Home Loan for Resale Flats

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If you are looking to buy a house and move in immediately, a preowned home or a resale flat is probably the option. A preowned house or a resale property saves you money and time that you would otherwise invest in an under-construction property to be complete.

Moreover, banks offer home loans for resale flats so that you can move into your own house immediately without any financial woes. Read on to learn about the benefits of going for such a flat and the details of a home loan on a resale property.

Banks and NBFCs That Offer Home Loans for Resale Flats

Some of the leading banks and NBFCs that offer a loan on resale flats are:

Bank Name	Interest Rate (per annum)	Processing Fees
Bajaj Housing Finance	8.50% onwards	Up to 7% of the loan amount
Home First Finance Company	9.50% onwards	1.50% of the loan amount + GST
ICICI Bank	9.00% onwards	Up to 2% of the sanction or ₹15,000, whichever is higher
India Shelter	10.50% onwards	Up to 3% of the loan amount + GST
Kotak Mahindra Bank	9.00%onwards	Up to 1% of loan amount plus applicable taxes
LIC Housing Finance	8.65% onwards	Up to 0.50% of the loan amount + GST
PNB Housing Finance	8.50% onwards	Up to 0.50% of the loan amount
Shriram Housing Finance	11.50% onwards	Up to 2.5% of the loan amount plus applicable taxes
Shubham Housing Finance	10.90% onwards	₹1,500/- + 3% of the loan amount
Union Bank of India	8.50% onwards	0.50% of the loan amount or ₹15,000 (whichever is higher)

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

Resale Flat Home Loan Eligibility Criteria

The resale flat loan eligibility criteria may differ from lender to lender. However, most lenders have some common requirements to assess your credit profile and property value. These criteria include the following:

Your Age

Your age is important to lenders as young, first-time jobbers may be inexperienced in handling their finances or big-ticket credit instruments.

On the other hand, older applicants may have fewer earning years left, leaving the lender apprehensive about repayment.

This makes the lender more hesitant to approve your loan on a resale property. As such, lenders generally require you to be above the age of 18 at the time of availing a loan and under the age of 65 at the end of the repayment tenure.

Property Age and Condition

When lenders offer a loan for a resale flat, the property is generally the security against the default risk. This means that if you default on your loan, the lender can seize the property to recover the loan amount.

As such, they look at the property’s age and condition. If the property is too old and not maintained, the lender faces a higher risk of losing the asset, and therefore you may not be able to get the funds.

Employment

Your employment is a direct indication of your repayment capacity. If you have a higher and stable disposable income, the lender will offer an affordable home loan for second-hand flats. This is why many lenders even have minimum criteria.

Credit Profile

When you have a good credit profile, you show a lower risk of default and therefore become eligible for an affordable home loan for resale house. Your credit score, credit utilisation ratio, repayment history, and credit mix affect your credit profile.

How to Apply for a Resale Flat Loan

You can easily apply for a home loan for resale flats through Bajaj Markets. Here is the resale home loan process that you need to follow:

Log on to Bajaj Markets, go the “Home Loan” option in the “Loans” section
Click on “Apply for Home Loan” and share information pertaining to your identity, income, and your DOB
Check your offer and mention the loan amount and tenure of your choice. Once verified, you should receive your resale flat home loan amount within a few days

Home Loans for Resale Flats: Document Checklist

To apply for a housing 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, Voters ID, Passport, Aadhaar card, driving licence
Proof of business income must be submitted in the case of self-employed applicants
Property-related documents such as:

Sale agreement
Allotment letter
Non-encumbrance certificate

Maximum Repayment Tenure for Resale Flat Home Loans

The repayment tenures for a home loan for a resale apartment vary from lender to lender and are dependent on various factors. The following are some of the factors that may influence your repayment period for a home loan for a resale apartment:

Your age
Age of the property at the time of the maturity of the loan,
The financial institutions’ policies

Tax Benefits of Home Loans for Resale Flats

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

Section 80C: Under this section, you can claim a 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 a tax deduction of an additional ₹2 Lakhs on the interest component of the EMIs you pay yearly

Impact of Goods and Services Tax (GST) on Home Loan for Resale Properties

Given that a flat is an immovable property, it is not taxable under the GST regime. However, the seller of the property will have to bear stamp duty and registration charges. These charges vary from state to state and are taxable as per the GST law at 18%.

In conclusion, purchasing a resale flat could prove to be a better option for you as compared to moving into a newly-built house. If you are looking for a home loan for a resale flat, you can take one from Bajaj Markets lending partners.

Applying for a housing loan for an old flat on Bajaj Markets will allow you to enjoy the following benefits:

Competitive interest rates
Balance transfer facilities
Flexible home loan repayment tenures

So, apply for a home loan on an old flat now and get closer to becoming a homeowner today!

Government Schemes

Learn More About Home Loan

Before buying any resale property, you must assess its condition. If the property is in good shape, you can go ahead and purchase it.

Section 269ST of the Income Tax Act bans the transaction of more than ₹2 Lakhs in cash. You will need to transfer a large sum to the seller when you are purchasing a flat. So, a cheque will be a more preferred option of payment for buying a resale flat.

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

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

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

The interest rate for a housing 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.

With a home loan for a second-hand flat, you will be required to pay around 20% of the property’s value as a down payment. However, this may vary depending on the lender you choose.

The resale flat home loan process becomes very simple if you apply for it on Bajaj Markets. All you have to do is log in to the website and provide the required details. If you meet the eligibility criteria, your loan will be processed within a few days.