Investkraft Financial Solutions: Mutual Funds, Deposits, Loans & More

What is a Home Loan?

Put simply, a home loan or housing loan that is borrowed from a bank or financial institution with the purpose of buying a home. There are can be different types of properties for which a home loan is taken like a plot, an apartment, a villa, a flat, residential house. Apart from this, a home loan can also be taken to construct a home, renovate it, and others.

There are two types of interest rates in a home loan – fixed and floating. The selection of a particular type depends on the personal preference of the borrower.

Home loans provide home buyers with a lump sum amount towards the purchase of the home of your choice; this sum is supposed to be repaid along with the incurred interest. Yet, you may approach accomplishing your goal of owning a property in a practical and organized manner by repaying the money borrowed through EMIs.

A person may construct an asset and purchase a home with the help of a home loan, and he or she will also get to take advantage of tax advantages. He is required to pay a specific portion of the property's cost out of own finances, typically up to 20%. There is an option to have the loan amount returned over a certain length of time at your discretion. According to Income Tax regulations, the borrower can deduct both the principle loan amount and the interest payment. A home loan application can be submitted online, at a loan processing center, or at a bank branch.

Eligibility and Documentation

The home loan applicant should be:

A resident Indian or a non-Resident Indian (NRI) having Indian passport or Persons of Indian origin (PIOs) having foreign passport or Overseas Citizens of India (OCI)
Of at least 18 years of age and the max age limit is 70 years
A salaried individual or a self-employed person

Documents Required

Employer Identification Card
Loan Application: Full-fledged loan application form duly filled in affixed with Passport size photographs Proof of Identity: PAN/ Passport/ Driver’s License/ Voter’s ID card
Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

Property Documents:

Authorisation for construction (if required)
Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
Occupancy Certificate (if it is a ready to move property)
Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Account Statement:

Last 6 months Bank Account Statements for all Bank Accounts held by the primary and second applicant
If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year
Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:
Salary Slip or Salary Certificate of last 3 months
Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.

Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:

Business address proof
IT returns for last 3 years
Balance Sheet & Profit & Loss A/c for last 3 years
Business License Details (or equivalent)
TDS Certificate (Form 16A, if applicable)
Certificate of qualification (for C.A./ Doctor and other professionals)

The home loan interest rates are defined below:

Home/HIL/HEL/Refinance/Plot Loans Upto 30 Lacs	Salaried / SEP Applicable Interest Rates %	Self Employed Applicable Interest Rates %
Women	8.95% - 9.45%	8.95% - 9.45%
Others	9.00% - 9.50%	9.00% - 9.50%

Home/HIL/HEL/Refinance/Plot Loans 30.01 Lacs - 75 Lacs	Salaried / SEP Applicable Interest Rates %	Self Employed Applicable Interest Rates %
Women	9.20% - 9.70%	9.20% - 9.70%
Others	9.25% - 9.75%	9.25% - 9.75%

Home/HIL/HEL/Refinance/Plot Loans 75.01 Lacs & Above	Salaried / SEP Applicable Interest Rates %	Self Employed Applicable Interest Rates %
Women	9.30% - 9.80%	9.30% - 9.80%
Others	9.35% - 9.85%	9.35% - 9.85%

Other charges

Processing Fees

Up to 0.50% of the loan value or ₹5,000 whichever is more, along with the applicable taxes.

Property Insurance

The borrower pays the premium amounts straight to the insurance provider, quickly and regularly so as to keep the policy / policies active at all times during the loan tenure.

Charges On Account Of Delayed Payments

Delayed payment of interest or EMI shall render the customer liable to pay additional interest up to 24% per annum.

Incidental Charges

To pay for the costs, fees, expenditures, and other funds that may have been spent in connection with recovering debts from a defaulting client, incidental charges and expenses are collected. Customers can ask the relevant branch for a copy of the policy by making a request.

Statutory / Regulatory Charges

Looking For a Perfect Offer on Home Loan?

Check Out The Major Features & Benefits of Taking a Home Loan From Investkraft.

Easy Application – Since All Our Business Processes are Driven by Web, Applying for a Home Loan at Investkraft is Very Easy and Quick.
Faster Approval – Expect to Get Quicker Approval on Your Home Loan Application as We Can’t Let You Wait for Long to Get Your Dream Home.
Higher Loan Amount – Get Higher Loan Amount For Buying a Home That What Other Lenders Have to Offer.
Lower Interest Rates – We Guarantee The Most Competitive Interest Rates on a Home Which means Lesser Easy Monthly Instalments.
Easy Repayment – We Provide The Borrowers With Simple Repayment Alternatives as Part of Our Effort to Providing Additional Value to Them.