How To Get Home Loans In India
Finding a “piece of paradise” is easy when you know how to get home loans in India. You may be looking for a change in lifestyle. Or maybe you just want to buy a new house or piece of property. Whether you are a resident of India or a Non Resident Indian (NRI), there are several ways to get home loans in India.
Loan Type. What is the first step to getting a loan in India? Determine the type of loan you are seeking. A variety of housing loans exist in India, including:
Home purchase loan, Home construction loan, Home extension loan, Home improvement loan, and Land purchase loan.
- Loan Amount. For what amount can you receive a loan in India? The amount for which you can qualify depends on a variety of factors, including the cost of the property, your credit history, and your ability to repay the loan. “Guide 2 HomeLoan” says that a bank may provide up to 85 percent of the cost of property or construction. For land purchases, India banks may provide a maximum of 75 percent of the cost.
- Loan Interest Rates. As for interest rates in India, many banks and finance companies have their own sets of financing. According to “Guide 2 HomeLoan,” an online source for loan providers in India, Bank of India offers the best fixed-loan deals for a loan period up to twenty years. Punjab National Bank offers the best interest rates if your loan period is six to ten years.
- Loan Application. Are you ready to buy your “piece of paradise” in India? To get a home loan, Indian residents an non-residents alike must follow these five simple steps.
- Submit an application. The application process is the first step to getting a home loan in India. Submit an application form to a bank or finance company, and include the relevant documents requested by the financial institution.
- Wait for verification. The next step in the home loan process is verification of the property and any supporting documents. This can take between five and seven working days, so verification requires a short wait on your part.
- Wait for sanctioning. After the property and supporting documents are verified, the loan must be sanctioned, or authorized. This usually occurs on the seventh working day after the bank or finance company receives the loan application.
- Sign the agreement. After the bank or finance company approves your loan, you will sign the loan agreement. This usually occurs between eight to ten working days from the application submission date. Original property documents are submitted during closing.
- Receive the loan cheque. If you are approved for a home loan in India, you will receive a loan cheque after you sign the loan agreement. This usually occurs ten to fifteen days after you submit your loan application to a bank or finance company.