How to get Home Loan from bank in 2024 Complete Guide

Hi Folks, In this article we are going to know about how to get a home loan from the bank. In today’s world it is everyone’s dream to build or buy their own dream house . That’s why many people take home loan from banks to build a house. Because not every person has enough money to invest all his money in building a house, the dreams of many people remain unfulfilled. So they take help of banks and take loan from the bank to build their house.

But many people do not know how to get a home loan. And how to apply for home loan, so today in our blog we are going to give you complete information related to home loan so that it becomes easy for you to take home loan and what subsidy you get in home loan. We are going to give complete information about what are the interest rates and what are the documents required so that you will not have to face any kind of problem in taking a home loan and you will be able to take the home loan easily.

What is a home loan?

Home loan is a type of loan which is given to individuals to buy a private house. This home loan is provided by any bank or any private or govt institution. Home loan is given to you in the form of loan in which You have to return it with the interest rates. On the home loan, you have to pay the interest rates fixed by the bank. The bank gives you a home loan as per your property valuation and gives it to you for a limited period of time. You have to repay that loan,

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for this you can return that loan to the bank with monthly installments, however, the bank also charges some interest rates on it. To give a home loan, the bank checks your cibil score and whether your previous Cibill score i.e. you bank statements your transcations history and your purchase history and previous or on going loans, whether you have repaid the loan taken in the past on time or not. After this, the bank takes your property documents and after giving you the loan approval. The bank deposits the loan amount in your account within 24 hours to 7 days.

How to get home loan

If you also want to take a home loan to buy a house, then you can apply for it by going to any nearby Bank branch or you can also apply it online. However, I would suggest that you apply for the home loan in the nearest branch of the bank. First go and get complete information about it and only then apply for home loan.

Eligibility for taking home loan

To take a home loan, you need the following eligibility. You should be eligible in these things, only then you will be able to get a home loan. To apply for a home loan, you need the following eligibility. You should be eligible in these things,

Here are some points that you should keep in mind for home loan:

  • Applicant must be an Indian citizen.
  • Age requirement: Between 22 to 65 years old.
  • Monthly income limit: Up to Rs 25,000/monthly.
  • Civil score requirement: Should be 750 or above.
  • Employed individuals need to have at least 2 years of experience.
  • Non-employed individuals must have a business that is at least 3 years old.
  • Home loan can cover up to 90 percent of the property value.
  • Home loan terms and conditions vary based on the bank and the property’s location.

Documents required for home loan

  • Identity Proof: PAN Card, Passport, Aadhar Card, Voter ID Card, and Driving License (Photocopy of any one)
  • Age Proof: Aadhar Card, PAN Card, Passport, Birth Certificate, 10th Class Marksheet, Bank Passbook, and Driving License (Copy of any one)
  • Income Proof (For Employed): Copy of Form 16, recent salary slip, IT Returns (ITR) for the last 3 years, and investment proof (if any)
  • Residence Proof: Bank Passbook, Voter ID, Ration Card, Passport, Utility Bill (Telephone Bill, Electricity Bill, Water Bill, Gas Bill), and LIC Policy Receipt (Any one copy of)
  • Documents related to property: NOC from society/builder, detailed estimate of construction cost of the house, copy of registered sale agreement, allotment letter, and approval of building plan
  • Notes:
    • The list given above is only indicative; the bank/loan institution may also ask for additional documents.
    • The documents given above are necessary, but the bank may accept other documents for a home loan.
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Benefits of home loan tax

The Government of India gives a lot of tax relief on taking a home loan. Under the Tax Benefits Act 1971, By using the tax benefits available on a home loan, you can save a lot on your home loan. You can get tax exemption according to the amount paid as per your tax liability.

