Types of Home Loans

This is the most common type of home loan availed to purchase a house. There are many housing finance companies, public banks, and private banks that offer housing loans where you borrow money to purchase the house of your choice and repay the loan in monthly instalments. You can get up to 80%-90% of the house’s market price in the form of financing. The lender will hold the house until you completely repay the loan.
You can avail a home construction loan if you already own a plot and require funds for the construction of the house on that land.
If you already own a house and want to renovate it, you can apply for a house renovation loan. You can use a house renovation loan for painting, tiling, roof repairs, etc.
As your family grows, you may need a bigger house to accommodate all the members comfortably. A home extension loan could be helpful in such a situation. You can get this type of loan to fund the cost of adding a new room/floor to your home, extending the kitchen, building a new bathroom, etc.
If you wish to buy a plot with the intention of constructing your own home in the future, you can avail a plot loan.
The current home loan interest rate may be overwhelming, or you may not be happy with your current lender’s service; you can transfer the home loan’s outstanding balance to a different lender who offers a lower interest rate and better service. Upon transfer, you can even check out the possibilities of a top-up loan on your existing one.
This type of home loan provides financing for purchasing the plot of land where you would like to construct a house and for the construction, both within a single loan.

Benefits of Home Loan

It gives you the benefit of a balance transfer to another lender with a lower interest rate.

If you buy a second home, you will be eligible for an Income Tax deduction under section 24B of the Income Tax Act.

It makes it easy to buy a new home with one’s own money because It makes it easier to buy a house because it can be repaid in easy monthly installments.

It has the highest repayment tenure that goes up to 30 years and by extending the loan tenure one can reduce the EMI liabilities.

It enables you to buy your own home so there is no need to pay rent. It is better to pay EMI for your own home

  • Latest ITR, P&L, and balance sheet for 3 years
  • Proof of Business for the last 3 Years

A borrower can claim an Income Tax deduction of up to Rs. 1.5 Lakh under section 80C of Income Tax of India 1971 Act. While Section 24B of the Income Tax Act of India allows for a deduction of up to Rs 2 lakh on the interest portion. The income tax deductions are only available after the house has been completed. You cannot claim income tax deductions while the property is being built.

Documents Required:

  • Application Form
  • A cheque for the processing fee
  • Aadhar Card
  • Pan Card
  • Passport Copy
  • Voter ID
  • Driving License
  • Employer Issued ID Card
  • Aadhar Card
  • Passport
  • Electricity Bill
  • Telephone Bill
  • Ration Card
  • Lease Agreement
  • 1 passport size
  • Salary slip of last 3 Months
  • Latest Form 16
  • Latest Income tax Return
  • Latest ITR, P&L, and balance sheet for 3 years
  • Proof of Business for the last 3 Years
  • Last 6 Months

Loan Application Process

  • Fill out the application form
  • Verification of documents
  • Background check
  • Obtaining your credit report
  • Pay processing fee
  • Evaluation of repayment capacity
  • Processing the property documents
  • Loan Disbursements