The maximum loan amount you can borrow on home loan ranges up to Rs 10 Cr. The maximum loan amount you are eligible to avail depends on your earnings and repayment potential. And the tenure available for a home loan is up to 30 years.

You can apply online for a home loan to fund any of your housing needs including the purchase, construction, or renovation. The procedure for a home loan involves:

• Submit loan application along with other required documents to the bank. The bank verifies your details and creditworthiness.
• If you fulfill the bank’s criteria, your application is approved which you need to show to your respective seller of the property to fix an appointment with the registrar.
• Once the appointment is fixed property is registered in your name in the presence of seller and concerned bank representative.
• Post this, property documents are handed over to the bank and within one or two working days, the loan amount is credited to your bank account.
• After complete loan disbursal, you are required to repay the loan amount in equated monthly installments over the specified period of time.

Most of the top banks in India follow similar criteria regarding eligibility, interest rates, and other loan terms. To determine which bank is suitable for you, conduct a detailed analysis based on different parameters like interest charged, eligibility criteria, loan process, prepayment charges, processing fees, and customer service. Accordingly finalize the bank or NBFC that is suitable and meets your needs.

Banks and NBFCs use following parameters to assess your eligibility for a home loan:

• Age
• Credit score
• Income
• Employment status
• Number of co-applicants
• Co-applicants’ income
• Existing debts, if any.

All existing debt commitments are likely to affect your home loan eligibility. If your EMI outgo on other loans such as a personal loan or vehicle loan exceeds 50%-60% of your monthly disposable income, your home loan application may be rejected.

You will be notified through SMS or email by your respective lender.

Yes, you can opt for the conversion of floating-rate loan to fixed interest rate loan and vice versa. For this change, most of the banks charge you a conversion fee of around 0.5%.

To avoid overburdening you with increased EMI amount, due to an increase in interest rate, banks first attempt to extend your loan tenure up to permissible limits. If nevertheless, despite an increase in tenure, EMI is not sufficient enough to cover the payable total loan amount, then banks are likely to increase your EMI amount.

In order to reduce tenure, bank will have to increase your EMI which is decided based on your repayment capability. In order to ensure re-evaluation your EMI, you are required to submit the following documents at the respective bank’s loan branch:

• KYC documents.
• Recent 6 months bank statements.
• Recent 3 months’ salary slips.

In case if you do not wish to increase your EMI, you can make part-prepayment and request the bank to reduce tenure instead of reducing ongoing EMI. For this change, usually there are no charges but it is likely to vary depending on the lender.

If there is a sufficient gap between your current age and maximum loan age (i.e. 60 years), wherein EMI can be spread over the duration in affordable installments then you can request for tenure change. Else, to reduce EMI you have to opt for part prepayment.

Yes, you can opt to prepay your loan either by paying full or partial outstanding loan amount before completion of your loan tenure. As per RBI mandate, fixed and floating interest home loans have zero prepayment charges while fixed-interest loans attract prepayment fees of up to 2% of the loan amount if prepaid through refinancing or balance transfer.

The process for foreclosure varies from lender to lender. Most of the banks facilitate loan foreclosure through their online portal. If your bank doesn’t offer you an online facility, enquire through its customer care team, or visit a bank branch for exact detailing about the process.

No pre-payment penalty is levied on foreclosure of floating-rate loans. However, fixed-rate loans may have some charges, in case of refinancing.

The minimum part pre-prepayment amount should be equivalent to one month’s EMI. However, this amount is subject to vary depending on the lender.

Post clearance of complete outstanding loan amount bank will return your original property documents within 10-15 working days. Apart from this, you also need to take no-objection certificate (NOC) from the bank stating that there are no pending dues.

Banks and financial institutions calculate EMI based on the loan amount, tenure, and interest rate applicable to the borrowed sum.

The loan repayment period starts after the complete disbursal of the loan amount. However, in most instances, borrowers are asked to pay interest before the start of actual EMI i.e. pre-EMI on partially disbursed loan amount.

Your bank will inform you about it while signing the loan agreement. Some banks also offer you optional EMI dates, so they can offer you EMI date change on request. But some don’t provide you this option.

You can repay your loan using the following four payment methods:

• Standing Instruction (SI)–If you have a saving, current, or salary account in the lending bank, your EMI will automatically get deducted at the end of the month.
• Auto Debit via NACH and ECS– EMI gets auto-debited from your bank account on the due date.
• Prepayment-Part – If you have a lump sum amount and wish to repay in parts, you can choose this repayment method.
• Prepayment-Full / Foreclosure – If you wish to repay the outstanding principal amount in one shot then you can foreclose your loan at any time during the loan tenure.

Banks usually offer Pre-EMI on home loans for under-construction property where the loan amount is disbursed based on construction stages. So, until the entire loan amount is disbursed banks ask you to pay pre-EMI which is only the interest component of your home loan. Meanwhile, you pay pre-EMI your principal outstanding remains the same.

Hence, this option is effective for individuals looking for financial flexibility and wants to spend EMI amount somewhere else. But if you are planning to save money on home loan interest and capable to pay full EMI during the under-construction of the property make sure to pay it.

To finance a home purchase or construction, the home loan is considered a better alternative. Because it offers better interest rates and higher loan amount as compared to Personal Loan. Moreover, home loans are specifically designed to meet different housing finance needs.

Adding co-applicant for a home loan varies from lender to lender. Some lenders may consider it mandatory while some may not.

For a joint home loan, you can add your wife, parents, or major children as a co-applicant. Basically, a joint home loan is taken to increase home loan eligibility or the co-applicants are also the co-owners of the property. All co-owners of home are necessarily the co-applicants in a home loan but co-applicants are not necessarily the co-owners of the concerned property. All co-applicants in a joint home loan share equal financial responsibility.

To apply for a home loan through RedyMoney click here. Our executive will get back to you as per your convenience to discuss various offers. Or to receive details over an email click here to fill the form.

The most common reasons responsible for your home loan rejection are:

• Low credit score
• Insufficient income
• Poor repayment capabilities
• Too many existing debts
• Location of property.

Too many applications for a home loan in a short span of time.

• Log onto the concerned bank’s online home loan portal.
• Request a copy from its customer service department on your registered email address.
• Visit the bank/NBFC branch.

To register/update your mobile number or email address, contact your lender’s customer care team or visit the concerned home branch.