What is a Home Loan?
A home loan is money borrowed from a bank or housing finance company to buy, build, or renovate a house. The borrower repays the loan in monthly EMIs (Equated Monthly Installments) over several years.
Common lenders include banks like State Bank of India, HDFC Bank, and ICICI Bank.
Home Loan Amount
Banks usually give 75%–90% of the property value as a loan.
Example:
- House price: ₹40 lakh
- Bank loan: ₹30–36 lakh
- Your down payment: ₹4–10 lakh
Interest Rate
Typical home loan interest rates in India are around:
- 8% – 10.5% per year (depends on bank and credit score)
Loan tenure:
- Up to 30 years repayment period.
Eligibility for Home Loan
To apply, you usually need:
- Age 21–65 years
- Indian citizen
- Stable income (salary or business)
- Good CIBIL credit score (650–750+)
Both salaried and self-employed people can apply.
Documents Required
Personal Documents
- Aadhaar Card
- PAN Card
- Passport size photo
- Address proof
Income Documents
For salaried:
- Last 3 salary slips
- 6 months bank statement
- Form 16 or ITR
For business owners:
- ITR for 2–3 years
- Business proof
- Bank statement
Property Documents
- Sale agreement
- Property papers
- Builder documents (for new property)
How to Apply for Home Loan
Step-by-Step Process
1️⃣ Choose a bank or housing finance company.
2️⃣ Fill the home loan application form (online or at branch).
3️⃣ Submit KYC and income documents.
4️⃣ Bank verifies your credit score and income.
5️⃣ Property documents are checked.
6️⃣ Loan is approved and amount is released to the seller or builder.
Government Support (Subsidy)
Under Pradhan Mantri Awas Yojana, eligible buyers may get interest subsidy up to ₹2.67 lakh on home loans for affordable housing.
✅ Example EMI
If you take:
- Loan: ₹20 lakh
- Interest: 9%
- Tenure: 20 years
Your EMI will be around ₹18,000 per month.
💡 Since you live in Delhi, property prices can be high, so many people choose longer tenure (20–30 years) to keep EMI lower.