A home loan isn’t just for buying a house—it can be tailored to suit different needs. Here are some of the most common ways you can utilize a home loan:
Overview
Home Loan Made Simple with Money Mentor
Your dream home may come at a cost, but with the right home loan, it’s well within your reach. A home loan is a secured loan designed to help you purchase, construct, renovate, or expand a residential property. Since your property serves as collateral, the lender holds its deed until you fully repay the loan, including principal and interest. Navigating the complexities of a home loan, especially as a first-time borrower, can be overwhelming.
At Money Mentor, we simplify the process! From checking your home loan eligibility to loan disbursal, we provide end-to-end guidance to help you make informed decisions. Our experts assist you in comparing lenders, securing the lowest interest rates, and choosing the best loan terms—ensuring you get the best deal to turn your homeownership dreams into reality.
Uses of a Home Loan with Money Mentor
Eligibility Criteria
A home loan is accessible to salaried employees, government employees, and working professionals who meet the basic eligibility requirements set by banks and NBFCs. While specific criteria may vary, here are the standard conditions you must fulfill:
Salaried or a working professional
Aged between 21 and 60 years
Having a job and a minimum of 3 months experience
Having a minimum of Rs. 25,000 net income per month.
Documentation Requirements
To apply for a Home loan, you need to submit the following documents:
- Photo Identity Proof: Voter ID, Aadhaar Card, Passport, PAN Card, and Driving Licence.
- Proof of Residence / Address Proof: Aadhaar Card, Driving Licence, Passport, Registered Rent Agreement, Latest Gas or Electricity Bill, and Bank Statement with Current Address.
- Income Proof: Income Tax Returns for the Last 3 Years, Business License Details, Balance Sheet & Profit and Loss Account Audited by a Certified CA (Last 3 Years), Business Address Proof, 6-Month Bank Statements (Current & Savings Accounts), Copy of Form 16, 6-Month Salary Account Bank Statement, and Last 3 Months' Salary Slip.
- Other Documents: Allotment Letter, Sale Deed, No Objection Certificate (NOC), Allotment Letter from Society/Housing Board/Private Builder, Stamped Agreement of Sale, Possession Certificate, Construction Cost Estimate, Bank Account Statement of Payment Made to Seller or Builder, Occupancy Certificate, and Land Tax Receipt.
Application Process
Personal Loans Lowest Interest Rates
|
Bank Name
|
Minimum Interest Rate (%)
|
Loan Amount
|
Loan Tenure
|
Minimum Processing Fees
|
|---|---|---|---|---|
|
IndusInd Bank
|
10.25%
|
₹1 Lakh - ₹50 Lakhs
|
1 - 5 Years
|
1%
|
|
HDFC Bank
|
10.35%
|
₹1 Lakh - ₹99 Lakhs
|
₹5899/-
|
|
|
HDFC Bank
|
10.35%
|
₹1 Lakh - ₹99 Lakhs
|
₹5899/-
|
Home Loan Processing Fees
In addition to the home loan interest rate, lenders charge a processing fee to cover the cost of verifying documents and handling the loan application. This fee typically ranges from 1-2% of the total loan amount, with an additional 18% GST. At Money Mentor, we assist you in finding lenders offering the lowest processing fees on home loans, ensuring a cost-effective borrowing experience.
Home Loans Balance Transfer
If you’re struggling with high home loan EMIs and looking for ways to reduce your financial burden, a home loan balance transfer can be an excellent solution. A home loan balance transfer, also known as refinancing, allows you to move your outstanding loan amount from your current lender to a new one offering better terms. This process helps you secure lower interest rates, improved repayment options, and even the possibility of a top-up loan if you need additional funds.
The eligibility criteria and required documents for a balance transfer are similar to those for a new home loan application. At Money Mentor, we provide expert guidance to help you navigate the process smoothly. Use our home loan balance transfer calculator to estimate your savings and make an informed decision.
Documents Required for a Home Loan Balance Transfer
To apply for a personal loan Balance Transfer, you need to submit the following documents:
- Identity Proof – Passport, Aadhaar Card, Driving License, etc.
- Address Proof – Aadhaar Card, Passport, Voter ID, etc.
- Bank Statements: Last 12 months’ statements for current and savings accounts.
- Income Proof: Balance Sheet and Profit & Loss Account audited by a registered CA for the last two years, last three years of ITRs (both company and individual).
- Property Documents: Allotment Letter, Sale Deed, NOC, Allotment Letter from Society, Stamped Agreement of Sale, Possession Certificate, etc.
Home Loan Eligibility Criteria – Money Mentor
At Money Mentor, we help you navigate the eligibility requirements set by various lenders. Before applying, check your home loan eligibility online to ensure you meet the necessary criteria. Here are some common eligibility conditions set by banks and NBFCs:
- Applicants must be salaried employees, working professionals, or self-employed individuals.
- Eligible applicants include Resident Indians, Non-Resident Indians (NRIs), or Persons of Indian Origin (PIOs).
- Age criteria: Applicants must be between 21 and 65 years old.
- A minimum of one year of work or business experience is required.
- Minimum monthly income should be ₹20,000 or more.