Overview

A Home Loan is a secured loan product where the lender provides finances for the purchase or construction of a residential/commercial property. One can also avail a housing loan to buy a plot of land and construct on it. Home Loans are also issued to extend/ repair/ renovate/ alter a new or second-hand property. The Home Loan is taken by a borrower against the property/security to be bought. This is done by giving the banker a conditional ownership over the property i.e. if the borrower fails to pay back the loan, the banker can retrieve the lent money by selling the property.

Most lenders get the property valued independently and provide loans based on their estimated value. It is important to remember, however, that frequently their valuation is significantly lower than the actual cost and hence the requirement of the borrowers goes up. Home loans in Indian Banks are provided up to maximum of 80% (90% for loan amount below INR 20 lakhs) of the value of the house. Home loans are repaid using Equated Monthly Installments (EMIs) spread over a fixed tenure.

GoSecure Financial brings you the best deals in Home Loans using its extensive network of partner banks.

Home Loan Type

Achieve all your goals and aspirations; with the right kind of help, exactly when you need it. If you thought Home Loans were just available as a standard offering, you’re clearly mistaken. GoFinancial Secure offers different types of Home Loans from banks. It would be wise to take a look at the options available to you rather than searching for information without any previous knowledge.

New Home

This type of loan is a simple home loan that allows you to purchase a new residential property. You can apply online and check your eligibility and easy EMI.

Home Renovation

If you ever wanted to renovate your home with a new aesthetic look or just wanted to structurally enhance and strengthen it, this type of home loan is what you’re looking for. It is basically concerned with the costs to renovate or repair your existing home.

Home Construction Loan

This type of loan is taken when the borrower wants to construct a new home on a given plot of land.

Home Loan Advantage

This type of home loan is linked to a current account thereby reducing your interest outflow depending on your idle balance in your bank accounts

Loan EMI Calculator

Loan Amount is 30000
No. of Month is 30
Rate of Interest `{`ROI`}` is 10
Monthly EMI

Total Interest

Payable Amount

Interest Percentage

Home Loan - Eligibility

Any salaried, self-employed or professional Public and Privat companies, Government sector employees including Public Sector is eligible for a personal loan.

Every bank has its own set of eligibility criteria so as to properly assess your repayment capacity. The Repayment capacity per say is based on your monthly disposable income or surplus income, (which is based on factors such as total monthly income / surplus less monthly expenses) and other contributing factors such as your spouse’s income, assets, liabilities, stability of income and so on.

The main concern from the bank’s perspective is to make sure that you can comfortably repay the loan on time. The higher your disposable monthly income, the higher the amount you will be eligible for. A bank typically assumes that about 55-60 % of your monthly disposable income is available for repayment of the loan. There are exceptions to this however where some banks calculate the income available for EMI payments based on an individual’s gross income and not on the disposable income.

As always, the loan amount depends on the loan tenure and the interest rate. Banks generally fix an upper age limit for home loan applicants.

Bank Home Loan Eligibility Criteria

Different banks have different eligibility criteria, however, we can broadly classify them into the following:

Monthly Income
One of the most important considerations when a bank decides the maximum loan amount it can disburse, is your monthly income (if you are a salaried individual. if you are a self employed person, your yearly profit would identify your maximum loan amount)

The loan amount basically depends upon the net income of an individual and a bank usually provides home loans up to 60 times of an individuals net income. For e.g. if a person take home salary is Rs 30,000 he /she may be offered a home loan of around Rs 18 lacs. However, the finality of this decision is based on a few other criteria.

Other EMI
If you have any previous loans or EMIs pending, a bank will always consider the risk and the financial load you are taking on to decide to give you a home loan.

Available Income
The income that is left in your bank account after deductions of any EMIs is a very important consideration for giving out a home loan. The Home Loan Eligibility Calculator will be calculated after deduction of the EMI’s that you are paying monthly.

Property Attributes
If you are a home owner already, you should know that banks provide upto 75% of your home property value as a loan amount. So for example, if your home or property is worth 50 Lakhs, you can get upto 75% of that amount as the loan amount, which in this case works upto 37.5 Lakhs. Here, based on your income and property value banks decide your exact home loan eligibility.

Banks also have certain norms for the property before granting a loan. These are with respect to the minimum area requirements for a flat which may be carpet area or built up area. The bank also considers the age of the property in case of an existing property, the location of the property and also the reputation of the builders constructing the property. Thorough analysis and inspection of the property to check whether the title is clear or not is an additional check in addition to things like ownership disputes and so on.

