Home Loan
Unlock the door to your dream home effortlessly with Buddy Loan! Whether you’re a young professional or an experienced homeowner, we offer a flexible repayment tenure of up to 30 years, customized to your age and repayment capacity. Discover the power of choice as we assist you in comparing affordable home loan interest rates and low EMIs. With our hassle-free home loan starting at just 11.99% p.a., Your perfect home is within reach. Apply online now and seize the best option that perfectly matches your financial need!
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List of Top Banks For Home Loans
Explore our list of top banks and NBFCs to find the best home loan interest rate and select your desired loan amount.
| SL.No. | Top Banks For Home Loan | Interest Rate (p.a.) |
|---|---|---|
| 1. | State Bank of India | 9.15% p.a. onwards |
| 2. | HDFC Ltd. | 8.50% p.a. onwards |
| 3. | ICICI Bank | 9.00% p.a. onwards |
| 4. | Bank of Baroda | 9.15% p.a. onwards |
| 5. | Union Bank of India | 9.00% p.a. onwards |
| 6. | Axis Bank | 8.75% p.a. onwards |
| 8. | LIC Housing Finance | 8.60% p.a. onwards |
| 9. | Federal Bank | 10.15% p.a. onwards |
| 10. | Bajaj Housing Finance | 8.70% p.a. onwards |
| 11. | IDFC First Bank | 8.85% p.a. onwards |
| 12. | PNB Housing Finance | 8.75% p.a. onwards |
| 13. | Tata Capital Housing Finance | 9.15% p.a. onwards |
| 14. | L&T Housing Finance | 8.60% p.a. onwards |
Note- The interest rates mentioned are subject to change. Do visit the website for more information
List of Top NBFCs & HFCs For Home Loans
Choose your home loan from the below list of top NBFCs & HFCs and choose among the best interest rates.
| SL.No. | Top NBFCs | Interest Rate (p.a.) |
|---|---|---|
| 1. | Muthoot Finance | 14% onwards |
| 2. | Tata Capital | 10.99% onwards |
| 3. | Bajaj Finserv | 11% onwards |
| 4. | StashFin | 11.99% onwards |
| 5. | Faircent | 9.99% onwards |
| 6. | Kreditbee | Up to 29.95% |
| 8. | Money Tap | 13% onwards |
| 9. | Dhani Loans | 13.99% onwards |
| 10. | Money View | 15.96% |
| 11. | Pay Sense | 16.80%-27.60% |
| 12. | Early Salary | 18% onwards |
| 13. | Home Credit | 24% onwards |
| 14. | CASHe | 30% onwards |
| 15. | HDB Financial Services | Up to 36% |
Note- The interest rates mentioned are subject to change. Do visit the website for more information.
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Home Loan EMI Calculator
A Home Loan EMI (Equated Monthly Installment) calculator is a useful tool that helps you calculate the monthly payments for your home loan. By considering factors such as the loan amount, interest rate, and loan tenure, this calculator provides an estimate of your EMI.
Using a housing loan EMI calculator is simple. Just input details such as the loan amount, loan period, interest rate, and processing fee, and the calculator will compute your monthly EMI.
Ready to calculate your monthly EMI?
EMI Calculator
Home Loan Processing Fees & Charges of Top Banks
Here is the list of home loan processing fees of top banks.
| Loan Details | Charges |
|---|---|
| Processing Fee | A fee of 1% to 2% will be charged based on the loan amount. |
| Foreclosure/Prepayment Charges | For floating rate: No charges apply.
For fixed rate: 2% to 4% of the outstanding principal. |
| EMI Bounce Charges | Around Rs 400 |
| Overdue Charges on EMI | Late payment charges are 2% per month of the unpaid EMI amount. |
| Legal Fee | Actual legal fees will apply. |
Home Loan Eligibility Criteria
Home loan eligibility differs across lenders and loan schemes. Hence, here is a general set of criteria that must be met in order to be eligible for a home loan.
| Particulars | Eligibility Criteria |
|---|---|
| Nationality | Indian Residents
Non-Resident Indians (NRIs) Persons of Indian Origin (PIOs) |
| Age | 18 years to 70 years |
| Employment | Salaried with at least 2 years work experience.
Self-Employed with at least 3 years of business continuity |
| Credit Score | Minimum 750 and above |
| Minimum Monthly Income | ₹25,000 per month |
| Type of Residence | Permanent residence
Rented residence (must have been residing in the consent place for at least a year) |
Documents Needed to Apply for Home Loan
To apply for a home loan, you need to provide some basic documents as proof of your identity and income. Here’s a list of documents required for a home loan.
