A home loan is a secured loan taken from a financial institution for the purpose of buying a residential property. You can avail of a home loan to buy a ready-to-move-in house or apartment or one that is under construction. Home loans can be availed from both banks and Non-Banking Financial Companies (NBFCs).

These have varying interest rates which are often linked to your credit score. Home loans typically have a tenure of up to 30 years and have to be repaid as Equated Monthly Installments. You can also get tax deductions on both the principal and interest component of your home loan under Section 80C and Section 24 respectively of the Income Tax Act.

Before signing up for a home loan product, it’s best that you compare loans offered by different banks and lending institutions. While comparing, consider the interest rate, Loan-to-Value (LTV) ratio, processing fees, and tenure offered by the bank. Use a home loan EMI calculator and calculate your EMI based on these factors. Compare multiple home loan products by various banks by using this method. Also, certain lenders roll out home loan offers with reduced interest rates from time to time. Keep an eye on that too while looking for a loan. Also, know your requirements first before applying. You can go through the above list to get an idea regarding which bank’s home loan would suit your requirement.

Usually, it takes 3 to 4 weeks to get a home loan sanctioned. However, you need to keep a few factors in mind for a better understanding. First of all, you need pre-approval of your home loan from the concerned lender to get your loan sanctioned. However, pre-approval doesn’t always mean that your loan will be disbursed immediately and depends on certain external as well internal factors. For instance, your loan sanction can be delayed if there’s a delay in the submission of property or income-related documents.

Age, Annual Income, Occupational stability, Resident type [Indian Citizen, Non-Resident Indian (NRI), Person of Indian Origin (PIO), Number of co-applicants, Co-applicant’s income, Credit score, Other ongoing loans, if any

The rate of interest associated with fixed rate loans remains unchanged during the entire tenure of the loan. On the other hand, the interest rates applicable on floating rate loans can be revised from time to time depending on the RBI’s key policy rates. The equated monthly installments can increase or decrease depending on the prevailing RBI rates in the case of floating rate type loans.

Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure. While banks do not charge any prepayment fee on floating rate loans, fixed-rate home loans attract a penalty of up to 2% of the loan amount if prepaid through refinancing.

Yes, you can avail of tax benefits on both the interest and principal component paid against your home loan. As per Section 80C of the Income Tax Act, you can avail of deductions of up to Rs.1.50 lakh on the principal amount repaid annually.

Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.

The co-applicant can be an immediate family member such as your spouse, your parents, or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.

Pre-EMI is defined as the interest that is to be paid to the loan provider until the entire loan amount is disbursed. The Pre-EMI is payable on a monthly basis until the last disbursement, post which the regular EMI will be applicable comprising the principal and interest components.

Home Purchase Loan: Suitable for those looking to purchase a new house/flat or an under-construction property.

Home Construction Loan: Can be availed by those looking to construct a house/property according to his/her plan.

Home Conversion Loan: Suitable for those looking to purchase and move to another property when they have already bought a house with a home loan.

Plot Loan: Can be availed by eligible borrowers looking to purchase a residential plot for the purpose of construction of a house/dwelling unit.

Home Improvement Loan: These loans are sanctioned to those looking to repair/improve/renovate an already existing property.

Home Extension Loan: Suitable for those looking to extend/expand/alter the structure of an existing property.

Home Loan Balance Transfer: Can be availed by those who wish to transfer their outstanding home loan balance from their existing lender to another lender due to reasons such as reduced interest rates or better customer service.

Home Loans for NRIs: These home loans cater to the housing needs of NRIs in the country. They also include PIOs and OCIs.


Yes, you can take 2 home loans at the same time provided that your lender approves your eligibility to manage 2 Equated Monthly Instalments (EMIs) at the same time. However, the tax benefits on the second house will be different and you will be required to establish the property as self-occupied or let-out property.

No. Banks/financial institutions do not grant 100% of the property value as a home loan. Home loan lenders establish a margin on their loan i.e. the percentage of the cost that the lending institution will be covering. For example, if the margin on the loan is set at 10%, the bank will cover 90% of the property value. In such cases, you will be required to make a down payment of the balance amount, i.e. 10% in order to cover the rest of the cost.

When determining your home loan eligibility, the lender makes sure that your monthly repayments are not being affected by any other ongoing loans such as personal loans, two-wheeler loans, etc. However, other ongoing loans ultimately tend to affect your eligibility as your overall spending power is reduced. If your other loan commitments exceed 50%-60% of your monthly income, your home loan application may be rejected.

If you are buying a house, a home loan is the best option. Usually, you will not be eligible for a personal loan for as high an amount required for the purchase of a house. If you want extra money for non-specific personal needs, then go for a personal loan. Home loans also have an added advantage of top-up loans wherein you can request a top-up on your loan amount to cover additional needs such as furnishing your house.

Most lenders specify the eligibility criteria that you will need to meet for your loan application to be approved on their respective websites. You can also use the personal loan eligibility calculator tool, which you will find on the websites of banks and financial institutions and third-party financial service providers like Hexafin Consultancy Pvt Ltd

Yes, applying for a personal loan online saves you a considerable amount of time and effort, given that you can do it from the comfort of your house. Certain third-party financial services websites like  also offer paperless approval, wherein you will not be required to submit any paperwork to the lender for your loan to be approved. The application process is also completely secure.

Most banks/financial institutions allow borrowers to choose a loan tenure between 1 year and 5 years, based on their convenience.

While the exact documents required vary from lender to lender, listed below are a few general documents that most banks/financial institutions usually require applicants to submit:

-Proof of identity

-Address proof

-Proof of income

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-KYC documents of the company including PAN Card, Registration of Incorporation, Partnership deed, Memorandum & Articles of Association.
-KYC documents of the business owners
-Balance sheet and Profit & Loss accounts for the last two years
-Income Tax Returns for the last two years
-Company bank statements for the last six months
-GST returns for the last 6 months
-A report detailing how the

Loan eligibility is dependent on primarily the following factors:
-The credit score of the entity and/or the partner/director/proprietor of the borrowing entity as reflected in your CIBIL or Equifax report or any other credit bureau. Having a good credit score is a necessary but not a sufficient criteria. If the credit score is a border line case then the bank may take a subjective call to limit the loan amount.
-The last 2 year financials of the borrowing entity. Factors like turnover, partner/director salary, depreciation, interest cost, net profit after tax are some of the key parameters that goes into deciding the loan amount.
-Ability to service the EMI for the current loan be requested as depicted by the Debt service coverage ratio (DSCR). Banks generally ask for a DSCR of 1.0 to 1.5 depending on case to case basis


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