Product Info Home Loan

Having a home of one's own is always a dream for many. We, at PaisaWaisa.com help you realise this dream by offering you home loan options from a wide range of financial institutions. A home loan, as the name suggests, refers to a loan taken for the purchase or construction of a living space. Quite obviously, you would want to avail the maximum amount at the minimum rate possible, which is why we, at PaisaWaisa.com, are here to help you.

Currently, there are many loan providers in the market which are offering home loans at various interest rates. However, not all deals would serve your needs, and one must do thorough market research before taking a decision. Reading the terms and conditions carefully, deciding whether to take loans at a floating rate basis or a fixed rate one, how much loan amount to take, for what period of time to take it, these are some of the questions that must be answered before applying anywhere. For instance, Bank A might give you a loan of 15 lacs at an interest of 15% for 3 years, and Bank B might give you the same loan at an interest of 18% for 7 years. It is now up to you to decide which offer to accept, since it depends entirely on your repaying capacity.


There exists several unique features of Home Loans:-

• Purpose of availing the loan amount- One must be crystal clear about the purpose behind taking home loan.
• One must keep in mind whether the house needs to be purchased from the builder or whether he wants to take up loan facility for extension of existing house.
• Loan amount:- Depending on the eligibility, income and repaying capacity, one can avail the loan amount ranging from Rs 2 lac to Rs200 lac.
• Security- Home loan is a type of secured loan. One needs to place collateral against the loan amount.
• Tenure of Home Loan- Home loan can be availed for a maximum of 25 years.

Types of Home Loans

Depending on the interest rate regime offered by various banks , you can choose the one which best suits your tastes and preferences.

• Fixed interest rate loans - Under this type of home loan, bank charges the same amount of interest rate throughout the tenure of loan. However, the disadvantage is that the borrower is subject to market risk. Generally fixed interest rate loans are costlier than floating interest rate loans. Availing this type of loan facility is beneficial only when there is expectation that the interest rates will have an upward revision in the near future.
• Floating interest rate loans - Floating interest rates home loans are subject to market conditions and hence they are constantly revised by the banks. These loans are generally called as adjustable rate home loans as the interest rates vary throughout the entire tenure. Floating rates are beneficial only if the interest rates falls in the future.

One can switch to floating interest rate from fixed interest rate or vice-versa as and when the rates go in your favor.

Other Costs

Apart from paying interest rates and EMIs, there are several other costs which need to be bear by the customer while taking up the home loan facility. Recently, the banks have made it mandatory for the borrowers of the loan amount to get the home, insured in order to safeguard their interest. There are other cost factors like processing fee, administration fee, valuation fee, legal fee etc which needs to be paid at the time of application. Certain other costs needs to be taken care of during the closing time. In order to avoid any future disputes, it is necessary that the borrower calculates the entire cost beforehand.

1. PROOF OF IDENTITY (any one)

• Passport
• Driving License
• Voter's ID
• PAN Card

1. PROOF OF RESIDENCE (any one)

• Ration Card
• Utility Bill
• LIC Policy Receipt

1. PROOF OF AGE

1. PROOF OF SIGNATURE

• PAN Card
• Passport

1. PROOF OF INCOME (Salaried)

• Latest 3 months Bank Statement from Salary Account
• Latest Salary Slips
• Form 16

1. PROOF OF INCOME (Self Employed)

• Latest 3 months Bank Statement from Operating Account
• Last 2 years ITR with Computation of Income/Certified Financials,Proof of Turnover(Latest Sales/Service Tax Returns.

1. SECURITY DOCUMENTS

• Documents of Equitable Property and/or Other suitable Collateral Security eg. Life Insurance Policies
• Marketable Shares and other such Investments