Home Loan Tips

A guide to Home Loan Finance


 Can I get a Home Loan? From whom?

Yes, you can avail of a Home Loan

List of Housing Finance Institutions (HFIs) as follows :-

  • SBI
  • HDFC
  • Axis
  • LIC Home Finance
  • IDBI
  • India Bulls
  • United Bank of India
 How much loan can I get ?

You can get a Home Loan of anywhere between 80% to 90% of your purchase price upon qualification.


 Who can be a co-applicant for the loan?

You can include your spouse as a co-applicant for the home loan and this will include his/her income to enhance your loan amount. Further, in case there are any other co-owners, they also need to be co-applicants


 Over what period can I repay the loan ?

You have the option of selecting a term you are comfortable with, normally up to 15 years. The term does not extend beyond retirement age or on your reaching 65 years of age whichever is earlier.


 How do I repay the Home Loan?

The home loan repayment is by Equated Monthly Installments (EMIs) comprising of interest and principal amount calculated on annual rests. EMIs can be paid by Post Dated Cheques or by ECS.

In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called Pre-EMI interest and is payable monthly till the final disbursement is made, after which the EMIs would commence.


 What is the security for the loan?

You need to provide security of the property and/or such other additional /collateral security as may be required by the financing institution. 


 What does it take to get a loan sanctioned?

Most of the Home Loan Companies (HFIs) are giving services at your Doorstep. All you have to do is to give a call and present the proof of your income, employment, balance sheet and other related papers and the loan is quickly sanctioned.
 What documents are required to get the loan sanctioned?

An indicative list is given below:

  • passport size photograph of all applicants

  • Residence and age verification, which may be established by the PAN card, election ID, passport, driving license and ration card.

  • Bank statements for the last six months.

  • Latest salary slip/ statements showing all deductions in case of employed applicants.

  • Certified copies of Balance sheets and profit and loss accounts., IT acknowledgement, advance tax challans ( for both company/ firm and personal account ) for the last three years in case of self employed applicants.

  • Memorandum / Articles of association for companies, partnership deeds for firms and a brief profile of your company /firm in case of self employed  applicants.

  How will I get the loan disbursed?

Your loan will be disbursed on :

Your identification and selection of the property.

Submission of legal documents.

Legal and technical clearance of your property.

On satisfactory completion of the above and on your investment of your own contribution , the loan amount (as warranted at the stage of construction) will be disbursed.


 What tax benefits do I enjoy?

Tax benefits are available on the principal and interest components of a loan as per the Income Tax Act,1961. As the benefits could vary from year to year , please do check out the current benefits available.