Smooth & Easy Home Loan Process🏡– Everything You Need to Know in 1 place!

If you’re dreaming of buying your own home but feel confused about the home loan process, don’t worry—you’re not alone. In this blog, you’ll get A to Z information about home loans in a simple, practical, and honest way.

We guarantee—after reading this, you won’t need to read another article on the topic.

What Exactly is a Home Loan?

In simple words:
A home loan is the money you borrow from a bank or nbfc to buy a residential property like a flat, apartment, or house.

⚠️ Note: Loans for commercial properties (like shops or offices) do not fall under the home loan category.

Types of Home Loans You Should Know About

Even within residential properties, there are three major categories of home loans:

1. Buying a Flat or Ready-to-Move House

You purchase a pre-built house or apartment. This is the most common type of home loan.

2. Buying an Individual Ready House

You buy a fully constructed, standalone house—not in an apartment complex. This too qualifies loan for home.

3. Plot + Construction Loan

You already own a plot of land (or plan to buy one) and want to build a house on it. In this case, you will need a construction loan.

💡 Key Difference: In construction loans, banks don’t release the full amount at once. The money is disbursed in 3 or more installments, based on construction stages like foundation, structure, and finishing.

📋 Step-by-Step Process of Getting a Home Loan

Let’s now walk through the entire loan process, from house-hunting to loan approval:

✅ Step 1: Set Your Budget

Determine how much you can afford, and shortlist properties accordingly.

⚠️ Do not make any payment or agreement yet.

✅ Step 2: Approach a Bank or NBFC

Contact a lender and apply for a loan pre-approval.
This helps you understand how much loan you can get based on your income profile.

✅ Step 3: Check Your Loan Eligibility

The bank will evaluate:

• Your monthly income
• Your credit score (CIBIL)
• Job/business stability
• Existing EMI load

📌 For example: If your chosen property costs ₹1 crore, the bank may offer you up to 80-85% of that amount as a loan. The rest amount must be paid by you as a down payment.

✅ Step 4: Submit Documents and Get Approved

Once your eligibility is confirmed, submit the required documents and wait for approval.

📑 Documents Required for a Home Loan

Here’s a list of commonly required documents:

💡 Important Tips for First-Time Apply a Loan

1. Keep Your Credit Score High – A score of 750+ increases approval chances.
2. Higher Down Payment = Lower Loan Burden.
3. Understand Interest Rates – Know the difference between fixed and floating rates.
4. Watch Out for Extra Charges – Processing fees, prepayment penalties, legal fees, etc.
5. Use an EMI Calculator – Plan your monthly finances smartly.

⚠️ What If Your Credit Score is Low?

1. Don’t miss any credit card or loan EMIs. – Click to check credit score
2. Clear old debts and monitor your CIBIL report.
3. Add a co-applicant (like your spouse or parent) to improve your chances.

How to calculate your loan

If you want to check the EMI of your loan while taking a loan from a bank or NBFC company, then first click on the loan EMI calculator link and then enter the loan amount you want to take. Then enter the interest rate and the loan tenure. After this, the EMI of the loan will be generated for you so that you can estimate the EMI amount you can pay. click to check EMI