Indiabulls Home Loan

Table of Contents

• Highlights of Indiabulls Home Loan
• Indiabulls Home Loan Interest Rates
• Indiabulls Home Loan Eligibility Criteria
• Indiabulls Home Loan Schemes
• Indiabulls Home Loans for NRI or PIO
• How to Apply for Indiabulls Home Loan
• Document Checklist for Indiabulls Home Loan

 

Introduction

Indiabulls Housing Finance is India’s second – largest housing finance company and has been in the home loan sector since 2005. It is located in New Delhi and has been catering to the needs of Indian customers in the lending sector. Possessing a house of one’s own is everyone’s most cherished dream. We strive towards the accomplishment of this dream in every possible way, and Indiabulls Housing Finance provides one extra step of assistance towards this target.

Their tagline,” Ab Ghar aa Jao”, promises the dream of a house for every Indian from every segment of the society. It emphasises the fact that securing a house of your own is not limited to the privileged class but can be procured by the common man as well. As of today, it has expanded its business not only in India but also abroad in the UAE and the UK.

Indiabulls has been striving to provide easy to access, quick and hassle-fee home loans. They have been pioneers in providing a seamless end-to-end online as well as an offline experience for home loan procurement.

Let us consider the features of the Indiabulls Home loans that make them popular among the masses.

 

Highlights of Indiabulls Home Loan

• Indiabulls has presented tailor-made and customised home loan products to suit the needs of various customers.
• The IB HomeFinder is a comprehensive tool that allows people to choose from more than 4 lakh properties.
• The home loans are available at attractive interest rates to make home loan financing affordable to the common man.
• The whole process of home loan procurement has been simplified and is made easily accessible online as well as offline.
• Home loans are granted with flexible loan tenures up to 30 years that can easily fit into the budget of an average Indian customer.
• Indiabulls Finance has made sure not to include any charges for prepayment, providing the much-needed relief to the borrower.

Any applicant for a home loan can either apply jointly or individually. All of the proposed owners of the respective property will have to become co-applicants. But co-applicants don’t need to be co-owners.

 

Indiabulls Home Loan Interest Rates

The Indiabulls Home loans are given at attractive interest rates. The interest rates of Indiabulls home loans vary from 8.80% to 12.00%. These interest rates are not fixed and depend on a variety of reasons.

The interest rate given will depend upon the following factors:

• Type of property
• Loan amount
• Loan tenure, and
• Profile of the applicant

The general Indiabulls home loan interest rates are in the range of 9.25% to 9.99%. They provide special discounted interest rates for women. Women borrowers can get home loans at discounted rates of interest as low as 9.25%.

 

Indiabulls Home Loan Interest Rates as of 2019

Loan Amount	Fixed Rate Tenure	Rates	Variable Rates
Up to Rs 75 lakhs	Up to 2 years	9.25%-10.30%	8.80%-10.35%
Between Rs. 75 lakhs and Rs. 300 crores	Up to 2 years	9.35%-11.05%	9.00% -10.95%
Greater than Rs. 300 crores	Up to 2 years	9.40%-11.20%	9.25%-11.00%

 

The Indiabulls home loans are given at a fixed rate of interest for a tenure of up to 2 years.

After the tenure of the fixed rate of interest is over, the interest rate applicable on loan will be a Variable Rate of Interest (VROI).

VROI= Marginal ROI + Reference rate at the time of the loan agreement, where ROI is the Rate of Interest.

 

Indiabulls Home Loan Eligibility Criteria 

Various factors are considered before your home loan is approved.

Indiabulls Housing Finance or the IBHL has its criteria for considering an individual eligible to be granted a home loan. These are based on:

• Age
• Monthly Income
• Tenure of loan
• Property Value
• Debt to Income Ratio

The loans are available for both the salaried employees as well as the self-employed people.

 

The eligibility requirements for Indiabulls home loans are:

Minimum work experience required	2 years
Minimum Business stability for self-employed	3 years
Minimum income required	INR 15,000 or above required

 

For salaried applicants, the eligibility criteria for Indiabulls bank home loans are as follows:

Age Limit	From 23 to 60 years
Maximum Amount of Loan Granted	Rs.5 crore
Interest Rate linked to PLR*	8.35% – 9.05% per annum

 

For self-employed applicants, the eligibility criteria for Indiabulls bank home loans are as follows:

Age Limit	From 23 to 65 years
Maximum Amount of Loan Granted	Rs 5 crore
Interest Rate linked to PLR*	8.35% – 9.10% per annum.

