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When you consider applying for a home loan, there are certain documents you will be required to present depending on whether you are a salaried or self-employed individual. Here is a list for documents required for home loan for both such individuals:

Application Form
Identity Proof PAN (Mandatory) Voter ID Passport Driving Licence Aadhar Card
Address Proof Passport Voter ID Driving Licence Aadhar Card
Income & Other Documents Salary Slip/Certificate Form 16/ITR Bank Statement
Property Documents Copy of chain documents of the property (if applicable) Copy of Receipt made to the developer (if applicable) Copy of Buyer Agreement Copy of Agreement to Sell (if executed)

Interest rates play a very important role when it comes to evaluating a low. The higher the interest rates are on your home loans, the more will be your expenditure every month in meeting your EMI payments.

The interest component in the home loan indicates the price that is charged over and above the “principal” amount. The interest depends on the principal sum, interest rate, compounding frequency, and length of time over which it is lent or borrowed.

Interest rate is linked to the Benchmark Prime Lending Rate, also known as BPLR, which helps us ensure transparency and appropriate pricing. The rate of interest varies for different borrowers as our housing finance team considers various parameters such as credit score, borrower profile, loan amount, property type, and others.

If you have evaluated and come to the decision of option for a home loan, you have to keep a few things on your checklist before you apply for the same. Here is an easy checklist for you to follow:

Negotiate: Before finalizing down on one single lender, make sure to explore your options in the market and negotiate the best deal for yourself. After all, you have to pay off your EMIs and interest charges for quite some time.

Check credentials: Make sure to do a thorough check on the attractive interests offered by the various lenders and the authenticity of the same.

Calculate the cost of a home loan: Take note of all the fees and charges involved apart from the interest rate as well and then evaluate the final costs.

Credit rating: Keep a check on your credit rating to know if you are eligible to opt for a home loan.

Terms and conditions: Read the terms & conditions thoroughly no matter what lender you choose.

Your repayment schedule plays an important role in your home loan. Therefore, it is important to make the right decision and not be hasty about it. Here are the few modes via which you can settle your loan repayment:

Step-up repayment
This method involves the borrower starting his/her EMI payments with a smaller amount and gradually increasing them. However, this method involves the borrower paying more interest in the long term.

Step-down repayment
This mode of repayment involves larger EMI payments, to begin with, that gradually become smaller, allowing more of the payments towards the principal.

Prepayment
This method allows the borrower to repay the entire home loan, either partially or fully before the loan tenure. This reduces the EMI payments but might bring some prepayment penalties depending on the lender’s policies.

Late repayment
Some lenders might allow you an EMI holiday, giving you a temporary break from paying the EMIs. This allows financial relief during the initial stage. However, the deferred interest and EMI need to be paid later on.

Fixed and flexible installment plan
In a fixed EMI plan, your EMI remains constant for a fixed period. This ensures you are safe from market fluctuations if the interest is likely to rise. At the same time, in a flexible EMI plan, the EMI fluctuates as per the market. This method requires a change in EMI every month but offers flexibility.

Lump sum repayment
This method helps in fast-tracking paying down your home loan and is handy if you have a large chunk of cash and want to get rid of your debt as early as possible. Your payment will first be adjusted for the interest and then go toward the loan principal.

Balloon repayment
This type of lump sum repayment method, but your installments are scheduled at fixed intervals during the tenure.

Linking your loan and savings account
This can be a good way to reduce the interest liability. The higher the funds in your account, the lower the interest you owe.

Yes, if you wish to obtain a higher amount on your home loan you can apply with a co-applicant. Taking a co-applicant on board improves the combined credit score that makes you eligible for a higher home loan amount.

The processing fee is one of the fees and charges that you will be required to pay when taking a home loan. This fee is charged on a home loan as a one-time charge by the lender upon the acceptance of your home loan application. All lenders in the market don’t need to charge you a processing fee, some might and some might not.

The home loan amount that you are eligible for depends on your income. The higher your income per annum, the more amount you can obtain. On top of this, if you have a good credit score and history you have a good chance of a high loan amount being sanctioned.

Typically, the repayment period starts once your home has started building or within one month of the home loan amount being disbursed. However, every lender might have their terms and policies for the same.

Generally, the co-owners are co-applicants in a home loan application. In most cases, these are close family members only.

Yes, you might be eligible for tax benefits on the principal and interest payments that come upon taking a housing loan as per sections 80C, 24(b), and 80EEA of the Income Tax Act, 1961. However, the benefits vary yearly so it is best to seek financial advice for the same.