Delhi is a bustling metropolis that offers a unique blend of history, culture, and modernity. The city's rich heritage is reflected in its numerous monuments, temples, and museums, while its fast-paced growth is evident in its thriving economy and modern infrastructure. The city's thriving economy also means that there is a steady demand for housing, making it a good investment opportunity for home buyers. If you wish to obtain a home loan in Delhi, we’ll give you a step-by-step breakdown of how to accomplish the same by getting the best deal.
Types of Home Loans offered in Delhi - NCR
Home loans in Delhi-NCR (including Delhi, Noida, Gurugram, Ghaziabad, and Faridabad) are of 10+ distinct types. Here is a quick overview:
| Type of Home Loan |
Purpose of Home Loan |
| Home Purchase Loan |
Purchase a residential property such as a house or a flat |
| Loan Against Property |
Get funds by placing your property as a collateral with the lending institution |
| Home Extension Loan |
Extend an existing loan to add to your living space - balcony, an extra room, etc. |
| Home Improvement Loan |
Repair or renovation activities like kitchen remodel or roof repairs |
| House Construction Loan |
Construct a residential property for personal use or investment |
| Home Loan Top-Ups |
Borrow a certain amount over the existing home loan |
| Home Loan Balance Transfer |
Transfer existing home loan to another lender, generally to get lower interest rates and more flexible repayment options |
Features And Benefits Of Home Loan In Delhi
Home loans in Delhi offer a range of features and benefits that can make the process of buying a home more affordable and manageable for potential home buyers.
1. Affordability: Home loans in Delhi are available at competitive interest rates, making it easier for people to afford a home. Many financial institutions also offer flexible repayment options, allowing borrowers to choose a plan that best suits their financial situation.
2. Easy Application Process: Applying for a home loan in Delhi NCR, is a relatively straightforward process. Borrowers can apply online or in-person at a financial institution and can expect a quick turnaround on their application.
3. Flexible Repayment Tenure: House loans in Delhi come with a flexible repayment tenure, which can be as long as 30 years. This allows borrowers to spread out their loan repayment over a longer period, making it more manageable.
4. Low-Interest Rate: The home loan interest rate in Delhi is lower than that of other types of loans, making it more affordable for borrowers to repay the loan on time.
Home Loan Interest Rates & Charges in Delhi
SMFG Grihashakti loans come with attractive interest rates and flexible repayment tenures for eligible borrowers. Here is a breakdown of the various interest rates and charges you can expect:
| Home Loan Interest Rate |
- Starts at 10% per annum for the salaried
- Starts at 11% per annum for the self-employed
|
| Type of Interest Rate |
Floating interest rates |
| Processing Fee |
Up to 3% of the loan amount |
| Switch Fee Charges for Change in Loan Interest Type |
An amount not exceeding 1.00% of the outstanding principal amount |
| Available Loan Amount |
Up to INR 5 crores* – up to 90% of the property value |
| Loan Tenure |
Up to 30 years* |
| Cheque/ECS/NACH Dishonoured Charges |
INR 500 per instance |
| Prepayment Charges (In Part or Full) |
No foreclosure charges/ pre-payment charges will be applicable on any floating rate term loan sanctioned for purposes other than business to individual borrowers, with or without co-obligant(s). All Semi-fixed rate (combination of fixed and floating) loans shall attract the pre-closure norms applicable to fixed/ floating rate depending on whether at the time of pre-closure, the loan is on fixed or floating rate |
Eligibility Criteria Of Home Loans In Delhi
To be eligible for a home loan from SMFG Grihashakti in Delhi, applicants must meet certain qualifying criteria depending on their employment status:
For Salaried Individuals:
The applicant must work for a multinational company, a publicly listed company, or the government.
Alternatively, the applicant may work for a Pvt. Ltd. company, a closely held or unlisted business, a partnership, or as a sole proprietor.
For Self-Employed Individuals:
The applicant must be an individual entrepreneur working as a sole proprietor.Self-employed professionals such as doctors, architects, and CPAs are also eligible. Partnership corporations may also qualify for a loan. Private limited firms, closely held companies, and unlisted companies may also be eligible to apply.