Home Loan Fees and Charges

Fee TypeFees/Charges
Processing Fee1% – 2% of the loan amount
Foreclosure/Prepayment FeeFor Floating Rate: Nil
For Fixed Rate: Around 2% – 4% on the outstanding principal amount
Arrears fee on EMI2% per month of unpaid EMI
EMI bounce chargeAround ₹400
Legal feesAs per actuals may vary from Bank to Bank

Types of Home Loan

There are different types of Home loans given by any private institution, for this it is very important for you to get complete information about what types of loans those institutions give. However, some banks and institutions give the following types of loans given below.

  • Home Purchase Loan
  • Composite Loan
  • Home Construction Loan
  • Home Renovation/Improvement Loan
  • Home Extension Loan
  • Bridge Loan
  • Step-up Loan
  • Investment Saver Loan

Things to keep in mind before buying a home

  • Gather comprehensive information about the interest rates associated with your home loan from the bank.
  • Ensure timely payment of installments to the bank to facilitate easier access to future loans.
  • Take out a home loan that aligns with your income to avoid difficulties in meeting installment payments.
  • Prior to borrowing, carefully scrutinize all aspects and gain a thorough understanding adn cosult with Charted accountant if possible.
  • Always Opt for a bank with lower interest rates when obtaining a loan.
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Top Banks/Housing Finance Companies in India

Bank/Loan InstitutionInterest Rates (per annum)Apply
SBI9.15% – 10.15%Apply
HDFC8.50% – 10.70%Apply
ICICI Bank9.00% – 10.05%Apply
Bank of Baroda8.60% – 10.90%Apply
Union Bank of India9.00% – 10.95%Apply
Axis Bank8.75% – 12.70%
Kotak Mahindra BankStarting from 8.85%
LIC Housing Finance8.60% – 10.75%
Federal Bank10.15% – 10.30%
Bajaj Housing FinanceStarting from 8.50%
Dhanlaxmi BankStarting from 9.35%
Tamilnad Mercantile Bank9.10% – 9.60%
Repco Home FinanceStarting from 9.80%
GIC Housing FinanceStarting from 8.80%
Aditya Birla Capital8.80% – 14.75%
ICICI Home FinanceStarting from 9.20%
Home First Finance8.00% – 18.00%
Godrej Housing FinanceStarting from 8.64%
HSBC
PNB Housing Finance8.75% – 14.50%
Tata CapitalStarting from 9.15%
L&T Housing FinanceStarting from 8.60%
Standard Chartered BankStarting from 8.75%
Punjab National Bank8.60% – 9.60%
Canara Bank8.85% – 11.25%
Bank of India8.65% – 10.75%
Indian Bank8.45% – 10.40%
Indian Overseas Bank8.85% – 11.15%
Bank of MaharashtraStarting from 8.40%
UCO Bank8.45% – 10.30%
Bandhan Bank9.15% – 15.00%
Punjab & Sind Bank8.85% – 9.95%
South Indian Bank9.85% – 12.60%
RBL Bank9.10% – 11.55%
Karnataka Bank9.26% – 10.53%
India Bulls Housing FinanceStarting from 8.75%

How to apply for home loan offline?

  • To apply for a offline home loan, first of all you have to choose the bank.
  • For this you can choose any good branch near you.
  • Visit that branch, apply for home loan and talk to the branch manager
  • For this you will need some documents like income certificate, bank statement, income tax returns etc.
  • Fill the application completely and attach photocopies of the required documents and submit it to the bank.
  • After that the bank will check your documents.
  • After that the bank will pass your home loan. After the home loan is passed, the loan amount will be deposited in your account.
  • You can repay home loan in monthly installments according to your income.

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Conclusion

Friends, Today you read in our article on how to get a home loan? How to apply for a home loan? and which bank to choose from before applying. And you also learned about the current home loan interest rates and how beneficial it is for you to take a home loan. What documents are required to take a home loan? I hope you liked our article on how to get a home loan.

This will make it easier for you to get a home loan. If you liked this idea, then comment and also share this article with your friends and relatives. So that this information can reach more and more people. so that they can also easily take a home loan and fulfill their dreams by building their dream house. And if you want any kind of loan related information then you can read our other article.
Thanks guys.

Hello I am Sam

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