We all dream of purchasing the best possible home. However, with property prices soaring high, turning the dream into reality can be just a step extremely far. Here’s where the home loan can rescue you. Availing of a home loan from Axis Bank, Bank of Baroda home loan, HDFC bank, Bandhan bank home loan etc. can be a major step. From the sheer amount of financial planning to the lengthy procedure of getting approved for one, a home loan can often sound to be overwhelming to those endowing it a thought for the first time. 

Availing of a home loan can be a massive step. The first step is to find the definitive answers to everything from ‘what’s a home loan’ to ‘what’s a loan procedure’. Here in this blog, you will get assistance in the same and more – 

∙       What’s a home loan or housing loan?

∙       What’s a home loan procedure?

∙       Factors linked with home loan

∙       Home loan eligibility and online home loan calculator

∙       Ameliorating home loan eligibility

Read on to know the basics of a home loan – 

What’s a home loan?

A home loan is a secured credit option obtained to buy a property by providing it as a security or collateral. Home loans provide high-value financing at an economical rate of interest and for long tenures. They are repaid via EMIs. Post repayment, the property’s title is transferred to the borrower.  

Home loans in India

Different types of home loans are available for you to select from, based on your requirements – 

Few popular choices include – 

Home purchase loan – It allows you to purchase your dream home that matches your budget. 

Construction home loan – If you want to construct your own home, a construction home loan is the correct fit for you. 

Land purchase home loan – This enables you to purchase land. 

Home improvement loan – Any reconstruction or renovations fall under this specific category. 

Home extension loan – In case you have just decided to make the home more spacious and prominent, this is your best bet. 

Home repair loan – This is majorly for the much-needed repairs around the home. 

Also Check: Bandhan bank home loan

5 crucial parameters that you must keep in mind – 


This is the overall amount of money that you can borrow from the bank as a part of a home loan. Any interest constituent is levied upon the principal component. 

Tenure or duration

The duration of your home loan can be customized as per your comfort. You can simply adjust your time of repaying the loan as per your income. Lenders are thoroughly known to offer tenure of as high as 30 years. Note that a higher repayment tenure means lesser EMI but more interest, while shorter tenure means a higher loan EMI but a lesser interest constituent. However, you, as a customer, always have the choice to prepay your remaining home loan proceeds before your repayment tenure ends without incurring any prepayment fees. 


The home loan rate of interest is dependent on the loan proceed and your credit score. Moreover, it even is subject to credibility and loan eligibility. If you hold a higher credit score and income, this converts into lower home loan rates. You can either go for a floating interest rate or a fixed interest rate. A fixed rate stays the same throughout the whole home loan repayment tenure. However, a floating rate is based on the base rate, and it continues to fluctuate throughout the repayment tenure. Moreover, it is extremely rare to find lenders offering a home loan at a fixed rate of interest, and they generally come with an additional interest implication, which ends up becoming costly for you. 

EMI amount

EMI is a monthly instalment you must pay to the bank during the whole home loan period. Your EMI is based on the home loan rate of interest you have opted for and your selected home loan repayment tenure. Also, you can select your EMI proceeds for different home loan period stages. For instance, few financial institutions provide a lower EMI at the initial loan stages, but it enhances as loan repayment tenure progresses. With every EMI repayment, your overall home loan liability falls. 

Down payment

A lender just offers 75-90 per cent of a property’s expense as a home loan proceeds. The remaining cost must be paid upfront. This is known as a down payment. You are free to make as big as a down payment as per your capability. 

What’s the home loan procedure in India?

Home loan procedure in India differs from one lender to another. Here’s a stepwise guide to getting a home loan in India with a Bank of Baroda home loan, Bandhan bank home loan or any lender – 

∙       Fill up the application form and attach the asked documents

∙       Pay the processing charge

∙       Discuss your requirements with the bank 

∙       Submission of documents – KYC, bank & income statements

∙       Approval or sanction process

∙       Processing of offer letter

∙       Processing of property papers followed by mandatory legal check 

∙       Processing any site estimation and technical check

∙       Finalizing loan deal

∙       Signing agreement

∙       Loan disbursal

Also, you can check your home loan rates before walking in. You can use the online home loan EMI calculator to check your EMI and interest constituent. 

What’s home loan eligibility?

Eligibility to avail of a home loan often depends on an individual’s repayment capacity and income. Home loan eligibility is defined as an important criterion dependent on which any bank or NBFC evaluates your credibility to get and repay any specific loan proceed. 

Home loan eligibility is based on different parameters like – 

∙       Your monthly income

∙       Credit score

∙       Current age

∙       Fixed monthly financial obligations

∙       Property cost

∙       Credit history

∙       Retirement age

How can you use your home loan eligibility calculator?

The online home loan eligibility calculator allows you to check your loan proceeds requirement and eligibility from the comfort of your home. Check this out here – 

∙       Gross income (monthly) – Input gross monthly income. NRIs must input this net income. 

∙       Loan repayment (in years) – Input the desired repayment tenure for which you want to get the loan. A higher repayment tenure assists in increasing your home loan eligibility. 

∙       Rate of interest (per cent p.a.) – Input the existing home loan rate of interest. 

∙       Other EMIs (monthly) – Input any other EMIs of loan you might have.