Who is eligible for a Home loan?


Any one who has got a stable source of income is eligible to apply for a home loan. The income can be salary income, business income, rental income etc.

How much loan can I get?


Loan eligibility is calculated on the basis of your income and valuation of property. Banks/ Financial Institutions take into account your repayment capacity. Generally loans are given to the extent of 80-85% of the property valuation and the final sanction is subject to the repayment capacity.

Can I also include my spouse’s income when calculating my loan eligibility?


Yes, your spouse’s income will also be included while calculating your loan eligibility. Also you can club your parent’s income, brother’s income for loan enhancement. In case of self employed applicants’, partners income can also be clubbed for loan enhancement.

Can I get a home loan on the property which I owe since many years?


No, you cannot get a home loan on a property which is already owned by you. However if you have purchased a property and within 6 months if you want to avail a home loan, the same would be considered by the bank. After 6 months you would be eligible for only a loan against property and the interest rates for this loan is generally higher than that on a home loan and the tenor of such loans are shorter. Moreover, you will not be able to avail income tax benefits on it like on a home loan.

Can I avail home loans from different banks on a same property?


Yes, you can avail home loans from different banks (only for sanction purpose). However, the property can be mortgaged to only one bank and hence you need to finalize one bank for completion of formalities.

Am I eligible for more than one home loan against different properties?


Yes, you can avail multiple home loans on different properties. The banks are primarily interested in the repayment capacity of a person and if they are comfortable with it you will not have any problem getting home loans for different properties at a time.

I have a piece of land. Can I get a loan for constructing a house?


  • Yes, if the land comes under non agricultural use, then you can get a home loan to construct for residential purpose.
  • You need to provide an architect estimate for the construction plan.
  • Tax benefits for such loan starts only after completion of the house.
  • Can a non-resident Indian (NRI) avail a home loan?


    Yes, non-resident Indians can avail a special NRI home loan to buy a property in India. However it is at the discretion of the bank to sanction such loans. Most of the banks fund NRIs for a shorter tenure and charge a higher interest.

    How do I ensure the property has got a clear title?


    Many banks have their panel lawyers to conduct title search for properties. Banks sanction loan only after they receive a report that there are no encumbrances and it has got a clear and marketable title. In many cases builders get their projects pre-approved by banks. These lenders thoroughly examine the legal documents of the title to that project, the stage of construction, and the builder's track record to complete a project in time. The times taken to sanction loans from approved projects are comparatively lower.

    What does Pre-EMI mean?


    Many a times a borrower will opt for an under construction property and hence the bank make disbursements in parts, depending on the progress in the construction. However till the full loan is disbursed, you pay a simple interest at the rate you have already agreed upon with the lender. This is known as Pre-EMI. Once the full disbursement is made, you start paying your actual EMI from the next month.

    What is the difference between a fixed rate and floating rate home loan?


    In fixed rate home loan, the interest rate remains the same throughout the tenure of your home loan. In floating rate home loan, the interest rate charged by a lender keeps changing with respect to the movements in Prime lending rates (PLRs) of bank. Whenever there is a hike in the PLR, floating rate customers’ EMI would go up. Alternatively the tenor of the loan goes up.

    What are the tax benefits that I can avail of by repaying a home loan?


    You will be eligible to claim tax benefits on both the interest and principal components of your repayment during that financial year.
    1)Under Section 24, you can claim up to Rs. 1,50,000 or the actual interest repaid, whichever is lower. (Also note that you can claim this interest only when you are in possession of the house.)
    2)Under Section 80C, you can claim the principal up to the maximum amount of Rs. 1,00,000. But this is subject to the maximum level of Rs 1,00,000 across all 80C investments.
    3)To avail the above tax benefits, you will need to produce a statement by your lender, showing the repayment of the loan for the year as well as the interest and principal components of the same.

    Can I get tax rebates on two housing loans on two different properties?


    Yes, you can get tax benefits under Section 80C and Section 24 on both housing loans. However, the total amount on which you can get tax benefits will be Rs 1,00,000 and Rs 150,000 respectively across both loans.

    Will the EMI amount or the tenure of the loan changes during the loan period?


    Yes, the EMI amount or the tenure of the loan could get changed if one has availed a floating rate of interest.

    Do I need to get property insurance while availing a home loan?


    No, it is not mandatory to buy property insurance when you are availing a home loan. But it is in the interest of the borrower to insure property as it eliminate risk of loss of property

    Can I sell the house even when the home loan is not paid off?


    Yes, you can sell the house even when the home loan is active. However you need to inform the lender and get consent from them to sell. The title deeds shall be released to the borrower once all the dues to the bank are fully paid off.