There are more than 50 financiers large and small offering housing finance, to stay competitive Banks & NBFCs provide home loans with very attractive features, below is the key features for home loans
Home Loan Amount
Banks and NBFCs offer home loan from Rs. 2.00Lacs to Rs 25.00 Crores and more. Depending on a borrower’s loan eligibility and property value. Banks and NBFCs have provided a loan amount up to hundreds of crores in metro cities of India like Mumbai, Delhi and Bangalore so there’s no upper cap of loan amount in with some of the financiers
Home Loan Interest Rates
Home Loan interest rate varies from 10.65 to 15 percent variable or fix. The rate of interest a bank offers you is linked with the MCLR of the (Marginal Cost of fund Based Lending Rate) as guided by the central bank of India. Interest rate on home loan offered by NBFC, HFCs are based on PLR of the financier (Prime Lending Rate)
Type of Home Loan Interest Rate
In India home finance companies operate with two type of interest rates, fixed rate of interest and variable rate of interest or floating rate
  • Fixed Rate Home Loan
    • Fixed Rate of interest in home loans means, the rate of interest sanctioned to you will remain fixed for the specified duration/ tenure of your loan, it can also be the complete tenure of the loan. This means that you do not get any benefit if the rate of interest in the home loan market goes down/drops (or move downward). At the same time, you do not get affected if the rate of interest in the market increases. Under fixed rate of interest home loans, the banks/NBFC retains the right to increase or decrease the rates post specified intervals. You must read the bank loan agreement carefully before signing it. Check fixed rate home loan offers. Banks and NBFCs offering fixed rate are HDFC, PNB, SBI, ICICI Bank, Axis Bank and others
  • Floating Interest Rate Home Loans
    • Home loans with floating rate of interest keep fluctuating according to the bank/s & market lending rates. This means that a home loan borrower stands the risk of paying more than the interest assigned in case the lending rates goes up. At the same time, as and when the lending rate reduces the customer tends to get the benefit of paying a lower EMI. Check Floating rate home loans from SBI, Axis Bank, ICICI Bank, HDFC Bank and others at vservfinancial.com.
  • Semi-Fixed Rate Home Loan
    • Semi fixed rate home loan offer is a type of rate, which is fixed for less than the complete tenure of the loan but not for the entire term. It can be fixed for 1, 2 or 5 years (or more) as decided by the mortgage lender.
  • Full Term Fixed Rate Home Loan
    • It is fixed for the entire tenure of the loan- When you are applying for a home loan with fixed rate of interest, the home finance company will offer you a rate of interest which is fixed for the entire term of the loan.
Home loan interest rate offer for Salaried/ Self-Employed Individuals
The rate of interest a Bank or NBFC offers you depends your credit & risk profile which may include your profession- salaried/self-employed, the company you work for, total number of years of experience you have, repayment track on your existing or closed loans, your income and the loan amount required. If you are salaried, higher the income and loan amount requirement you have a good chance of getting a better, it also depends on your employer if you are working with top 500 companies of India it further improves your chances of getting a lower rate from the lender. If you are Self-employed business owner with higher income, higher the loan amount you strike a better chance of getting lower rate from the lenders. It also depends of your loan repayment history, banking transactions etc.
Home Loan Tenure
Banks and NBFCs in India offer a home loan tenure starting from 1 year to 30 years, depending your age at the time of application of the loan and maturity of the home loan. The home loan term a bank or NBFC provides you must get over before you turn maximum age limit defined by the banks. The maximum age criteria of financiers are 58 years for salaried individuals and 65 years for Self-employed business owners. Minimum age criteria to apply for a home loan is 23 years for the primary/main applicant of the loan and co-applicant income not considered should be at least 18 years. Axis Bank, SCB, SBI, ICICI Bank and HDFC limited offers a home loan tenure up to 30 years.
Collateral Security Required for Home Loan
A Home loan is a secured loan; it means the financier offering you the loan comes against a collateral security. The residential property for the purchase of which the bank is funding you a housing loan get mortgaged with the financier and the mortgage get released post the loan gets repaid by you. The lenders in India generally do an oral equitable mortgage of the property in all home loans and not a registered mortgage. Oral equitable mortgage costs a borrower between 0.10 to 0.20 percent of the borrowed loan amount (franking charges varies in different states) and it get executed by signing lenders loan agreement and depositing the legal, title and ownership documents of the property.
Pre-Payment Charges for Home Loan- No Pre-Payment Charges
As per the RBI guide lines all the public/ private sector banks MNC Banks and NBFCs lending home loans to salaried or self-employed individuals, offers a home loan without any pre-payment charges. Banks or NBFCs lending home loan to firms and companies generally charges a pre-payment charge based on their policies. SBI, HDFC, ICICI Bank, Axis Bank, SBI and other don’t charge a penalty for pre-part payment of home loans.
Foreclosure or Early Closure Charges for Home Loan- No Foreclosure Charges
Home Loan lenders including banks and NBFCs do not charge any penalty on home loan provided to salaried or self-employed individuals. However, lenders charge a penalty on early closure of home loans given to firms or companies.
Home Loan Repayment
Home loan repayment is made using Equated Monthly Installments (EMI) for the tenure of the loan. EMI consist of principal as well as interest component in it. An EMI starts from the next calendar month post disbursal of the loan, date of home loan EMI is fixed as per a bank’s policy and to be paid every month. Most of the home loan lenders have a home loan EMI date between 1st and 10th of every calendar month.
Co-Applicant for Home Loan
Lenders take a co-applicant to you for increasing your home loan eligibility. Generally, spouse is preferred as a co-applicant in the loan, in case the home loan applicant is single one of the parents can come into the loan structure as co-applicant. All the joint property owners have to be compulsorily a co-applicant in the loan.
Home Loan Processing Fee
A lender charges you a small processing fee when you take a loan to cover the initial cost for processing, sanction and disbursal of your home loan. Home loan processing fees covers below mentioned expenses
  • Documentation of home loan
  • Sanction process of home loan
  • Valuation of property
  • Legal & title clearance for property and other charges which the bank incurs initially
A home loan processing fees range starts from Rs. 5000/- only and goes up to 2% of the loan amount. A processing fee for your housing finance depends on below mentioned factors:
  • Quantum of finance

  • Type of property you are purchasing- Ready property, under construction property, an apartment in an approved project/unapproved project, a residential plot etc.
  • Lender- Bank/NBFC
We have pre-negotiated deals for our customers for the lowest processing fee in the market. VServ guarantees the lowest processing fees for home loan in India
Loan Amount to Purchase Cost of the Property
The loan amount a financer will fund you against the cost of the property depends on the quantum of loan amount you are proposed to take. Lower is the loan amount higher will be the loan amount to cost of acquiring the property. For a home loan amount up to Rs. 75.00 Lacs you get up to 80 percent of the cost of the property and above Rs. Rs. 75.00 Lacs the ratio will be 75% of the cost of the property.
Guarantor in Home Loan
Generally, Banks and NBFCs don’t take any guarantor for your home loan. Based on your overall profile lenders may ask you for a guarantor.