Home Loan

You can get a home loan of up to ₹15 Crores at affordable interest rates starting at 8.50% per annum. That’s not all. The tenure of up to 30 years allows you to optimise repayment to suit your financial capabilities. Read on to learn more about home loans and find out how to apply for one.

Home Loan Details

You can find some of the best housing loan providers in India on Bajaj Markets. You can compare the home loan interest rates and offers from lending partners to choose the one that best suits you.

On This Page: Partners | Eligibility | Documents | How to Apply | Features & Benefits | Home Loan Types | Rejection Reasons

Compare and Apply for Home Loan Online

Comparing loan offers before you apply is a smart way to ensure that you get the best deal. In order to compare, check the interest rate, maximum loan amount, tenure, and charges on the loan.

Here are the details of home loans from our partners:

*Disclaimer: The values mentioned are applicable as of January 2023. The interest rates and associated charges can vary from one lending partner to the other and are subject to policy changes of the partner.

Calculate Your Home Loan EMI

A Home Loan EMI calculator is an algorithm-based tool that can help you get instant estimates of your house loan EMI amount. All you need to do is enter your loan amount, expected interest rate, and preferred repayment tenure.

The online tool will show you your overall EMI outflow within seconds. A housing loan calculator can also help you compare loan options by simply altering the numbers you fed into the tool originally. This way, you will be able to decide which offer suits you the best.

Disclaimer: Terms and conditions apply to the above-mentioned benefits, and these may vary based on the lender.

Eligibility Criteria for Home Loan

The eligibility criteria for housing loans are simple. These criteria depend on whether you are salaried or self-employed, your nationality, and other aspects that determine your creditworthiness.

To ensure that you are eligible, use the online home loan eligibility calculator. This tool takes into consideration several factors, such as your income, age, and area of residence, to give you an estimate of the amount you can borrow.

This can, in turn, help reduce the chances of your application being rejected. Checking your eligibility before also gives you the benefit of planning your finances in advance.

Documents Required for Home Loan

Here is the list of important documents required while applying:

1. Identity Proof 

• PAN Card

• Aadhaar Card

• Driving Licence

• Voter ID

2. Address Proof 

• Electricity Bill/Water Bill/Phone Bill

• Valid Passport

• Aadhaar Card

• Driving Licence

• Voter ID

3. Income Proof Documents:

a) For Self-employed Applicant/Co-applicant

• Income Tax Returns of last 3 years

• Qualification Certificate for Doctors, CA and other Professionals

• Audited Balance Sheet from Certified CA

• Profit and Loss Statement of Previous 3 Years

• Business Licence Details with Address Proof and TDS Certificate

b) For Salaried Applicant/Co-Applicant 

• Last 3 Months’ Salary Slips

• A Copy of Form 16 or Income Tax Return (ITR) of last two years

You can check out the detailed list of home loan documents here which are required to apply for a housing loan. Make sure you have all the documents handy before applying.

How to Apply for Home Loan

With advancements in the fintech industry, applying for a housing loan is now easier than ever. Just enter a few basic details to fill out the online application form and upload the required documents.

Here are the steps to apply for a home loan on Bajaj Markets.

1. Through the website:

• Enter the required details in the application form.

• Choose your preferred lending partner.

• Estimate your borrowing power.

• Mention Property Details.

• Get Loan Approval. 

• The application will be verified, post the approval.

• While the verification process is being completed you will be asked to pay the processing fee online. Then you will receive the sanction letter after which your property will be evaluated. After a successful legal check, you will receive the home loan amount in your bank account.

2. Through the Bajaj Markets App:

With the Bajaj Markets app, availing home loans is a simple process.

• Enter your personal and employment details to check the right loan offer.

• Select the loan offer that works best for you.

• Enter the preferred loan amount and tenure.

• Upload the required documents for verification.

After submitting the application, the lender will conduct a background check. After verification, a representative from your chosen lender will contact you.

