At Today Finserv Consulting India, we believe every Indian deserves to own their dream home. A home loan makes this possible by providing the financial support you need to purchase property without exhausting your life savings.
Understanding Home Loans: The Basics
What Exactly is a Home Loan?
A home loan is a long-term secured loan offered by banks and financial institutions to:
✔ Purchase a new or pre-owned residential property
✔ Construct a house on owned land
✔ Renovate or extend an existing home
✔ Buy a plot for construction (with some lenders)
The property serves as collateral until you repay the loan in full.
Key Features of Home Loans in India
Why Home Loans Are Special
| Feature | Description |
|---|---|
| Loan Amount | Up to 90% of property value |
| Tenure | 5-30 years (longest among loans) |
| Interest Rates | Competitive (starting from 8.25% p.a.) |
| Tax Benefits | Up to ₹3.5 lakh savings annually |
| Prepayment | Allowed (conditions apply) |
How Home Loans Work: The Process
Step-by-Step Journey
- Application: Submit documents and application form
- Processing: Bank verifies eligibility and property
- Sanction: Loan amount approved
- Disbursement: Funds released to seller/contractor
- Repayment: EMIs begin after full disbursement
5 Essential FAQs About Home Loans
1. What’s the minimum salary for home loan eligibility?
Most banks require ₹25,000+ monthly income (₹3L+ annual) for salaried individuals.
2. How is EMI calculated?
EMI = [P x R x (1+R)^N]/[(1+R)^N-1]
Where P=Principal, R=Monthly Interest Rate, N=Tenure in months
3. Can I get a home loan with low CIBIL score?
Possible but difficult. Ideal score is 750+. Below 650 may face rejections.
4. What’s the difference between fixed and floating rates?
Fixed rates stay constant while floating rates change with market conditions.
5. How long does approval take?
Typically 7-15 working days after document submission.
Smart Home Loan Tips from Experts
Do’s and Don’ts
✅ Do compare at least 3 lenders before deciding
✅ Do maintain stable employment before applying
✅ Do check all charges (processing, legal, etc.)
❌ Don’t max out your eligibility (keep EMI <40% income)
❌ Don’t ignore prepayment clauses
Why Choose Today Finserv for Your Home Loan?
We help you:
✔ Get lowest interest rates
✔ Maximize tax benefits
✔ Complete hassle-free processing
✔ Enjoy personalized repayment plans
Ready to take the first step towards homeownership? Contact us today!
