Popularly known as the ‘City of dreams’, Mumbai is a cosmopolitan city and also the capital of Maharashtra. With respect to population, Mumbai is the largest city of our country. It is also India’s commercial capital and the most important port city of the nation. Apart from the Bombay Stock Exchange, and the hugely popular Bollywood film industry, a large number of corporations also have their base in Mumbai. The city also contributes to around 6% of India’s Gross Domestic Product. Mumbai accounts for 25% of India’s Industrial output.
Why Home Loan?
It’s no surprise that the city attracts a large number of working professionals from all across the country for work. Don’t you desire to build your dream house in a city filled with promising opportunities? The same can be fulfilled by getting a house loan in Mumbai either from a popular bank or other well-known financial institutions. Home loan is nothing but the amount you borrow from a financial institution to buy a new home. The received amount can also be used to buy a new land, constructing a new house, home renovation, etc. You need to figure out what your preference is before applying for a loan.
Interest rates along with Tenure for House Loan in Mumbai
You can avail a home loan in Mumbai, once you meet the eligibility criteria of various financial institutions. In Mumbai, the processing fees charged by the institutions to process your loan is typically around 0-1.25% of the loan amount. Several banks offer home loans in Mumbai with an interest rate of 8.4-9.50% respectively with a maximum tenure of 1-30 years.
A few popular banks offering home loans are HDFC, IDBI, Bank of Maharashtra, ICICI Bank, LIC Housing Finance, and SBI.
- HDFC: has a processing fee of 5% with a tenure range of 1-30 years and an interest rate of 6.95-7.85%.
- Bank of Maharashtra: does not charge any processing fees but offers an interest rate of 70-8.80%.
- SBI: offers an floating interest of 3-8.65% and a processing fee of 2,000 to 10,000 INR.
The Eligibility criteria for applying for a Home Loan in Mumbai
The eligibility criteria is more or less similar across all the financial institutions. In case of a salaried individual, the minimum age for applying for a housing loan in Mumbai must not be less than 21 years. The maximum age for the same is 58 years.
In case of a self-employed individual, the minimum age for applying for a home loan must not be less than 24 years and the maximum age for the same is 65 years. It is also essential to note that the annual income of a salaried as well as a self-employed individual applying for a home loan must be ₹1,80,000 and ₹1,80,000-3,00,000, respectively.
The salaried individual applying for a home loan must have a minimum work experience of at least 2 years and should have worked with the current employer for at least 1 year. In case of a self-employed individual, he/she must be in the business for a span of 3 years.
Check out the comparison table on Apnapaisa listing all the banks and financial institutions offering home loan in Mumbai to compare the interest rates and tenure.