How To Apply For Home Loans In Hubli
Recently, Hubli or Hubballi, the second-largest city in Karnataka by size and population has seen a surge in demand for home loans. This is primarily due to an increase in first-time homebuyers. As per RBI’s mandate, you could get up to 90% financing of the property value provided you’re eligible. Also, home loan interest rates are lower than other financing options like personal loans. Follow this comprehensive guide if you’re looking for a home loan in Hubli.
Features and Benefits of Home Loan in Hubli
- Lower interest rates: Interest rates on home loans are affordable. By opting for a floating interest rate on your loan, you can take advantage of the lowest interest rates offered by financial institutions. However, if the lender increases the interest rate as per RBI’s directive, your loan rate (for floating rate loans) could also rise.
- 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: Home loans come with longer tenures, usually up to 30 years. This provides a lot of flexibility in terms of EMI payments.
- No prepayment penalty: Home loans with floating interest rates do not carry prepayment penalties. Therefore, if you receive a lump sum amount, you can repay part of your borrowings and close your loan sooner.
- Balance transfer facility: If you think that your current lender is charging a higher rate of interest, you could switch to a new lender through home loan balance transfer to enjoy more competitive terms. 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 Hubli
It is important to know which bank/NBFCs offer home loans at what interest rates to avail a home loan in Hubli. If you are interested in making getting a house of your own in Hubli, here is a list of banks/NBFCs offering 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% |
Calculate Your Home Loan EMI
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How to Apply for a Home Loan in Hubli?
- 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 Hubli
Here is a list of some of the standard eligibility criteria for home loans:
| Criteria | Limit |
| Age | 25 to 65 years |
| Nationality | Indian Citizen or NRI |
| 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 | 750 or above |
| Eligible for a Joint Home Loan | Only parents, spouse, siblings, or children |
Documents Required to Apply for a Home Loan
Although the actual requirements may vary for different financial institutions, most of them require you to submit the following documents to apply for home loans:
1. For a Salaried Employee
- Basic KYC documents: Voter ID card, PAN card, Aadhaar card, passport or driving licence for proof of identity and address
- Proof of salary income: Employee ID card and latest salary slips for 3 months
- Form 16
- Certified letter from Employer
- Payslip for last 2 months
- Increment or Promotion letter
- IT returns for past 3 years
- Property documents (to be submitted later)
2. For Self-Employed
- Basic KYC documents: Voter ID card, PAN card, Aadhaar card, passport or driving licence for proof of identity and address
- 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
- Property documents (to be submitted later)
However, with Navi, you would need just your PAN and Aadhaar to get an in-prinsiple approval.
Navi offers home loans with interest rates as low as 7.39% p.a. You can get loans of up to Rs. 10 crores approved in just a few minutes through a completely digital process. Follow these steps to get a home loan with 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.
How to Calculate EMI for a Home Loan in Hubli?
You can calculate your home loan EMI via an online home loan EMI calculator. Just choose your loan amount, the tenure that you wish, and interest rate to check your monthly EMI obligations. Let’s understand this with an example:
Let’s say you have taken a home loan in Hubli 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 your repayment details (yearly)
| 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.
Also Read
Things to Consider before Applying for Home Loans in Hubli
- Floating vs Fixed Interest rates: Loans with floating interest rates are subject to market fluctuations. Your home loan rate will be affected if your lender increases the rate due to changes in RBI guidelines. But even so, during rate cuts, you may benefit from lower interest rates. The interest rate on fixed-rate loans remains unchanged. Keep a note on these before applying for a home loan.
- Down payment: Different financial institutions require you to pay a part of the property’s value yourself. This amount can vary based on the property’s cost and your eligibility. So, the more money you pay as down payment, the lower your EMIs will be.
- Tenure: Home loans can be approved for up to 30 years, depending on the customer’s eligibility. A longer term reduces the EMI burden. When opting for a high loan amount, make sure to choose your tenure wisely based on your repaying capacity.
- Home loan eligibility: Factors such as your credit score, income, existing liabilities, age and loan tenure decide how much loan you can get.
- Additional charges: Besides interest rates, you should also check out the processing fees, late payment penalties and foreclosure/prepayment charges applicable on your loan.
- Credit score: You need maintain a good credit score to get preferential rates as lenders prefer a credit score of 750 or higher. If your credit score is low, try to improve your credit score before applying for a home loan.
- 100% Paperless
- Minimal Documentation
- Secure Process
- 24/7 Customer Support
Final Word
Getting a home loan in Hubli isn’t that difficult if you’re eligible. You can choose to apply for a home loan in Hubli from Navi to get the benefit of low-interest rates along with quick and hassle-free approval. Before applying, you can check all the above factors to make sure you are getting the best value.
FAQs on Home Loan In Hubli
Ans: You can apply jointly for a home loan with your spouse as a co-borrower to increase your home loan eligibility. You can also disclose any additional source of income, decrease the tenure of your loan or pay a higher down payment to be eligible for a higher loan amount.
Ans: For most banks, the home loan interest rate is linked with an external benchmark like RBI’s Repo rate. Every time there is a change in Repo linked lending rate (RLLR), the home loan interest rate (if it is floating) changes with a time lag of three months. The lending rate of HFCs and NBFCs also indirectly depend on RBI’s Repo rates.
Ans: Experts recommend choosing floating interest rates when they are expected to decline in the future. Applicants who are comfortable with changing interest rates for their home loans can try this option. Floating rates are usually 1-2% lower than fixed rates.
Ans: You can pick the best home loan by comparing interest rates, associated charges and terms by visiting individual websites of financial institutions. Otherwise, you can visit aggregator websites to compare these terms against each other or seek professional advice. Besides these factors, you will want to check the lender’s services and availability.
Ans: Lenders have a vested interest in the well-being of your property, and thus, some of them insist that you get a property insurance policy. With premium starting from Rs.2000 per year, these can cover up to Rs.50 lakh against losses due to natural calamities or accidents.
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 8.60% 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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