Home Loan

Complete Guide on How to get Home Loan in India


Whether or not to buy a home is one of the most important decisions a person can make. Because there are now affordable home loans, buying a home is possible. Home loans are a common way for people in India and around the world to get some of the money they need to buy a home, which requires a big investment. Before home loans are available, people must save for years and take out loans from unknown lenders when needed.

But many things have improved in the sector because consumer tastes have changed and laws have become stricter. You can now get a home loan at one of the lowest rates in the industry with a lot of openness and trust. But it’s important to know how home loans work in India before you apply for one so you can make the best choice.

What is a Home Loan?

A home loan is money that a person borrows from different banks or non-banking financial institutions (NBFI) to buy a piece of real estate.

Send the application 

This is the first step in getting a loan for a house. At this point, you have to send in the loan application and some basic information. At this step, you need to know the following:

  • Information about you, like your name, home address, phone number, etc.
  • Information about income, like annual income
  • Information for education
  • Information about business and jobs
  • Details about the property, like whether it is a home or a business.

How the property is currently being paid for, and how much is expected to cost.

At this point, lenders may want to know different things. Along with the information you provided as part of the application process, you must include supporting documents. Here are some of the documents that must be submitted: –

  • Proof of employment
  • Proof of education
  • Details about a house
  • Proof of identity
  • Proof of income
  • Age proof
  • Proof of address

Charges for Processing

After the loan application has been sent in, it is important to pay the processing fee. Again, the processing fee could differ from one lender to the next. Home loan processing fees are usually between 0.25 and 1% of the loan amount.

The processing fee is the amount the lender takes out of the borrower’s account to keep the loan account open. You could also add the agent’s commission to this amount. The processing fee is always something that can be talked about with the lender.

Even if banks and NBFCs have a set formula for figuring out the processing fee, there is no point in asking them to lower it.

Discuss with the lender

At this point, the bank has reviewed the paperwork and has had a formal conversation with the borrower. Usually, it only takes 1-2 days of work if the paperwork is sent correctly.

Some lenders require you to go to the branch to discuss the loan, the terms, and other details. Some lenders feel more comfortable asking these questions in person or learning more about the application.

Wait for the documents verification

It’s important to know that many people apply for home loans daily. To speed up the application process, it is important to submit paperwork in the right order. At this point, the lender checks the information the applicant gave.

Most of the time, the lender checks the following documents:

  • Information about jobs
  • Employer qualifications
  • The employer’s address.

Get acceptance

This is the most important step in the process of getting a mortgage. It is when the lender decides whether or not to give you the loan you asked for. This is called the application for a loan to be approved or sanctioned. Before giving the loan, the lender carefully looks at the following parts of the application:

  • Age and qualifications of the applicant
  • Details about the job or business of the applicant
  • Information about the person
  • How much money the applicant earns
  • The ability to pay back the loan at the interest rate set by the lender.

The lender confirms the most it can lend based on an analysis of the application that uses the earlier criteria. In some cases, the lender will set conditions the applicant must meet before the loan can be paid out.

Get the letter of the sanction

After looking at the paperwork that backs up the application, the lender is supposed to send a “sanction letter.”

In a certified offer letter, the lender usually tells you the following:

  • The most money a lender will let you borrow.
  • The interest rate is used to figure out how much of a loan to give
  • Interest rates can be fixed, or they can change.
  • The duration of the loan’s availability.
  • EMI is a monthly payment from the borrower to the lender.

Finish the loan contract.

The contract is finally registered when all the technical tests are done, and the lender is happy with the property on which the loan is being given.

The lender’s lawyer must finish the paperwork and stamp it correctly.

Sign agreements

Both sides need to sign the papers now that everything is in order. Most of the time, the paperwork is signed first by the lender at the stage before. When the candidate signs and applies, they must include checks for the period that both parties have agreed on.

After this step, the original documents for the property are sent to the lender. This is done after the loan agreement is made to protect the lender.


The first step in getting a home loan is looking for the best banks or financial institutions. Also, you need to know a lot about the different terms to compare different institutions to find the best home loan programmes. You can stay on the right track if you know what’s coming up, like home loan interest rates, types of interest rates, processing fees, how to figure out interest rates, loan duration, and EMIs. To buy a house successfully, you need to know how to apply for a home loan and have a strong plan for paying it back. If you want more information, you should go directly to Piramal finance.