Buying a new house is a dream for many people. Home Loans play a vital in making their dream come true. It is an amount that borrowed by the customer from the banks or other financial companies and the buying property is given as security. The property can either be commercial or residential one.


  • EMI

Most of the Banks and financial institutions ensure that loan EMIs should not exceed 50 percent of customers’ gross salary. For example if your monthly take home salary is Rs one lakh then the EMI amount should not be more than Rs 50,000.


The customers have to pay 15 to 20 percent of the property as own contribution for availing home loan and it paid as down payment.


Credit score play a major role in availing Home Loans and the highest credit score indicates that the customer can easily repay the home loan without any default. 

Credit bureaus assign credit scores in the range of 300 to 900 points. Most of the banks and financial companies expect the score range above 700 points. The score 700 points and above are considered to be fairly good and above 750 points are considered to be excellent.


Salaried customers in the age group of 23 to 62 years and the Self-employed applicants in the age group of 25 to 70 years are eligible to apply for the loan. The minimum monthly income required is Rs. 25,000.


The customer has to submit the original property documents such as Sale Deeds, No Objection Certificates of authorities and other ownership papers to the bank or financial companies where they are availing loan. These documents are used for legal verifications to find out whether the property has clear title and ownership. These ownership documents remain with them in till the repayment of the loan.


There is also a process of technical evaluation of the property so as to confirm that there is no deviation from the approved plan of the projects. Most of the banks and the financial companies have the list of approved projects.

Hope this would be helpful for the customers to plan financially and the make them self preparation before applying for home loan and reduce the chance of application rejection.



5 thoughts on “HOME LOANS – AN OUTLOOK

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