How to Apply for Home Loans in India?

A home loan is a secured loan that gives you access to funds to buy or construct your dream home. You can repay the loan at a predetermined rate of interest within a specified tenure. With home loan interest rates trending at a record low, now is probably the best time for aspiring homebuyers to apply for a home loan.

You can get a home loan of up to Rs. 5 crores at attractive interest rates starting at 6.40% p.a. for a flexible tenure of up to 25 years with Navi.  

How to Apply for Navi Home Loan?

Applying for a home loan with Navi is extremely simple. Follow these steps to apply for a home loan online:

Step 1: Download the Navi app.

Step 2: Subsequently, register on the app using the mobile number.

Step 3: Next, fill in personal and employment details.

Step 4: Enter PAN and Aadhar details.

Step 5: Select city and property details.

Step 6: Enter your profile and work details.

Step 7: Check your loan eligibility

Step 8: Submit property and personal documents

There is no need to submit any document to apply for a housing loan at Navi. 

Also Read: Home Loan Eligibility Criteria for The Salaried

Benefits and Features of Navi Home Loan

By applying for a home loan from Navi, individuals can avail of these features and benefit from them accordingly: 

• High loan amount of up to Rs. 5 crores.
• Low-interest rates starting from just 6.46% p.a.
• High loan-to-value (LTV) ratio. Borrowers can avail of a loan of up to 90% of the property value.
• Flexible EMIs of tenure up to 25 years.
• No document is required until one applies for a loan.
• High-value loan amount for under-construction, self-constructed, and ready to move-in houses. 
• No administrative fees or documentation charges are involved. 

Apart from the benefits mentioned above, borrowers can also avail of instant home loans in less than 5 minutes through a paperless and seamless process.

Documents Required to Apply for a Home Loan

Prospective borrowers need to provide these documents when applying for a home loan:

• Age proof
• Address proof
• Income-related documents such as ITR and salary slip 
• Duly filled in application form along with passport size photographs
• Documents of the property
• Details of an existing loan, if any

Home Loan Eligibility Criteria

Basic eligibility for home loans is that the applicant must be an Indian citizen over the age of 18 and must reside in select cities. 

Apart from these, lenders also put various parameters that determine an applicant’s eligibility for a home loan. 

Find them below:

• A healthy credit score of 750 and above
• The applicant’s income
• Any existing debt obligations and repayment track record
• Employment status and age of the applicant
• Property valuation and location

Navi Home Loan Interest Rates, Fees and Charges

Navi offers high-value home loans starting at an interest rate starting from 6.46% p.a. Refer to the table below for other fees and charges:

Description	Amount (in rupees)
Processing fee	A maximum of 1% of the sanctioned loan amount
Property swapping	15000
EMI bounce charge	3000
Cheque bounce charge	1000
Legal charges	6000
Penal interest	2% each month for any unpaid EMI
Balance transfer document handling	5000
Foreclosure, prepayment (fixed rate)	2% of the outstanding principal amount
Foreclosure, prepayment (floating rate)	0
Rate change – fixed to floating	2% of unpaid principal
Rate change – floating to fixed	2% of unpaid principal
Rate change – reduction in floating rate	0.5% of unpaid principal
Legal, suit, and recovery charges	On actuals
Recovery charges for overdue collections	200 per visit
Original property documents retrieval	2000 per request
Certification of documents submitted to Navi	500 per request

Also Read: Types of Home Loan Options Available in India

Do’s and Don’ts While Taking a Home Loan

Do’s	Don’ts
Check home loan eligibility. This will provide clarity on the amount of loan one can borrow. Calculating eligibility prior to borrowing also helps an individual plan the repayment without any hassle.	Do not miss reading the fine print in detail. Borrowers often ignore the agreement and miss certain critical information, such as hidden charges, loan disbursal terms, etc.
Compare home loans offered by different lenders, including interest rate, processing fee, and tenure before cashing in on one.	Don’t apply for loans with multiple lenders in a short span of time. This will significantly affect your credit score.
Always consider your home loan repayment obligations as a part of your emergency fund. This will help you sail through during times of financial emergency.	Avoid arranging insufficient corpus for margin contribution. Lenders usually value customers contributing more as a down payment.

Another important thing to consider when taking a home loan is calculating EMIs. Prior calculation of EMIs can help one plan a hassle-free repayment schedule. One of the best ways to calculate EMI is through a home loan EMI calculator. Such calculators are easy to use and help you calculate your monthly repayment obligations in a matter of a few seconds. All you need to do is choose your preferred loan amount, tenure, and interest rate. 

What are the Tax Benefits of a Home Loan?

The Government of India extended an additional tax deduction of Rs. 1.5 lakh on housing loan interest paid by another year, over its initial tenure. This deduction is available under Section 80EEA of the Income Tax Act, 1961. However, borrowers can avail of such exemptions on a house purchase with a stamp value of up to Rs. 45 lakh.

The following table denotes the tax benefits on home loans offered under the Income Tax Act:

Nature of deduction	Max. deductible amount (in rupees)	Under Section
Tax deductions on principal repayment	1.5 lakh	Section 80C
Additional home loan tax benefit on interest for first time home buyers	50,000	Section 80EE
Tax deduction on the payable interest amount	2 lakh	Section 24(b)

Final Word

With home loan rates at an all-time low, this is probably the best time for aspiring homebuyers to apply for a loan. However, before applying for a loan, make sure that you have the capacity to repay the loan. Having an emergency fund will come in handy to ensure financial stability, especially during unprecedented situations. 

Also, it’s advised to calculate your monthly repayment obligations before taking a loan so that you can plan your finances accordingly. You can do so with the help of an EMI calculator.

Download the Navi app to enjoy a hassle-free home loan application process. The entire home loan journey can be completed on the app in an automated and unassisted manner. This includes loan applications, disbursements, and repayment of EMIs. Just make sure that you have all the required documents at your disposal.

Frequently Asked Questions

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