*PLR is Prime Lending Rate, i.e. the internal rate used by banks and NBFCs to extend credit to customers with good credit scores.

 

Eligibility Based on Age

Age is an important criterion in determining how much loan amount can be guaranteed to an individual.

To avail an INDIABULLS Bank Home Loan, the applicant’s age should be a minimum of 23 years. For salaried individuals, the maximum applicant age would be 60 years, and for self-employed individuals, it would be 65 years. In any case, an applicant will receive a maximum of 25 years towards the repayment of the home loan.

This means that the applicant’s age should not be more than 65 years at the end of the loan tenure period, which is a maximum of 25 years.

 

Eligibility Based on Income

The applicant’s net monthly income will be one of the biggest factors in determining the size of his /her home loan eligibility. Net monthly income is the amount that remains each month after the necessary deductions like PF, ESI, gratuity, and taxes. This will determine the repayment capacity of the applicant,i.e. how well can he pay off the various loans or debt assigned to him with his current earnings.

The table given below shows how a home loan is given for a loan tenure for 20 years at the same 8.5% rate of interest in 3 different income categories. It becomes evident from the table that the net monthly income changes the maximum loan amount sanctioned to the applicants.

 

Net Income (in Rs.)	Loan Tenure(In years)	Rate of Interest (% p.a.)	Maximum Loan Amount Eligible (in Rs.)
25,000	20	8.5	14,40,000
50,000	20	8.5	28,80,000
75,000	20	8.5	43,20,000

 

Applicants having higher net monthly income are eligible for a higher total home loan amount and a decrease in net monthly salary results in a lower amount of loan sanctioned. In case the applicant needs more funds, he or she can add another co-applicant on the home loan application. This helps to increase the net monthly income under consideration.

 

Eligibility Based on Value of Property

Indiabullsprovides home loans for 80% to 90% of the property based on several other criteria. The whole property value will not be financed.

The property can be a new home, a resale plot, an under-construction house or a renovated area as well.

The LTV is the size of the mortgage a bank will offer an applicant about the value of the property that he intends to purchase.

It is expressed as a percentage,i.e. an LTV of 85% means that the lender is ready to offer 85% of the property value as part of the loan agreement.

 

The following table gives an overview:

Property Value	LTV
<Rs. 30 lakhs	90%
Between Rs. 30 lakhs and Rs. 75 lakhs	80%
Greater than Rs. 75 lakhs	75%

 

Eligibility Based on CIBIL Score

The CIBIL score or credit score of the applicant helps depict the overall credit behaviour of an applicant in the past. It shows how the home loan borrower has managed his loan payments or debts in the past.

If the credit score is high, it will increase the chances of getting the INDIABULLS home loan.

Similarly, having a low credit score brings down eligibility.

A good credit score affirms the borrower’s disciplined financial payment behaviour.

 

Indiabulls Home Loan Schemes 

Indiabulls Home loans provide loans under various schemes for a wide range of housing products. The loans can be taken for new homes, plots of land or even for home renovation or extension.

Some of the distinct features of its varying loan schemes are:

• Based on the varying needs of the loan applicants and their diverse financial backgrounds, they have a diversified portfolio of home loan products.
• Each scheme begins with an interest rate of 8.80%.
• The processing fee for the schemes listed starts at 0.50%–1.50% for tenures lasting 25 years.

 

Let us look at the interest rates provided under different schemes:

Indiabulls Home Loan Schemes	Interest rate per annum
Home Loan	9.25% to 9.75%
Loan Against Property or LAP	11% for Residential Property 11.25% for Commercial Property
Home Renovation Loan	8.80% to 12.00 %
Rural Home Loan	8.80% to 9.05%
Home Loan Balance Transfer	11.5% to 15%
Home Extension Loan	8.80% to 11.05%

 

The diverse range of interest rates for different slabs of loan amounts for various categories of people is what makes Indiabulls home loan’s package attractive.

