Home Loans

Home Loan Fundamentals

“Home is where the heart is”, a place that gives you emotional and spiritual warmth. Rising real estate prices have made buying a property a dream for many of us. A Home Loan is a way to get you closer to your ‘dream home’.

Types of Housing Loans

You can use it to build a house, buy a ready-made house/apartment (from the builder or second-hand property), residential plot, LAP, etc.

Housing Loan Interest Types

The loan interest rate normally depends on the amount of loan you want to use. This depends on the type and maturity of the loans. Banks will offer you the option of a Fixed rate or Variable interest rate.

Since the fixed interest rate does not change with market fluctuations, it allows repayment in fixed equal monthly installments (EMI) throughout the entire term of the loan. But essentially that’s not the case. All banks include a fixed interest rate reset clause in their housing loan contract documents, which clearly states that the bank may revise interest rates even during the term of the contract due to unforeseen changes in money market conditions.

Variable interest rate It refers to the interest rate that depends on the market and changes according to the economic situation of the country. A client may prepay a portion of a loan or repay the entire loan at any time during the term, depending on lenders’ norms.

Required documents


  • An application form duly signed by the applicant
  • proof of age
  • proof of identity
  • Address proof
  • Income documents
  • bank statements
  • Employment details
  • Evidence of educational qualifications (if applicable)
  • Property details (if finalized)
  • Transaction fee control

Processing fee

It is a non-refundable fee normally charged by all banks for each housing loan application. The same varies from bank to bank and is usually between 0.50% and 1% of the loan amount.

home loan eligibility

An individual’s income determines eligibility for the loan amount. However, banks have their own set of methods for estimating eligibility. Loan maturity and interest rate also play an important role in calculating the loan amount. A suitable employment, and repayment track record increases the likelihood of getting a mortgage. Customers can access their profile, income, turnover, refund history, builder profile, etc. depending on the degree of obtaining the best rates.

How much will the bank finance?

Banks often finance 80% to 90% of the market value as loans. The client must initially make the down payment (the difference between the actual property cost and the loan amount) on his own. Banks sometimes cover the registration cost and stamp duty as part of the home loan.


All leading banks such as ICICI, HDFC, and others cover the loan with insurance to protect the family from debt obligations in case of the unfortunate death of the borrower.

At Moneylaxmi we help you live your dream of owning the “home you own”. Here we have tied knots with ICICI, HDFC, Citibank, Standard Chartered, and Axis Bank to eliminate problems and assist clients in their most suitable Home Loan plans. Here we guide you with attractive interest rates, simple documentation, fast processing, and transparent information.


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