Types of Home Loan

Housing Loans can be further divided into numerous sub-categories based on their exact use and the circumstances under which it is taken out. Below is a list of the types of home loans in India:

1. Home Purchase Loan 

You should opt for this loan if you want to buy an already constructed property or an under-construction property. As per the RBI guidelines, you can receive a home loan of up to 90% of the property value from a lender.

2. Property Loan

This loan is available if you wish to purchase a plot of land or build a house. The first installment of the loan amount is disbursed when you furnish the relevant documents concerning the purchase of the land. Any subsequent disbursals will depend on the construction status of the house.

3. Plot Loan

If you plan for building a house on a plot, you choose this loan facility. Plot loans are different from home loans as these loans are granted for the purchase of a constructed property, whereas a plot loan or a land loan is only for purchasing the land (with no construction done).

4. Home Renovation Loan

You can take a home loan even for renovation or repair expenses. In this case, the tenure for repayment is generally shorter. This is because the amount granted for the home renovation is relatively less than for an entire home. However, the interest rate for home improvement loans is typically like that for a regular property loan.

5. Home Construction Loan

This loan facility is available if you need financing for construction purposes. This type of loan is granted only if you own a plot of land and plan to construct a house on it. Just as a composite loan, the disbursal depends on the stages of construction.

6. Bridge Loan

You can choose this loan if you have recently sold a house and want to buy a new one with the sale proceeds but need an additional amount. The loan helps in covering the gap between the purchase of a new house and the sale of an existing house.

7. Home Extension Loan

If you are planning to extend the space of your home, you can choose this loan facility. Under this form of lending, financial institutions typically disburse amounts that could cover up to 90% of the estimated construction expense. The sanction amount depends on the loan amount and the Loan-To-Value ratio, and this makes it different from a home renovation loan.

8. Step-up Loan

This type of loan is generally taken out by young professionals who have just begun building a career. In this loan facility, your initial EMI amount is lower. However, you can always increase the EMI amount with time, which is a salient feature of this form of loan.

9. Interest-saver Loan 

This is similar to a loan overdraft facility. In this case, your home loan account is directly linked to your bank. Any amount deposited in the bank account over and above the EMI amount is used as a prepayment, which helps you save on the interest due.

With the Balance transfer facility, you can transfer an existing home loan to a new lender and avail more favourable terms. Opting for this credit solution is smart if you can get better tenure terms or a lower interest rate with a new lender.

Types of Charges Applicable on a Home Loan

As a borrower, it is important that you know the different charges associated with a home loan. All of these will be mentioned in the loan documentation provided to you. Here are a few common ones to note.

1. Administrative or loan processing fee

These are the costs incurred by the lender in order to process your loan. These generally pertain to processing documents, legal verifications, evaluations, and more. Such fees are expressed as a percentage or as a flat value.

2. Conversion charges

Lenders charge this fee if you decide to change your interest rate, based on favourable market conditions. This rate increases if the new interest rate is much lower than your current rate.

3. Prepayment or foreclosure charges

Lenders may charge a prepayment or foreclosure fee on a fixed rate home loan. These fees are not applicable on floating-rate home loans, as per an RBI mandate.

4. Late payment charge

Also known as the ‘EMI late payment penalty’, lenders levy a fine if you miss an EMI payment. The terms vary with each lender, and this fee is generally expressed as a percentage.

5. Insurance premiums

Lenders may offer an insurance policy that safeguards the home. If you opt for it, you are liable to pay the premiums for this instrument.

Before you go ahead and apply for a housing loan, there are a set of dos and don’ts that you must keep in mind. Some of these are in regards to your credit behaviour and post-purchase behaviour. Let us understand this in detail.

Home Loan Application: Dos and Don’ts

Here are some of the tips to avoid rejection of your house loan application:

Tax Benefits on Home Loans

Availing a home loan makes you eligible for various tax benefits and exemptions under Income Tax Act, 1961, namely:

What to Do If Your Home Loan Application is Rejected

Lenders may reject your loan application based on your eligibility and application. In this case, you can re-apply for the loan. However, you need to know why your application was rejected.