Credit History
The credit history of an individual plays an important role in deciding the amount of the loan. Credit history is basically the credit report of an individual based on credit information recorded by CIBIL through all your loan transactions. Based on your credit score, a bank or any other financial institution decides whether an individual is eligible for a loan or not. The credit history is generally affected by outstanding credit card payments and any unsecured loans.

Age
Age plays a crucial role in determining your eligibility for a home loan. One has be atleast 21 years of age to apply for a home loan. The minimum age requirement may be different for different lending institutions. The maximum age may vary from 58 to 65 years depending on the income source of the individual. Age also determines the tenure and EMI of the loan. For e.g. if an individual is 35 years of age and retires at 60 then his/her loan tenure will be 60-35=25 years and the EMI will be calculated accordingly. The longer the tenure the lower will be the EMI’s. However the longer the tenure, the costlier the loan is as one ends up paying more interest.

Co-applicant
In order to enhance the eligibility for having a loan one can have a co-applicant such as a spouse or close nominated relative or friend. As a result of this the total eligible income for having a home loan increases and thus as a result the loan eligibility becomes higher. However banks permit only certain relationships to become the co-applicant.

As mentioned earlier, every bank has its own set of Eligibiity Criteria. In case of NBFCs customers can expect higher eligibility.

Home Loan Documents

We have compiled below a list of documents that you will require to complete your application:

Salaried

Identity Proof
  • PAN Card (mandatory) and any one of the below documents
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Driving License
  • Photo Identity card issued by Govt. body
Address Proof  – Any one of the below documents:
  • Any one of the below documents:
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Latest Utility bill
  • Rent agreement on stamp Paper
  • Bank Statements reflecting address of borrowers of any commercial nationalized bank
  • Life Insurance Policy
  • Residence address Certificate /letter by employer on company letterhead
  • Municipal or property tax receipt
  • Post office saving bank account statement
Proof of Income – (All the documents given below):
  • Last 2 months salary slip
  • Last 6 months bank statement of salaried account
  • Latest Form 16 / ITR
Other Documents
  • Documents related to running loans along with 6 months repayment bank statements
Property Documents
  • Copy of complete chain documents of the property (as applicable)
  • Copy of Agreement to Sell (if executed)
  • Copy of the Allotment Letter / Buyer Agreement(if applicable)
  • Copy of Receipt/(s) of payment/(s) made to the developer (if applicable)

Self Employed

Identity Proof
  • PAN Card (mandatory) and any one of the below documents
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Driving License
  • Photo Identity card issued by Govt. body
Address Proof  – Any one of the below documents:
  • Any one of the below documents:
  • Voter Card
  • Aadhar Card
  • Valid Passport
  • Latest Utility bill
  • Rent agreement on stamp Paper
  • Bank Statements reflecting address of borrowers of any commercial nationalized bank
  • Life Insurance Policy
  • Residence address Certificate /letter by employer on company letterhead
  • Municipal or property tax receipt
  • Post office saving bank account statement
Address Proof for Business Entities – Any one of the below documents:
  • Shops & Establishment Certificate
  • Trade License Certificate
  • SSI Registration Certificate
  • PAN Card/Sales Tax/ VAT Registration Certificate
  • Partnership Deed (for firms) / Memorandum of Association (MOA) for companies
  • Export-Import Code Certificate/Factory Registration Certificate
  • Professional qualification Certificate and Degree Certificate for Professionals
  • SEBI Registration Certificate
    Registration No issued by ROC
Proof of Income – (All the documents given below):
  • Income Tax Returns along with computation for last 2 financials years
  • Balance Sheet and Profit & Loss account along with all annexures (duly CA certified and audited if applicable)
  • Last six months current account statement of the business entity and saving account statement of individual
Other Documents – All the documents given below:
  • Documents related to running loans along with 6 months repayment bank statements
  • Latest List of share holding pattern (duly CA/CS certified)
  • MOA (for private Limited companies)
  • Partnership deed (for partnership firms)
Property Documents
  • Copy of complete chain documents of the property (as applicable)
  • Copy of Agreement to Sell (if executed)
  • Copy of the Allotment Letter / Buyer Agreement(if applicable)
  • Copy of Receipt/(s) of payment/(s) made to the developer (if applicable)

Frequently Ask Questions

Yes, you can pay your loan early.

Yes, but it is also depend on your credit score.

Once you finalize your home and documents are ready, you can apply for a loan.

Yes,  prepayment of loans can be done after 6 months of loan payments.

Apply for Home Loan

You can apply for a Home Loan online, All you need to do is provide your details below application form.