Here, we will discuss all the aspects of a House Loan such as what is the home loan, eligibility criteria for applicants, required documents for housing loans & interest rates, housing loan fees, tax benefits of house loans, etc in this guide.
So lets start with;
What is a Home Loan?
House is a necessity for all human beings & owning a house is a dream for everyone today. During earlier days, only a few people had the privilege to have their own house but now with the availability of house loans provided by banks many people’s dream has come true. Home loans are the kind of loans that are provided either to buy an already built house or a flat or to construct a house on the land.
While applying for a housing loan you need to meet some criteria to get qualified for a loan. The banks, financial institutions, and lenders have decided on a certain method to analyze the applicant for his credibility, financial status, salary, etc.
These eligibility criteria for housing loan differs according to lenders. You can read the brief guide on Home Loan Eligibility criteria.
You need a short of documents while applying for anything and the same goes with the house loan. Here you also need some necessary documents for a housing loan application. These documents may include your Identity Card, Residence Proof, Financial Documents, etc. For more details read the guide here – Documents Required for Home Loan.
The home loan interest rates are the lowest among all kinds of loans. The current interest rates on housing loans start from 6.7% and go up to 9% in some cases. The interest rate totally depends on the lenders and your credit score. Also, it is affected by the amount of loan. It has been seen that the higher the loan amount, the lower the interest rates. Read more about Interest Rates on House Loan of All Banks.
Home Loan Fee
When a house loan is taken, there are other charges also included, like processing fee, valuation, legal, or stamp duties. The processing fee is based on the amount of the loan that is taken and the bank from which we are taking, so those are other things to be considered apart from the interest rate while applying for Home Loan.
A housing loan comes with a lot of tax benefits such as exemption under PMAY, exemption on interest paid toward a home loan, exemption for a joint home loan, etc. For more information read here about Home Loan Tax Benefits.