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Questions related to Home Loan

By Finserv MARKETS - Jan 30,2019
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Questions related to home loan

Real estate is one of the best markets to invest in and by taking a home loan, you can purchase the house of your dreams! In metros like Mumbai, Delhi and others, the value of property tends to appreciate rapidly. Most financial planners would recommend against renting as you can use that amount to repay your home loan EMI. Additionally, you will own a tangible property that’ll be a surplus to your already existing assets. Let’s discuss some of the most common questions pertaining to housing loans.

What amount of money will I receive through a home loan?

This is largely determined by your repayment capacity which can be gauged through your income, existing assets, repayment capacity, existing liabilities and other factors. It’s the responsibility of the bank/financial institution to ensure that the right amount is dispersed to cover your home loan need and requirement. To put it simply, the higher your income, the higher is the loan amount that you can avail.

What is the maximum sum of money that I can borrow?

Lenders generally finance 80-90% of the total property value which means you’ll be required to make a down payment of around 10-20%. This makes it essential for you to set aside some savings if you’re planning on purchasing a house. The loan amount provided by your lender / financial institution will also include other costs such as stamp duty charges as well as transfer and registration fees.

Is it mandatory to include co-applicant for my home loan?

Yes, if there is going to be a co-owner of your property then, it is mandatory for you to have a co-applicant for the home loan. If you’re the sole owner, then you can include any of your immediate family members as a co-applicant.

What are the documents needed?

Documentation requirements vary with financial institutions. However, you’ll be most likely be required to submit the following documents: latest (Last 3 to 6 months) salary slips, residence proof, income tax returns, balance sheet/bank account statements, national savings certificates etc. Trusted lenders or Non-Banking Financial Company like Finserv MARKETS, require minimal documentation to process your loan application.

How will I receive the loan amount?

Either in full or in instalments (maximum 3) as mentioned and negotiated in your contract. If the property is under construction then, the instalment will be corresponding to the progress made, as assessed by the lender / financial institution.

How do I repay the loan?

You will be required to repay your loan in the form of Equated Monthly Instalments. These would be regular, cyclical payments that include both the principal amount borrowed as well as the interest. The payments will be made on a monthly basis and can be paid through customer portal. You can also avail flexible repayment tenures offered by Finserv MARKETS.

Is it possible to close the loan ahead of schedule?

It depends whether you’ve opted for a floating interest rate or a fixed one; in context of the latter, penalties/charges can be levied. However, a floating interest rate will help you repay ahead of time without incurring any charges. It is highly advisable that you review the terms and conditions document for any prepayment penalties or charges before making a final decision. This is crucial as it can adversely impact your financial planning.

Informative blogs like these will help you take proper financial decisions and make the right selection. Since you know quite a lot about home loan now, you can contemplate applying for one.

Also, read about home loans.

With Finserv MARKETS, availing a Bajaj Finserv Home Loan online is easy, convenient and completely hassle-free. So why wait? Get your home loan with us today and realize your dream of owning your dream home!

“Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and an exclusive EMI store, all under one roof – anytime, anywhere!”


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Bajaj Finserv Direct Limited ("BFDL") is primarily engaged in distribution of financial products and services through its digital platform (“Bajaj Finserv MARKETS”) and inter alia renders services of customer acquisition, providing preliminary credit support activities, fulfilment services and post-acquisition customer services to Banks, NBFCs, HFCs. BFDL is also a registered Corporate Agent (Composite) under valid IRDAI registration number: CA0551 valid till 10-Apr-2024 for solicitation and servicing of Insurance Products. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522