What is a Home Loan?

Home loan is a loan product where the lender provides funding for purchase or construction of a house/ residential property. The housing loan may be availed either for buying a new house or resale of residential house. One can also avail a housing loan product, for the purpose of buying a plot of land and carrying out construction on the same, which is called composite loan. The home loans in India are provided by banks and housing companies. The popular ones being SBI, HDFC, ICICI, etc. In turn RBI and National Housing Bank regulate these respectively, which issues guidelines governing home loans in India from time to time. In recent times, some lenders have come up with innovative home loan products like dual rate of interest where the interest rate on such loans remains fixed for initial 1-5 years and thereafter it automatically moves to a normal floating rate of interest. Here one should be aware that loan taken under dual rate, which starts as a fixed type of interest in the initial stages are treated as fixed rate home loan for the purpose of levy of penalty for prepayment of loans.

Home loans in India are provided by the lenders up to maximum of 80% (90% for loan amount below Rs 20 lakhs) of the agreement value of the house. In case of home loan for resale flats, most lenders get the property valued independently and they will provide the housing loan based on their value rather than the cost mentioned in the purchase agreement. Frequently, the valuation as determined by the banker’s valuer for the purpose of home loan is significantly lower than the actual cost and hence the requirement of the borrowers for down payment for the loan goes up. Also note that banks do not consider other charges like Stamp Duty, Registration Charges, etc. while considering the home loan amount eligibility.



Check your home loan eligibility with various banks:

To be eligible for a H loan, these are the points you need to keep in mind:



1.Fixed or Floating interest rate.

2.Processing fees.

3.Prepayment fees.

Home Loan Eligibility: Home loan eligibility depends up on various factors. A few of them are listed below –

To avail a Home Loan, you will need the following documents:



1.Income – Your income determines the amount of home loan you are eligible for. Banks generally keep the EMI to income ratio at 0.45 to 0.50.

2.Tenure of the loan – The longer tenure you opt for, the more is your home loan eligibility.

3.Interest rate offered – If your interest rates are on a lower side, then the loan eligibility will be higher and vice versa.

Why Loan Affairs?

Running a successful business is not an easy task. There are always ups and downs that you, as a business owner face. We, at Loan Affairs, understand that meeting every financial need is not simple and sometimes you do need a helping hand.
We take special pride in being that institution that can help you when you need help the most. We also give you the option of choosing what kind of loan you would need. This helps in routing that fund in the right direction and give you the boost you need. Be it project funding, the working Loan Affairs requirement for raw materials purchase, term loans for machinery or bank overdraft, we have the solution that you are looking for.


Quick disbursement: Once all your documents are in place, your loan from loanaffaris can be disbursed within 3 business days.
Business Loan Interest Rates: Loan Affairs believes in applying the best market practices and adheres to the principle of giving its valuable customers the best business loan interest rates.
Guarantee: We offer you commercial loans with no additional collateral or guarantee.
Flexible EMI option: We give you the option and convenience of to customise your monthly loan repayment instalment that is best suited for your company's cash flow.
Complete access: You will have complete online access to your loan account and can keep track of your EMI schedule, interest paid on each EMI and interest certificates.
SME & MSME Loans: You can choose to fund your small or medium sized enterprises using SME loan. There are various factors to be considered to get approval. Find out more about small business loans.