Home Loan Calculator

While the minimum down payment is typically 10-20% of property value, paying 20-25% is ideal. Higher down payment reduces your loan burden, lowers EMI, improves loan approval chances, and may fetch better interest rates. It also reduces the total interest paid over the loan tenure.

To secure the best rates: maintain a credit score above 750, opt for a shorter tenure if affordable, make a higher down payment (25%+), compare offers from multiple lenders, apply during festive season offers, consider floating rates over fixed rates, and leverage your relationship with existing banks for preferential rates.

Required documents include: identity proof (Aadhaar/PAN card), address proof, income proof (salary slips/ITR), bank statements (6 months), property documents (sale agreement, title deed, building plan), latest property tax receipts, NOC from builder/society, and photos of the property. Self-employed individuals need additional business documents.

General eligibility: Age 21-65 years (at loan maturity), minimum income ₹3-4 lakhs per annum (varies by location), stable employment of 2+ years for salaried, 3+ years business vintage for self-employed, credit score above 650 (preferably 750+), and debt-to-income ratio below 50%.

Home loan tax benefits include: Up to ₹1.5 lakhs deduction on principal repayment under Section 80C, up to ₹2 lakhs deduction on interest payment under Section 24(b), additional ₹1.5 lakhs on interest for first-time homebuyers under Section 80EEA (for properties up to ₹45 lakhs). Total annual tax savings can be up to ₹5 lakhs.

Yes, prepayment is allowed and recommended when you have surplus funds. For floating rate loans, there are no prepayment charges. Fixed rate loans may have prepayment penalties of 2-3%. Even small additional payments towards principal can significantly reduce total interest and loan tenure.

Common charges include: processing fee (0.25-1% of loan amount), legal and technical valuation charges (₹3,000-10,000), stamp duty and registration (5-7% of property value, varies by state), prepayment charges (for fixed rate loans), conversion charges (floating to fixed or vice versa), and late payment penalties.

Floating rates are generally 1-2.5% lower than fixed rates and beneficial when interest rates are expected to fall or remain stable. Fixed rates provide EMI certainty and are good when rates are expected to rise. Most borrowers choose floating rates to benefit from potential rate cuts. You can also opt for a fixed rate for initial years and then switch to floating.

Loan amount typically depends on your income and existing obligations. Banks use the multiplier method (loan = 60 times monthly income) or FOIR method (EMI shouldn't exceed 50-60% of monthly income). For example, with ₹50,000 monthly income, you may get a loan of ₹30 lakhs (60x) or higher depending on your repayment capacity and other factors.

Home Loan is taken to purchase property, offers lower rates (8-9.5%), higher LTV (up to 90%), longer tenure (up to 30 years), and tax benefits. Loan Against Property (LAP) is taken using existing property as collateral for any purpose, has higher rates (9-13%), lower LTV (50-70%), shorter tenure (up to 15 years), and no tax benefits unless used for property purchase.

Defaulting leads to: late payment charges (2% per month), negative impact on credit score, property auction/attachment proceedings after 3-4 missed EMIs, recovery agent visits, and difficulty securing future loans. If facing financial difficulty, immediately contact your lender to discuss restructuring, moratorium, or tenure extension options.

Home loan insurance (term insurance covering loan amount) is advisable to protect your family from the loan burden in case of your untimely demise. However, buying separate term insurance is often cheaper than bank-offered loan protection plans. Compare costs and coverage before deciding. Some banks make it mandatory, while others offer it optionally.