 

Home Loan by Indiabulls

• This is the regular home loan provided by Indiabulls Housing Finance Ltd,i.e. IHFL.
• They offer great Loan to Value or LTV, which includes the cost of land as well. For home loans less than Rs. 30 lakhs, the LTV is 90% whereas for property values between Rs. 30 lakhs to Rs. 75 lakhs is 80%.
• The maximum repayment period offered for the loan is 30 years, including the retirement age of the borrower.
• IHFL offers an attractive floating rate of interest, which makes the loans affordable.
• The loan procurement service, as well as the after-sale service,  is easy, convenient and hassle-free.
• There are no charges for full or part payment of the loan.

                                                           

Indiabulls Home Loans for NRI or PIO

Several Non-Resident Indians or Persons of Indian Origins seek to return to India or buy homes in India, as they perceive India as a safe property market.

To cater to this exclusive market, INDIABULLS offers several housing finance schemes for NRIs and PIOs that are flexible, transparent, and incredibly attractive.

Home Loan Advisory Services are available at locations where the applicants are settled. IHFL makes an effort to cater to the needs of Indian residents across major geographical locations all over the world.

For ease of operations, it has selected Dubai and the UK as the prime hubs for NRI home loan schemes.

 

Eligibility Criteria for NRIs and PIOs

More than 30 million Indians are living outside the Republic of India. NRIs, or POIs, as they are commonly known, might be settled indefinitely overseas. Over some time, they might like to acquire a home in India. If these people opt for home loans in India, the criteria are different for them.

• All those residing outside India for more than 182 days are legally classified as NRIs in the eyes of the government. NRIs also are interested in buying residential properties in India, but the hassle and complexity of regulations keep them away from owning a home of their own here.
• Not every NRI can come to India to secure a home loan. In such cases, IB HL will arrange the services of experts, who can provide valuable insight into the real estate happenings and the regulatory institutes that govern the market.
• The RBI has set regulations that the home loan payments by NRIs can only be remitted from abroad through various banking channels, but the payment should be in INR.
• The interest rates for NRI home loans are normally higher than the one offered to the general public in the country. This is because of the risk factors involved in NRI transactions. These rates of interest are higher by 0.25% to 0.50%.

The online portal gives all the necessary updates.

 

Minimum required age	18-65 years of age
Nature of employment	Available to : Salaried Self-employed professionals Self-employed non-professionals
Resident type	NRIs (Non-Resident Indian) PIOs (Person of Indian Origin) OCIs (Overseas Citizen of India)

 

Those returning to India after initiating the process overseas have their profiles reassessed. Domestic Indian schedules, repayment plans, and interest rates begin in effect after the relocation.

For those wishing to stay overseas, an individual with Power of Attorney can handle the housing loan on the NRI’s behalf.

The loan amount available to NRIs, OCIs, and PIOs is calculated on the same basis as Resident Indians.

 

Let’s look at the types of housing loans INDIABULLS offers NRIs. The home loans granted to the NRIs have certain special features. Let us have a look at these features one by one:

• NRIs are offered home loans for any requirement, i.e. for both new or resale property.
• NRIs can apply for loans from builders or resale, residential plots or even construction or renovation loans.
• The rates of interest offered for the home loan are attractive and convenient.
• IHFL has made sure that they give home loan approval even before the property is finalised.
• The customer has the choice to select from 5000+ home loan projects.
• The safety of documents related to property is assured.
• There is an option for the transfer of portability, which has fewer interest rates and smaller EMIs.
• No foreclosure or pre-payment charges.
• Easy and quick doorstep service for loan procurement.
• The loan tenure offered to NRIs is up to 30 years.
• NRIs and NROs can also enjoy the benefits of reduction in the home loan EMIs as per conditions.

 

Housing Loan for High Net-worth Individuals

India has fast developed as a growing economy. The societal structure of India has undergone a major facelift in the last decade. India has registered a 6% growth in the HNIs or the High Net-worth Individuals. Individuals with high net worth, or HNIs, are those whose investment capacities touch or exceed 2 Crore rupees.

The HNIs seek new products and clever strategies that allow them to allocate their assets in innovative ways.HNIs face the same troubles when purchasing, constructing or renovating as an average Indian, only on a larger scale.

A High-net-worth individual calls for separate management of assets and investment accounts.

 

Some of the advantages of availing loans for HNIs are as follows:

• The loan amount available to the Elite

Loans for HNIs range from INR 5–25 Crore. These massive amounts allow ease of purchasing premiere properties and investment sites. There will be no need to seek further payment sources with the approval of these loans.