Identity Proof (any one)
Driving License/PAN/Voter ID/Valid Passport
Residence Proof (any one)
Copy of Electricity Bill/Water Bill/Telephone Bill
Copy of valid Passport/Aadhaar Card/Driving License
Other Documents
- Employer Identity Card
- Duly filled loan application form affixed with 3 passport size photographs
- Loan account statement for the previous 12 months if the applicant has any other ongoing loan from other banks/financial institutions
- Bank account statements for all the bank accounts owned by the applicant for the last six months
Income Proof Documents
For Self-employed Applicant/Co-applicant
- Income Tax Returns for the last 3 years
- Certificate of Qualification (for Doctors/CA and other professionals)
- Balance Sheet audited by a certified CA and Profit and Loss account for the previous 3 years
- Business License Details
- Business address proof
- TDS Certificate
For Salaried Applicant/Co-applicant
- Salary Slips for the last three months
- Copy of Form 16 or Income Tax Returns for the last two years
Home Loan Features & Benefits
Meet your financial needs with the easiest finance solution and cover all your expenses with Home Loan.
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Types of Home Loans
A housing loan is a sum of money borrowed from banks and Housing Finance companies to own a house. To meet your meet you varied home loans or plot loan needs, it is important to have knowledge about the different types of home loans available.
You can select your desired type of home loan mentioned according to your preference.
Home Purchase Loan: Home Purchase loans are loans that can be availed by individuals who want to purchase a piece of land. These loans can be used for construction purposes or as an investment. The maximum loan amount offered by banks is 90% of the present market value of the land, while NBFCs offer 80%.
Home Renovation Loans: Home renovation loans are
for you! if you want to renovate, repair or refurnish your homes. These loans are very popular due to their
low-interest rates. They can help cover the cost like major repairs and upgrades to the property, and improve the value of the house.
Plot Loans: Plot loans are taken to buy residential
properties like flats, row houses, and bungalows. Banks offer a maximum loan amount of 90% of the present market
value of the property, while NBFCs offer 80%.
Home Construction Loans: Home construction loans
can be availed by individuals who own land and want to construct a new house. The loan can also be used to
complete the construction of an unfinished house.
Home Extension Loans: You can avail of a home
extension loan if you want to add more space to your home. This loan can assist to fulfill your desire of adding a
room or extending the property.
NRI Home Loans: Non – Resident Indians for the
construction of a house or the renovation of an old property. These loans can provide maximum tenure of up to 30
years, and the interest rate can be fixed or floating.
Balance Transfer: Home loan balance transfer is a
process where an individual transfers an existing home loan from one lender to another to get a lower interest
rate. This loan also provides the option of availing a top-up facility from the new lender.
Bridge Loan: Bridge loans are availed by people who
want to buy another property by selling off their existing one. These loans help meet short-term fund requirements
like a down payment for the new house until the old property is sold off. Bridge loans are generally offered at
higher interest rates with a maximum repayment tenure of up to 2 years.
Home Loan Tax Benefits
A home loan is a great way to purchase a property. Not only does it help you to own a home but
it also offers various tax-saving options. Let’s take a look at some of the popular tax-saving schemes that are available with a home loan:
| Tax Saving On | IT Act Section | Description |
|---|---|---|
| Interest Paid | Section 24(b) | Deduction on the interest paid on a home loan. This deduction can be claimed for the interest paid on the loan taken for the purpose of purchase, construction, renovation, or repair of a residential property. |
| Principal Paid | Section 80C | Deduction on the repayment of the principal amount of a home loan. This deduction can be claimed for the amount repaid towards the principal of a home loan during a financial year. |
| First-Time Homebuyer Benefit | Section 80EE | Additional deduction for first-time homebuyers. This deduction is available to first-time homebuyers who have taken a loan on or after April 1, 2013. The deduction is over and above the deduction of Rs 2 lakh under Section 24(b) and Rs 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs 50,000. |
| Affordable Housing Benefit | Section 80EEA | Additional deduction for affordable housing projects. This deduction is available to individuals who have taken a loan for affordable housing on or after April 1, 2019. The deduction is over and above the deduction of Rs 2 lakh under Section 24(b) and Rs 1.5 lakh under Section 80C, and the maximum amount of deduction that can be claimed is Rs 1.5 lakh. |
| Joint Home Loan Benefit | Section 26U | Deduction is available for co-owners of a property with a joint home loan. This deduction is available to co-owners who have jointly taken a home loan. Each co-owner can claim a deduction for the interest paid on the home loan in proportion to their share of ownership in the property. |
| Pre-construction Interest | Section 24(b) | Deduction on pre-construction interest paid in five equal annual installments. This deduction is available on the interest paid during the pre-construction period of a property. The deduction is available in five equal installments starting from the year in which the construction of the property is completed. |
Tips Before Applying for a Home Loan
Here are some tips to consider before applying for a home loan:
Check your credit score: Before applying for a home loan, it is important to check your credit score.
