Home Loan

A home loan is a secured loan provided by banks and financial institutions to help you purchase a property, such as a house or plot, or for construction or renovation purposes.

EMI (Equated Monthly Installment) is calculated using the loan amount (principal), interest rate, and loan tenure. The EMI formula is: EMI=P×r×(1+r)n(1+r)n−1EMI = \frac{P \times r \times (1+r)^n}{(1+r)^n - 1}EMI=(1+r)n−1P×r×(1+r)n Where P = Principal, r = monthly interest rate, and n = loan tenure in months.

The minimum salary requirement varies by lender, but typically, a monthly income of ₹25,000–₹40,000 is needed to qualify for a home loan, depending on loan size and other factors.

Generally, banks offer a loan amount up to 60 times your monthly income. For example, if you earn ₹50,000 per month, you may be eligible for a loan of around ₹30 lakhs.

A downpayment is the portion of the property’s value that you pay upfront, usually 10–20% of the purchase price, while the remaining amount is financed through a home loan.

A floating interest rate fluctuates with market conditions. If rates go down, your EMI will decrease, but if rates rise, your EMI will increase.

A fixed rate remains constant throughout the loan tenure, providing consistent EMI payments. It’s ideal for those seeking stability in repayments.

Fixed interest rates offer stability but may be higher initially. Floating rates, while variable, can offer lower rates when the market is favorable.

LTV is the ratio of the loan amount to the property’s value. For example, if a property is worth ₹50 lakhs and the loan is ₹40 lakhs, the LTV is 80%.

You can claim up to ₹2 lakh on interest under Section 24(b) and ₹1.5 lakh on principal repayment under Section 80C of the Income Tax Act.

While it's harder to get a loan with a low CIBIL score (below 650), some lenders may still offer loans but at higher interest rates.

Improve eligibility by increasing your income, reducing existing debt, improving your credit score, or opting for a longer tenure.

Pre-EMI is the interest you pay during the construction phase of a property. Full EMI payments start once the property is completed and possession is taken.

Common documents include identity proof, address proof, salary slips, bank statements, property documents, and tax returns.

Yes, banks offer loans for purchasing residential plots. However, the terms and conditions may differ from regular home loans.

A Top-Up Loan allows you to borrow extra funds over and above your existing home loan, often used for renovation or other expenses.

Yes, you can transfer your existing home loan to another lender for better interest rates or terms, known as a home loan balance transfer.

This ratio compares your monthly debt payments to your monthly income, helping lenders evaluate your ability to repay a loan.

A good CIBIL score (above 700) helps you secure a loan at lower interest rates. A lower score can result in loan rejection or higher rates.

Fixed rates offer stable EMIs, while floating rates provide flexibility based on market trends. Choose based on your risk tolerance.

A longer tenure reduces EMI but increases total interest paid. A shorter tenure has higher EMIs but saves on interest.

Amortization is the gradual repayment of a loan through monthly EMIs, where a portion goes towards interest and the rest towards principal repayment.

Yes, you can make partial or full prepayments. Some banks may charge a prepayment penalty, especially for fixed-rate loans.

Compare interest rates, fees, processing charges, customer service, and loan terms across various lenders to choose the best option.

Buying helps build long-term equity and stability, while renting offers flexibility and lower upfront costs. The choice depends on your financial and lifestyle goals.