Documents Required For Home Loans In Delhi
1. PAN Card
2. Identity Proof (Aadhar Card, Driving Licence, Passport, Voter ID, etc.)
3. Address Proof (Passport Copy, Aadhaar Card, Driving Licence, Utility bills)
4. Co-applicant Guarantor - KYC Documents
5. Account statements of the past 6 months
For salaried individuals, additional documents required are:
1. Salary slips for the last three months
2. Form 16 for the last 2 years
For self-employed individuals, additional documents required are:
1. Balance sheet
2. Income tax returns for the last two years
3. Business Proof (Licence, registration certificate, GST number)
4. CA audited financials (if applicable)
Property Documents Required For A Home Loan:
1. Sales deed, stamped sales agreement of sales, or allotment letter
2. NOC from the housing society or property developer
3. Possession certificate and land tax receipt from the land/land revenue/land department
4. Detailed estimation of the construction cost
5. Account statements or payment receipts outline all information related to any payments made to the property developer or seller
6. Occupancy certificate (applicable for constructed apartments)
Things to Consider While Buying a Home in Delhi
Buying a home in a tier-1 city like Delhi is a significant step and comes with several considerations. Let us take a look at some of the most important ones:
Know What You Want
Having a clear idea of what you expect from your future home, coupled with your financial goals will help you make home ownership more manageable. Factors to be considered include the space, location, and facilities you want against your existing obligations, lifestyle, and any future expenses. Doing so will let you set an ideal budget and narrow down possibilities when you start searching for properties.
Locality
Locality is a crucial aspect as it will have a considerable impact on your day-to-day life. Check whether you have easy access to public transport, educational institutions if you have children, and healthcare facilities. Amenities such as supermarkets and leisure centers will also make your life easier and more enjoyable.
Security
Naturally, the decision to live anywhere will always be accompanied by security concerns. Security cameras, alarm systems, and smoke detectors are some facilities that make for a more secure neighbourhood.
Legal Clearances
To avoid being entangled in any legal issues in the future, you should make sure that your chosen property has all the required NOCs. It should also have been approved by the Government of Delhi.
How to Apply for Home Loan in Delhi?
At SMFG Grihashakti, you can apply for a home loan either online or offline.
Online application process:
1. Initiate the application by accessing our website www.grihashakti.com. Alternatively, you can click here to start.
2. Once you verify your mobile number, you will be asked to enter the required information and submit the relevant documents.
3. After this, our representative will get in touch with you to guide your further.
Offline application process:
1. Find the SMFG Grihashakti branch nearest to you using our branch locator.
2. Visit our office where our representative will be happy to guide you further.
Conclusion
Overall, Delhi is an appealing city for home buyers due to its rapid expansion, solid infrastructure, and supremacy in education, healthcare, and commerce. With a rich cultural legacy, a modern lifestyle, and a booming economy, it has something for everyone.
SMFG Grihashakti home loan offersqualifying individuals loans of up to INR 5 crore* on properties that are new, under construction, or resale, with flexible repayment terms of up to 30 years*. Enjoy the benefits of speedy processing, low documentation needs, and no hidden fees for Delhi housing finance.
FAQ's
How is the EMI calculated for a home loan in Delhi?
The EMI for a home loan in Delhi is calculated using the following formula:
EMI = [P x R x (1+R) ^N]/[(1+R) ^N-1]
P = Principal amount
N = Loan tenure in months
R = Monthly Interest rates
The rate of Interest (R) on your loan is calculated per month. Our home loan EMI calculator takes these inputs to produce the monthly amount you need to pay.
For example: A loan amount of INR 10,00,000, interest rate of 10% per annum, and a tenure of 20 years comes up to an EMI of INR 9,650 per month.
What is the lowest interest rate on a home loan in Delhi?
The interest rates on a home loan in Delhi varies from lender to lender. SMFG Grihashakti offers interest rates as low as 10% per annum* for salaried applicants. For the self-employed, the interest rates start at 11% per annum*.
How long does it take to get a home loan in Delhi?
SMFG Grihashakti offers a quick 72-hours* loan disbursal after the final approval. However, the time taken to get a home loan in Delhi is subject to eligibility as well as the successful verification of the loan documents.
What is the minimum income requirement to get a home loan in Delhi?
The minimum salary requirement may differ from lender to lender or their policy at the time of loan application. In general, a stable income monthly source of INR 25,000 to INR 30,000 is favoured. Ideally, your home loan EMI should be a maximum of 35% to 40% of your income.
Do I need to provide any security or collateral to apply for a home loan in Delhi?
The home you are taking the loan for acts as the security for the loan. You do not need to provide any additional security or collateral. If the loan cannot be repaid, the lending institution retains the right to seize the property.
Can you get a home loan with a low credit score in Delhi?
Getting a home loan in Delhi with a low credit score might be challenging, but not impossible. Generally, you must have a minimum credit score of 700 to apply for a home loan. You may be able to get a loan with lenders that are more flexible about credit scores, but you may get higher interest rates and strict repayment terms. Another option is to apply with a co-applicant or a guarantor. It is advised to try to improve your credit score before applying for a home loan.
Disclaimer: *Please note that loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms and disbursal process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you are an existing customer and wish to foreclose your loan, please note that foreclosure terms and charges will be applicable as per our policy at the time of loan foreclosure.