Home Loan

Home Loan

Home Loan

Buying or building your dream home is a huge investment. You'll need a financial partner to ease your financial burden. This is where Bharat Enterprises Financial Services Solutions steps in, supporting your dreams and desires to enable you to step into your dream home. With a commitment to provide affordable home loans for all, BEFSSL specifically caters to the needs of middle and lower-middle-income families in rural, urban and semi-urban markets. By doing this, BEFSSL promotes financial inclusion for customers.

Customized Home Loan Solutions

  • Home Loans for Self-Construction
  • Loans for the purchase of ready-to-occupy homes
  • Balance transfer of existing home loans
  • Loans for Mixed-Use (Residential unit with a small commercial unit)
  • Shop Loans

Features & Benefits

  • Quick disbursal
  • Tax benefits
  • Loan amounts from ₹ 3 Lakh to ₹ 40 Lakh
  • Floating interest rates
  • Flexible tenure of up to 20 years
  • Part payment and prepayment options
  • Balance transfer with better interest rates
  • Customised Eligibility for Salaried and Self Employed
  • For both Residential and Commercial use
  • Minimal documentation
  • Exclusive schemes for self-employed
  • Direct-to-customer and digital onboarding process
  • Self-service app for existing & new customers
  • Secured Long Term Loans
  • Exclusive schemes for self-employed individuals and micro business owners

Documents

Below is the list of documents required for a Mortgage Loan based on profile:

1. Individuals:

  • Identity Proof & Address Proof of Individuals: Aadhaar/ Passport/Driving License/Voter ID/ National Rural Employment Guarantee Act (NREGA) Card/ Letter from the National Population Register (NPR) containing details of your name and address.
  • DOB Proof: Passport/ Driving License/ Voter ID/ NREGA Card/ Letter from the NPR containing details of your name and address.

2. Non-Individuals (Entity):

  • Identity Proof: Registration certificate including Udyam Registration Certificate (URC) issued by the Government/ Certificate/License issued by the municipal authorities under Shop and Establishment Act/ Sales and income tax returns/ CST/VAT/ GST certificate/ Certificate/Registration document issued by Sales Tax/ Service Tax/ Professional Tax authorities/ IEC (Importer Exporter Code) issued to the proprietary concern by the office of DGFT/ License/Certificate of practice issued in the name of the proprietary concern by any professional body incorporated under a statute/ Complete Income Tax Return (not just the acknowledgement) in the name of the sole proprietor where the firm's income is reflecting duly authenticated/acknowledged by the Income Tax authorities/ Utility bills such as electricity, water, landline telephone bills, etc. Note: For sole proprietorship concern, any of the above-mentioned documents required.
  • Address Proof: GST Certificate / Business Registration Certificate / Gumastaa / Udhyam Registration Certificate / Bank statement (not to be considered for entity proof)/ Utility Bill / ITR/ Rent Agreement with utility bill within 2 months. Note: If registered address & permanent address of entity are different – Proof required for both.

Apart from the above-mentioned documents, additional documents will be required for the entities below:

  • Partnership Firm: Partnership Deed
  • Limited Liability Partnership: LLP Agreement and Certificate of Incorporation, List of designated partners and latest profit-sharing ratio certified by CA/CS
  • Public & Private Limited Co. (Even if only 1 director): Certificate of Incorporation, Memorandum of Association (MOA) and Articles of Association (AOA), CA / CS certified latest list of Directors and Shareholders with name, date of birth, nationality and address
  • Trust: Trust Deed with Registration Certificate, List of all beneficiaries, trustees, settler, protector and authors of the trust containing Name and Date of Birth
  • Society: Byelaws/Memorandum of a Society with Registration Certificate, List of Members with name, address and date of birth
  • HUF: List of Adult Coparceners attested by Karta
  • Authorised signatory along with KYC & Relationship Segment details in case of Private/Public Limited Companies/Limited Liability Partnerships/Partnership Firms/Trust/Society
  • List of Directors & Senior Management details in case of Private/Public Limited Companies
  • Legal Entity Identifier (LEI) Certificate of non-individual borrower having banking system exposure of ₹ 5 crore and above

Beneficial owner details along with KYC documents as per below:

  • In case of Company/ Partnership Firms/ Limited Liability Partnership, more than 10% of shares or capital or profit of the company.
  • In case of Unincorporated Association or Body of Person/Individual, more than 15% of capital or profit of the company.
  • In case of author of the trust, the trustee, the beneficiaries with 10% and more interest in the trust.

Below is the list of documents required for a Mortgage Loan based on employment:

1. Income Proof:

Salaried:

  • Latest Form 16
  • Latest one-month salary slips
  • Bank statements for the last 6 months.

Self-Employed:

  • Last 6 months Bank statement of all operative accounts
  • Last 2 years CA Certified/Audited Income Tax Returns (ITR), Computation of income, Profit and Loss Account Statement and Balance sheet
  • GST return of the last 1 year.