Research and compare: It is essential to research
and compare different lenders and their interest rates and loan terms.
Assess your affordability: You should have a
clear understanding of your affordability and budget for the EMI payments.
Save for a down payment: It is advisable to save
for a down payment before applying for a home loan.
Calculate additional expenses: Apart from the
loan amount and EMI, there may be additional expenses such as processing fees, legal fees, and stamp duty
charges.
Avoid multiple applications: It is not advisable
to apply for a home loan with multiple lenders simultaneously.
Read the loan agreement carefully: Before signing
the loan agreement, read it carefully and understand all the terms and conditions.
Improving Chances of Getting Home Loan: Do’s and Don’ts
To increase your chances of home loan approval and enhance your eligibility for a preapproved
loan, it is important to follow certain guidelines. Here are some essential do’s and don’ts to improve your chances of getting a home loan:
| Do’s | Don’ts |
|---|---|
| Maintain a good credit score | Avoid the delay of loan payments |
| Save for a down payment | Avoid applying for multiple loans simultaneously |
| Maintain a stable employment history | Avoid switching jobs frequently |
| Reduce existing debt | Avoid taking additional debt |
| Organize required financial documents | Do not provide false information |
Steps to Apply for a Home Loan
Here’s the step-by-step process that you can follow to apply for a home loan on Buddy Loan:
- Step 1: Visit buddyloan.com or Download & install the Buddy Loan app (Android or iOS).
- Step 2: Open the Personal Loan Application Page. Provide the mobile number and enter the received OTP.
- Step 3: Specify the desired loan amount & personal email. Next, choose the Personal Loan option
- Step 4: Choose the employment type (Salaried, Self-Employed, or Student) and the salary mode (bank or cash).
- Step 5: Enter your work details (Including company name, years of service and Designation)
- Step 6: Enter your personal details (Including Full Name, PAN, address DOB & Gender)
- Step 7: Provide your communication address, and income details and Click the ‘Submit’ button.
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Tips to Avoid Home Loan Application
Rejection
If your home loan application gets rejected, it can be disheartening. However, there are steps
you can take to address the situation and increase your chances of future approval. Here are some important actions
to consider:
Check Your Credit Score: Obtain a free CIBIL
score or credit report to understand your creditworthiness and identify any issues that may have led to the
rejection.
Work on Credit Improvement: If your credit score is
low, focus on improving it by paying bills and existing debts on time, reducing outstanding balances, and avoiding
new credit inquiries.
Reassess Your Financial Situation: Evaluate your
financial standing and consider whether it’s necessary to enhance your income or decrease your existing debts.
Address Documentation Requirements: Review the
home loan documents list provided by the lender and ensure that you have submitted all the necessary
documents accurately.
Seek Professional Guidance: Consult with a reputable
mortgage broker or financial advisor who can provide insights and guidance on improving your loan eligibility.
Consider getting a Joint Home Loan: Opting for a
joint home loan can increase your chances of loan approval. By including a co-applicant with a stable income,
you can combine your earnings and improve overall loan eligibility.
Home Loan Balance Transfer
A home loan balance transfer, also known as a home loan transfer, refers to the
process of transferring an existing home loan from one lender to another. This option allows borrowers to switch
their loans to a new lender offering better terms and benefits. Here are some important points to consider regarding
home loan balance transfer:
Benefits of Home Loan Balance Transfer:
Lower Interest Rates: One of the primary reasons
borrowers opt for a home loan balance transfer is to secure a lower interest rate. By switching to a new lender with
a more competitive rate, borrowers can save significantly on their monthly payments and overall interest costs.
Improved Loan Terms: Transferring a home loan
provides an opportunity to negotiate for improved loan terms such as reduced EMIs, longer repayment tenure, or
additional features like a top-up loan facility.
Enhanced Savings: Lower interest rates and improved
loan terms result in enhanced savings over the loan tenure, allowing borrowers to better manage their finances.
Home Loan Repayment
Repayment of a housing loan, also known as home loan repayment, involves fulfilling your
financial obligation towards the loan. There are different options available for borrowers, including
pre-payment and part-payment.
Pre-payment allows borrowers to make an early
repayment of a lump sum amount, reducing the loan principal and the interest burden.
Part-payment involves making partial repayments
towards the principal amount, helping to lower the oerall interest paid and shorten the loan tenure.
Calculating home loan repayments can be done using online calculators or by consulting with your
lender. These repayment options provide flexibility and can help borrowers save on interest costs while expediting
the loan repayment process.
Frequently Asked Questions
Find answers to common questions about this topic