A Comprehensive Guide on Home Loans in India

Do you aspire to buy your own home? Purchasing a home releases you from monthly rental commitments, and you get to own a property!

Let us learn everything about Home Loans in this guide.

What is Home Loan?

A home loan is a way of borrowing money from a financial institution/housing finance company to buy residential property (new/resale) or to renovate or construct your own space.

Check Your Eligibility Criteria

Several financial institutions provide customised eligibility programs. Before you apply for a home loan, you must check your eligibility criteria:

Your age group should ideally be between 21 – 60.

Home loans are available to salaried or self-employed individuals.

Your minimum income should be 25K per month, and you should be steadily employed for a certain period.

You should have a credit rating above 650 to avail of the most affordable interest rate.

Your debt-to-income ratio should be low, and you should be able to pay the home loan EMI easily.

Different Types of Home Loans You Can Apply

You can apply for the following loans:

Home loans to procure a new home

Home loan for businessmen, which comes with a longer tenure of 30 years

Loan against property

Construction or home renovation loan

Home loan for women

Joint home loans

Benefits of Getting a Home Loan

Here are some of the advantages of getting a home loan:

You can make a sound investment

Purchasing an asset is a long-term investment. You can pass it down to your children or use it during retirement. The return on investment in real estate is one of the highest in India.

Customer service

You get doorstep service with a dedicated relationship manager when you apply for a home loan from a reputed provider like PNB Housing Finance Ltd. You also get a 24/7 consumer care service to answer any query or concern.

Loan amount and tenure

You have the advantage of making a down payment of just 10% of the property value (varies). You can get your loan sanctioned of up to 90% of the property value. You also get the leverage of repaying the loan in 30 years. You can learn how to calculate EMI for home loans by using an online EMI calculator. You can adjust the loan amount and tenure according to your feasibility by utilising a home loan EMI calculator.

Tax benefits

Applying for a home loan gives you tax benefits of Rs. 1.5 lakhs u/s 80C and an additional Rs. 2 lakhs on the interest amount u/s 24B of the Indian Income Tax Act.

No hidden charges

Several home loan providers maintain transparency and inform you of all the small and big fees payable when procuring a home loan.

Many offer no prepayment or foreclosure charges.

Numerous repayment options

You get the benefit of repaying your home loan in multiple ways, and some of them don’t charge you anything for foreclosing your loans.

Home loan balance transfer

Suppose you want to switch your home loan provider because of high-interest rates, high EMI, poor customer service, or a better deal from another financial institution. In that case, you can balance transfer your home loan immediately.

How to Apply for a Home Loan

Follow the below-mentioned steps to apply for a home loan:

Step 1 – Compare deals, interest amounts, and deals offered by various home loan providers and select one Step 2 – You can complete an online or offline home loan application and submit important documents.

Step 3 – Once your application is approved, a financial institution representative will contact you and complete the rest of the formalities.


The Government has launched several schemes to make it possible for almost every Indian to own their own house. Just follow the guide above, and you can apply for one at the best terms and conditions!

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