What is Home Loan?

When you consider applying for a home loan, there are certain documents you will be required to present depending on whether you are a salaried or self-employed individual. Here is a list for documents required for home loan for both such individuals:

• Salaried
• Self-Employed

Document Type	Salaried
Application Form
Identity Proof PAN (Mandatory) Voter ID Passport Driving Licence Aadhar Card
Address Proof Passport Voter ID Driving Licence Aadhar Card
Income & Other Documents Salary Slip/Certificate Form 16/ITR Bank Statement
Property Documents Copy of chain documents of the property (if applicable) Copy of Receipt made to the developer (if applicable) Copy of Buyer Agreement Copy of Agreement to Sell (if executed)

Document Type	Self-employed
Application Form
Identity Proof PAN (Mandatory) Voter ID Passport Driving Licence Aadhar Card
Address Proof Passport Voter ID Driving Licence Aadhar Card
Income & Other Documents Form 16/ITR Bank Statement
Property Documents Copy of chain documents of the property (if applicable) Copy of Receipt made to the developer (if applicable) Copy of Buyer Agreement Copy of Agreement to Sell (if executed)

Interest rates play a very important role when it comes to evaluating a low. The higher the interest rates are on your home loans, the more will be your expenditure every month in meeting your EMI payments.

The interest component in the home loan indicates the price that is charged over and above the "principal" amount. The interest depends on the principal sum, interest rate, compounding frequency, and length of time over which it is lent or borrowed.

At IIFL Home Loans, the interest rate is linked to the Benchmark Prime Lending Rate, also known as BPLR, which helps us ensure transparency and appropriate pricing. The rate of interest varies for different borrowers as our housing finance team considers various parameters such as credit score, borrower profile, loan amount, property type, and others. All these factors contribute to the margin being higher or lower at the time of onboarding the customer.

Floating Interest-based Home Loan: As the name suggests, the rate of interest changes as per the changes in the market. As a borrower, if you are well informed about the market conditions and expect the rates to fall in the future, it is beneficial for you to select a floating interest rate on the home loan.

If you have evaluated and come to the decision of option for a home loan, you have to keep a few things on your checklist before you apply for the same. Here is an easy checklist for you to follow:

• Negotiate: Before finalizing down on one single lender, make sure to explore your options in the market and negotiate the best deal for yourself. After all, you have to pay off your EMIs and interest charges for quite some time.

• Check credentials: Make sure to do a thorough check on the attractive interests offered by the various lenders and the authenticity of the same.

• Calculate the cost of a home loan: Take note of all the fees and charges involved apart from the interest rate as well and then evaluate the final costs.

• Credit rating: Keep a check on your credit rating to know if you are eligible to opt for a home loan.

• Terms and conditions: Read the terms & conditions thoroughly no matter what lender you choose.

Here's a step-by-step guide to applying for a loan against property:

• Click the 'APPLY LOAN ONLINE' button available on the webpage.

• Choose the type of loan you wish to apply for, either a home loan or a secured business loan (loan against property).

• Provide essential details such as your full name and mobile number.

• You will receive an OTP (One-Time Password) on the mobile number you provided. Enter the OTP to verify your contact information.

• After verifying your phone number, generate and submit your OTP.

• Enter your PAN Number and current city/location details.

• Click on the 'SUBMIT' button to complete the application process.

While you can opt for a home loan with us to get quick and easy access to funds to get your dream home, there are certain fees and charges associated with the same. As mentioned previously, we provide attractive and cost-effective interest rates starting from as low as 8.75%.

IIFL Home Loans ensure maximum transparency when it comes to the fees that come along with a home loan, we want our clients to be on the same page as us and have no surprises or hidden charges when they are moving towards a special milestone in their life.

Here are the fees, over and above the interest rate charges that come along when one opts for an IIFL Home Loans:

The following is the list of fees & charges applicable to IIFL Home Loans:

For more details, please refer to Schedule of charges (https://www.iiflhomeloans.com/schedule-of-charges).

Your repayment schedule plays an important role in your home loan. Therefore, it is important to make the right decision and not be hasty about it. Here are the few modes via which you can settle your loan repayment:

Step-up repayment

This method involves the borrower starting his/her EMI payments with a smaller amount and gradually increasing them. However, this method involves the borrower paying more interest in the long term.

Step-down repayment

This mode of repayment involves larger EMI payments, to begin with, that gradually become smaller, allowing more of the payments towards the principal.

Prepayment

This method allows the borrower to repay the entire home loan, either partially or fully before the loan tenure. This reduces the EMI payments but might bring some prepayment penalties depending on the lender’s policies.

Late repayment

Some lenders might allow you an EMI holiday, giving you a temporary break from paying the EMIs. This allows financial relief during the initial stage. However, the deferred interest and EMI need to be paid later on.

Fixed and flexible installment plan

In a fixed EMI plan, your EMI remains constant for a fixed period. This ensures you are safe from market fluctuations if the interest is likely to rise. At the same time, in a flexible EMI plan, the EMI fluctuates as per the market. This method requires a change in EMI every month but offers flexibility.

Lump sum repayment

This method helps in fast-tracking paying down your home loan and is handy if you have a large chunk of cash and want to get rid of your debt as early as possible. Your payment will first be adjusted for the interest and then go toward the loan principal.

Balloon repayment

This type of lump sum repayment method, but your installments are scheduled at fixed intervals during the tenure.

Linking your loan and savings account

This can be a good way to reduce the interest liability. The higher the funds in your account, the lower the interest you owe.