What is a Housing Loan?
A housing loan, also known as a mortgage loan, is a secured loan taken by individuals to purchase or construct a residential property.
Types of Housing Loans:
- Home Purchase Loan
- Home Construction Loan
- Home Extension Loan
- Home Improvement Loan
- Home Conversion Loan
- Balance Transfer Loan
- Refinance Loan
Eligibility Criteria:
- Age: 21-60 years
- Income: ₹15,000-₹50,000 per month
- Credit Score: 600-750
- Employment: Salaried or self-employed
- Residence: Indian citizen
Documents Required:
- ID proof (Aadhaar/PAN)
- Address proof (passport/driving license)
- Income proof (salary slips/bank statements)
- Employment proof (job certificate)
- Credit score report
- Property documents (title deed/sale deed)
Housing Loan Features:
- Loan amount: Rs5 lakhs-Rs10 crores
- Tenure: 5-30 years
- Interest rate: 7.5%-12%
- Processing fee: 0.5%-2%
- Foreclosure charges: 2%-5%
Benefits:
- Tax benefits
- Low interest rates
- Long repayment tenure
- Flexible loan options
- Secured loan
Uses of Housing Loan:
- Purchasing a new home
- Constructing a home
- Renovating or extending an existing home
- Transferring an existing loan
- Refinancing an existing loan
Repayment Options:
- EMI (Equated Monthly Installment)
- Postdated checks
- Auto-debit
- Online payment
Top Housing Loan Providers:
- SBI
- HDFC
- ICICI Bank
- Axis Bank
- LIC Housing Finance
- DHFL
Things to Consider:
- Interest rate
- Processing fee
- Foreclosure charges
- Credit score impact
- Repayment tenure
- Loan-to-Value (LTV) ratio