 

• Payment Flexibility

HNI loans have a 7-year repayment period, paid with adjustable EMIs tailored as per the individual’s needs. The HNIs can also get a reduction in their EMIs.

 

• Competitive processing fees and interest rates

Elite loan plans such as these have 10% processing fees on an average. They are also offered fantastic interest rates depending upon the scenario.

 

• Flexible eligibility criteria

This loan can be availed by those who don’t necessarily belong to the HNI classification.

As long as an individual meets the needed criteria, they can apply for this high-quantum loan.

 

Amount of loan that can be taken under this loan scheme:

Subject to special circumstances and conditions, high-loan amounts are indeed available to the HNIs.

Loans ranging from INR 5 Crore to INR 25 Crore can be availed.

Marginal Cost Based Lending Rates are applied. As long as EMIs do not surpass 70% of the gross income, the upper range of this quantum loan can be reached.

 

Requirements for NRI Home Loan

Here is a look at the minimum prerequisites for an NRI home loan needed by an NRI.

• The individual must be co-applicant, co-borrower, or co-owner of the property in question.
• The individual must be listed among those in the home application loan that is submitted.
• The individual must possess the following documents attesting to the status of being either:
  • A Non-Resident Indian (NRI)
  • An Overseas Citizen of India (OCI)
  • A Person of Indian Origin (PIO)

 

The following table covers some requirements related to eligibility to proceed with the loan process, which has to be followed by the NRIs.

Required work experience	Minimum of 1 year in the same company in a country abroad For self-employed, a minimum of three years of active business
Age requirements	18-60 years of age
Minimum Average Income	30,000 USD or 35,000 DHM
Loan tenure	Up to 30 years
Loan amount	80%-85% LTV
Interest rates	8.65% onwards
Processing fee	INR 3000- INR 4000
Interest rates	Starting from 8.70%
Prepayment fees	0%-2% depending on the situation
Late payment fees	1%-3%
Nationality the loan applies to	Indians
Resident types the loan applies to	NRIs (Non-Resident Indians) PIOs (Persons of Indian origin)

 

All individuals meeting the above criteria can seek out housing loans for NRIs.

 

Documents Required for Processing NRI Applicants’ Home Loan

Once NRIs meet the eligibility criteria, they can apply for a home loan with the bank.

To provide the necessary proof of status as an NRI, OCI, or POI, the following documents must be submitted:

• Valid passport and work visa copies
• Filled loan application
• Employer ID card
• Passport-sized photographs(3)
• Work permit
• Employment contract duplicate
• Proof of Residence: A bank statement/ utility bill/ credit card statements or house lease attesting the individual’s place of  residence
• Three months’ salary slips
• Bank account statement of the last three months, including NRO/NRE details
• Documentation for Power of Attorney, if needed
• Previous year ITR
• Property papers
• Previous loan or any other debt information

Borrowers are advised to acquire an approval first before making decisions on which property to purchase. They can have a consultation as to who would be the co-applicant and joint owners and determine who gets the Power of Attorney.

They can collect the Power of Attorney form in NBFC format. After the format is approved and signed in favour of the co-applicant, the Indian Embassy stamps their seal of approval on it. This initiates the process officially.

 

To finalise the housing loan process, the following documents need to be submitted:

Identify proof

• A valid passport
• A valid driving license
• A voter ID card
• An Aadhar card

 

Address Proof consisting of either

• A voter ID
• A valid driving license
• Aadhar card
• A valid passport

 

Proof of Income (any 1)

• Offer letter or appointment letter duplicates
• Bank statements dating back six months
• Bank statements of candidates NRE and NRO account for the previous six months.
• The salary slips indicating the candidate’s name, date of joining the organisation, salary structure, and passport identification number held for the previous three months.
• A credible credit assessment by a reputable bureau.

