How To Apply For Home Loans In Hubli

Home Loan

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:

Also Read: 5 Benefits Of Taking A Joint Home Loan

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:

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:

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)

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.

How to Apply for a Home Loan in Hubli with Navi?

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. 

Also Read: 5 Tips To Keep In Mind Before Applying For Home Loans

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)

This table is for illustrative purposes only.

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.

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

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 7.89% 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.