Home Loan
Buy your dream house with My Loan Route’s home loan services.
- The lowest interest rates for home loan are currently starting @ 6.75%.
- Minimum Documentation and Door Step Pick-up
- A person can avail home loan for a tenure of maximum 30 years.
EMI Calculated
Steps To Apply
Here is a brief description of how to apply for a home loan!
A home loan is a service that people avail from banks to buy a property in exchange for a collateral at a certain sum of interest. This loan can also be obtained for a home renovation, re-building etc. Individuals get a fixed amount of funds for buying the property which is repayable with interest. It is a secured loan that considers age bracket, CIBIL score, occupation, earnings, and property value.
What is a home loan and how does it work?
A home loan is a credit amount given to a borrower at a fixed interest rate. The borrower repays the loan amount plus the interest in form of monthly EMIs. Generally, the home loan amount is calculated as 80% or 90% of the total market price of a residential property listed on the sale page. To take a home loan, a security needs to be provided by the borrower
Types Of Home Loans
• Home Purchase Loan: To purchase or own a home
• Home Improvement Loan: To get the additional funding for Renovations and others
• Home Construction Loan: To build a new house.
• Land Purchase Loan: To construct a house on a plot
• Home Extension Loan: To add another room, garage, bathroom or kitchen to your home. This loan can be utilized in case a person is planning to get a new floor added to the house.
• Joint Home Loan: When two or More people within the family come together to buy a home.
• Home Loan Balance Transfer: It is used to switch the remaining amount of your loan to a different bank or vendor. People generally do this in case they find a new
• Home Loan Top-Up: A person can borrow money above their outstanding amount through this type of loan.
Is a home loan tax deductible?
If the yearly repayment of the home loan is more than INR 1.5 lakhs, then as per the Income Tax Act 1961, the borrower will be able to deduct a certain amount from his total due annual income tax. So, yes, home loan is tax deductible and it will taking the loan will also reduce your total due tax amount.
Can i get 100% home loan?
No, you cannot get a home loan with 100% valuation, i.e. the entire market price of the property. As a buyer, you need to make a security deposit which will be considered as the down payment amount. The rest of the amount which needs to be deposited for having complete ownership of the property can be taken as a home loan.
What is the maximum home loan that i can get?
No matter who is the creditor or how good your credit score is, the maximum amount of home loan that you can apply for is 90% of the market price of the property. The rest of the amount has to be paid from your pocket as a down payment to the seller.
Which home loan is the best: Fixed Or Floating interest rate?
If the principal amount of your home loan is high, it will be best to go with a floating interest rate. According to this rate, the interest amount will decrease with each EMI that you will give as the repayment. But if the loan amount is less, a fixed rate will be better.
What factors affect your home loan eligibility?
Credit score is the main factor which will affect your home loan eligibility. Besides, employment details, salary package, house location details and plans, and several other documents are needed for making you eligible to apply for home loan and get it approved without any hassle. In addition, proper ID proof will also be needed.
Can i switch to floating rate from fixed rate during my loan tenure?
Yes, it is possible for you to convert the current floating interest rate into the fixed rate during the loan tenure. However, a charge will be levied, no matter at what point of time you are requesting for the conversion. The charges can go up to a maximum limit of 2% of the total loan principal.
Can i take 2 home loans at a time?
Yes, you can take 2 Home Loans by meeting the required Home Loan eligibility and repayment capacity. There is no restriction on the number of home loans.
How to get a home loan with ease?
To get a home loan with ease, you need to have a high credit score. Check your eligibility on the credit score calculator and work on increasing it further. Also, you must have a proper income and employment proof.
When does the loan repayment peiod start?
Once the full disbursement cheque is provided against your home loan, the repayment period will start from the next month. For example, if you receive the check on May, the loan repayment period will be from the month of June.
Is home loan insurance mandatory?
It is not mandatory to take an insurance cover on the home loan. But, it a wise step in case the borrower can’t repay the loan due to income loss, any disability, or death. In such cases, the insurer will repay the loan.
When do home loan EMIs start?
As you will be repaying the home loan in form of monthly EMIs, it will start from the month which comes after the one when you received the complete disbursement cheque. Until and unless the cheque is received, you won’t have to pay the EMI.
Eligibility Criteria For Loan
Particulars | Salaried | Self-Employed |
|---|---|---|
Age(Min-Max) | 23 years to 58 years | 28 years to 65 years |
Income | Rs.25,000 | Minimum turnover of Rs.40 lakhs |
CIBIL Score | Above 750 | Above 750 |
Documents for Loan Application
Salaried | Self-Employed |
|---|---|
Application form with photograph | Application form with photograph |
Identity and Residence proof | Identity and Residence proof |
Last 6 months bank statements | Last 6 months bank statements |
Processing fee cheque | Processing fee cheque |
Latest Salary Slip | Latest Salary Slip |
Form 16 | Business Profile and Previous 3 years Income Tax returns (self and business) |
Previous 3 years Profit/Loss and Balance Sheet |