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Last updated on: June 13, 2025

Build your dream house with Home loans

Get quotes from multiple home loan lenders at one place at Fincover. Compare quotes from different loan provides and make a well-informed choice.

Apply now

What is a Home Loan?

Buying a house is everybody’s dream. It’s an expensive dream and not possible for most people without using up a lifetime of savings. A home loan helps you realize your dream and keep your savings intact at the same time. What is more, it comes with many benefits.

You can get a home loan to build a new home or renovate an existing home. Low – interest rates, flexible repayment options, tax benefits, long tenures, top-up facilities, and prepayment options are some of the benefits of a home loan. A home loan is a long-term commitment unlike a Personal loan or other types of loans. Therefore, it is essential to exercise caution while applying for a home loan. Fincover helps you in getting the loan at the best rates.

The home loan market is crowded with lenders, so it isn’t easy to pick the best loan option that meets your requirement from the clutter. At Fincover, you can compare, analyse, and choose the best home loan from India’s leading banks. You can find comprehensive information about home loans and apply online immediately from the comfort of your home.

Features and Benefits of Home Loans

  • Tax Benefits: Taking a home loan makes you eligible for tax benefits on both payment of interest on the loan and repayment of the principal. You can claim tax deductions on the interest and principal components of your home loan under sections 80C, 24b, and 80EEA(for first time home buyers) of the Income-tax Act, 1961, subject to certain conditions.

  • Longer Tenure: Among all the loans, home loans provide you with the longest tenure. Most banks give up to 30 years to repay the loan with interest. You can use our home loan EMI calculator to understand how the EMI changes with different tenure options.

  • Balance Transfer: If you have taken a home loan and find another lender who offers lower rates, you can take advantage of this and transfer your loan! Check our balance transfer calculator to know further details.

  • Asset Building: Buying a home means you are buying a tangible asset. As we all know, property prices are always on the rise with development. You can benefit immensely from rising property prices over time.

  • Easy buying: For most people, buying a home from their savings is nearly an impossible task. A home loan helps you get closer to your dream home as you can repay it in flexible EMIs.

  • Tax Benefits on the 2nd home: If you apply for a loan to build a second house, you can claim complete tax exemption of home loan interest under section 24B of the Income-tax Act, 1961.

  • Save on Rent Expenses: Rent costs are always spiralling as cities grow larger and more cities crop up. Instead of wasting your money on rent, you should apply it towards EMIs after buying a home.

Gold Loan Eligibility Criteria for Salaried Individuals

CriteriaRequirement
AgeMinimum age – 18 years
Maximum age – 70 years
Residency StatusResident Indian or NRI
EmploymentSalaried or Self-employed
Annual Income₹5 to ₹6 Lakhs
Residence (Net)Permanent residence or rented place where the applicant has lived for ≥ 1 year
Credit Score750+

Fixed and Floating Interest rates

  • Fixed Rate Home Loan: In a fixed rate home loan, the rate of interest is unchanged for the entire tenure. As the interest rate remains constant, the EMIs are also standard throughout the loan period.

  • Floating Rate Home Loan: As we know, interest rates keep changing depending on various economic factors. In the case of Floating Rate Home Loan, the interest rate varies throughout the loan period.

Types of Home Loans

Banks provide home loans for different purposes. Before applying, analyse your requirements and apply the appropriate type of loan to avoid rejection.

Home Purchase Loan

This is the most common type of home loan, offered for:

  • Ready-to-occupy properties
  • Pre-owned homes
  • Under-construction homes

Most lenders finance 75% to 90% of the property’s value, known as Loan-to-Value (LTV).

Composite Loan

This loan is designed for individuals buying a plot and planning to construct a home on it.

  • Disbursement begins at the time of plot purchase
  • Remaining amount is released in pre-decided construction stages
Home Construction Loan
  • Ideal for those who already own a plot of land and plan to build a house.
  • Loan is disbursed in phases, based on the progress of construction.
Home Improvement Loan
  • This loan helps fund renovation or repair of a home you already own.
Home Extension Loan

A loan designed to add more living space to your existing home.

  • Often used for building additional rooms or floors.
Bridge Loan

This loan is ideal when you’re selling your current home to buy a new one.

  • It bridges the financial gap between the sale of the old property and purchase of the new one.

