✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 8.50% Check Eligibility

Banks provide home loans for resale properties, which allows you to promptly purchase such a flat and move in without financial stress. Here, you can explore the advantages of choosing a resale flat and understand how to acquire a home loan for it.

Interest Rates for Home Loans for Resale Flats

Some of the leading banks and NBFCs that offer loans for resale properties are:

Bank Name

Interest Rate (per annum)

Bajaj Housing Finance

8.50% onwards

Home First Finance Company

9.50% onwards


9.00% onwards

India Shelter

10.50% onwards

Kotak Mahindra Bank

9.00% onwards

LIC Housing Finance

8.65% onwards

PNB Housing Finance

8.50% onwards

Shriram Housing Finance

11.50% onwards

Shubham Housing Finance

10.90% onwards

Union Bank of India

8.50% onwards

Disclaimer: The rates and charges mentioned above are subject to change at the discretion of the lender. 

Eligibility Criteria for Home Loans for Resale Flats

While the eligibility criteria of home loans for resale properties vary, most lenders have the following common requirements to assess your credit profile and property value: 

  • Age Requirement

Loan applicants must be between 18 and 65 years old. Age affects repayment ability and loan approval. 

  • Property Age and Condition 

Lenders assess the resale property's age and condition as it serves as collateral. A poorly maintained or excessively old property increases default risk, impacting loan approval. 

  • Employment Stability 

Stable employment with a higher disposable income enhances eligibility for affordable second-hand flat home loans. 

  • Creditworthiness 

A strong credit profile with a good CIBIL score, responsible credit utilisation, positive repayment history, and diversified credit are factors that boost eligibility for home loans on resale properties. 

Documents for Home Loans for Resale Flats

To apply for a home loan on a resale property, you may need to produce the following documents to the lender: 

  • A complete and accurately filled application form 

  • Your passport-size photographs 

  • Bank account statements for at least 6 months 

  • PAN card, Voter ID, Passport, Aadhaar card, driving licence 

  • Proof of business income (for self-employed applicants) 

  • Property-related documents such as: 

  1. Sale agreement

  2. Allotment letter

  3. Non-encumbrance certificate 

Tax Benefits of Home Loans for Resale Flats

Under the Income Tax Act of 1961, you can avail of tax benefits on home loans for resale flats under the following sections: 

  • Section 80C: Under this section, you can claim an annual tax deduction of up to ₹1.5 Lakhs for the EMIs you will pay towards the repayment of the loan amount 

  • Section 24: This section allows you to claim an annual tax deduction of an additional ₹2 Lakhs on the interest component of your EMIs

FAQs on Home Loans for Resale Flats

Is it a smart choice to buy a 10-year-old flat?

Before buying any resale property, you must assess its condition. If the property is in good shape, you can consider purchasing it.

Who can purchase a resale flat?

You can buy a resale flat if you are an Indian citizen, an NRI, or a PIO (Person of Indian Origin).

How can I check my loan eligibility?

To check your resale flat loan eligibility, you can use the eligibility calculator or visit the respective lender’s website.

Can I get a loan on a property that’s two decades old?

If the physical condition of the property is good enough, then you can avail loan even for a 20-year-old property.

What interest rates do lenders charge for a home loan for a resale flat?

The interest rate for a loan for a resale flat varies from lender to lender. You can visit their website to check the latest interest rates at which they are offering home loans for old flats. On Bajaj Markets, you can get home loans for resale properties at interest rates starting from just 8.50%.

What is the impact of GST on home loans for resale properties?

The GST impact on home loans for resale properties is minimal. Flats are not subject to GST as they are considered immovable property. However, sellers are responsible for stamp duty and registration charges, taxed at 18% under GST law, varying across states.

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