Home Loan In Davanagere: Features, Benefits And Eligibility
Davanagere’s economy has shown a prominent growth. Now is the time to consider investing in real estate and secure your wealth or maybe even buy a house due to the favourable climatic conditions. In case you’re planning to purchase a property or house in Devanagere but falling short of funds, you could always apply for a home loan. If you are eligible and have an above average credit score – 750 or above, you could even get up to 90% financing of the property value. Read this blog to know how to apply for a home loan in Devanagere.
Why Should One Invest in Real Estate/ Buy a Home in Davanagere?
Under the Central Government’s Smart Cities Mission, the city was chosen as one of the hundred cities in India to get transformed into a smart city. As per the 2020 human living Index, it remained in the ‘top 9 livable cities’ list under 10 million population. From great transportation facilities to educational developments, the city has a lot to offer to its natives.
Apart from the booming economy, these are a few reasons why it is ideal to invest in housing properties in Davanagere. However, shelling out a large sum from your savings to finance a land/house purchase is a risky option as there will be other liabilities to look after. In such a scenario, home loans in Davanagere become an ideal solution owing to the lenient eligibility requirements and hassle-free documentation for acquiring substantial funds.
Also Read: 5 Benefits Of Taking A Joint Home Loan
Benefits and Features of Taking a Home loan in Davanagere
- Lower interest rates: You can get a Home loan at favorable interest rates as they are usually lower than other financing options like personal loans.
- Tax Benefits: You can enjoy various tax deductions of under Section 80C, Section 24B, and additional benefits under special circumstances under Sections 80EE, 80EEA, and 80C..
- Due diligence by the financial institution: The lender does a thorough legal check on the property when you apply for a home loan. Therefore, if you get loan approval, you can be assured that your house has no legal issues or disputes.
- Longer repayment period: Since home loans are usually a large amount of money, they will have a long repayment period catering your convenience.
- No prepayment penalty: Prepayment penalties do not apply to home loans with floating interest rates and you can repay some of your borrowings and close your loan sooner if/when you receive a lump sum.
- Balance transfer facility: If your lender is charging you a high interest rate, you can compare and switch to a new lender via home loan balance transfer offering a lower interest rate. Customers transferring their loan balance can get benefits such as an interest rate reduction or a loan top-up.
Interest Rates for Home Loan in Davanagere
It is important to know which bank/NBFCs offer home loans at what interest rates before applying for one. If you are building a house or planning to buy your dream home, here is a list of banks/NBFCs offering a home loan with its respective interest rates and processing fees:
| Lending Institutions | Interest Rates Starting From (per annum) | Processing Fees |
| Navi Home Loans | 7.39% onwards | 1% |
| Kotak Mahindra Bank | 7.50 % onwards | 0.5% |
| Axis Bank | 7.60% onwards | 1% |
| Yes Bank | 8.95% onwards | 1.5% |
| ICICI Bank | 7.60% onwards | 0.5% – 2% |
| HDFC Bank | 7.55% onwards | 0.50% |
| Bank of Baroda | 7.45% onwards | 0.50% |
| Bank of India | 7.40% onwards | 0.25% |
| LIC Housing Finance | 7.50% onwards | Check with lender |
| Federal Bank | 8.55% onwards | 0.50% |
| Union Bank of India | 7.40% onwards | 0.50% |
| Reliance Home Finance | 9.75% onwards | 0.5% – 1% |
How to Apply for a Home Loan in Davanagere
Here’s how you could apply for a home loan in Davanagere
Step 1: Go to the lender’s website or the mobile application
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 Home Loan in Davanagere
Here is a tabular representation of all the eligibility parameters home loan applicants need to fulfil to qualify for this form of credit:
| Factors | Requirements |
| Age | Between 18 and 70 years |
| Income and Employment | For salaried individuals, there should be at least 2 years of work experience in a reputed organisation. Self-employed applicants need to run a business for a minimum of 3 years and have a steady income source to qualify. |
| Credit Score | 750 or above |
| Repayment Capacity | Total EMI obligation must not go beyond 50% of the total revenue or income. |
Keep in mind that these criteria may vary from one home loan provider to another. Also, note that the maximum loan amount you can get from lending institutions will not exceed 90% of the value of the property you are purchasing.
At Navi, you get the convenience of availing a home loan of up to Rs. 10 crore.
