Hello friends, today we are going to tell you about home loans, as you all know, today every person has a dream to have a house of his own in which he can keep his family well but the rising inflation. And today man’s expenses have become so much that it has become a little difficult to think about building a house, but you have a solution for all these problems, you can make the dream of building a house come true.
For this, you can easily build a house by taking a home loan from any bank. For this, you will have to deposit money every month in the form of monthly installments. What type of loan is this home loan? What are the necessary documents required? Let us know….
What is a home loan?
Home loan The person who takes money in the form of a loan from a bank or a private institution to build his house, buy land or renovate the house is called a loan.
This loan is secured because whenever you apply for a home loan through any bank, the bank first gets the paper of your land or the place you want to buy in advance in your name. After that, you get approval for the loan. The interest rate for a home loan is also very low, and you can repay it in the form of monthly installments for a long period. If you fill this note on time, your property papers are handed over to you by the bank back in your name.
What are the types of a home loans?
If you apply for a home loan, the bank must take information from you for what type of home loan you want to take. Let’s know the types of home loans.
1. Loan for Home Purchase – This type of loan is taken to purchase a house. This is also called a home loan.
2. Loan for Home Improvement – This loan can be used for home renovation or home renovation.
3. Loan for Home Construction – When you have bought land to build a house, but you do not have money to build it, you can take a home construction loan to build your new house.
4. Loan for Land Purchase – You can get this loan from the bank to buy land. Any person who dreams of building a house can fulfill their dream by taking this type of loan.
5. Loan for Home Extension – In this loan, you can take a home extension loan to construct any other place in the house, room, bathroom, kitchen, garage, etc., or you are building a floor, and you already have two floors. If you want to build more on it, you can make it by taking a home extension loan.
6. Joint Home Loan – This loan is given by a joint home loan bank to two or more persons to buy land or to build a house.
7. Home Loan Balance Transfer – You can avail of this facility by switching your home loan amount or money due in less interest to another lender with terms and conditions.
8. Top-Up Home Loan – This loan is a type of loan given for lending over and above the loan amount you already have in the bank.
Loan Cost for Home Loan
Whenever you apply for a home loan in any bank, the bank confiscates your property as security, so the loan amount you get from the bank is a loan of 90% of the value of your property. You get it. You can easily take a home loan of at least 10 ₹ 1500000 from the bank and build your own house.
Home loan repayment schedule
Let us tell you for the information of all that whenever you apply for a loan, the biggest advantage of this is time. You can fill it with very low EMI, and in the long run, this will also affect your monthly budget. The EMI repayment time in a home loan is given around 30 years. If you want, if you already have the money, then you can also do the settlement from the bank. In this, you will get a concession in the rate of interest and other types of charges.
Interest on home loan
The interest charged by the bank for a home loan is also very less as it is a secured loan. In this, the bank also does not have to face any fraud because the bank mortgages the paper of your land in the form of security. That is why the rate of interest on a home loan is often charged differently for all banks. This rate of interest is different for all banks. The rate of interest on Paisa’s home loan is 6.50% per annum.
Low-interest home loan bank
One way, the repayment of the home loan amount takes a very long time, so the interest rate does not make much difference. Following are the banks giving home loans in India at very low interest.
- The interest of Kotak Mahindra Bank is 6.50%. Its monthly installment is Rs 641 per month.
- SBI Bank charges 6.70% interest and emi deposits of Rs 646 per month.
- Interest in HDFC and ICICI is 6.75%. And monthly installment of Rs 649 is deposited.
- Union Bank of India charges 6.80% interest, and the monthly emi is Rs 652.
- Central Bank of India charges 6.85%, and monthly EMI is Rs.655.
The interest rates charged on taking a home loan are subject to change without any notice by the RBI. All these interest rates also depend on the applicant’s credit score by the bank, his age to repay the loan. On top of all these, the rate of interest also depends, how your dealings with the bank are.
Other charges for taking the home loan
Whenever a person applies for a home loan, he ignores other charges by considering only the interest rate. In contrast, these other charges on the home loan affect the home loan a lot. Apart from the interest of the home loan by the bank, the information about other chargers is as follows…
1. Application Fee – The bank levies this charge to cover the initial expenses when you apply for a home loan. These charges are also used to complete the verification.
2. Processing Fees – Processing Charges The credit profile of the loan borrower depends on the type of home loan scheme they come in, though not all banks levy processing charges.
3. Administrative Fee – This fee is paid by the loan institutions that split the processing fee into two parts, one that is levied after the loan is approved as the administrative fee.
4. Foreclosure fee – This fee is a late fee whenever a person pays the home loan before the prescribed limit, that’s why earlier banks used to charge prepayment penalty and for closure fee on home loan but now RBI has imposed prepayment penalty on home loan. Prohibited installation.
Tax benefits of home loan
The Government of India has given many benefits in tax on the people taking home loans under the IT Act 1961, every year, whoever is taking a home loan, they save a lot. The tax benefits are as follows.
- Tax exemption up to ₹ 200000 is available on payment of interest under section 24B.
- Tax exemption of 1.5 lakh is available on the principal amount under section 80c.
- Under section 80ee, those who have bought a house for the first time get a tax exemption of 50000.
- There is a tax exemption of 1.5 lakh in additional interest under section 80EEA.
Important Qualification for Home Loan
For those applying for a home loan, first of all, it is important to have a significant contribution. Let’s know…
Nationality: The person applying for the home loan needs to be a citizen of India.
Credit score: 750 or above.
Age: Above 18 years and below 70 years.
Work Experience: The person is employed or has his own business.
Salary: The income of the person taking the loan should be at least ₹ 25000.
Loan Amount: Up to 90% of the value of the property is available.
Apart from this, whenever you apply for a home loan, the eligibility and conditions also depend on what type of property you are buying and where you are buying it.
Documents required for taking the home loan
To take a home loan, you have to submit some important documents to the bank, although these documents can increase or decrease your credit score. Their information is as follows…
Application Form for Home Loan
- Passport size photo
- Aadhar Card
- PAN card
- Correct address proof
- Bank statement or salary slip
- Property related documents
Home loan process
You can do the process of taking a home loan both online and offline, you can apply for the online method sitting at home, and for an offline loan, you are taking a home loan in the bank or through an institution, there yourself. After that, you will have to apply for a home loan in the bank along with all the documents related to your property. Loan approval will be done in this way you can take a home loan.
Benefits of taking a home loan
Is 30 years old. There can be many benefits to a person taking a home loan, the interest is very less, apart from this, the person builds his house according to his wish, the amount of this loan has to be deposited every month in the form of installments, the time of repayment of the loan is from 20. If you fill this not in the bank ahead of time, you will benefit from the bank in the loan amount.
Apart from this, nowadays, there are benefits from the Government of India for taking a home loan. In this, a person gets the help of 2.5 lakh rupees in the home loan as a subsidy, besides benefits in tax also available.
You all know that today we all dream of building a nice house, but the responsibilities of a person are so much that they cannot build their house based on their shaving. You can easily build a house by taking a home loan. And you can repay the loan amount in the form of monthly installments.
Today we have given you information about how to take a home loan through this article. Hope you have understood this information written by us. You can comment in the comment box and stay connected with our website.
What type of loan is a home loan?
It is a secured loan.
Is it necessary to mortgage land papers with the bank for taking a home loan?
How much amount can I get from the bank for a home loan?
80 to 90% of the land value.