What is a Home Loan?
A home loan is a secured loan that is obtained to purchase a property by offering it as collateral, Home loans offer high-value funding at economical interest rates and for long tenors. They are repaid through EMIS. After repayment, the property’s title is transferred back to the borrower.
The lender possesses the legal rights to recover the outstanding loan amount by the sale of the property in question in case the borrower cannot repay the dues.
Types of Home Loans
- Home purchase loan: Taken to purchase a home.
- Home improvement loan: Taken to repair/renovate a home.
- Home construction loan: Taken to build a new house.
- Land purchase loan: Taken to buy a plot of land for constructing his/her own house.
- Home extension loan: Taken to add another floor, room, garage, bathroom, or kitchen, etc.
- Joint home loan: Taken by two or more people, for instance, spouses.
- Home loan balance transfer: Allows you to switch lenders and transfer your outstanding loan amount to enjoy better terms and conditions and lower interest outgo
- Top-up home loan: Allows you to borrow funds over and above the outstanding loan amount at nominal rates and for any purpose.
Home Loan Eligibility Criteria
The basic criteria for Home loan eligibility are –
- Present Age and Remaining Working Years: The age of the applicant plays a major role in determining home loan eligibility. The maximum loan term is generally capped at 30 years.
- Age Limit for Salaried Individuals: 21 to 65 years .
- Age Limit for Self-Employed Individuals: 21 to 65 years.
- Minimum Salary: ₹10,000 p.m.
- Minimum business income: ₹2 lac p.a.
- Maximum Loan Term: 30 years.
- Financial Position: The present and the future income of applicant(s) has a significant impact on determining the loan amount.
- Past and Present Credit History and Credit Score: A clean repayment record is considered positive.
- Other Financial Obligations: Existing liabilities such as a car loan, credit card debt, etc.
Apply for a Home Loan in just a few minutes
Follow our step-by-step guide to apply for a personal loan. You can start your online application and resume it at a later instance
- Click on Apply Online to open our online application form
- Fill in a few details and verify the OTP sent to your phone
- Enter your KYC and income data
- Choose the loan amount you want to borrow
- Submit your application
Home Loan Calculator
Arena Fincorp Home Loan EMI Calculator
*These calculators are provided only as general self-help Planning Tools. Results depend on other factors.
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*These calculators are provided only as general self-help Planning Tools. Results depend on other factors.
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Home Loan FAQs
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What is Home Loan?
Home loan is a form of secured loan that is availed by a customer to purchase a house. The property can be an under-construction or a ready property from a developer, purchase of a resale property, to construct a housing unit on a plot of land, to make improvements and extensions to an already existing house and to transfer your existing home loan availed from another financial institution to ARENA FINCORP. A housing loan is repaid through equated monthly installments (EMI) which consists of a portion of the principal borrowed and the interest accrued on the same.
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What is the maximum home loan that I can obtain?
You are required to pay 10-25% of the total property cost as ‘own contribution depending upon the loan amount. 75 to 90% of the property cost is what can be availed as a housing loan. In case of construction, home improvement and home extension loans, 75 to 90% of the construction/improvement/extension estimate can be funded.
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What is the Eligibility Criteria to avail Home Loan from Arena Fincorp?
Home loan eligibility depends on the income and repayment capacity of the individual. Please find details about home loan eligibility criteria:
