What Is a Home Purchase Loan?
A Home Purchase Loan is a type of secured loan offered by banks and NBFCs to help individuals buy residential property. Whether it’s a ready-to-move-in flat or an under-construction house, this loan bridges the financial gap between your savings and the property cost.
Key Features of a Home Purchase Loan
📏 Loan Amount: Up to 80–90% of the property's value
📅 Tenure: Up to 30 years
📉 Interest Rate: Starts from 8.35% p.a. (may vary)
🏦 Type: Secured (property acts as collateral)
🧾 Tax Benefits: Under Sec 80C & Sec 24(b) of IT Act
How Home Loan EMI Is Calculated
Vizzve provides a home loan EMI calculator to help you know your monthly outflow. EMI depends on:
Loan amount
Tenure
Interest rate
Documents Required
To apply for a home loan, you need:
PAN and Aadhaar
Income proof (salary slips, IT returns)
Bank statements (last 6 months)
Property documents
Address proof and photographs
Eligibility Criteria
Age: 21 to 60 (salaried) or 21 to 65 (self-employed)
Minimum income: ₹25,000/month (varies)
CIBIL score: 700+ preferred
Stable job/business history (1–3 years)
Pros of a Home Purchase Loan
Builds a long-term asset
Helps you buy a home sooner
Offers tax benefits under multiple sections
Improves credit profile if repaid on time
Lower interest rates than personal loans
Cons to Keep in Mind
Long-term commitment with high total interest paid
Property acts as collateral
Delayed payments may affect your credit score
Processing fees & other charges apply
Vizzve Finance Home Loan Tip
Always compare loan offers, check floating vs fixed interest rates, and read the fine print. Don’t just chase low EMIs — consider the total cost of the loan.
Tax Benefits on Home Loan (2025)
| Section | Benefit | Limit |
|---|---|---|
| 80C | Principal repayment | ₹1.5 lakh |
| 24(b) | Interest repayment | ₹2 lakh |
| 80EEA | First-time buyers (optional) | ₹1.5 lakh |
FAQs
Q1. Can I apply jointly for a home loan?
Yes, with a spouse, parent, or sibling — it boosts eligibility and tax benefits.
Q2. How much loan can I get on ₹50,000 salary?
Usually ₹25–35 lakhs, depending on credit profile and existing debts.
Q3. What if I miss an EMI?
Your CIBIL score can be impacted. Vizzve offers reminders and grace support.
Q4. Can gig workers get a home loan?
Yes, if they provide consistent bank statements and tax filings.
Published on : 23rd July
Published by : SMITA
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