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Avail home loans at banks and NBFCs in Ludhiana for transparent processing and personalized services. Pay EMIs as per your repayment capabilities. Simpler documentation and ability to save on interest. Check deals and offers exclusively on CreditMantri!
Ludhiana is one of the largest cities in the state of Punjab. It is the 28th largest urban city in the country and has also been named in the list of cities to be developed under the smart city model. The increase in industrialization in the city has also provided a much-needed boost to the real estate in the city. With new projects being developed in the city, the need for home loans has also increased.
Home loans are long term loans provided by lenders to eligible borrowers for the purchase or construction of a house or apartment or a plot of land on which they want to construct a house. Home loans have among the lowest rate of interest in the personal loan segment. However, since the amount of loan and the tenure of the loan is on the higher side, the eligibility criteria and the verification for the same is quite stringent to protect the interest of the lender.
Given below are key details about home loans in Ludhiana.
Home loans can be sanctioned by private or public sector banks as well as eligible NBFCs. Since it is a competitive market, the interest rate on home loans is quite lower in recent years. Also, to boost the real estate sector post the pandemic, the interest rate and the eligibility parameters are relaxed by few lenders.
The top lenders for home loans in Ludhiana are,
Kotak Mahindra Bank
6.60% - 7.20%
6.75% - 7.65%
Bank of Baroda
6.75% - 8.25%
6.80% - 7.15%
Bank of India
6.85% - 8.30%
6.90% - 8.55%
LIC Housing Finance
6.90% - 7.90%
Union Bank of India
6.70% - 7.10%
7.15% - 7.55%
7.35% - 9.55%
Home loans come with a host of features to ease the burden of the borrower and to help them in realizing their dream of owning a home.
Some of the key features of home loans are mentioned below.
High loan amount
Most lenders provide anywhere between 70% to 90% of the cost of the property as a loan. The balance amount has to be furnished by the borrower as margin money. The high loan amount makes it possible for the borrowers to get new homes easily.
Reduced interest rates
The rate of interest on home loans is lower than other retails loans like personal loans, vehicle loans, etc. If the credit score of the person is good usually above 750, they are eligible got get the lowest rate of interest for their home loan to provide they meet other eligibility criteria.
Long term repayment tenure
The repayment tenure for home loans is long term, usually in the range of 20 years to 30 years. This long duration allows the borrower to manage the EMI payments at a better pace as compared to short term loans.
Lower processing charges
The processing charges on home loans like any other loans are charged as a percentage of the loan amount (subject to minimum and maximum chargeable amount as per lender’s guidelines). These are nominal charges (usually between 0-2% of the loan amount) and include various charges like documentation charges, verification charges, etc.
Option of part payment and prepayment
Many lenders allow part payment and prepayment of loans prior to the completion of the tenure of the loan. This prepayment and part payment of the home loan is subject to certain underlying conditions of the lender and also a penalty is charged for such part payment and prepayment of home loan.
The documentation for home loan by most lenders is pretty basic KYC documents. This documentation process further requires fewer documents if the borrower is an existing customer of the bank having a savings account or a current account or a fixed deposit.
Benefit for existing customers or women borrowers
Banks and NBFCs provide the benefit of lower interest rate for women and senior citizen borrowers. The rate of interest is usually approximately 1% lower than the standards interest rate.
Joint home loan applicationLenders allow the applicants to make a joint application for home loan with any of their family member. Eligible family members include spouse, children and parents if the primary borrower.
Eligibility criteria for a home loan depends on every lender’s guidelines regarding the same. These eligibility parameters have to be met in totality to qualify for the home loan of the lender. Some of the basic eligibility requirements of the lender are tabled below.
Minimum 18 years
Maximum 75 years
Minimum Rs. 25,000 per month
Salaried or self-employed
Resident Indian or NRI
The list of documents needed for home loans in Ludhiana are basic KYC documents and are mentioned below.
1. What is the prepayment of a home loan?
A. Prepayment of home loan is the foreclosure of home loan before the completion of tenure. Such foreclosure is allowed only after the completion of a minimum period of 6 months from the date of sanction of loan. Borrowers have to pay a penalty for such foreclosure and the rate of penalty is based on the period when such foreclosure is made.
2. How long does it take for home loan to be processed in Ludhiana?
A. Most lenders take approximately 7 days to a maximum of 30 days for the home loan to be processed and the amount of loan to be credited to the account of the borrower.
3. Can a person claim deduction under section 80C for paying home loan EMI?
A. Yes. Home loan EMI (principal portion) is eligible for deduction under section 80C of Income Tax Act, 1961 for a maximum amount of Rs. 1,50,000.
4. Is there an affordable government scheme in the nature of home loans?
A. Yes. Pradhan Mantri Awas Yojana provides resources for affordable homes and this scheme is available with all the public sector banks select private sector banks too.
5. Is a home loan available at a floating rate or fixed rate of interest?
A. Lenders provide home loans with floating rate or fixed rate of interest depending on their guidelines.
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