Check your eligibility
What These Loans Fund
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Purchase of a ready or under-const...
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Registration and stamp duty
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Cost of a parking space
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Payment to the builder in construc...
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Purchase from a resale seller agai...
Who Can Consider This Loan?
- Indian resident or NRI, generally aged 21 to 65 at loan maturity
- Salaried: stable employment, commonly two years total with one year current
- Self-employed: three years of business vintage with filed returns
- Property with clear, marketable title and approved plans
- Credit score materially affects both approval and the rate offered
- Total EMI obligations usually capped at 50 to 60% of net income
What May Not Be Funded?
- Down payment — the margin you contribute, typically 10 to 25 per cent
- Processing, legal, technical and documentation charges
- Interiors, furnishing and fit-out
- Brokerage and society transfer charges
- Property maintenance and society outgoings
Always check the sanction letter before you commit.
Why Choose Wealth & Covers?
- Expert advice to choose the right plan
- Plans from leading loans companies
- Hassle-free process and documentation
- End-to-end support, including claim assistance
- Dedicated relationship manager
- Expert Guidance Personalised advice from experienced loans professionals.
- End-to-End Support From choosing the right plan to claim assistance, we are with you always.
- Claims Assistance Hassle-free claim support to ensure you get what you deserve.
- Transparent Process Clear information, easy documentation and a hassle-free experience.
Overview
A home loan is secured against the property, runs for up to thirty years, and is priced below every other form of retail borrowing. It also carries tax relief on both principal and interest, which reduces the effective cost further for borrowers under the old regime.
Because the term is so long, small differences compound into large ones. Half a percentage point on a fifty lakh loan over twenty years is several lakh rupees. A processing fee waived is worth less than a better rate, and both are worth less than a disciplined prepayment habit.
Prepayment is the lever most borrowers underuse. In the early years almost all of your EMI is interest, so a prepayment made in year three removes far more total interest than the same amount in year twelve. One extra EMI a year can shorten a twenty-year loan by several years.
Who should consider it
Anyone buying a home who would rather borrow at eight or nine per cent than liquidate investments earning more. Buyers under the old tax regime, where the interest deduction is substantial.
It is worth pausing where the EMI would exceed roughly forty per cent of take-home income. Lenders will sanction more; the number that matters is what leaves you able to save, not what a lender is willing to approve.
Benefits
- The lowest interest rate available on any retail borrowing
- Tenure up to thirty years, which keeps the EMI manageable
- Section 80C on principal and Section 24(b) on interest, under the old regime
- No prepayment penalty on floating-rate loans to individuals
- Balance transfer available if rates move against you
- Top-up borrowing later at home loan rates rather than personal loan rates
What the loan funds, and what it does not
Read the right-hand column first. It is the one that decides how much you have to arrange yourself.
Usually funded
- Purchase of a ready or under-construction property
- Registration and stamp duty, at some lenders and within limits
- Cost of a parking space, where part of the sale agreement
- Payment to the builder in construction-linked stages
- Purchase from a resale seller against the sale deed
Usually not funded
- Down payment — the margin you contribute, typically 10 to 25 per cent
- Processing, legal, technical and documentation charges
- Interiors, furnishing and fit-out
- Brokerage and society transfer charges
- Property maintenance and society outgoings
- Any amount above the lender's valuation of the property
Funding limits and the treatment of add-ons vary between lenders and move with the borrower profile. The sanction letter you receive is what governs — we will walk you through it before you sign.
How it works with us
- 1 Eligibility assessed before any application goes out Income, existing EMIs, credit profile and the property itself. Scattering applications across lenders damages your credit file for no benefit.
- 2 Compared on total cost across the full term Rate, processing fee, insurance bundling and prepayment terms together. Over twenty years, half a percentage point is a very large number.
- 3 Legal and technical due diligence Title search and valuation. This is also the stage that protects you, not just the lender — a title problem found now is a problem avoided.
- 4 Sanction, and reading it properly The sanction letter states the rate basis, reset frequency and every charge. We go through it with you before you sign.
- 5 Disbursal, and a plan for prepayment Funds released against the agreement or construction stage. We set out how prepayment would work, because it is the single biggest lever you hold.
Important considerations
The things a brochure tends to leave out. Read these before you decide.
- Compare the total interest across the full term, not the EMI. A longer tenure always looks more affordable monthly and costs dramatically more overall.
- Prepay early. Interest is front-loaded, so a prepayment in year three removes far more total interest than the same amount in year twelve.
- Check the reset frequency and the benchmark. A loan that resets quarterly against an external benchmark behaves very differently from one that resets annually.
- Loan protection insurance is frequently bundled and rarely the best value. You are entitled to buy term cover separately, and it is usually cheaper and better.
- Do not stretch to the maximum sanction. The EMI a lender will approve and the EMI that leaves you able to save are different numbers.
Documents required
- Identity proof — Aadhaar, PAN or passport
- Address proof
- Salaried: last three months of salary slips, Form 16 and appointment letter
- Self-employed: last three years of income tax returns with computation and financials
- Bank statements for the last six to twelve months
- Property documents — sale agreement, title deed, approved plan
- Property tax receipts and encumbrance certificate
- Existing loan statements, where you are servicing other EMIs
Frequently Asked Questions
Should I take the longest tenure available?
Only if you need to. A longer tenure reduces the EMI and increases total interest substantially — sometimes by more than the original loan amount. A useful approach is to take the longer tenure for safety and then prepay aggressively, which gives you flexibility without the cost.
How much does prepaying early actually save?
A great deal, because interest is front-loaded. In the first years most of your EMI is interest, so a prepayment then removes years of future interest. One extra EMI a year can shorten a twenty-year loan by three to four years.
Is a fixed or floating rate better?
Floating, for almost all borrowers. Fixed-rate home loans in India are usually fixed only for an initial period, are priced above floating, and can carry prepayment penalties that floating loans cannot. The rate certainty is rarely worth what it costs.
Do I have to buy insurance from the lender?
No. Loan protection cover is frequently bundled into the disbursal and is rarely competitive. You are entitled to buy a term plan separately for the loan amount, and doing so is usually cheaper and gives better cover.
What tax benefit do I actually get?
Under the old regime, principal repayment counts within the Section 80C limit and interest is deductible under Section 24(b), subject to the applicable ceiling for a self-occupied property. Under the new regime these are not available, so run our income tax calculator before assuming the benefit applies to you.
Want a shortlist instead of a catalogue?
Tell us the situation and an advisor comes back with two or three options that actually fit — and names what each one gives up.