Also Read: 5 Tips To Keep In Mind Before Applying For Home Loan
Documents Required to Apply for Home Loan in Davanagere
When you are applying for a home loan, make sure that you have the mentioned documents:
If you are a Salaried Employee
- PAN
- Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, etc.
- Address Proof: Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, Ration Card, Property Tax, etc.
- Income Proof: Salary slip for the past 3 months
- Form 16 for the past year
- Certified letter from Employer
- Increment or Promotion letter
- IT returns of past 3 years
If you are Self-Employed
- PAN
- Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, etc.
- Address Proof: Identity Proof: Passport, voter’s ID, driving licence, Aadhaar Card, Ration Card, Property Tax, etc.
- 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
Other than these, there can be certain lender-specific document requirements that you can check on the lending institution’s online portal.
Now that you are aware of all the perks you will get, here are the steps you need to follow to apply for a home loan via Navi:
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.
Even though Navi allows borrowers to avail a high loan amount, it is advisable to check your monthly obligations before finalising. You can use Navi’s home loan EMI calculator and enter the necessary values to get the exact EMI you need to bear.
How to Calculate EMI for a Home Loan in Davanagere?
Use an online home loan EMI calculator to check your EMI. Enter your desired loan amount, tenure and interest rate, and you will be able to check your monthly EMI options. Let’s understand this with an example:
Let’s say that you have taken a home loan of Rs.50 lakh for a tenure of 20 years. The interest rate charged is 7%. Upon calculation, your EMI would be Rs.38,765.
Here’s a detailed breakdown of the 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 |
Note: This table is for illustrative purposes only.
Key Things to Remember before Applying for Home Loans in Davanagere
- Floating vs fixed rate: With fixed rates, your interest rate remains unchanged with any change in regulations from RBI. But with floating rate loans, your home loan rate will get affected when there is a change in the market. However, during rate cuts, you could enjoy lower interest rates.
- Loan Amount: As per the RBI guidelines, you can only get 80% of the property value as a home loan for loans above Rs.30 lakh. However, with Navi, you can get loans up to 90% of the property value irrespective of the loan size.
- Home loan eligibility: Factors such as your credit score, income, existing liabilities, age and loan tenure decide how much loan you can get. Keep a check on these factors to avail of a home loan at a preferential interest rate.
- Credit score: Maintain a good credit score (750+) preferably, if not try to improve your credit score before applying for a home loan. This will allow you to get better interest rates and higher loan amounts.
- Additional charges: Besides interest rates, you should also check out the processing fees, late payment penalties, foreclosure/prepayment charges and other hidden charges applicable on your loan.
Final Word
Along with affordable interest rates, home loans in Davanagere come with several other facilities, such as customised offers, prepayment facility, top-up loan feature which allows individuals to refinance an existing loan, etc. However, go through the terms and conditions once and check the associated charges such as processing fee, foreclosure charges, etc. too before applying.
Also, it’s better to be aware of your monthly EMI payments before taking a home loan. Download the Navi app and check out the Navi EMI calculator to decide what offer suits you considering your repaying capacity.
FAQs on Home Loan in Davanagere
Ans: Home loan borrowers can get tax deductions by availing a home loan. Under Section 80C, you can claim up to Rs. 1.5 lakh as deductions from your principal repayment. Additionally, Section 24 allows you to claim up to Rs. 2 lakh from your interest payments.
Ans: Home loan refinancing or balance transfer refers to shifting your outstanding principal amount from your current lender to a new lender. Generally, the most important benefit of refinancing a home loan is lower interest costs.
Ans: A top-up loan is an additional line of credit that financial institutions extend to existing home loan borrowers. Some financial institutions may offer top-up loans at attractive terms after the balance transfer. Such loans are easy to avail due to minimal documentation.
Ans: Paying a high down payment results in a limited home loan principal amount. When the principal amount is lower, the resulting EMIs are lower as well. Moreover, lenders tend to offer attractive interest rates to borrowers who make a high down payment.
Ans: The repo rate refers to the interest that the Reserve Bank of India (RBI) charges when it lends money to commercial banks. Therefore, in case of any changes to the repo rate will reflect on a bank’s home loan interest rates as well. Generally, when the repo rate declines, you can expect cheaper housing loans.
Before you go…
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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information, and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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