What is Home Loan?
Those who want to take their home but they do not have enough capital to take that house, so they can fulfill their dream by taking a loan from any bank. For this, many banks also offer loans for their customers, but in lieu of lending to the person, the lender’s property is mortgaged by the bank, in the form of security, until the loan is repaid with interest.
This is done so that when the borrower fails to pay the debt or fails to repay it, so the bank can sell the mortgaged property and get the amount of money lent.
Types of Home Loan
Home loans can be of several types, some of which are as follows:
To buy a home.
Loan taken for home repair.
Loan for home extension.
To build a home.
Interest rate for home loan
The rate of interest of all the banks is different, some of which we have tried to give details of the table below, which is as follow:
|Name of Bank||Loan Amount||Year of loan payment||Interest Rate|
|State Bank of India||20 Lakh||15 Years||8.35%|
|Bank of Baroda||30 Lakh||20 Years||8.55%|
|Axis Bank||20 Lakh||15 Years||8.35%|
|Union Bank of India||20 Lakh||15 Years||8.75%|
|Bank of India||20 Lakh||15 Years||8.65%|
|Corporation Bank||20 Lakh to 30 Lakh||15 Years to 20 Years||8.85%|
|United Bank of India||20 Lakh to 30 Lakh||15 Years to 20 Years||8.80%|
Eligibility for taking home loan
Prior to the loan given by any bank, it is seen that the amount of money you are borrowing, whether you have the ability to repay it or not. Each bank can have a benchmark for eligibility for different loans.
• Financial Situation
The bank or any institution will give you loans based on your income and property details. You will need to give your pay slip and bank statements for this.
• The Age
Age of the loan must be minimum 18 years and maximum of 60.
• Credit history
The applicant’s good credit record is seen. With anything in default, the bank can refuse to lend.
• Employment Stability
If the borrower is salaried, then there is a record of salaries up to 2 years and if it is a self employed, then a record of income of 5 years is seen.