Home loan FAQs

A loan which is used to:

Buy a plot of land for construction

Build a house on an already owned land

Buy a new home/flat

Improve/extend your home

Purchase/resale your property

Pay off an existing home loan from another bank/FI

Balance transfer with topup for improvement/renovation etc.

Generally, Home loans are granted for a maximum period of 30 years, or the residual value of the existing home loan (in case of balance transfer) or depending on the age of the applicant.

You will be eligible for 85% of the cost of the property or the cost of construction as applicable and 60% of the cost of land incase of land purchase.

Few banks insist on co-applicant for a home loan. It depends on the bank's policy.

The co-applicant can be the applicant’s spouse, parents or even children of the applicant. The co-owner of the property needs to a co-applicant for the loan. .

The interest rates vary between 9.9% p.a. upto even 17% p.a. The rates depend upon the individual banks/FIs.

Banks/FIs would have pre-approved construction of certain residential projects, built by builders/developers. The list of approved projects would be available with the respective banks.

Yes, you can prepay your loan. Prepayment charges would be applicable as mentioned in your sanction letter. However, you can make part-payment of your loan anytime without charges.

The property purchased out of the proceeds of the home loan would be the security for the loan. Any other additional collateral can be provided, as agreed upon by the bank.