| Bank Name | Rate of Interest | Processing Fees | Tenure | Action |
|
 |
8.65%
|
0.5%
|
3 – 30 years
|
 |
8.3%
|
₹ 10,000
|
1 – 30 years
|
 |
9.6%
|
0.2%
|
5 – 20 years
|
 |
8.6%
|
₹ 10,000
|
1 – 25 years
|
 |
8.9%
|
₹ 5,000
|
1 – 30 years
|
 |
8.5%
|
0.5%
|
1 – 30 years
|
 |
13.5%
|
₹ 5,000
|
3 – 15 years
|
 |
15%
|
1.5%
|
1 – 20 years
|
 |
8.4%
|
0.5%
|
1 – 30 years
|
 |
9.35%
|
0.5%
|
1 – 20 Years
|
 |
9.35%
|
0.5%
|
1 – 20 years
|
 |
9.55%
|
0.5%
|
1 – 30 years
|
 |
8.55%
|
₹ 5,000
|
1 – 25 years
|
 |
11.75%
|
2%
|
1 – 30 years
|
 |
9.65%
|
₹ 7,500
|
1 – 30 years
|
 |
9.45%
|
1%
|
1 – 25 years
|
 |
9.9%
|
1%
|
1 – 25 years
|
 |
9.57%
|
₹ 7,500
|
1 – 30 years
|
 |
8.7%
|
0.5%
|
1 – 30 years
|
 |
9.75%
|
1%
|
1 – 20 years
|
 |
12%
|
1%
|
3 – 20 years
|
 |
9.55%
|
0.5%
|
1 – 30 years
|
 |
10.48%
|
1%
|
1 – 25 years
|
 |
11.5%
|
1.5%
|
1 – 20 years
|
 |
11%
|
1.5%
|
5 – 25 years
|
A Home Loan is a Secured Finance Provided by a Bank or a Financial Institution to enable its Customer to Purchase, Construct or improve their Home,
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.
Bank used to provide up to 90% of the Cost of the property depending upon the eligibility and are repaid using Equated Monthly Installments (EMIs) spread over a fixed tenure.
The EMI is calculated on a reducing balance basis. A reducing balance loan means that in the initial days of the loan, the interest component of the EMI is high. But gradually, as you keep on paying more EMIs, the interest component of the EMI goes down and the principal component increases towards the end of the tenure.
Benefits of availing a Home Loan
An accomplishment – Every individual dreams of owning a house in their name. A home loan allows you to accomplish this feat and realize your dreams. This is one of the biggest financial investments you make in your lifetime and can therefore be considered an accomplishment.
# Avail Govt. Subsidy Up to 2.67 Lakhs under PM AWAS Yojana
# Capital appreciation – Land is an appreciating asset in most cases. Construction costs have also increased over the years. As rents get more expensive with inflation, investing in your own house can shield you from inflation.
# Benefits in interest rate – In the 90’s, banks used to charge up to 18% interest on loans. Today, you are able to get a home loan at 8.30% annually. The decrease in the interest rates coupled with capital appreciation makes it a dual benefit plan.
# Tax benefits – The Government of India has played the biggest role in boosting the home loan sector. As per Section 24B of the Income Tax Act 1961, you get a deduction of 2 Lakhs towards repayment of interest towards loans availed for purchase/construction of house property. At the same time, Section 80CC read with Section 80CCE of the Income Tax Act 1961 allows for a tax deduction up to 1 Lakh on repayment of principal amount of the home loan. This is one of the greatest incentives for people to opt for a home loan, even if you are able to afford to buy your house with your savings
Documents required - salaried and self-employed
| DOCUMENTS | SALARIED | BUSINESS MAN |
| KYC | Photo | Photo |
| Pan | Pan | |
| Aadhar | Aadhar | |
| INCOME PROOF | Salary Slip – 3 months | ITR, Computation, P&L , Balance sheet- 3 Years |
| Bank statement-6months | Current Account statement – 6 months | |
| Form 16 / ITR – 3 Years | ||
| PROPERT DOCS. | Sale Deed, ROR – Patta | Sale Deed, ROR – Patta |
| EC – 30 Years with link deed | EC – 30 Years with link deed | |
| Rent receipt, Holding tax etc, Agreement to Sale | Rent receipt, Holding tax etc, Agreement to Sale | |
| Plan Approval with Map | Plan Approval with Map |
Home Loan Balance Transfer
Fulfilling the dream of owning a home is one of the biggest achievements in life and requires a huge capital investment. Banks and other financial institutions have fulfilled this aspiration of millions via Home Loans. Usually, Banks charge interest on a Home Loan that can range from 8.35% to 12%. This rate of interest varies based on the eligibility of the borrower and the lending institution.
