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Home Loan - LoanBaazar.com

About Home Loan

Owning your own home is quintessentially a dream come true. Living in your own house brings a sense of ultimate satisfaction which cannot be described in words. It is the most wonderful thing of living in a place that has been purchased through your hard earned effort.

Buying a home is one of the most important decisions of your life and henceforth should be carefully considered.

Home loan lets you finance your dream home. You can get home loan from the lender and the property involved acts as a collateral.

Lets make your dreams come true with a Home Loan to buy a new home or construction a home or for a renovation of the home or transfer your existing home loan to another bank with reduced interest rate.

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Get financing for whatever you need now

Achieve all your goals and aspirations; with the right kind of help, exactly when you need it.

New Home

A new home is a celebration of a lifetime and a home loan is perhaps one of the best ways to achieve this milestone. The key features of our home loan include easy documentation, door step assistance and flexible repayment options.

Home Construction

Constructing your own home, planning its architecture and designing its interiors is a unique experience and has myriad benefits. With Self Construction Loans, you can build your home your way, tailored as per your imagination and well-matched to your family’s needs.

Land Purchase

When you own a plot of land, you can build a dream living space that is uniquely yours. Plot Loans help you acquire the land for your home so that you can start turning your dream home into reality.

Home Loan Balance Transfer

Home Loan Balance Transfer is transferring your existing Home Loan to another bank or NBFC. People usually opt for a Balance Transfer if some bank or NBFC offering a lower rate of interest and top up loans.

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Features of Home Loan

Home loans are provided based on the market value, mainly estimation given by banks or the registration value of the property. Availing various types of house loans to suit your individual needs at the lowest rates & easy financing can now fulfill the need for a house of your own.

Salaried & Self Employed

Our loan home can be availed by  salaried and self employed individuals. We offer a wide range of products suitable for corporate salaried individual and business man.

Smaller EMI - Longer Tenure

Space out your payments and avail smaller EMIs paid over longer tenure upto 30 years. However you can choose your EMI based on your monthly repayment capabilities. In between a tenure you can change your EMI and tenure.

LoanBaazar Advantage

Most experienced and empowered personnel to ensure smooth & easy processing, transparent dealing.  All charges mentioned upfront while giving you the loan quote. No hidden charge. Loan approval even before a property is selected

Prepayment Charges

No prepayment charges for paying off loans before the due date (only for loans availed at floating rate of interest.

 

Home Loan - Eligibility

Any salaried, self-employed or professional Public and Privat companies, Government sector employees including Public Sector is eligible for a Home Loan.

Age

Minimum age of applicant at loan entry: 18 years

Maximum age of applicant at loan maturity: 60 years

Income

Banks determine your eligibility based on your repayment capacity and the up front amount. The eligibility for acquiring a home loan is augmented by your income and your co applicant, by clearing your outstanding debts, by stretching your loan tenure.

As a thumb rule, it’s recommended to make sure the EMI of your home loan do not exceed more than 50% of your gross monthly income.

CIBIL Score

Applicant should have the bank specified credit score. However we can process a loan application CIBIL Score starting from 650. A good CIBIL score can reduce your rate of interest.

Frequently Ask Questions

If you have a question that deals with clients, customers or the public in general, there is bound to be a need for the FAQ page.

Yes Home Loan can be pay off early which called prepayment. If a Home loan have floating interest rate than there is Nil prepayment charges but if there is Fixed Rate of interest than 2% prepayment charges is applicable.

  1. Identity proof: PAN Card / Voter Card / Adhar Card / Passport
  2. Address Proof:
  3. Age Proof:
  4. Income Proof:

Self Employed/Entrepreneurs:

  • Balance Sheet, profit and loss account statement of income, proof of income tax returns for the last 3 years certified by a CA
  • Receipts of advance tax payments if any made
  • A photocopy of Registration Certificate of establishment under Shops and Establishments Act/Factories Act

Salaried Individuals:

  • Income Proof (you just need to provide one of the options listed for income proof):
  • Latest Pay slip+ last 2 months Pay slip with salary account bank statement
  • Increment/Promotion letters
  • Appointment letter
  • Last 3 years Form 16
  • IT returns (for three years)
  1. Property Documents
  • Original copy of your agreement with the builder
  • Property register card, which is obtained from the City Survey Department
  • A. permission for the land from the collector, if it is agricultural – If the land is agricultural and is being utilized for residential/ commercial/industrial use, then such agricultural land has to be converted to non-agricultural land and a Non-Agriculture Order has to be obtained from the Collector of the district where the property is located.
  • Search Report and Title Certificate – A search report and title certificate can be obtained from an advocate who will conduct a survey of the title of the property by visiting the office of registrar. A legal opinion can avoid any legal hassles later and is mandatory to be filed with the agreement for sale.
  • Copy of building plans sanctioned by the competent authority
  • Commencement certificate granted by the Corporation

Your bank will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable / surplus income, (which in turn is based on factors such as total monthly income / surplus less monthly expenses) and other factors like spouse’s income, assets, liabilities, stability of income etc. The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use. The higher the monthly disposable income, higher will be the amount you will be eligible for loan. Typically a bank assumes that about 55-60 % of your monthly disposable / surplus income is available for repayment of loan. However, some banks calculate the income available for EMI payments based on an individual’s gross income and not on his disposable income.

The amount of the loan depends on the tenure of the loan and the rate of interest also as these variables determine your monthly outgo / outflow which in turn depends on your disposable income. Banks generally fix an upper age limit for home loan applicants.

Banks generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home Loans. For a Fixed Rate Loan, the rate of interest is fixed either for the entire tenure of the loan or a certain part of the tenure of the loan. In case of a pure fixed loan, the EMI due to the bank remains constant. If a bank offers a Loan which is fixed only for a certain period of the tenure of the loan, please try to elicit information from the bank whether the rates may be raised after the period (reset clause). You may try to negotiate a lock-in that should include the rate that you have agreed upon initially and the period the lock-in lasts.

Hence, the EMI of a fixed rate loan is known in advance. This is the cash outflow that can be planned for at the outset of the loan. If the inflation and the interest rate in the economy move up over the years, a fixed EMI is attractively stagnant and is easier to plan for. However, if you have fixed EMI, any reduction in interest rates in the market, will not benefit you.

Determinants of floating rate:

The EMI of a floating rate loan changes with changes in market interest rates. If market rates increase, your repayment increases. When rates fall, your dues also fall. The floating interest rate is made up of two parts: the index and the spread. The index is a measure of interest rates generally (based on say, government securities prices), and the spread is an extra amount that the banker adds to cover credit risk, profit mark-up etc. The amount of the spread may differ from one lender to another, but it is usually constant over the life of the loan. If the index rate moves up, so does your interest rate in most circumstances and you will have to pay a higher EMI. Conversely, if the interest rate moves down, your EMI amount should be lower.

Also, sometimes banks make some adjustments so that your EMI remains constant. In such cases, when a lender increases the floating interest rate, the tenure of the loan is increased (and EMI kept constant).

Some lenders also base their floating rates on their Benchmark Prime Lending Rates (BPLR). You should ask what index will be used for setting the floating rate, how it has generally fluctuated in the past, and where it is published/disclosed. However, the past fluctuation of any index is not a guarantee for its future behavior.

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