home loans faq

Home Loans – Frequently asked Questions

Home Loans are one of the cheapest & best ways to buy your own home. The only issue is to get a home loan at the right interest rate and a good enough amount. In this post, we have combined our 50 years of total experience to answer all the queries and questions you have about getting your home loan – at the best deal.

Home Loans – Quick Facts

Home loans are designed for retail users. To help them buy their dream home. It’s offered at a very competitive rate of interest with options for a top-up later.

Also, Home Loan is the only loan in India where you don’t have to pay any pre-payment charges(RBI Notification). That means, you can take a home loan with your current requirement and when you have extra cash – due to the sale of any asset or bonus, etc., you can simply deposit that much amount and get your loan EMI or tenure reduced. At no extra charge.

home loans faq

Home Loans – Frequently asked Questions

What is the minimum duration for a housing loan?

Home loans have a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure offered to you depends on the loan amount that is sanctioned to you and other factors like your age and salary profile.

Read: Home Loan Eligibility

Should we take a home loan or not?

It is advisable that you should take a home loan, even if you have money with you to buy your home in one go. There are several reasons for that, here is a quick list:

  1. Tax Rebates: The interest you pay on your home loan is allowed as a deduction from your income tax returns.
  2. Property Quality Check: Before providing you with a home loan, each lender also does a legal verification of the property. To some, it might be a procedural bother, but this is actually a hidden benefit. It allows you to know that this property or project is sound from a legal point of view.
  3. The lowest rate of interest: Home Loans are always provided at the best interest rates. Thus, you can plan your home according to your need over the next 10-15 years without pushing yourself to get all the funds on your own. Also, if your funds are invested in any growing asset, then the interest you pay on a home loan is offset by the growth you gain from your investment.

Can I take 2 home loans?

Yes, You can take 2 or more home loans for your needs. There is no limit on the number of home loans you can take. The approval of a home loan is dependent on your eligibility. When your eligibility is calculated, your existing loans are accounted for to know your financial ability to service your new loan.

Can I transfer my personal loan to a home loan?

No, you can not transfer your personal loan to a home loan. You can only transfer your personal loan to another bank for better terms or tenure.

What is better to reduce EMI or tenure?

It depends on your current requirement, if you need more disposable income per month today, then go for an EMI reduction. If you want to reduce the total interest payment on the home loan, then go for tenure reduction.

Which type of home loan is best?

A Full-fledged Floating Rate home loan is best. It’s better than all other(fixed & hybrid) home loan interest rate options.

Which bank is better for home loans private or government?

For a new home loan, private banks are best because they offer better interest rates. For old home loans, public banks are better as they pass on the benefits of revised interest rates to customers faster.

Can you get a 100% home loan?

100% home loan is not allowed as per RBI directive. Maximum home loan approval allowed is capped at 90% of home value. You can take a mix of a home loan with a personal loan to reach a 100% home loan goal.
Detailed post: 100% Home loan

How much home loan can I get if my salary is 12000?

For a salary of ₹ 12,000 per month and a good CIBIL score, you can get a home loan of approx. ₹ 6,00,000 ( six lakh).

Can I take a home loan without a job?

Yes, You can take a home loan without a job. What you need for a home loan is the ability to show that you can repay the loan. This is shown using your ITR (Income Tax Returns) and alternate sources of income.

Can a housewife apply for a loan?

Yes, a housewife can apply for and get a loan. Housewives earning while working from home can use that as income to apply for loans.
If a housewife doesn’t have income, then also she can apply for a loan.
She can apply for secured loans that you can get without having to show any income proof. Housewives can submit securities like gold, property, or fixed deposit in their name to get a loan against such possessions.

Can a married woman buy a house in her name only?

Yes, she can. A married woman can apply and get a home loan in her name only.

Can father and son take a home loan?

A father and his son (if there is only one) can be co-applicants in a home loan if they are joint owners of the property. In case there is more than one son, then a legal heir document is required to apply for a joint home loan.

How much home loan can I get on a Rs 20000 salary?

By a rough estimate, you can get 20,000 * 5 = ₹ 12,00,000 ( twelve lakh) loan on salary of ₹ 20,000.

Who can be a co-applicant for a home loan?

Members of your family can be co-applicants for a Home Loan. Members of the family usually refer to relatives bound by blood or marriage and not distant relatives and friends.
The following are a few examples of qualifying applicant and co-applicant relationships:

Father and Son: If the applicant is the only son, then the father can be a co-applicant for a home loan. The property must be in both their names jointly. However, the father can only act as a co-applicant and not the primary borrower.

Unmarried Daughter and Father: Unmarried daughters can apply for a Home Loan with their father as a co-applicant. However, the father’s income is not considered to avoid legal complications post-marriage.

Brothers and Sisters: This one is a little tricky – A brother can act as a co-applicant for a Home Loan if he is staying with the main applicant and intends to do so in the new property.

However, a brother, acting as the main applicant, cannot choose his sister as a co-applicant. Furthermore, a female applicant cannot choose her sister as a co-applicant. (HDFC Bank Policy)

Husband and Wife: A husband can apply for a Home Loan with his wife as a co-applicant. If his wife is an earning member, her income is taken into consideration, and they can enjoy various tax benefits, as well.

Minors cannot be considered co-applicants for a Home Loan.

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