I’m planning to buy a house soon but not very sure how home loans actually work in India. What’s the full process and what should I know before applying?
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It is easy to get home loan, just follow these steps-
1.) Firstly, you have to apply for home loan with bank by submitting documents like your ID proof, income proof, property details, and bank statements.
2.) Then bank checks your income, credit score (CIBIL), existing EMIs, and age to decide how much loan they can offer you.
3.) Once you’re eligible, the bank verifies the property’s documents and also checks its market value.
4.) If everything is okay, they sanction the loan and give you an official loan offer with terms like amount, interest rate, and EMI.
5.) After you sign the agreement, the bank disburses the loan amount. It can go directly to the seller or builder, depending on the situation.
6.) You repay the loan in monthly EMIs (Equated Monthly Instalments) over a period of 10 to 30 years. The EMI includes both principal and interest.
7.) You can choose between a fixed interest rate (same EMI) or floating interest rate (EMI may change based on market rates).