Home Financing

Complete Home Loan Guide

Everything you need to know about home loans in India

Types of Home Loans

Loan Against Property (LAP)

Amount

₹10 lakhs - ₹10 crores

Rate

8-11% p.a.

Borrow against your existing property for any purpose

Home Purchase Loan

Amount

₹25 lakhs - ₹5 crores

Rate

6.5-8.5% p.a.

For buying new or resale residential property

Home Construction Loan

Amount

₹50 lakhs - ₹2 crores

Rate

7-9.5% p.a.

For building new home on your own land

Home Improvement Loan

Amount

₹5 lakhs - ₹50 lakhs

Rate

8-11% p.a.

For renovation, extension, or major repairs

Home Top-up Loan

Amount

₹5 lakhs - ₹2 crores

Rate

7-10% p.a.

Additional loan on existing home with existing mortgage

Home Loan Eligibility

Age

Minimum 21 years, maximum 65-70 years at loan maturity

Income

Minimum monthly income ₹15,000 - ₹25,000 depending on lender

CIBIL Score

Minimum 650+ (higher scores get better rates)

Employment

Salaried or self-employed with 3+ years experience

Property Value

Loan amount usually 80-90% of property value

ITR/Salary

2 years IT returns or 6 months salary slips required

Home Loan Process & Timeline

Application

Submit application with documents

1-2 days

Document Verification

Bank verifies all submitted documents

5-7 days

Property Valuation

Bank conducts property assessment

3-5 days

Loan Approval

Final approval by bank committee

5-7 days

Sanction Letter

Receive formal offer letter

1-2 days

Disbursement

Money transferred to your account

7-14 days

Home Loan Costs & Charges

Processing Fee

0.5-1% of loan amount

Non-refundable fee charged by bank

Documentation Charges

₹500-₹2,000

For legal documentation

Valuation Charges

₹1,500-₹5,000

Property valuation fee

Insurance

0.5-1% per annum

Mortgage protection insurance

Registration & Stamp Duty

4-7% of property value

Government charges (state dependent)

EMI

Varies

Monthly principal + interest payment

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