Interest Rates on Home Loans

Home Loans Interest Rates (Per Annum)

Cibil Score REPO + Spread Effective Rate of Interest
Cibil Score – 751 and Above REPO + 2.85% to REPO + 3.60% 8.35% to 9.10%
Between 750 and below/ No credit history REPO + 2.85% to REPO + 3.60% 8.60% to 9.35%

*The rates will vary as per the profile of the customer, loan variant and other risk factors.

*The range covers all types of home loans including the variants of super saver, QuickPay, Shubh Aarambh, fast forward, Plot Loans, Banking Surrogate, Plot Equity Loans or any Variant other than Vanila.

Fixed Home Loan Interest Rates

Home Loans Interest Rates (Per Annum)

Programs REPO + Spread Effective Rate of Interest
Salaried REPO + 4.65% to REPO + 6.60% 10.15% to 11.90%
Self Employed REPO + 6.65% to REPO + 6.60% 11.15% to 11.90%

*The rates will vary as per the profile of the customer, Loan variant and other risk factors.

Home Loan Interest rates fees & Charges

Processing Charge * Up to 1% of the loan amount or Rs10,000 (whichever is higher) +GST (as applicable)
*An Upfront processing fees of Rs.5,000 plus GST shall be collected at the time of application submission. The balance processing fees, as applicable, shall be collected at the time of loan disbursement.
* The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and same is independent of the outcome of such assessment.
Admin Charges Rs0/-
Types of Charge Charges Applicable Types of Charges Charges Applicable
Repayment Instruction/Instrument Return Rs339/- per instance Issuance Charges of Credit of Report Rs50/- per instance
Duplicate Statement issuance charges Rs250/- per instance Cheque/Instrument swap charges Rs500/- per instance
Issuance charges for Photocopy of documents Rs550/- per document set Duplicate Schedule issuance Charges Rs250/- per instance
Copies of documents Rs500/- per document set Duplicate Interest Certificate (Provisional/Actual) issuance Charges Rs50/- per instance
Prepayment charges for floating rate loan (including part payment) Nil Prepayment charges for fixed rate loan 2% of outstanding principal/amount
Equitable mortgage creation charges As applicable in the State Duplicate No Dues Certificate/NOC Rs50/- per instance
Stamp Duty & other statutory charges As per applicable laws of the state Equitable mortgage cancellation charges As applicable in the state

Penal Charges

  • Financial Default: 8% p.a. above the applicable interest rate on the overdue amount (subject to the aggregate not exceeding 24% per instance).
  • There Shall be no capitalisation of Penal Charges.
  • Financial Default including all types of payment or financial default/ irregularities with respect to your loan account.

Home Loan Fees and Charges

Depending on the type of housing loan you apply for, you will have to pay various charges, including.

  1. Processing fees: Up to 1% of the loan amount or Rs10,000 (whichever is higher) + GST (as applicable). An upfront processing fee of Rs5,000 plus GST shall collected at the time of application submission. The balance processing fee, as applicable, shall be collected at the time of loan disbursement. The processing fee is a non-refundable fee collected by the Bank for the purpose of reviewing the loan application and same is independent of the outcome of such assessment.
  2. Prepayment Charges: If you repay the loan before the tenure ends, a prepayment penalty applies.
  3. Conversion fee: Applicable if you switch to a different loan scheme to reduce interest rates.
  4. Home Insurance: Required throughout the loan tenure. The premium for the insurance policy is paid directly to the insurance company.
  5. Cheque dishonour charges: If your cheque bounces due to insufficient funds, dishonour charges will be levied.
  6. Default Charges: failure to pay EMIs on time will result in penalty charges.
  7. Changes in loan terms: Nominal charges apply if you change your loan tenure after the loan is approved.

Home Loan FAQs

What are the types of rates of interest provided?
There are two types of rates of interest, Fixed and Floating rate of interest. Floating rate of interest is the rate which is linked to the movement of repo rate. If the repo rate increases, the interest rate will increase and vice versa. While Fixed interest rate is where the rate of interest is same for initial few years/ tenures of the loan and then it is converted to floating rate of interest.

What are the parameters considered for approving Home Loan?
The parameters considered for approving Home Loan includes bureau score (CIBIL), income, employment history, property details and valuation among others. The ability to make a down payment is also considered in home loan cases.

What is the tenure offered for a Mortgage loan?
For Home Loan it is up to 20 years and for non-home loans i.e. LAP it is up to 15 years

Will applying for a mortgage loan affect the credit score?
It has a temporary impact on the credit score. However, if the EMI payments are done timely, then it can improve your credit score in future.

Why are the property documents required?
Property documents are required to assess the property’s value, verify ownership, and to ensure it meets all the legal norms specified by the government and regulators.

How is the property value determined?
The property valuation process involves a visit by a valuation team. During this visit the appraiser conducts an on-site inspection to assess aspects of the property that may impact on its value.

How much percentage of property’s valuation can I get as a loan?
It is commonly known as Loan to Value (LTV) which means loan amount as a percentage of the property value. The percentage of LTV depends on the type of property and type of loan. For Home loan it is up-to 90% (depending upon the loan amount) and for non-home loan such as LAP and NRP it is up-to 80%.