Here’s All You Need To Know About Home Loans In Bangalore

The “Silicon Valley of India”, Bangalore, is the third-largest and one of the most developed cities in the country. Being the IT Hub and capital of Karnataka, it attracts thousands of Indians every year with its growing job opportunities. Indeed, the city of gardens is among the most beautiful places in India. That said, the cost of living in the city is also very expensive. 

Rajeev recently shifted to Bangalore to work for a multinational corporation but is finding it difficult to buy a house within his budget. Fortunately for Rajeev, there are many financial institutions like Navi offering home loans in Bangalore at interest rates as low as 6.7%. 

Keep reading to learn how you can purchase your dream house in Bangalore. 

Features and Benefits of Taking a Home Loan in Bangalore 

Taking a home loan in Bangalore not only gets you the dream house you wanted, but also the following benefits:

Home loan for all your housing needs

Your dream could be owning a home or build a home, you can avail a home loan for all your needs. You can choose a home loan feature if it is to buy a new house, expand your existing house, self-construct a house, or buy a resale property for yourself.

Tax benefits

The top-most useful benefit of a home loan is the deduction you can claim on the interest and principal repayments while filing ITRs. You can claim up to Rs.1.5 lakh on principal repayments under section 80C of the Income Tax Act, up to Rs.2 lakh on interest repayments under section 24B, and more under special circumstances u/s 80EE, 80EEA, and up 80C.

Low interest rate

The home loan interest rate at any place, is much lower compared to any other loan types available. If there is a shortage of funds, you can always use the top-up feature on the existing loan and your interest remain the same.

High loan amount and long tenure

Affording a house in today’s world is not cheap, especially if you live in the “Silicon Valley of India”. But, if it is a home loan, you can obtain a high loan amount and many banks/NBFCs offers a flexible loan tenure of up to 25+ years for their repayment. With this, your monthly instalments become affordable and less stressful. 

Easy balance transfer facility

If you wish to transfer your home loan from your bank to any other bank/NBFCs for several reasons, such as the interest rate, service charges, customer service experience, etc., you are free to transfer the balance. 

Also Read: Tax Benefits On Second Home Loan

Interest Rates for Home Loan in Bangalore

It is important to know which bank/NBFCs offer home loans at what interest rates. If you are building a house or planning to buy your dream home, here is a list of banks/NBFCs offering home loan with its respective interest rates and processing fees:

Banks/NBFCs	Interest Rate (p.a.)	Processing Fee
Navi Home Loan	6.71% onward	Check with the lender
Bank of Baroda	6.90% onward	Rs.8,500 – Rs.25,000
Axis Bank	6.90% onward	Rs.10,000
Canara Bank	7.10% onward	Rs.1,500 – Rs.10,000
Karur Vysya Bank	7.20% onward	Rs.5,000
Karnataka Bank	7.50% onward	Rs.250
South Indian Bank	7.85% onward	0.50% (Rs.5,000 – Rs.10,000)
Kotak Mahindra	7% onward	0.5%
Yes Bank	8.95% onward	Up to 1% (Rs.10,000)

Also Read: Section 24 Of The Income Tax Act

How to Apply for a Home Loan in Bangalore

Step 1: Go to the lender’s website or app

Step 2: Go to the home loan section

Step 3: Click ‘Apply’ to proceed

Step 4: Fill in details like your name, DOB, monthly income, PAN number, etc.

Step 5: Check your loan eligibility

Step 6: Choose loan amount and tenure

Step 7: Get in-principle approval

Eligibility Criteria for a Home Loan in Bangalore 

Every lender across India can set different criteria that you will have to meet before attaining a home loan. Still, there are some common criteria that you should pay attention to:

Criteria	Limit
Age	Between 21 to 65 years old
Nationality	Indian resident or non-resident Indian
Income	Varies across cities but is generally set at a minimum annual income of Rs. 1,80,000 for salaried employees and Rs. 3,00,000 for self-employed borrowers
Work experience	Most lenders accept borrowers with a minimum work experience of 2 years
Credit score	Generally, 750 or above
Eligible for a joint loan	Only parents, spouse, siblings, or children

Documents Required by Home Loan Providers in Bangalore 

This requirement can vary across different home loan providers, but you should keep the following documents handy:

1. Proof of identity: Aadhaar card, PAN card, driving licence, voter ID, passport 

2. Proof of address: PAN card, voter ID, ration card, passport, Aadhaar card, utility bills, passport size photograph 

3. Proof of income: 

4. Property documents: Letter of allotment, original No objection certificate, sale agreement, certificate of possession

5. Documents Required For Salaried:

• Form 16
• Certified letter from Employer
• Payslip of last 2 months
• Increment or Promotion letter
• IT returns of past 3 years

6. Documents Required For Self-Employed:

• Income Tax Returns (ITR) of last 3 years
• Balance Sheet and Profit & Loss Account Statement of the Company/Firm (duly attested by a C.A.)
• Business License Details (or any other equivalent document)
• The license of Professional Practice (For Doctors, Consultants, etc.)
• Registration Certificate of Establishment (For Shops, Factories & Other Establishments)Proof of Business Address

Easy Steps to Apply for a Home Loan in Bangalore at Navi 

On Navi’s technology-driven platform, you can easily and instantly obtain a home loan from the comfort of your home. All you have to do is follow these simple steps:

Step 1: Download the Navi app. 

