Home Loan

Types of Home Loan Available in India

There are various home loan products that you can choose from based on your requirements:

Features & Benefits of Home Loan

• Capital appreciation
• Sense of accomplishment
• Tax benefits on interest and principal components
• Zero prepayment charges
• Top-up and balance transfer facility
• Long repayment tenure up to 30 years
• High loan amount up to ₹5 Crores (or more)
• Applicable for purchase, construction, or renovation
• Repayment holiday facility
• Available as term loan and overdraft
• Fixed, floating, and hybrid interest rates

Best Home Loan Providers in India 2025

What is the Home Loan Application Procedure?

• Visit the Shahcommunication official website.
• Choose your gender and city of residence.
• Select the loan purpose (purchase, construction, extension, etc.).
• Enter property value, employment type, and annual income.
• Provide personal and contact details, then verify via OTP.
• Choose your preferred lender and submit documents.
• Lender verifies documents, property, and conducts personal discussion.
• Loan offer letter is issued; sign and complete documentation.

After verification and sanction, you’ll receive a formal loan offer letter with conditions. Once accepted, loan documents are executed with assistance from MMM experts.

Eligibility Criteria for Home Loan

*Eligibility criteria vary depending on lender and applicant profile.

Documents Required for Home Loan

• Proof of Identity: PAN Card, Aadhaar Card, Voter ID, Passport, or Driving Licence
• Proof of Address: Aadhaar Card, Utility Bills, Passport, or Rent Agreement
• Income Proof:
  • For Salaried: Salary Slips (last 3 months), Form 16, Bank Statements (6 months)
  • For Self-employed: Business Proof, ITR (last 2-3 years), Balance Sheet and P&L Account
• Property Documents: Sale Agreement, Title Deed, Property Tax Receipts, Approved Building Plan
• Photographs: Recent passport-size photos of the applicant and co-applicant
• Other Documents: Partnership Deed, MOA & AOA (for firms/companies), or Power of Attorney (if applicable)

Tips & Advice for Home Loan Applicants

• Check your credit score before applying; aim for 700 or higher.
• Compare interest rates and processing fees across banks/NBFCs.
• Choose a shorter tenure if possible to reduce total interest outgo.
• Maintain a clean financial history and avoid recent loan defaults.
• Ensure all property documents are clear and legally verified.
• Negotiate processing fees and other charges where possible.
• Opt for balance transfer if your existing loan has a higher rate.
• Use EMI calculators to plan your monthly outflow smartly.

How to Apply for a Home Loan

You can now apply for a home loan online using a few simple steps:

• Click on the ‘Compare and Apply’ option.
• Fill in the necessary details to get the latest home loan offers.
• Submit the online application form for a loan you are eligible for and upload the required documents.
• Once your application is reviewed and approved, the bank will issue a sanction letter.
• The loan amount will then be disbursed into your account as per the sanction terms.

*The entire process is quick, digital, and hassle-free with minimal paperwork.

EMI Calculator for Home Loan

• Loan Amount (Principal): The total amount borrowed from the bank.
• Interest Rate: The rate charged by the lender (fixed or floating).
• Loan Tenure: The repayment period, usually ranging from 5 to 30 years.
• EMI (Equated Monthly Instalment): The amount payable every month, consisting of principal and interest.
• Formula Used: EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

*Use an online EMI calculator to estimate your monthly payments before applying for a loan.

Why Apply for a Home Loan

• Ownership Benefits: Buying a home creates a long-term asset and financial security.
• Tax Benefits: Deductions on both principal (Section 80C) and interest (Section 24b) components.
• Affordable EMIs: Longer tenure options make repayment easy and stress-free.
• Property Appreciation: Real estate values tend to increase over time, offering good returns.
• Balance Transfer Facility: Move your loan to another lender offering a lower interest rate.
• Flexible Repayment: Choose between fixed or floating interest rates as per your needs.
• Improves Credit Score: Timely repayment helps build a strong credit profile.

How MCLR Affects Your Home Loan

• MCLR (Marginal Cost of Funds-Based Lending Rate): The benchmark rate set by banks for lending.
• Floating Rate Loans: If your loan is linked to MCLR, any change directly impacts your EMI.
• RBI Policy Influence: When the Reserve Bank of India revises repo rates, banks revise MCLR accordingly.
• Impact on Borrowers: A rise in MCLR increases EMIs; a decrease lowers them.
• Switching Option: You can opt to switch to an external benchmark-linked loan (like repo rate) for more transparency.

*Understanding MCLR helps borrowers predict EMI fluctuations and plan finances better.

What to Do If Your Home Loan Application Is Rejected

• Check the Reason: Find out the exact reason for rejection from the lender.
• Improve Your Credit Score: Pay outstanding dues and maintain timely repayments.
• Review Your Income Proof: Ensure stable income and submit updated financial documents.
• Reduce Existing Debt: Pay off credit card balances or other loans to improve eligibility.
• Reapply with Corrections: Once issues are resolved, reapply after 3–6 months.
• Consider a Co-Applicant: Adding a financially stable co-applicant can strengthen your profile.

Factors to Consider Before Applying for a Home Loan

• Interest Rate Type: Choose between fixed or floating rate depending on your risk preference.
• Loan Tenure: Shorter tenure reduces total interest but increases EMIs.
• Processing Fees & Charges: Compare across lenders to avoid hidden costs.
• Down Payment: Larger down payments reduce loan burden and interest cost.
• Prepayment Options: Check if the lender allows early repayment without penalties.
• Property Verification: Ensure property documents are clear and legally valid.
• Insurance Cover: Opt for home loan insurance for protection in case of unforeseen events.

Different Home Loan EMI Options

• Step-Up EMI: Lower EMIs initially that increase as your income grows.
• Step-Down EMI: Higher EMIs initially that gradually decrease over time.
• Flexible EMI: Allows adjusting EMIs as per your cash flow and income changes.
• Tranche-Based EMI: Suitable for under-construction properties; pay interest only on disbursed amount.
• Balloon EMI: Smaller EMIs during tenure with a large lump-sum payment at the end.
• Accelerated EMI: Lets you increase EMI periodically to close the loan faster.

*Choosing the right EMI plan helps balance affordability and faster loan repayment.