Home Loans in India

Home Loans in India Housing loan is the finance taken for buying/modifying a real estate property. Home Loans, Home extension loans, home improvement loans, NRI loans and home equity loans fall under the category of housing loans.
Any Resident or Non-resident individual who is planning to buy a house in India can apply for a Home loan. If you have decided to buy a property in the near future you can even apply for a loan before you select your property. Once you decide the maximum amount that you can put into the property, all Housing Finance Institutions let you know how much you are eligible for and this helps you plan out your budget.
Every Home Loan customer is eligible for tax benefits under sections 88 and 24 of the Income Tax Act. Allowable deduction of interest paid during the year: As per the budget of financial year 2001 - 02, every customer can claim a deduction on interest amount of a maximum of Rs. 150000/- or the actual interest paid (whichever is lower) to the HFI from his Gross Taxable Income. Tax exemption on Principal repaid during the year: The budget for financial year 2001 - 02 provides for tax exemption on a maximum of 20% of a principal amount of Rs. 20000/- or the actual interest paid during the year (whichever is lower) to the HFI from the total tax payable by the customer.
The Home loan sector in India is the pi-votal role player in the growth of the real estate scenario in India. With tax incentives given to the housing finance sector in the annual budget of 2001, transactions related to buying and selling of residential properties increased considerably and was much higher as compared to previous years.

Since the new class of buyers are relatively younger set of customers who are more aware about legal documentation and approvals, buyers are now more 'end-users' rather than investors; the property market in India undergoes transformation to align itself with global standards with an increased emphasis on quality & cost control and documentation methods. In the current economy of India, the real estate sector has the maximum propensity to generate income and demand for materials, equipment and services. It can be said that housing finance companies were formed for co-existing with buyer's requirements of housing loans for investing in properties. Home loans are made available by financial institutions to both Indian and NRI customers at floating and fixed rate of interest and also at attractive EMI options.
For construction or buying a new home
For home repairs and renovations
For purchase of plots
Against mortgage of property
No tax benefits are available for NRI customers unless you file returns and thereby become eligible to avail of the tax benefits.

Documents required For Eligibility

Salaried Employee   :


The latest salary slips deduction showing statutory


Form 16 (showing tax deducted at source by employer)


Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license

Proof of residence (phone bill/electricity bill/ration card).


Self Employed:


Computation of income for the previous two years, certified by a Chartered Accountant


Profit & Loss Account and Balance Sheet for the previous two years, certified by a Chartered Accountant


Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)


Proof of age (birth certificate/voter identity card/passport/school-leaving certificate/valid driving license)

Major Home Loan Providers

Banks & Public Sector Housing Finance Companies:


State Bank of India, Corporation Bank, Punjab National Bank, Central Bank, Dena Bank,


Allahabad Bank, Bank of Maharashtra, Bank of Baroda Housing Finance, Can Fin Homes,


GIC Housing Finance, LIC Housing Finance, PNB Housing Finance, SBI Home Finance,


Centbank Home Finance, HUDCO, LIC, etc.    

Financial Institutions:


HDFC, ICICI Ltd, Citibank, HSBC, StandardChartered- Grindlays, IDBI Bank, etc