Home Loans in India

Overall Rating: star ratingstar ratingstar ratingstar ratingstar rating[5/5]Total Votes [ 4 ]  
Rate this page:
The rising cost of residential accommodation has led to the popularity of Home Loans in India. The steep rise in Indian real estate is mainly due to disparity in demand and supply of quality residential accommodation in India.

The middle-class Indian population is the worst sufferer of the real estate demand-supply gap and hence it is this part of the Indian demography that is the largest group to avail itself of home loans in India. Home Loans in India are facilitated by all public and private sector banks operating in India. Financial institutions specializing in home financing are also cashing in on the latest boom in home loans. The loan schemes offered by such institutions are easy to repay and thus are hugely popular with the middle-class Indians.

Purpose of home loans in India


Home Loans in India are provided for the -
  • Purchase of residential accommodation like House or Flat
  • Purchase of land for construction of House
  • Renovation or repairs or extension of an existing House or Flat
  • Purchase of consumer durables and furnishings as included in the project cost
Eligibility criteria for availing home loans in India
  • The applicant must have attained the minimum age of 18 years
  • The applicant must not have attained the maximum age of 70 years which is the age by when the loan should be fully repaid
  • The applicant must have sufficient, regular, and continuous source of income
  • Maximum and minimum home loan amount are calculated as follows -
  • Applicant aged over 18 years and up to 45 years can avail maximum loan amount 60 times of his Net Monthly Income (NMI) or 5 times Net Annual Income (NAI)
  • Applicant(s) aged over 45 years of age can avail maximum loan amount 48 times NMI or 4 times NAI

Companies providing home loans in India

Home Loans in India are provided by -
LIC Housing Finance