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LOAN PROCESS

Home Loans - Simplified!!

If you want to get a home loan but are scared of the hectic process that takes months to get approved, then worry not. With ReferLoan it is as smooth as butter.

01
Visit Our Website

For the first step, you will have to visit our website to explore the loan options that fit your needs.

02
Select and Apply

Once you shortlist the loan you have been looking for, apply for it, and proceed with the further process.

03
Submit Your Document

One of the most important steps. Now you will have to submit all the required documents digitally.

04
Enjoy Your Financial Freedom!

Once your application is approved based on your eligibility, you will have your loan amount disbursed to your bank account.

One Step Forward to Your Dream Home!

Advantages of Getting a Home Loan from ReferLoan

Getting a loan from ReferLoan is the most convenient and beneficial way to get a mortgage. As you start your home-buying journey, we are here to help with our easy loan process, competitive rates, and flexible closing times.

  • Minimal Documentation
  • Rapid Procedure
  • Instant Approval
  • Determined Loan Tenure
  • Low-Interest Rates
  • Wide Range of Lenders
  • No Collateral Required*
  • Flexible EMIs
Apply for Loan

Types of Home Loan

One shoe doesn't fit all, just like one Home Loan doesn't fit all the needs of every individual. Therefore, there are various types of Home Loans available in the market.

Whether you are a first home buyer, moving to a bigger home, stretching your budget to finance your new vacation home, or repaying your existing home loan, chances are there's a home loan out there only for you. And if not, then there are surely a few types of home loans that would suit your needs. Let’s check a few!

  • 01

    Home Purchase Loan

    The most common type of home loan availed is a home loan for buying ready-to-move-in properties, under-construction properties, and pre-owned homes/resale properties. RBI guidelines state that lenders can offer a loan-to-value (LTV) ratio of up to 75-90% of the property value.

  • 02

    Home Construction Loan

    With this type of home loan, you can only get the money if you own a plot of land and plan to construct a house on it.

  • 03

    Composite Loan

    In order to get a home loan, you will need to first purchase a plot of land. This type of mortgage is perfect for individuals who want to invest in or build their house. The first disbursement will be made towards the purchase of the plot, which means that it won’t matter how much money you put down as long as you have enough saved up.

  • 04

    Home Renovation/Improvement Loan

    This can be used to finance home repairs and renovation expenses of the existing house. The interest rate for this loan is the same as that for a regular home loan, but its tenure is shorter.

  • 05

    Bridge Loan

    A short-term home loan can be suitable for individuals who wish to purchase a new house with the sale proceeds of the existing home. The loan helps you cover the gap between buying a new house and selling an existing one.

  • 06

    Interest Saver Loan

    In order to take out a loan, borrowers need to have their bank account linked with their home loan. If you deposited an amount over and above the EMI amount, your prepayment towards the loan will be used in a different way – it will be saved on the interest rate.

  • 07

    Step Up Loan

    Another type of home loan is where borrowers pay lower interest rates during the initial years, but after that, they receive an increasing EMI. This makes the overall loan affordability for young professionals who have just started their careers!

Learn the Requirements to Get a Home Loan

Home Loan Eligibility Criteria

Income

In the case of a salaried person, Income plays an important role while applying for a home Loan and the minimum salary should not be less than Rs.25,000/- per month. In the case of a self-employed person, your eligibility is determined by the latest ITR or Income TAX Returns divided by 12 which makes the eligibility criteria.

Employment or Business continuation

The minimum employment for a salaried person fully relies on their Income TAX Returns with form 16 and form 26AS and other documentation. In the case of a Self-employed person, the last 3 years of Income TAX Returns and another financial statement like a balance sheet, etc. which we will discuss in detail in the documentation part.

Property Value

The value of the particular property is considered while applying for a Home Loan because Banks and NBFCs give the finances up to 75% to 90% of the total value of the property.
Age of Applicant: this matters a lot while applying for a home loan and differ for a salaried and self-employed person as well as for guarantor as well
If the applicant Is Self-Employed then the minimum salary can be 21 Years and goes up to the maximum age of 65 Years.
In the case of a salaried person, the minimum age decided by the bank is 21 Years and the maximum age should not be more than 60 Years.

CIBIL score

For applying for a home loan, a perfect CIBIL score is required which should not be less than 700. If the applicant’s CIBIL is less than 700 then the applicant must have a VALID REASON for a lower CIBIL.
If the applicant CIBIL gets affected due to COVID Lockdown due to which the applicant has to suffer for job or business which delayed the repayment of loans and the applicant is back with work and the business profit goes up then the bank will disburse the home loan for the certain applicant, rather than this no home loan for CIBIL less than 700.

Occupation

The eligibility is different, but the applicant who is salaried employees, self–employed professionals, self–employed nonprofessionals, and private limited companies are applicable.

Always Keep a Strict Check on Your Documents

Documents Required for Home Loan

KYC of an applicant consist of the following documents

PAN Card

Aadhaar Card

Driving Licence

Voter ID

Passport

Registered rent agreement

Current passport size photograph

Salaried income documents

Self Employed person documents

Salaried income documents

  • Last 3 months' salary slip
  • Form 16 of last 2 years
  • Income Tax Return if any of last 2 Years
  • Last 3 months' bank statement if the salary directly credited in the bank account
  • Certificate of employment from current employer

Self Employed person documents

  • Income tax returns of previous 2 years
  • Statement of finances with a proper balance sheet with profit and loss in that sheet
  • Bank statement with continuity of business
  • GST registration evidence of business

Other documentations

  • Cancel cheque or bank passbook front page copy
  • Any recent loan with a proper repayment sheet
Stay Aware and Pay No Hidden Charges

Fees and other charges are regarded Home Loan

Application fee

To cover all the preliminary expenses that lenders incur for conducting the verification, application fees are charged.

Processing Fee

It covers the cost of credit appraisal, which is dependent on a borrowers’ credit profile, income, and the home loan scheme. Processing fees are not always levied by all lenders.

Administrative fee

The administrative fee levied by lenders is split into two parts- the part charged after the loan sanction, and the part which is known as the administration fee.

Repayment Mode Related Charges

When a borrower requests their lenders to change their existing repayment mode during the loan tenure, there is usually a fee associated with it. This fee can range from Rs. 500 to Rs. 1,000 per instance (swap).

CERSAI charges

The CERSAI website is a central online security interest registry in India that allows potential lenders to check whether the pledged property is not claimed by some other lender.

Legal fee

When a lender engages a firm to scrutinize borrowers’ legal documents, they may charge a legal fee as part of the processing fee.

FREQUENTLY ASKED QUESTIONS

A home loan is a loan given to a person by a bank or other financial organization (lender) solely for the purpose of purchasing a residential property. Until the loan is repaid in full, with interest, the lender retains ownership of the property.

Home loans are long-term financial aid with a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure of your personal loan is determined by a number of factors, including the loan amount that the lender has approved for you.

If you already have a home loan and have made timely payments toward it, you might be eligible to borrow a second loan in an amount equal to what you have paid off on your current loan. This is what a top-up loan is known as.

You will be responsible for paying for a few additional fees in addition to the margin. The initial down payment, stamp duty fees, registration fees, and transfer fees are a few of the significant expenses that you have to pay on your own.

A table including information on interest payments and the periodic principal of a loan, as well as the balance due after each payment and the decrease of the loan balance til zero, is called an amortization table.

A home loan is a secured loan that is used to purchase a home or property. The loan is typically paid back in monthly installments over a long period, with interest charged on the outstanding balance. The home serves as collateral for the loan, which means that the lender can foreclose on the property if the borrower fails to make payments.