Everyone dreams that they have their own home, but due to rising property prices, it is not easy to fulfill this dream. In such Home loan A great option comes out, so that you can buy or build your dream house. In today’s time, almost every bank and Housing Finance Company (HFC) in India offers home loans, which has made it much easier than before.
Taking a home loan in 2025 has become faster, easy and digital than before. Now you Can apply online, uploading documents Can and can also get loan approval within a few days. It is important to know the complete information of eligibility, interest rates, necessary documents and process for home loan so that you can take the right decisions and there is no problem in the loan process.
Home loan new update
Home loan There is a loan that is given by a bank or finance company for buying, making, expanding or repairing a house. In this, the property purchased by the bank mortgage the bank and the loan amount has to be paid as EMI in the fixed time (usually 10 to 30 years). Interest rates on home loans are fixed according to different banks and your credit profiles. In 2025, home loan interest rates can start from 8% to 12% or more.
Home loan
| point | Description |
|---|---|
| Loan purpose | Buying, building, expanding, repair |
| Loan amount | ₹ 2 lakh to ₹ 10 crore (dependent on bank/profile) |
| Interest Rate (2024) | 8% to 12% (as per bank and credit score) |
| Loan period | From 10 years to 30 years |
| Essential documents | Identification proof, income proof, address proof, property documents |
| Eligibility | Income, credit score, job/business, age, property value |
| Processing fees | 0.25% to 1% loan amount (according to bank) |
| Prepament charges | Nil, usually at floating rate, may have some fees on fixed |
| tax benefit | Tax exemption under section 80C, 24 (b) |
| Subsidized option | Schemes like Pradhan Mantri Awas Yojana (PMAY) |
How to take a home loan?
1. Decide the need for loan and amount
- First of all decide how much amount you need.
- Calculate EMI keeping your income, expenditure and existing loan in mind.
- Use EMI calculator online.
2. Compare banks
- Compare different banks and HFC interest rates, processing fees, prepament charges etc.
- There are many options available in 2024 like SBI, HDFC, ICICI, Axis, PNB, Bajaj Housing Finance.
3. Check eligibility
- Usually 21 to 65 years of age, stable income, good credit score (730+), and permanent job/business are necessary.
- The bank will check your income, job stability, existing loan, credit score etc.
4. Prepare documents
- Identification proof (Aadhaar, PAN, Passport)
- Address proof (base, electricity bill, passport)
- Income proof (Salary Slip, IT Return, Bank Statement)
- Property Documents (Agreement, Registry, NOC etc.)
5. Apply
- Fill the application form online or go to the bank branch.
- Attach all the necessary documents.
- Submit processing fees.
6. Credit Appraisal & Verification
- The bank will check your documents, income, credit score, job/business.
- The bank agent may come to your home or office for field verification.
7. Property Verification and Legal Investigation
- The bank will check the property documents and title.
- The valuation and legal status of the property are confirmed.
8. Loan Section and Agreement
- After all the investigation is completed, the bank will give a loan collection letter.
- It contains loan amount, interest rate, EMI, terms and conditions etc.
- Sign the agreement and submit security/processing fees.
9. Loan dysbersal
- The loan amount is transferred directly to your or builder/seller account.
- The amount for the property under construction is found in installments.
Home loan interest rates in 2025
| Bank/institute | Interest Rate (2024) |
|---|---|
| SBI | 8.00% – 9.15% |
| HDFC | Starts at 8.50% |
| ICICI | Starts at 8.75% |
| Axis bank | 8.75% – 12.80% |
| Permission | 8.05% – 9.85% |
| Bajaj Housing Finance | 7.99% – 17.00% |
| Kotak mahindra | Starting at 8.65% |
| Bank of Baroda | 8.00% – 10.90% |
| IDFC First Bank | Starts at 8.85% |
| License housing | Starts at 8.00% |
Note: Interest rates vary from time to time, so confirm the bank’s website or branch before the application.
Documents required for home loan
Application Form:
- Duly filled and signed
Identification proof:
- Aadhar card
- PAN card
- Passport
- Voter ID
- Driving license
Address proof:
- Aadhar card
- Passport
- Electricity/Water/Gas Bill
- Bank passbook
I am a great proof:
- Salary Slip (last 3-6 months)
- Form 16 or IT Return (last 2-3 years)
- Bank statement (last 6 months)
- IT returns, balance sheet, GST return for business
Property documents:
- Agreement to sale
- Property title deed
- No objection certificate
- Builder demand letter
- Property tax receipt
Other:
- Passport Size Photo
- Guarantor documents (if asked)
Note: According to the bank, the list of documents may be more or less.
Complete process of taking home loan
- Fill home loan application form
– Apply online or offline. - Submit documents
– submit the application with all the necessary documents. - Credit appraisal
– The bank checks your income, credit score, job/business. - Property Verification and Legal Investigation
– Property documents, titles, valuations are examined. - Loan Sanctuary
– The bank approves the loan and releases the second letter. - Agreement and security fees
– Sign loan agreement, submit security fees. - Loan dysbersal
– The loan amount is transferred.
Home loan eligibility
- Applicant Income (salary or business)
- Credit score (730+ is considered good)
- Stability of job or business (at least 2-3 years experience)
- Age (21 to 65 years)
- Property value and location
- Current Lone or EMI
Tip: Keep the credit score good, read the conditions of the bank carefully, and keep EMI according to your income.
Home loan subsidy and tax benefits
- Pradhan Mantri Awas Yojana (PMAY) Under this, interest subsidy is available on home loans, which reduces EMI.
- Section 80C Tax exemption up to ₹ 1.5 lakh on the principal of home loan under.
- Section 24 (b) Tax exemption up to ₹ 2 lakh annually on interest under interest.
Benefits of home loan
- The dream of buying your house is fulfilled.
- There is a tax exemption.
- Interest rates lower than other loans.
- Long term and short EMI options.
- Benefits of investment on increasing valuation of property.
Loss of home loan
- Long period of EMI burden.
- Interest rates may increase (floating rate).
- Property is pledged.
- Credit score may deteriorate if EMI is not given on time.
Fautable things when taking a home loan
- Understand interest rates and charges well.
- Learn the loan term, EMI and prepament policy.
- Documents submit the whole and correct.
- Take information about tax benefits and subsidy.
- Choose EMI according to your income.
Frequently asked questions (FAQ)
Q1. How much is the minimum credit score for home loan?
Usually 730 or more credit scores are considered better.
Q2. Does home loans get tax exemption?
Yes, tax exemption is received under section 80C and 24 (b).
Q3. Can a home loan be prepared?
Yes, there is usually no prepament charge on floating rate loan.
Q4. What is the maximum duration of home loan?
Usually a period of up to 30 years is available.
Q5. Can both salary and self-elids take home loans?
Yes, both require different documents.
Disclaimer: This article is written only for the purpose of giving information. Home loan one Real and valid There is a financial product, which almost all banks and housing finance companies in India offer. Before taking the loan, evaluate all terms and conditions, interest rates, charges and your repayment ability. Loan is a financial responsibility, so take carefully and according to the need. Interest rates and conditions can be changed from time to time, so before application, confirm the concerned bank or institution.
