applicant for the loan?
    Yes, this would be possible if your spouse is also a co-applicant for the loan.
  15. I am self employed, while my wife is salaried. Can we apply for a home loan together?
    Yes, you would be able to do the same.
  16. Is it mandatory to identify a property before applying for a home loan?
    No, it is not mandatory. There is a possibility of going for a pre-approved loan in which case you can get the loan approved by the bank even before the property is identified. Pre-approved loans are normally valid for 90 days though it can vary from bank to bank.
  17. In case I go for a property which is approved by a specific bank, would it be easier to get the loan?
    The only benefit which comes from going for an approved building is that there would not be a legal valuation done by the bank. This would help in reducing the loan processing time by 2 days normally.
  18. Do I need to get a lawyer's opinion on the property I am buying?
    No, it is not necessary to get an opinion from a lawyer about the property, as the bank would have its own set of lawyers who would be doing the same.
  19. Do I need a guarantor to avail a home loan?
    In some cases, a guarantor may be required. This also depends on the bank you had applied for.
    In some cases, a guarantor may be required. This also depends on the bank you had applied for.
  20. What is the chronological list of processes involved in getting a home loan?
    The general list of processes is as shown below. Depending on the type of property, this may vary a bit.
    • Identification of property
    • Application for loan with necessary documents
    • Legal valuation of the property
    • Personal discussion with the bank personnel
    • Approval of the loan by the bank
    • Signing of the loan agreement
    • Disbursal on the date of registration
  1. What are the prevailing interest rates on a home loan?
    Interest rate on a home loan varies depending on the lender, the purpose of the loan and the loan amount. Hence the interest rate offered need not remain the same for all loans provided by a single bank. For rates prevailing in the markets now, please refer to the comparison table.
  2. What is the type of interest rate applicable on a home loan? Floating/ fixed?
    sually, both floating and fixed rate loans are available though the rates would be different. Customer can choose between the two. Banks also come with special offers or teaser rates from time to time, which could be a mix of the fixed and floating rate loans.
  3. What is the difference between a flat rate and a diminishing rate?
    Normally the rates quoted on home loans are monthly diminishing in nature, wherein the interest to be paid is calculated based on the outstanding principal for the month.
  4. What is the difference between a floating rate and a fixed rate loan?
    In a fixed rate loan, normally the interest rate on the loan would remain the same through out the tenure of the loan. While for a floating rate loan, the interest rate on the loan varies from time to time and would be dependent on the market conditions.
  5. What are the charges applicable on a home loan?
    The primary charges on a home loan are processing fee, documentation fee and equitable mortgage fee in addition to the interest charges.

    In case the loan gets closed earlier than the schedule or a part-payment is made, pre-closure charges and part-payment charges might also be applicable.
  6. What is an equitable mortgage fee?
    Equitable mortgage fee is the fee collected to meet the expenses incurred on hypothecation of the property towards the loan. Most banks levy a fee of Rs. 5,000 for the same.
  7. Would the processing fee be refunded in case the loan gets rejected at the bank?
    No, as these charges are related to the bank's efforts towards valuation and legal checks on the property, this would normally not be refunded.
  8. What are the minimum and maximum loan amounts possible?
    It varies from bank to bank, but normally the minimum loan amount stands around Rs. 2 lakhs and there is no upper limit on loan amount for home loans.
  9. What is the down-payment required from my side while buying a house?
    Banks normally provide a maximum of 85% of the value of the property as a home loan. The remaining 15% would have to be funded by you.

    There are some exceptions like self-construction wherein some banks offer 100% of the estimated cost as loan.
  10. What would be the maximum loan amount I would be able to get as a home loan?
    In case of salaried persons, all fixed components of your salary would be considered for calculating your net income. The disposable income would then be calculated by reducing all your existing obligations and accounting a portion of it for your monthly expenses. These percentages vary from bank to bank. To know the exact details, please talk to a RupeeZone home loan expert.

    In case of self-employed persons, depending on the bank applied for, the method of calculation of income based eligibility differs. To know more details, please talk to a RupeeZone home loan expert.
  11. Can registration of the home also be funded using the home loan?
    Yes, most banks allow the registration fee also to be added to the total value of the property for loan purposes.
  12. What are the tenure options?
    There are no minimum tenure constraints, while the maximum tenure can go upto 25 years depending on the bank you are applying for.

    For NRIs, the maximum tenure possible is around 20 years, though it varies from bank to bank.
  13. Does my EMI/ eligibility change with the tenure of the loan?
    Yes, as the loan gets repaid over a different period of time, both the EMI and the eligibility would change depending on the tenure which you choose.

