Complete Home Loan Guide
Everything you need to know about home loans in India
Types of Home Loans
Loan Against Property (LAP)
Amount
₹10 lakhs - ₹10 crores
Rate
8-11% p.a.
Borrow against your existing property for any purpose
Home Purchase Loan
Amount
₹25 lakhs - ₹5 crores
Rate
6.5-8.5% p.a.
For buying new or resale residential property
Home Construction Loan
Amount
₹50 lakhs - ₹2 crores
Rate
7-9.5% p.a.
For building new home on your own land
Home Improvement Loan
Amount
₹5 lakhs - ₹50 lakhs
Rate
8-11% p.a.
For renovation, extension, or major repairs
Home Top-up Loan
Amount
₹5 lakhs - ₹2 crores
Rate
7-10% p.a.
Additional loan on existing home with existing mortgage
Home Loan Eligibility
Age
Minimum 21 years, maximum 65-70 years at loan maturity
Income
Minimum monthly income ₹15,000 - ₹25,000 depending on lender
CIBIL Score
Minimum 650+ (higher scores get better rates)
Employment
Salaried or self-employed with 3+ years experience
Property Value
Loan amount usually 80-90% of property value
ITR/Salary
2 years IT returns or 6 months salary slips required
Home Loan Process & Timeline
Application
Submit application with documents
1-2 days
Document Verification
Bank verifies all submitted documents
5-7 days
Property Valuation
Bank conducts property assessment
3-5 days
Loan Approval
Final approval by bank committee
5-7 days
Sanction Letter
Receive formal offer letter
1-2 days
Disbursement
Money transferred to your account
7-14 days
Home Loan Costs & Charges
Processing Fee
0.5-1% of loan amount
Non-refundable fee charged by bank
Documentation Charges
₹500-₹2,000
For legal documentation
Valuation Charges
₹1,500-₹5,000
Property valuation fee
Insurance
0.5-1% per annum
Mortgage protection insurance
Registration & Stamp Duty
4-7% of property value
Government charges (state dependent)
EMI
Varies
Monthly principal + interest payment