Every borrower wants to save interest cost. The rate can be reduced either by negotiating with the existing bank or transferring the loan from the current bank to another bank at a reduced rate.
What is Home Loan Balance Transfer (HLBT)?
HLBT is a process that facilitates the borrowers to shift their existing Home Loan to another bank at a reduced or lower rate of interest. With this, the borrower can pay future EMIs to the new lender at the reduced interest rate.
Thus, HLBT is beneficial for the borrowers who have a Home Loan at a higher rate but want to optimize their interest cost
Reasons for Opting for a HLBT
There are several benefits that borrowers receive for getting their Home Loan transferred. Some of the reasons could be as follows:
- Reduced monthly rate of interest
- Reduced monthly outflow (EMI)
- The borrowers can also negotiate with their bank to reduce the loan tenure.
- HLBT helps in the reduction of the amount of money the borrower has to pay interest on during the entire tenure of the loan.
- Banks also run special NIL fees offer on HLBT products from time to time.
Steps for Home Loan Balance Transfer
The borrower has to perform the following steps to initiate the process of Home Loan Balance Transfer:
- A borrower has to submit an application with the existing bank requesting for the foreclosure statement of a Home Loan.
- On accepting the application from the borrower, the bank will issue a foreclosure letter including current loan details along with the details of the outstanding loan amount.
- After receiving the letter from the bank, the borrower will request a Home Loan Balance Transfer to the new bank.
- On acceptance of the application at the new bank, all the formalities with the old bank are completed.
- After transferring the home loan, the borrower will pay all the EMIs to the new bank.
Eligibility for Home Loan Balance Transfer
- Age: The minimum age for applying for a Home Loan Balance Transfer is 21 years for salaried employees. The maximum age for salaried employees is 60 years and 65 years for self-employed professionals and self-employed business owners.
- Credit Score or Credit History: Good credit score and sound credit history is one of the important factors that affect the approval of the loan application. The borrower must maintain a good credit score. In case the score dips at the time of a loan transfer the bank may reject the loan application.
- Repayments track on current Home Loan: The borrowers must have a clear repayment track of at least 12- 18 months on their current Home Loan.
- Work Experience: The applicant must have relevant years of work experience. He or she must have at least 2 years of work experience with 1 year of work experience in their current organization. For self-employed professionals and business owners the minimum work experience required is 3 years in the same profession.
DOCUMENT LIST
| DOCUMENTS | SALARIED | BUSINESS MAN |
| KYC | Photo | Photo |
| Pan | Pan | |
| Aadhar | Aadhar | |
| INCOME PROOF | Salary Slip – 3 months | ITR, Computation, P&L , Balance sheet- 3 Years |
| Bank statement-6months | Current Account statement – 6 months | |
| Form 16 / ITR – 3 Years | ||
| PROPERT DOCS. | Sale Deed, ROR – Patta | Sale Deed, ROR – Patta |
| EC – 30 Years with link deed | EC – 30 Years with link deed | |
| Rent receipt, Holding tax etc | Rent receipt, Holding tax etc | |
| Plan Approval with Map | Plan Approval with Map |
Along with Above Documents the Customer has to provide
- Loan repayment Track record (Loan statement)
- Bank statement reflecting EMI debit for at least 12 months
- List of Original Documents submitted in Bank duly certified letter by Bank official in Bank Letter head ( LOD)
- Foreclosure letter (FC)