    EMI would also change in case a part-payment is made against the loan.
  14. How much time will it take for me to get my loan delivered?
    Once the property is identified and the documents are ready, it normally takes around 7 working days to get a home loan, though this varies depending on the bank applying for.
  15. What are the tax benefits available for a home loan?
    Payment directed towards repayment of principal is exempt under section 80C to a maximum of Rs. 1 lakh per annum. The interest paid against the home loan is exempt for taxation purposes upto a limit of Rs. 1.5 lakh per annum.
  16. Would I get the same tax benefits if I am getting a second home?
    Yes, but the maximum limits on the benefits would remain the same independent of the number of loans availed till date.
  17. Is it possible to share the tax benefits between multiple applicants of a single home loan?
    The interest certificate issued by the bank would be a single document in the name of all the applicants. This can be used to claim the benefits as necessary by all the parties.
  18. What are the documents required to avail a home loan?
    The documents needed to avail a home loan are as below.
    For all
    • Documents for KYC norms
      • Identity proof
      • Address proof
      • Date of birth proof
      • Signature proof
    • Property documents
    For salaried persons
    • Latest 3 months pay slip
    • Latest 6 months bank statement
    • Photographs of all applicants
    • Last 3 years employment proof
    • Last 2 years form 16
    • Welcome letters or schedules for all existing loans
    For self-employed persons
    • Last 3 years income tax returns with attachments
    • (Computation of income, P & L, Balance sheet, Schedules)
    • Latest partnership deed in case of partnership firms
    • Memorandum Of Association and Articles Of Association in case of private limited companies
    • Last 1 year bank statement
  19. What are the property documents required for getting a home loan?
    Please see the below list of property documents which are needed for getting a home loan.
    • 15 years parent document (Agreement of sale / Sale deed with 15 years link documents)
    • Patta / Khata
    • Approved plan / estimation
    • Latest tax receipt
    • Encumbrance certificate (EC)
  20. Is it possible to make part-payments against a home loan? What are the charges applicable?
    Yes, most banks allow part-payments though there could be some restrictions on the same at some banks.Part-payment charges vary depending on the bank. To get the exact rates, please refer to the comparison table.
  21. Is it possible to foreclose my home loan? What are the charges applicable?
    Depending on the bank, there could be restrictions related to this. Some banks do not allow the loan to be foreclosed before a specific period from the start of the loan. The foreclosure charges vary from bank to bank. For exact details about the same, please refer to our comparison table.
  1. What would be the mode of disbursal of the loan?
    Normally, the loan amount would get disbursed as a banker's cheque in the name of the seller or the developer of the property.
  2. In case of property under construction, when would the payments be released?
    In case of under-construction property, payments get released based on the schedule of the developer with the confirmation from the customer for each disbursal
  3. What is the mode of repayment?
    Repayments can be made using standing instruction in case the lending bank and the customer's primary account bank are the same. If that is not the case, the payment can be made through ECS or PDCs.
  4. How can I keep track of my loan?
    Most of the banks allow online access to keep track of the loan, while some banks which do not have online accounts allow the customers to track the loan by calling up their customer care representatives periodically.
  5. In case of under-construction properties, when would the repayment of loan start?
    The repayment starts with the disbursal of the first payment. But the customer has an option to either pay the full EMI or only the interest on the amount disbursed till date. This option would be available till the property gets handed over to the customer, at which point it becomes mandatory to pay the normal EMIs.
  6. How can I claim tax exemption on my home loan repayment?
    Based on the loan details available with you and the planned EMIs for the year, you would be able to claim exemption from TDS for the loan amount (maximum of Rs. 1 lakh per annum for the principal under 80C and the interest amount upto Rs. 1.5 lakh per annum) repaid. This would be substantiated by the interest certificate the bank would send to you annually.
  7. Is it possible to transfer my home loan to another bank? Are there any charges applicable for doing the same?
    Yes, it is possible. Most banks charge a penalty for doing the same, though there are some banks which allow transfer without any extra charges.
  8. Would it be possible to sell the property while the loan is still being repaid?
    Yes. There are three options to do the same, which are listed as below.
    • You close the loan and then sell the property
    • Buyer takes a loan from the same bank, in which case the bank aids in the transfer of ownership
    • Buyer takes a loan from a different bank, in which case the payment would be made against the existing loan on the date of registration of the property by the lending institution
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