If you are thinking of buying a home, then, do not worry if you lack in funds. There are many lenders who are providing home loans in India to cover housing needs of almost all types of borrowers. However, you are required to meet certain conditions laid down by the lenders, in order to get smoother approval.

Home loans are being offered for variety of purposes in India. Through these loans you can purchase a home, which is a common use of the loan. The loan can be used for any alteration to the home you already own. You can construct a new home or the loan can be used for purchasing a piece of land for investment or construction purpose. These loans are also used for paying stamp duty.

As far as the loan amount is concerned, usually these loans satisfy your financial needs for buying a home or for any other related purpose. But a lot will depend on your earnings and overall repayment ability. So, variety of documents play crucial role in determining a loan amount for your circumstances.

The main documents required for Home Loans In India include your source of income, employment records, identity and residential proof, education qualification certificates and last six months’ bank statements.

Interest rates on home loans vary from lenders to lenders. But, public sector banks charge interest at lower rate than the private lenders. If you take out the loan from banks, then ensure that first you have made an extensive comparison of their rates. Note that there is a vast difference of rates amongst the public sector banks. So, if is advisable to make an extensive comparison of these bank rates first in order to pick up a suitable deal.

Public sector banks are main source of home loans in India. These banks are also considered as cheaper source in terms of interest rates and additional charges on the loan processing. So, it would be wise to first make an extensive comparison of these banks as to which one has comparatively lower rate for your circumstances.

By : Meghna Arora