Documents Required to get a Home Loan

Usually, home loans require a set of documents to be submitted to the lenders. Some of the standard documents required for processing a home loan are:

  • A loan application form duly filled
  • ID Proof such as PAN card, Aadhaar card and Voter ID card
  • Age Proof like Driving License or Aadhaar card
  • Address Proof like bank passbook, Ration Card, Voter ID
  • Proof of Income for salaried borrowers like a bank statement, IT returns and payslip
  • Proof of Income for self-employed borrowers like IT returns, the balance sheet of your company
  • Proof of business address
  • Property related documents such as registered sale deed, NOC from the builder and complete building plan.

Home Loan Fees and Charges

In addition to the interest rate, several charges may apply from time to time until you repay your home loan in full. Below are some of the standard charges:

Application Fee

A fee charged to cover the expenses involved in the verification process conducted by the lender.

Processing Fee

A one-time non-refundable fee charged by the lender for processing your home loan.

  • Varies from bank to bank
  • Depends on the type/category of loan
Statutory / Regulatory Charges

Includes charges such as:

  • CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India)
  • Stamp Duty
Conversion Fees

Applicable if you opt to switch to a different loan scheme (e.g., to reduce interest rate).

  • Typically up to 2% of the outstanding principal
  • Varies from lender to lender
Cheque Bounce Charges

If a repayment cheque bounces (e.g., due to insufficient funds), these charges are levied and added to your next EMI.

Late Payment / Default Charges

Levied if you fail to pay the EMI on time.

  • May vary based on the number of delayed days and lender policy.
Foreclosure Charges

Charged if the loan is repaid before the agreed tenure.

  • Floating rate loans: No foreclosure charges as per RBI regulations
  • Fixed rate loans: Lender may impose foreclosure or prepayment charges

Home Loan EMI Calculator

A Home Loan EMI Calculator a tool from Fincover that helps you determine the monthly home loan instalment (EMI) with ease.

You can calculate your home loan EMI in a matter of a few seconds with our Home Loan EMI Calculator.

Just input a few details and get accurate information about the repayment schedule.

Step by Step approach to use our Home Loan EMI calculator

  • Step 1: Input the loan amount you want to borrow
  • Step 2: Input the applicable interest rate
  • Step 3: Enter the tenure and click on “Calculate”

Home Loan EMI Calculator

Things to Know before Applying for a Home Loan

Rate of Interest

As mentioned, home loans can have two types of interest rates namely,

  • Fixed
  • Floating

If you want a short tenure loan, it’s better to go with a fixed rate loan. When you want a longer duration loan, it’s good to go with a floating interest home loan.

Loan Disbursal

  • Typically, home loan amount disbursal happens within 10 to 15 days after application as the lender needs time for document verification and eligibility.

Loan eligibility

  • Check if you are eligible for a home loan with our Home Loan EMI Calculator to save your time and money.
  • Enter all the details and confirm your eligibility, and you will have an idea about terms and repayment before applying for a loan.

Charges

  • Apart from the rate of interest, there can be many hidden charges that you have to pay.
  • These would be mentioned under Home Loan Fee and Charges.
  •  It’s always good to read and understand the documents of each loan documents thoroughly before making a final choice.

Terms and Condition

  • Ensure you read the terms and conditions of the loan you want to take and fully understand about the repayment, prepayment and several other things related to house loans.

Why should you apply for a Home Loan at Fincover?

Compare and Choose
Fincover lets you compare, analyse, and pick home loan quotes from multiple banks. Based on your personal requirements, you can choose the one that fits you the most.

Best Interest Rates
Our strong partnerships with top banks and NBFCs ensure you receive competitive home loan interest rates and the best quotes in the market.

Transparency
Fincover is a provider-neutral loan intermediary. We give you unbiased, impartial information after thoroughly analysing the pros and cons of each loan quote.

Privacy
Your personal data and financial details are secure with Fincover. We follow industry-standard safety protocols to protect your information.

One-Stop Destination
Fincover is your one-stop platform for various financial services. Along with home loans, you can also explore other loan options such as bike loans and more—all in one place.

How to apply for Home Loan at Fincover?

Fincover gives you an option to compare home loans from several lenders. You can compare and apply easily.

  • Loggon to fincover.com, navigate to Home Loan and Apply
  • Enter your name, email ID, PAN Card, Property Cost, and Property Area.
  • Click on get quotes, to view the home loan offers from banks and various non-banking financial companies.
  • Compare the interest rates, processing fees, EMIs on the different home loan offers.
  • Select the one which suits your requirement.
  • Get an instant e-approval from the lender. Our support team will help you through the documentation process and an agent from the lending institution will contact you for disbursal.