Loans in Details

Home Loan

Home loans can be used to buy new property, 2nd sale property as well as under construction property. Banks generally provide 80% to 90% of the property value as a home loan. The balance has to be arranged as the initial down payment to the builder/ seller. One can arrange the balance from savings, securities, fixed deposits, life insurance or through a personal/ business loan

Available for salaried employees, self-employed professionals, non-professionals, partnership firms, Private limited companies, NRI's, subject to eligibility and sanction.

Nowadays some builders provide fully furnished flats to enable higher loan amounts. This also reduces the cost of furnishing the house on possession.

Home loans are available from Rs.5 lakh to Rs.10 crore for 20/30 years.

Currently no prepayment penalty can be charged as per RBI guidelines.

Floating rate of interest applicable is 8.65% up to 75 lakh. Fixed rate loans available at higher rates for initial period of 3 years after which the loan would revert back to floating rate.

Home loans interest rates depend on a number of factors such as :

1. Loan tenor
2. Loan amount
3. Age
4. Market value of the property
5. Repayment capacity
6. Existing bank policy

The above rates are purely indicative.The actual rates that you can get from the bank depends on various factors like income, profile, turnover, repayment history, builder track and negotiating power etc.