Delhi, popularly known as the “heart” (Dil in Hindi) of India, comprises the world’s second-highest urban population. Known for its old monuments, delicious food, and government buildings, the capital city is also the political centre of the country. Delhi is a place that offers great career opportunities, extravagant lifestyle, and quality of life. With the rise in the real estate sector, people working successfully buy new homes and settle in New Delhi.
Buying a dream home comes with the worry of arrangement of funds. Home loan from banks is the best way to seek funds to make your dream come true and buy a spacious flat in the capital city. A home loan in Delhi is a simple retail asset product offered by banks at varied interest rates. It is a loan provided to an individual for purchasing a flat/house or construction of a property or renovation of your existing home.
House loan in Delhi for buyers at Attractive Interest Rates
Home Loan is offered to individuals seeking to buy a house in Delhi after submitting their income statements and property papers to meet the eligibility criteria. According to the individual’s monthly income, profession, credit score, savings, the value of the property, etc., the amount of loan is determined and sanctioned. The eligibility criteria are quite similar across different banks and financial institutions. A home loan can be applied along with your spouse or a family member as a co-applicant who shares the burden of equated monthly instalment (EMI).
Terms to be aware of in Home Loan in Delhi
Before applying for a home loan, an individual must understand the meaning of the Margin. As per the rules of Reserve Bank of India, a financial institution or bank can only sanction home loans for 70-80 % of the house value. The remaining amount has to be arranged by the applicant.
The financial institution also charges Processing Fees to run the process of home loan that ranges from 0.30%-1.00% of the loan amount or a stated amount, whichever is higher. The processing fees include the administrative or operational charges for loan sanctioning and disbursement.
Part-payment is another term that borrowers need to be aware of. Once the loan is disbursed, if an individual intends to clear a certain portion of the home loan amount, he or she can make the part-payment without paying any charges. Apart from processing fees, the loan applicant need not pay any hidden charges.
Flexible home loan rates
Home loans are offered by banks and financial institutions at varied interest rates.
- State Bank of Indiaoffers at 8.20 % -11.60% p.a.,
- ICICI Bankat 8.65% – 9.40% p.a.,
- HDFC Bankat 8.25% – 9.60% p.a., and
- Bank of Barodaat 9.15% p.a. onwards.
Benefits of home loan
Home loan insurance – Apart from funds to buy a home, an individual can avail insurance benefits with additional payment. With a home loan, you can buy insurance on home loan instalments. This way your home loan instalments get insured, and, if in case an unfortunate incident takes place, the instalments would be paid by the insurer.
Tax benefits – A home loan payment up to INR 1.50 lakh is counted as a deduction under section 80(C) of the Income Tax Act.