A home loan is one of the biggest financial commitments you can make, and understanding the process can seem daunting. To make things easier, we’ve answered the top 10 most common home loan questions to help you confidently navigate your journey to homeownership.

1. What is the Maximum Loan Amount I Can Get?

The amount you can borrow depends on your income, age, credit score, and the value of the property. Generally, banks and financial institutions, like Suvidha Finance, lend up to 80%-90% of the property’s value. To maximize your eligibility, maintain a high credit score and stable income.

2. What is the Difference Between Fixed and Floating Interest Rates?

• Fixed Interest Rate: Your interest rate remains the same throughout the loan tenure, providing stability but possibly at a higher rate.
• Floating Interest Rate: This rate fluctuates with the market, often starting lower but rising or falling based on economic conditions. Consider your risk tolerance before choosing between these options.

3. How Does My Credit Score Affect My Home Loan Application?

Your credit score is a critical factor in determining loan eligibility and interest rates. A score above 750 is generally considered ideal. A higher score can help you get better loan terms, while a lower score may limit your borrowing options or increase interest rates.

4. How Much Down Payment Do I Need?

Most lenders require you to pay 10%-20% of the property’s value as a down payment. A higher down payment reduces your loan burden and can help you secure better interest rates.

5. What is the Loan Tenure for Home Loans?

Home loan tenures typically range from 10 to 30 years. Choosing a longer tenure reduces your monthly EMI (Equated Monthly Installment) but increases the total interest paid over time. A shorter tenure means higher EMIs but less interest in the long run.

6. What Documents Are Required for a Home Loan?

The basic documents include:

• Proof of identity and address
• Income documents (salary slips, tax returns)
• Bank statements
• Property documents
• Employment or business proof At Suvidha Finance, our loan experts guide you through the process to ensure smooth approval.

7. Can I Prepay My Home Loan?

Yes, most lenders allow you to prepay a portion or the entire loan before the tenure ends. However, some banks may charge a prepayment fee, especially for fixed-rate loans. Suvidha Finance offers flexible prepayment options to help you reduce interest costs.

8. What is a Home Loan EMI?

EMI stands for Equated Monthly Installment, which is the fixed monthly amount you pay toward your loan. EMIs are calculated based on the loan amount, interest rate, and tenure. You can use our EMI calculator on suvidhafinance.in to estimate your monthly payments.

9. What Are the Tax Benefits of a Home Loan?

Under Section 80C of the Income Tax Act, you can claim a deduction of up to ₹1.5 lakh for the principal repayment, and under Section 24(b), you can claim up to ₹2 lakh for interest paid on the home loan. Joint borrowers can each claim these deductions, doubling the tax benefits.

10. How Long Does It Take to Get a Home Loan Approved?

The time for approval depends on your documentation and the lender’s process. On average, it takes 7-10 days for loan processing and approval. At Suvidha Finance, we strive to make the approval process faster and hassle-free with our expert support team.

For more personalized assistance, contact us at +91 83970 44041 or email us at info@suvidhafinance.com. You can also visit our website at suvidhafinance.in to explore more about our home loan services.