home loan: Interest Rates, Tax Benefits, Loan Terms & How To Apply For Home Loan

There are different types of home loan and their terms also differ. Similarly, the interest rates of home loans also differ from each other. In this article, we will tell you what is a home loan (kya hai home loan), how to get a home loan (how to get a home loan), and how to get a loan at a low interest rate (low interest home loan). loan). rate) and how to get a home loan from a bank. Why approve and reject applications

home loan interest rates

Banks and Lending Institutions Up to ₹30 lakh ₹30 lakh Up to ₹75 lakh Above ₹75 lakh public sector banks

  1. Bank of Baroda                              9.15% – 10.65% 9.15% – 10.65% 9.15% – 10.90%
  2. Punjab National Bank                  8.65% – 9.60% 8.60% – 9.50% 8.60% – 9.50%
  3. Punjab and Sindh                          8.85% – 9.95% 8.85% – 9.95% 8.85% – 9.95%
  4. State Bank of India                        9.15% – 10.15% 9.15% – 10.05% 9.15% – 10.05%
  5. Union Bank of India                      9.00% – 10.75% 9.00% – 10.95% 9.00% – 10.95%
  6. Indian Bank                                    8.45% – 10.40% 8.45% – 10.40% 8.45% – 10.40%
  7. Bank of India                                  8.85% -10.85% 8.85% -10.85% 8.85% -10.85%
  8. UCO Bank                                       8.45% – 10.30% 8.45% – 10.30% 8.45% – 10.30%
  9. Bank of Maharashtra                    8.40% – 10.65% 8.40% – 11.20% 8.40% – 11.20%
  10. Canara Bank                                   8.85% – 11.25% 8.85% – 11.25% 8.85% – 11.25%
  11. Indian Overseas Bank                  9.55% – 11.15% Starting from 8.85% Starting from 8.85%

tax benefits of home loan

The Government of India provides tax benefits under the Income Tax Act, 1961 when applying for a home loan. You can save a lot each year with the tax benefits available on your home loan. Listed below are the tax benefits you can take advantage of when paying home loan EMI

what is a mortgage home loan

The amount that a person takes to build their house is called a mortgage loan. This amount is loaned to an individual from an NBFC, bank or financial institution to build and buy a house. After this, the person keeps returning this amount in the form of EMI on the due date of each month to that NBFC, bank or financial institution. The EMI amount consists of the principal and interest of the loan. Mortgage loans are fully secured, whereby the lending financial institution, bank or NBFC pledges the individual’s property.

Home Loan Types

Banks and loan providers provide home loans for various purposes. Therefore, before taking a home loan, it is important to know that according to your need, you will have to take a loan. Currently the following types of home loans are available –

mortgage Home loan

Through this you can buy prefabricated houses. You can buy a house from an individual, a builder or a developer. You can also buy a house from the Government Housing Development Agency. It is one of the most popular loans in the mortgage loan segment. In this, you can buy a house by taking money from the lender and then you have to repay this loan with interest.

home construction loan

This home loan is suitable if a person does not want to buy a manufactured home and wants to build their own home. Since the house is not built yet, the mortgage loan amount is decided based on the estimated cost of building the house.

home loan for land purchase

If a person does not plan to build or buy a house now, he can buy land to build a house later. For this, a kind of mortgage loan will also be available. You don’t even need to build a house on that plot. With this loan, you can buy land as an investment for more money later.

Home improvement and repair loan

If a person is preparing for some new construction or reconstruction in his already built house. For the construction of the kitchen, bathroom or garage, etc., a separate home loan can also be taken for these works. This type of home loan is called a ‘home extension’ loan. Similarly, you can take a ‘Home Improvement’ loan to repair any part of your house.

mortgage home loan recharge

If a person has already taken a loan and then needs more loan. In such a situation, you can increase your loan. For this reason it is called a ‘loan top-up loan’. This loan can be taken for the maintenance or expansion of the house. In addition, you can top up your home loan for any other household purpose, such as a child’s education.

bridging home loan

If a person has to sell his old house and buy a new one, he can apply for a bank bridging loan. According to the former house of the native, a certain amount will be received as a loan from the bank. With this amount, you can pay the down payment and the initial cost of the new house. After selling his old house, he can pay the cost of the new house. The bridging loan so used is repayable along with interest and other charges. This loan is only available for a short period of time and its interest rate is also much higher than the normal loan.

compound home loan

In this way, the loan for two types of housing-related works is repaid in one go. Just like a human, you also need money to build a house from a plot. In such a situation, the bank grants the loan amount in one go. This loan, which is used for multiple purposes at once, is called a “Compound Loan.”

joint home loan

If two or more people take out a loan together, it is called a joint loan or joint mortgage loan. A person can take this loan only together with his husband, wife, parents and parents and children. In such a situation there must be marriage or blood relationship between two people.

home loan balance transfer

If a borrower is not satisfied with the terms, interest rate, or lender of her previous home loan, she can transfer her home loan to another bank. Most of the banks provide mortgage loan transfer services to the customer. After transferring the loan, the client will have to pay the loan installment according to the interest rates and rules of the new bank. However, the new bank will charge a commission for the transfer of the loan.

Can you foreclose the home loan

You can foreclose the home loan even before the tenure for which you have taken the home loan. If you are in floating interest rate then no charge is taken for this, while bank charge can be taken in fixed rate

Keep these things in mind when applying for a home loan

Calculate EMI – Customers applying for a home loan are required to pay a fixed amount every month to the bank as home loan EMI. This will include the principal amount and interest. Then calculate the EMI you have to pay (home loan EMI calculation) and compare it with your income! With this, you will be able to decide if you will be able to repay the loan with the income or not!

Interest rate: Banks offer different types of loans. And their interest rates differ too. The longer the tenure of the loan! The higher the interest paid (mortgage loan interest)! Therefore, clients need to choose the right interest rate and tenure. So that they can repay the loan without any financial burden.

Right Institution: Many financial institutions offer loans to buy a new home! It is important that you choose a reliable and secure institution to access the loan.

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