Home Loan Frequently Asked Questions
1) What is a Home Loan?
A home loan is a type of a secured loan that is availed by a user from financial institutions to purchase a house. A house loan is repaid by paying regular equated monthly installments (EMI) which includes of a part of the principal taken as a loan and the interest accrued.
2) How do I apply for home loan?
You can apply for our housing loans through various options:
- Download the home loan application form from our website
- Submit the duly filled form to your nearest branch
- Pay home loan processing fee
- Get home loan approval
3) What is the maximum home loan that I can get?
Aditya Birla Housing Finance provides home loans starting at an interest of 8% p.a. It offers home loan tenure as long as 30 years and maximum loan can be up to 90% of property's cost.
4) Is there a lower limit on the housing loan amount I can apply for?
There is no minimum amount of housing loan. The minimum amount is subject to changes as per internal policies and guidelines of ABHFL.
5) Do I get tax benefits on housing loan?
As per sections 80C, 24(b) and 80EEA of the Income Tax Act, you are eligible to receive tax benefits on repayment of home loan principal and interest of your home Loan. Please consult your tax advisor for details.
6) What are the factors that determine home loan eligibility?
Given below are some of the crucial factors that determine your home loan eligibility:
- Income of all applicants.
- Age of the primary applicant
- Other income, existing EMIs
- Stability and continuity of the primary applicant's occupation
- Repayment Capacity
- Credit Score
7) Can I get approval for home loan without finalizing on my property?
Yes, based on your income eligibility, we can offer you PNI (Property Not Identified) Sanction Letter for your home loan. You can identify the property you need to buy based on this document. The final sanction of your home loan will be based on the assessment of the identified property. However, if the property is under construction, kindly speak to your assigned sales manager for acceptability.
8) What is the process of getting a home loan?
ABHFL’s home loan application procedure is simple. Given below is a guide to home loan application process-
Step 1: Home Loan Application
Step 2: Loan Document Submission
Step 3: Legal & Technical Verification
Step 4: Home Loan Approval
Step 5: Home Loan Sanction
Step 6: Home Loan Disbursement
9) What are the different types of Home Loans available in India?
The following types of home loans are provided in India by Housing Finance Institutions:
- 1. Home Construction Loan
- 2. Home Loan for Plot Purchase and Construction
- 3. Home Extension Loan
- 4. Home Renovation Loan
- 5. Construction Finance
- 6. Loan Against Property
10) What is the maximum tenure allowed for repayment of your home loan?
ABHFL offers home loan tenure as long as 30 years and maximum loan can be up to 90% of property's cost.
11) How long will it take to process my home loan application?
Housing loans are processed within 15 working days of completing the documentation as required by ABHFL.
12) Who can be a co-applicant to my house loan?
All the co-owners of the residential property can be co-applicants to the housing loan.
13) Can I prepay my outstanding home loan amount?
You may prepay your housing loan before your home loan tenure is completed. Please note that there may be some prepayment charges on home.
14) Do I need a home loan guarantor?
No. You don’t require a guarantor for your housing loan. You will need a home loan guarantor in specific situations given below:
- If the primary applicant has a weak financial position
- If the applicant wants to borrow a housing loan which is more than his eligibility
- If the applicant is earning less than the required minimum income
15) What do you mean by a home loan provisional certificate and how can I obtain one?
A home loan provisional certificate is your home loan account given by your lender. Home loan provisional statement is a summary of the principal amount and interest repaid by you towards your house loan for the given financial year.
16) Is taking home loan insurance from your lender compulsory?
Taking Home loan insurance is not compulsory. It is however suggested that you may take insurance to protect yourself against any unexpected circumstances.