 

Documents for Self-employed candidates

• A duplicate copy of Memorandum of Understanding
• A duplicate copy of Trade license
• Profit and Loss Statements, including annexures and schedules for previous three years approved by reputable CA
• Current account statement of business for the past12 months
• Account statement featuring NRO/NRE details for the past six months

 

Property documents featuring if loan for extension/renovation

• Title deed
• Initial payment receipt made out to the seller
• Agreement to sell duplicate
• Receipts of payments made out to the developer
• Buyer Agreement Letter duplicates
• Encumbrance Certificate of property
• Blueprints of the site as approved by local development authorities
• The estimated cost of construction as approved by a civil engineer architect

 

Miscellaneous documents to be provided are:

• Valid resident visa proof
• Proof of contribution
• Occupational history
• Processing fee cheque was written out to ‘INDIABULLS Ltd’
• Filled home application with a signed passport-sized photograph of applications/co-applicants attached.

 

How to Apply for Indiabulls Home Loan

Buying a home is an important milestone in a person’s life, and a home loan helps you achieve it.

The process of applying for a home loan is intimidating for many. Too many people are unaware of how to even begin the process and what are its requirements.

Indiabulls’ home loan process is one of the safest, easiest, and comprehensive methods to apply for a housing loan.

Below stated are the steps to be followed to apply for a home loan at Indiabulls:

Step 1: Check your Eligibility

To determine eligibility for a home loan, there is a need to understand the factors that go into the assessment of your profile. The bank considers many factors to determine whether a loan can be given to you or not.

The various factors that will determine the eligibility for the loan are:

• Your age
• Your net income
• Your credit history
• Your debt to income ratio
• Your dependents

Step 2: Apply for the Loan

Locate the nearest INDIABULLS you would like to apply for the loan from. You can also log in online to the bank’s official website.

The official website gives detailed instructions about applying for the home loan.

Download the relevant form and fill in all the needed details.

If you are applying for the loan online, you can upload the necessary documents as provided in the checklist for verification, and keep track of your loan application number.

Or, you can also visit the nearest INDIABULLS branch.

 

Remember to carry the following along with your home loan application:

• Property registration documents
• Half-year bank statements
• Identify proof
• Proof of address
• Income Tax Returns for the previous three years.

You can go to the bank with a hardcopy of your application form and the rest of your documents.

The attendants at the bank will verify and check your documents and help you to understand and complete the whole home loan process.

The whole documentation process for applying for a home loan with INDIABULLS promises to be simple, straightforward and transparent.

 

Document Checklist for Indiabulls Home Loan

Once you have determined the eligibility for a home loan and decided about the property and loan type, documentation remains as a major step towards the fulfilment of your dream.

A set of documents establishing your legal and financial stability and identity needs to be submitted.

Here is the checklist you need to apply for Indiabulls housing loan.

 

Address proof

• Registered rental agreement
• The electricity bill for the past three months
• Valid passport copy

 

Appointment letter at the place of employment (Required if working at the place of work for less than one year)

 

Financial documentation

• Form 16 past two years
• Obligatory three months’ salary slip
• Obligatory 6-months’ bank statement

 

Identification proof

• Valid passport
• Driving license
• Voter ID
• Pan Card

 

Other than the regular documents as proof of your identity, address and income, there are some other documents specific to the housing loan process:

Advance processing check	A cancelled check to validate your bank details
Filled out a loan application	Enclose with single passport size photograph
Income proof	Consisting of salary slips, bank statements going back one year, and Form 16
Investment proof	LIC mutual funds owned, with the relevant property documents
Proof of employment continuation	A letter from HR, and an appointment letter from your place of employment
Photo proof	Passport-sized photos, Driving license, Voter ID, PAN card
Relevant property documents	Enclosed with sale deed /Transfer of Ownership
Proof of address	Sale Deed and Rental Agreement
Financial documents for self-employed individuals	Income tax returns for the past two years, approved by a CA
Financial documents for self-employed non-professionals	Income tax returns for the past two years, approved by a CA

 

Below stated are some additional documents for self-employed individuals.

• Business existence proof

Company registration license, shop establishment act, and 3-year-old Saral Copy

 

• Income proof

Income tax returns for the past three years/ Profit and loss account/ income computation/ audit reports, and company balance sheets

 

• Office address proof

Property documents and utility bill

 

• Office ownership proof

Property documents, utility bill, and maintenance bill

 

• Residence address proof

Registered rent agreement or a  utility bill or license with single enclosed passport photograph

 

With all this information at hand and details about the steps to follow during the loan procurement process, we hope it becomes easier to move forward in the direction of applying for a home loan with Indiabulls Housing Finance.