Home Loans on Indian Property

The prices of property in India have risen up very much in the past few years of time. It became hard for all people to fulfill the dream of owning their dream home at their dream city at affordable prices. Keeping this problem of people in mind, various banks came up with their easy home loan schemes so that no people’s dreams could remain unfulfilled. Many of the real estate agents as well as the property dealers, recommend their buyers to enjoy owning their dream home by taking a suitable home loan scheme from any bank.

The concept of Home Loans:

Everybody has a dream to buy his/ her own dream home. But it is not possible for all people to fulfill their dreams, taking into account the rise in the price of any residential property. But due to the easy home loan schemes started being offered by all banks, it became much easier for all people to turn their dreams come true. Home loan is a type of loan facility given to any person for the purpose of purchasing his/ her land, property and houses. The home loan scheme allow any customer to avail the cost price of his/ her property from the bank and then allows him/ her to pay back the taken amount at easy monthly installments within a fixed period of time. Interest rate do applies upon the loan amount taken from the bank.

Home loans are offered by many private agencies as well as banks. The interest rates vary from one organization to the other. Among the entire loan providing institutions, nationalized banks are the most preferred and trusted ones by all people. Following are the brief details about some of the institutions which provide simplified home loan schemes to people to fulfill their dreams come true.

State bank of India Home Loans:

The SBI offers costumer friendly home loan schemes and thus it is regarded as the topmost efficient loan providing organization available in India. The reason behind it being the no. 1 is because of its no admission rates, small and marginal possessing fee, minimal rate of interest and no inclusion of penalty for delayed payment policies.

There are four products available under the SBI Home Loan Scheme: Easy, Advantage, & Premium.

• Products Loan Amount Achievable (INR) Base Rate (%) Interest Rate (%) Processing Fee (INR)
• Easy Thirty lacs or less  8.25 9.75 7,000 (for amount exceeding 20 lacs)
• 5,000 (for amount exceeding 10 lacs)
• 2,000 (for amount exceeding 5 lacs)
• 1,000 (for amount up to 5 lacs)
• Advantage Up to Seventy-Five lacs but greater than Thirty lacs 8.25 10.00 8,000 (for amount exceeding 50 lacs)
• 7,000 (for amount up to 50 lacs)
• Premium Above Seventy-Five lacs 8.25 10.00 (up to Five Crore)
• 10.25 (above Five Crore) 20,000 (for amount exceeding 5 Crore)
• 10,000 (for amount exceeding 1 Crore)
• 8,000 (for amount exceeding 75 lacs)

ICICI Home Loans:

Customers find the loan offered by this bank as very attractive. The base rate of this bank is 8.75%, which is slight higher than that offered by SBI.

The eligibility criteria for the residential Indians are as follows:

• Should have completed an age limit of 21 years
• Should be a salaried or a self-employed professional
• The loan needs to be repaid before you reach an age limit of 65 years

For NRIs, the candidate needs to be a salaried professional. The maximum amount that can be sanctioned for home loan will depend on several factors. The first is the income stature of the applied candidate. Then, the repayment capability will also be taken into consideration. The interest rate applicable is 14.50 % (FRR) & 16.50 % (PLR).

Central Bank of India Home Loan (Cent Plus):

The loan amount offered by this bank is maximum of five lacs rupees. The processing fee applicable is five hundred INR while the rate of interest is one percent higher than the normal house loan rates. The repayment procedure is a maximum of sixty months installment policy.

HDFC Home Loan:

Being as one of the most reputed banks of India, HDFC Bank also offers attractive loan schemes to its customers.
One can apply for home loan in both ways ie Single or jointly.

A maximum total of eighty percent of the overall cost price of the property can be given from the bank as home loan.
Moreover, other adjoining conditions like repayment policies and annual income of the customer also is considered for the sanctioning of the loan amount. The maximum term of repayment is twenty years.

If the loan amount is within thirty lacs INR, then variable interest rate of 9.75 % will be levied upon the amount during the repayment policy. If the loan amount is greater than thirty lacs but less than or equal to 75 lacs INR, then the variable interest rate will be 10.00 %. Anything above 75 lacs INR will result in levying a variable rate of 10.25 %.