Home Loan

A home loan is a credit solution under which one can avail of funds to purchase or renovate an existing or under-construction property – be it residential or commercial. The loan is secured in nature, i.e., the loan amount is sanctioned against a collateral, which is the property in question.

The loan amount is sanctioned at a predetermined interest for an agreed-to period, also known as the ‘tenor.’ The borrower repays the loan with interest through a home loan EMI, payable every month. The property ownership remains with the lender till the home loan repayment is complete, including interest.

Salaried persons with work experience of 3 years can get housing loans of Rs. 5 crores* or higher, basis eligibility and self-employed individuals having a business continuity of at least 5 years can avail funding of Rs. 5 Crore*. Use the home loan eligibility calculator to gauge the maximum loan amount based upon your income, tenor, and current obligations.

No. As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10-20% of the property’s purchase price. Typically, you can obtain up to 80% housing loan financing for your property.

With Bajaj Finserv, any Indian national having a strong credit profile can get a home loan. The house loan eligibility terms include:

• Age: 23 to 62 years for salaried individuals, 25 to 70 years for self-employed
• Employment Status: At least 3 years of experience for salaried individuals, at least 5 years of business continuity for self-employed individuals
• CIBIL score: 750 or higher
• Minimum salary: Bajaj Finserv requires you to have a minimum net monthly income of Rs. 25,000 to Rs. 30,000 to get a housing loan. In places like Delhi, Gurugram, Mumbai, and Thane, your salary should be at least Rs. 30,000. In cities like Bangalore, Chennai, Hyderabad, and Goa you must earn at least Rs. 25,000

Yes, you can get tax deductions on home loan repayment. home loan tax benefits include Section 80C’s deduction of Rs. 1.5 lakh on the principal repayment and Section 24B’s deduction of Rs. 2 lakh on the interest repayment. You can also claim house loan tax deductions for registration fees and stamp duty charges under Section 80C.

Section 80EEA provides an additional deduction of Rs. 1.5 lakh on the interest repayment of home loans taken for affordable houses, with stamp value of up to Rs. 45 lakh. In the Union Budget 2021, the Government extended the deadline to avail such a home loan to 31 March 2022.

The documents required for a Home Loan from Bajaj Finserv include:

• KYC documents
• Address proof
• Identity proof
• Photograph
• Form 16/ latest salary slips
• Bank account statements of the last 6 months
• Proof of business continuity (for businesspersons, self-employed)

Both types of home loans have their pros and cons. With a fixed-rate home loan, the interest rate remains constant through the tenor, which allows you to forecast EMIs. Pick it when home loan interest rates are low and when you want fixed EMIs

With floating-rate home loans, the interest rate alters basis economic changes and RBI policy decisions. Choose this variant when you expect rates to reduce in the time to come. Additionally, the RBI mandates that you do not need to pay any prepayment or foreclosure charges if you’re an individual borrowing a floating rate home loan.

Basis the different requirements for home finance and varied customer profiles, the types of home loans available in India are:

• Home construction loan
• Home loan balance transfer
• Top-up loan
• Joint home loan
• Loans under the Pradhan Mantri Awas Yojana scheme
• Home loan for:
• Women
• Government Employees
• Advocates
• Bank Employees
• Private Employees

Availing of a house loan requires an individual to meet the eligibility criteria that ensure a borrower’s capacity to repay. The factors that affect eligibility are:

• A person’s credit score
• Monthly income
• Current financial obligations and debt
• Employment status
• Age of the applicant
• Property to be purchased

Yes, you can switch from a floating rate of interest to a fixed rate during the repayment tenor of your housing loan. You need to pay a nominal amount as a conversion fee to your lender for switching.

Opting for a housing loan is a smart financial decision for the following reasons:

• It brings additional financing to fund your housing dreams without affecting your savings
• You can choose from several housing loan options as per your requirements
• The interest rates are affordable and make loan repayment more convenient
• Long tenor allows for repayment towards the loan in easy EMIs

No, availing two housing loans at a time for the same property is restricted as per the CERSAI. However, individuals can opt for a house loan balance transfer to refinance their existing housing credit at a lower rate of interest. The facility comes with the top-up loan facility - an additional loan over and above the existing loan amount. Avail the funds to meet diverse financial necessities with ease.

Proceed with the following steps to avail a home loan with ease.

• Check your credit reports and rectify errors, if any
• Estimate EMIs with a home loan calculator and decide on the loan amount as per repayment capacity
• Keep all the necessary documents handy
  
• Compare the available offers for the best housing loan option
• Ensure to meet all eligibility before applying

The repayment period for loans begins immediately after the lender has disbursed the entire housing loan amount. However, in cases of partial disbursal, the interest accrued on such a disbursed amount is required to be paid as pre-EMI. Full EMI payment including the principal and interest amount starts after full disbursal of the loan.

No, it is not mandatory that you take home loan insurance along with your loan. However, you may consider getting an insurance to take care of any liability at a marginal increase in your EMIs.

You start paying your home loan EMI when the disbursement cheque is created. Once you receive the loan amount, you begin paying EMIs as per the EMI cycle. This means if your chosen date for EMI repayment is the 5th of a month and you receive the loan on the 28th of the month, then for the first month you pay EMI calculated from the day your house loan was sanctioned to your first EMI date. Next month onwards, you pay regular EMIs on the designated day.

Yes, If you want to get a bigger loan, you can take out a home loan in joint names. Family members, such as spouses, parents, siblings, and offspring, can be co-applicants for a joint house loan.

Furthermore, by sharing responsibility for debt servicing, the burden of loan repayment is reduced.

The processing fee is among the fees that you'll have to pay on a home loan. A home loan processing fee is a one-time fee charged by the lender once your housing loan application has been accepted. While some lenders charge a processing fee for home loans, others do not.

You can check the status of your housing loan application online by entering your home loan application number/ ID, as well as your mobile number/ contact information.

You can also contact your home loan lender and ask about your home loan application status by providing your application ID/ reference number.

Only mentioned relatives are eligible to be co-applicants for home finance:

Unmarried Sons and daughters can apply for a joint home loan with their parents. A husband and wife can apply jointly. A brother and a sister can apply for a home loan together, but a brother-sister or sister-sister pairing is not permitted.