How to Apply for Home Loan in Gulbarga – Interest Rates and Eligibility
Gulbarga, also known as Kalaburagi, attracts numerous tourists every year and the population has seen a rise of 4.5% rise. So, if you are planning to shift to Gulbarga and purchase a house of your own, now is the right time. Also, with several lenders like Navi offering attractive interest rates and fast in-principle approval, getting a home loan for your dream home has never been this easy. Here’s a thorough guide to getting a home loan in Gulbarga.
Features and Benefits of Home Loan in Gulbarga
Here are a few features and benefits of availing of a home loan in Gulbarga:
- Up to 90% financing: Most loan providers offer up to 90% financing of the property value. This is called loan-to-value ratio or LTV ratio. However, the LTV could vary depending on the lender, home loan slab, and your eligibility. Navi offers financing of up to 90% of the property irrespective of the home loan slab.
- Tax Benefits: Home loans come with tax benefits. You can claim tax deduction 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 under sections 80EE and 80EEA.
- Low Interest Rate: Home loan interest rates are usually lower than other financing options like personal loans.
- Top-up Facility: In case you have a home loan and you need additional funds to meet any financial requirement, you can go for a top-up on your existing loan.
- Easy Balance Transfer Facility: Home loan balance transfer helps you transfer your existing loan to a new lender. You could opt for a balance transfer if you think that your current lender is charging a high interest rate or the terms and conditions aren’t feasible anymore.
- Minimal documentation and instant approval: In today’s fast-paced world, individuals prefer effortless procedures and quick responses. With the rise in the technology, everything is becoming digital. You can easily avail a home loan in Gulbarga online from many banks/NBFCs without the need of you visiting the lender.
Interest Rates for Home Loan in Gulbarga
Here is a list of home loan interest rates in Gulbarga:
| Lending Institutions | Interest Rates Starting From (per annum) | Processing Fees |
| Navi Home Loan | 8.74% onwards | 1% |
| Kotak Mahindra Bank | 8.75% onwards | 0.5% |
| Axis Bank | 8.60% onwards | 1% |
| Yes Bank | 8.95% onwards | 1.5% |
| ICICI Bank | 8.75% onwards | 0.5% – 2% |
| HDFC Bank | 8.60% onwards | 0.50% |
| Bank of Baroda | 8.60% onwards | 0.50% |
| Bank of India | 8.30% onwards | 0.25% |
| LIC Housing Finance | 8.90% onwards | Check with lender |
| Federal Bank | 9.90% onwards | 0.50% |
| Union Bank of India | 8.60% onwards | 0.50% |
| Reliance Home Finance | 9.75% onwards | 0.5% – 1% |
How to Apply for a Home Loan in Gulbarga?
Follow these steps to apply for a home loan in Gulbarga:
- 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
What are the Eligibility Criteria for Home Loans in Gulbarga?
Most lenders try to keep their eligibility parameters flexible in order to help borrowers finance the purchase of a new home However, you should go through the following criteria before applying for a home loan:
1. For Salaried Employees:
| Criteria | Requirement |
| Age | 21 years to 65 years |
| Nationality | Indian resident or non-resident Indian |
| Employment | Employed in the private or public sector |
| Minimum income | Varies across lenders and cities. Generally, salaried employees should be earning Rs. 20,000 per month |
| Work experience | At least 2-3 years |
| Credit score | 750 or above |
| Co-applicants for a joint loan | Spouse, parents, children, and siblings |
2. For Self-employed Individuals:
| Criteria | Requirement |
| Age | 21 to 65 years old |
| Nationality | Indian resident or non-resident Indian |
| Minimum income | Varies across lenders and cities. Generally, a self-employed individual should be earning Rs. 3 lakh annually |
| Work experience | Should be running the business for a minimum of 5 years |
| Credit score | 750 or above |
Documents Required while Applying for Home Loan in Gulbarga
With advancements in the borrowing system, lenders now offer home loans with minimal documentation. Borrowers do not have to be buried in paperwork and can receive financial aid swiftly. Nonetheless, you will need to furnish certain necessary documents, like the following:
1. For Salaried
- 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
2. For 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
To obtain home loans in a hassle-free and convenient manner on Navi’s technology-driven platform, follow these steps:
- Step 1: Install the Navi app.
- Step 2: Open the app and register yourself as a user by entering your mobile number.
- Step 3: Choose the option of “Home Loan.”
- Step 4: Now, put your property location as “Gulbarga”, choose the type of property you are purchasing and mention its address.
- Step 5: Finally, provide your personal information, like PAN, Aadhaar number, and your employment information.
- Step 6: Upon submitting your property documents, your application will be completed. Navi will verify your documents and instantly approve your loan.
How to Calculate EMI for a Home Loan in Gulbarga?
Many online home loan EMI calculator are available to check EMI. Enter your desired loan amount, your flexible tenure and interest rate to check your monthly EMI options. Let’s understand this with an example:
Assume that have taken a home loan of Rs.50 lakh for a tenure of 20 years in Gulbarge. The interest rate charged is 7%. Upon calculation, your EMI would be Rs.38,765.
Here’s a detailed breakdown of your 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 |
Also Read
Points to Remember before Applying for Home Loans in Gulbarga
- Loan Amount: As per the RBI guidelines, lenders in India can only provide 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.
- Interest Rates: If you go with floating rates, you need to know that those are subject to change based on market fluctuations. It would go up if your lender raises the rate, but with rate cuts, you may benefit from lower interest rates. Fixed rates, on the other hand, remain unchanged.
- Eligibility Factors: The amount of your home loan is determined by factors such as your credit score, income, existing liabilities, age, and loan tenure. It is preferable to consider the aforementioned factors before applying for a home loan.
- Additional charges: Besides interest rates, you should also check out the processing fees, late payment penalties and foreclosure/prepayment charges applicable on your loan and also be aware of all the hidden charges as well.
- Credit score: It is better to maintain a credit score of 750 or above. If it is lower, you can try to improve your credit score before applying for a home loan in Gulbarga. This will allow you to get better interest rates and higher loan amounts.
Final Word
Given the massive population and small geographical size of Gulbarga, finding an affordable and comfortable house might be difficult. Fortunately, home loans in Gulbarga can be an effective solution to this problem for individuals. Unlike other borrowing options, a home loan gives you a massive loan amount at exceedingly low interest rates.
To find out which home loan offer suits your financial profile the best, use Navi’s home loan EMI calculator.
FAQs
Ans: Under Section 80C of the Income Tax Act, the principal component of your home loan EMI is eligible for a tax deduction of up to Rs.1.5 Lakh. Moreover, you can also obtain a deduction of Rs.2 Lakh on the interest component.
Ans: A tax deduction is only applicable when you can prove that the top-up home loan amount has been used for house-related purposes. You can get a deduction of Rs.30,000 on the interest component, but only for self-occupied houses.
Ans: As home loans are high-value loans, lenders are stringent about the eligibility criteria. A bad credit score (below 650) makes a lender doubt your repayment capabilities. You might get a home loan from a few lenders but at a very high-interest rate. Moreover, the loan amount may not be that high.
Ans: No, it is not necessary to obtain a home loan with a co-applicant. However, it has additional benefits. Generally, lenders offer a higher loan amount and lower interest rates when there is a co-borrower. Moreover, both the borrowers can avail of tax benefits on their respective income during a financial year.
Before you go…
Are you looking to buy that house you’ve been eyeing 🏠 and you need a loan of up to ₹5 crore. Install the Navi app now and get instant in-principle approval right away! Interest rates starting at 8.74% p.a.
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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