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Home loan lenders offer home loans to all resident and non-resident Indians. They can be salaried or self-employed professional/non-professional.

Consumers can avail home loans directly from the banks and HFCs. As many home loan lenders now-a-days facilitate online home loan application processes, consumers can consider applying for them through such lender’s official websites, mobile apps or internet banking platforms. Alternatively, consumers can also get a housing loan through online financial marketplaces to fetch home loan offers from multiple lenders from a single platform, depending on the consumers’ credit profiles.

Home loan interest rates start from 8.35% p.a. The final interest rate at which the bank or HFC will offer a home loan will depend on the applicant’s credit score, loan amount, employment profile, employer’s profile, LTV ratio, etc.

Home loan lenders decide an applicant’s eligible home loan amount on the basis of EMI/NMI Ratio and LTV Ratio. As these ratios vary across lenders depending on their credit risk policy, consumers should visit the website of their lenders and use their home loan eligibility calculator to determine the estimated home loan amount offered by their respective lenders. Alternatively, they can also visit online financial marketplaces like Paisabazaar to get the maximum home loan amount offered by various lenders.

The property documents required to avail home loans may vary on a case-to-case basis. The documents for home loans availed for buying a new house will vary from the documents for home loans availed for house construction. For a detailed home loan document list.

For most consumers, a lender offering the lowest home loan interest rate would be the best as it will help them save on the overall interest cost. However, besides considering home loan rates, parameters such as the loan tenure, loan amount, LTV ratio, processing fees and time taken for loan approval and disbursal must also be looked into while searching for the best bank for home loan. Instead of visiting the websites of respective home loan lenders, consumers can make their search easier by visiting online financial marketplaces like Paisabazaar.com to check and compare home loan rates and other loan features such as tenure, processing fees and other related costs from various banks and HFCs.

No, you cannot get a home loan for the entire property value as the Reserve Bank of India (RBI) has capped the Loan-to-Value (LTV) ratio of housing loans. As per the RBI guidelines, the LTV ratio can go up to 90% of the property value for loan amounts up to Rs 30 lakh; for loan amounts above Rs 30 lakh and up to Rs 75 lakh, the LTV ratio limit is up to 80% of the property value and for loan amounts above Rs 75 lakh, the LTV ratio can go up to 75% of the property value. This implies that at least 10% of the remaining value must be shelled out by the borrower as down payment.

Some lenders use the Multiplier Method for determining your maximum home loan eligibility, wherein the eligible loan amount is calculated based on a predetermined multiple of an applicant’s net monthly income. They usually offer loan amounts of up to 72 times of an applicant’s gross monthly income or 6 times of their gross annual income (in case of applicants other than salaried). Others use the EMI/NMI Ratio, wherein the total EMI obligations of the applicant should be within a predetermined proportion, usually 50-55% of the applicant’s income. Some lenders also use a combination of both of these methods to find the loan amount eligible of the applicant.

Yes. The repayment of principal amount would qualify for tax deductions under Section 80C of Income Tax Act. The repayment of interest component would qualify for tax deduction under Section 24(b) of the IT Act.

Yes, most lenders offering home loans at both fixed and floating rates allow their existing home loan borrowers to convert their fixed rate loans into floating rate loans and vice versa, on the payment of conversion or switching fee.