Step 2: Open the app and register with your mobile number. 

Step 3: Upon registering, click on “Home Loan.”

Step 4: Now, submit the property details, like location, type, and address of the property.

Step 5: After submission, check your home loan eligibility by providing your PAN and other details. 

Step 6: Once you submit the required documents and the same are verified, your home loan will be instantly approved. 

How to Calculate EMI for a Home Loan in Bangalore?

You can use an online home loan EMI calculator to check EMI. All you need to do is enter the loan amount, tenure and interest rate to check your monthly repayment obligations. Let’s understand this with an example:

Let’s say Rajeev have taken a home loan of Rs.50 lakh for a tenure of 20 years. The interest rate charged is 7%. Upon calculation, his EMI would be Rs.38,765.

Here’s a detailed breakdown of Rajeev’s yearly repayment details

Year	Principal Paid	Interest Paid	Total Payment	Outstanding Loan Balance
2022	Rs.78,372	Rs.2,31,748	Rs.3,10,120	Rs.49,21,628
2023	Rs.1,24,612	Rs.3,40,566	Rs.4,65,178	Rs.47,97,015
2024	Rs.1,33,621	Rs.3,31,559	Rs.4,65,180	Rs.46,63,393
2025	Rs.1,43,280	Rs.3,21,900	Rs.4,65,180	Rs.45,20,112
2026	Rs.1,53,639	Rs.3,11,540	Rs.4,65,179	Rs.43,66,474
2027	Rs.1,64,744	Rs.3,00,436	Rs.4,65,180	Rs.42,01,729
2028	Rs.1,76,656	Rs.2,88,524	Rs.4,65,180	Rs.40,25,074
2029	Rs.1,89,424	Rs.2,75,756	Rs.4,65,180	Rs.38,35,649
2030	Rs.2,03,117	Rs.2,62,063	Rs.4,65,180	Rs.36,32,530
2031	Rs.2,17,803	Rs.2,47,377	Rs.4,65,180	Rs.34,14,729
2032	Rs.2,33,546	Rs.2,31,633	Rs.4,65,179	Rs.31,81,182
2033	Rs.2,50,431	Rs.2,14,749	Rs.4,65,180	Rs.29,30,752
2034	Rs.2,68,532	Rs.1,96,647	Rs.4,65,179	Rs.26,62,218
2035	Rs.2,87,946	Rs.1,77,234	Rs.4,65,180	Rs.23,74,272
2036	Rs.3,08,761	Rs.1,56,418	Rs.4,65,179	Rs.20,65,510
2037	Rs.3,31,082	Rs.1,34,098	Rs.4,65,180	Rs.17,34,428
2038	Rs.3,55,017	Rs.1,10,162	Rs.4,65,179	Rs.13,79,412
2039	Rs.3,80,680	Rs.84,500	Rs.4,65,180	Rs.9,98,732
2040	Rs.4,08,199	Rs.56,981	Rs.4,65,180	Rs.5,90,533
2041	Rs.4,37,707	Rs.27,471	Rs.4,65,178	Rs.1,52,825
2042	Rs.1,52,824	Rs.2,235	Rs.1,55,059	Rs.0

This table is for illustrative purposes only.

Points to Remember Before Taking a Home Loan in Bangalore

• Choose EMIs and tenure wisely based because choosing a longer term may result in lower EMIs, and it also raises the interest rate charged, and you might have to pay double the original loan amount due to high interest. 
• Its better to maintain a good credit score. Anything above 750 is preferred by lenders you can get your home loan at a competitive rate of interest rate.
• Make sure to stay updated with the changing RBI norms. Sometimes, foreclosing your home loan in less than the committed tenure will save you from paying any added expenses. 
• Before applying for a house loan, double-check your eligibility. Your documents pertaining to your credit history should not be overstated. 
• Make sure to read all the necessary documents thoroughly for a comprehensive knowledge of the loan application before applying for a home loan in Bangalore.

Final Word

Buying a house is a huge step in anyone’s life. To get you closer to achieving that goal, home loans are the most suitable borrowing option. The beautiful city of Bangalore is home to most of India’s IT giants. Fortunately, home loans in Bangalore are affordable and offered at low-interest rates so that you can also make this city your home. The decision to take this loan is also crucial and requires extensive financial planning. To make this task simpler, you can access Navi’s easy-to-use home loan EMI calculator.

FAQs on Home Loan In Bangalore 

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