Eligibility & Application
- What factors determine eligibility? Lenders evaluate your income, employment stability, age (usually 18–70 years), and credit score.
- Do women get benefits? Many institutions provide a 0.05% concessional discount on interest rates if a woman is the primary applicant or co-owner.
- Can I apply with a co-applicant? Yes, adding family members (like spouses or parents) can increase your loan eligibility.
- What is a floating vs. fixed rate? A fixed rate stays constant, while a floating rate fluctuates based on market benchmarks like the RBI Repo Rate.
- Are there prepayment penalties? As per RBI mandates, there are no penalty charges for pre-closing floating-rate home loans.
Repayment & Disbursements
- What is Pre-EMI? If your home is under construction, banks may disburse the loan in stages. During this period, you only pay the interest on the disbursed amount, and standard EMIs begin upon possession.
- What happens if I pre-close a loan? You can pay off the loan early, but you may face lock-in periods or restrictions within the first 1 to 3 years depending on the bank.
- Can I claim tax deductions? Yes, you can claim deductions on the principal repayment (up to ₹1.5 lakh under Section 80C) and the interest paid (up to ₹2 lakh for self-occupied properties under Section 24b).