A lender may reject your application for many reasons, as explained below.

1. Loan amount

• Reason for rejection: Lenders assess the loan amount you can receive based on various factors. Lenders have a loan amount you can avail to ensure repayment. As a result, your application may be rejected if you apply for a loan amount higher than the eligible amount.

• Possible solution: In this, you can reassess your loan requirement to see if applying for a lower loan amount may be feasible. You can also check the loan amount you are eligible for by using an online home loan eligibility calculator.

2. Credit score

• Reason for rejection:  Your credit score is a major factor in your eligibility for any type of credit, including home loan. If you have a credit score below 650, the home loan issuer may reject your application.

• Possible solution: To remedy this, you can consider waiting for some time and improve your credit score before reapplying. You can also try negotiating with the lender to see if you avail the loan on different terms.

3. Current liability:

• Reason for rejection: How much you owe plays a major role in your eligibility for future credit. If your total EMI amount is high and you do not have enough disposable income after that, the lender may reject your application.

• Possible solution: Try to completely repay some of your current debt to free funds for new debt. As a rule of thumb, you should try to keep your debt-to-income ratio up to 50%. This means, your total monthly debt repayment should not be more than 50% of the monthly income. The lower it is, the better are your chances of availing new credit.

4. Income stability:

• Reason for rejection: Income stability has an effect on your repayment ability. As such, the lender may reject your application if you do not have a stable income. This may be due to frequent employment change or not having the minimum income required to avail the you want.

• Possible solution: Reapply once you have a few years of experience with the same organisation. You can also try to provide proof of other stable income means to meet the lender’s requirement.

5. Insufficient/Incorrect documents:

• Reason for rejection: Documents are an important aspect of availing a loan as they enable lenders to verify your application. Given this, if you have not submitted all the documents or an incorrect document, your application may be rejected.

• Possible solution: Reapply with the right set of documents for a seamless process. Get all the paperwork, as per the lender’s requirements and ensure that all information is accurate.

Home Loans Based on Monthly Income 

Disclaimer : The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial investment advice or endorsement of any sort. The information including interest rates with regard to fixed deposit, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any investment or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Home Loan Glossary

• LTV: This refers to the loan to value ratio, which is the amount you get as a home loan divided by the total property value. It is expressed in a percentage. So if you are buying a home worth ₹1 Crore and getting a housing loan of ₹80 Lakhs, your LTV is 80%.

• Margin: This refers to the down payment you make towards buying a home. The margin is the amount the lender doesn’t finance and which you pay on your own. In the above example, your margin is ₹20 Lakhs.

• Interest rate: This is the cost of borrowing a home loan and is denoted in a percentage. A high interest rate leads to larger EMIs and vice versa.

• Fixed rate of interest: This refers to an interest rate that is fixed all through or up to a certain point of the tenure. This ensures your EMIs are the same during repayment.

• Floating rate of interest: This refers to an interest rate that changes as per market conditions. It offers you the benefit of lower interest rates when applicable. Lenders usually keep your EMIs the same even in this case and tweak the tenure instead.

• EMI: This refers to the monthly amounts split across the repayment duration by which you repay your home loan. EMIs stand for Equated Monthly Instalments and consist of both a principal component and the interest due on your loan. This amount is calculated as per your principal, interest rate and tenure.

• Tenure: This refers to the timeline you choose to repay your home loan. It goes up to 30 years for on Bajaj Markets.

• Offer Letter: This is a sanction letter sent by the lender as an official confirmation of your home loan request being approved. You can check the loan amount, tenure, interest and EMIs as well as other loan details in this letter.

   

  Remember, this letter doesn’t mean your loan is being disbursed. It gives you the details as you complete the loan processes and while the verification of the property is underway.

• Disbursement: Disbursement means the lender has released or sent the home loan amount to your account on the approval of your application.

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