The home loan is a financial product that has helped millions of people in fulfilling their dream of owning a home. One of the main life goals for many people is to buy a home. Although it could seem hard to achieve this goal due to the high cost of real estate and the inability to pay the entire sum upfront. That's where house loans come in; they give consumers a way to purchase their own homes by allowing them to repay the loan amount over time in installments. Read more to know about Repco’s Dream home loan.

Features of a Home Loan

Repco’s Dream home loan provides a variety of features and advantages that make them a desirable choice for potential homebuyers. Few benefits are that they frequently have lower interest rates, quick processing, very low processing charges which can help bring down the total cost of the loan. Similarly, listed below are some common features of a home loan which also include the latest home loan interest rates.

Home Loan amount:

The loan amount is the entire sum of money that a borrower may borrow from a lender to buy a house.

Latest Home Loan Interest rate:

The interest rate, which is represented as a percentage of the loan amount, is the cost of borrowing the money. The entire cost of the loan can be significantly impacted by the interest rate, which can be either fixed or variable. A fixed interest rate remains the same for the life of the loan ( this is practiced rarely, many lenders have contingencies to change the interest rate) while a variable interest rate can fluctuate over time based on market conditions.

Repayment Type

- Principal and interest and interest-only loan repayment are the two basic types available when you buy a dream home loan in Repco. While making principal and interest payments keeping the latest home loan interest rates in the account, the borrower includes some of the loan's principal amount in each payment as well as the interest. Borrowers who make interest-only payments solely cover the loan's interest cost. Normally customers are required to pay interest only which is called Pre EMI during the construction phase and payment of principal and interest also known as Equated monthly installments (EMI) commences from the date of availing the entire loan amount Apart from common features, there are more features you need to be aware of while applying for a home loan. And they are as follows:
Loans are frequently secured by the real estate being purchased, giving the lender the legal right to seize the property if the borrower defaults on the repayment. Home loans frequently have expenses associated with them, including processing fees, valuation charges, charges for encumbrance certificates,s and mortgage registration charges at the concerned Sub registrar's office. Before submitting an application, it is crucial to carefully evaluate the expenses related to a loan.
The loan term is another important feature of a home loan. The loan term is the length of time over which the loan will be repaid. Home loans typically have longer loan terms than other types of loans, with some loans extending up to 30 years. The longer loan term can help keep the monthly repayments affordable, but it can also increase the total amount of interest paid over the life of the loan.

Features of Repco’s Dream home loan.

Repco’s dream home loan is used for the purpose of construction or purchase of a home that you always desired or dreamt of living in. We provide loans of up to 85% for the construction of a residential house or flat and up to 80% for purchasing a residential house or flat. One more important feature of this loan is, the loan tenure can go up to 25 years.

Eligibility for Repco Dream Home Loan

The best thing about getting a home loan from Repco is that there aren't many restrictions that bind you from getting one. You just have to be an Indian Resident from the age group of 18 to 70 and with certain documents, you will be close to getting your Dream home loan and living your way.

Interest rates for Repco Dream Home Loan

The rate of interest is pegged to Minmum leding rate (MLR), which is a function of cost of borrowing. The final rate of interest will depend on the applicable scheme and assessment of the individual customer based on profile and property details. ( Conditions Apply)

Documents Required to apply for Dream Home Loan

1) KYC Documents

a. Address Proof Documents (AADHAR, Passport, Voter Card, Cas Bill, Utility Bill etc)
b. Identity Proof Documents (PAN card, Passport, AADHAR, Voter card, ID Card issued by Government Authorities etc)
c. Recent Colour Passport size Photograph

2) Income Documents

A. Salaried Class Customers

a. Latest Salary Certificate/ Last three Months Pay slip/ Enquire no
b. Latest Salary Credit Bank account statement for at least 6 months
c.Income tax Return/ Form -16.
d. Employer ID card

B. Non-Salaried Class Customers

a. Business proof documents (Registration Certificate, GST certificate, Partnership deed, SSI, MOA, AOA, Certificate of Incorporation etc)

b. Last three years' Income tax returns along with computation of income, Profit & Loss statements and Balance sheet.

c. Bank statements of all operative business accounts for at least last 6 months

d. GST returns filed for at least last 6 months

3. Property Documents

a. Parent documents along with title in the name of csutomer/seller of the property.

b. Latest Encumbrance Certificate (EC)

c. Plan approval, layout approval, regularization order etc as applicable.

d. Latest tax receipts

e. Patta / Revenue records mutated in the name of the titleholder.

4. General Documents

a. Details of existing loans along with Sanction letter and latest loan account statements

b. For NRI customers.

c. Passport along with Visa, work permit, and residence ID.

d. Latest salary certificate with Overseas salary account statement

e. Latest NRE/NRO account statement as proof for money transfer to India.

f. Registered General Power of Attorney in RHFL format

Obtaining a Home Loan

To obtain a home loan, the borrower will typically need to go through a number of steps. The first step is to research different lenders and loan products to find the best fit for their needs. The borrower will then need to complete an application for the loan, which will typically require them to provide information about their income, expenses, and financial history. The lender will use this information to assess the borrower's ability to repay the loan.

The lender will also typically require a valuation of the property that is being purchased or improved. This is to ensure that the property is worth the amount of money that is being borrowed. If the property is found to be worth less than the amount of the loan, the lender may require the borrower to provide additional security or a higher deposit.

Once the loan has been approved, the borrower will need to sign a loan agreement, which will outline the terms and conditions of the loan. The borrower will then need to make regular repayments on the loan, which will include both the principal amount and the interest. If the borrower is unable to make repayments on the loan, the lender may repossess the property.

Taking out a loan for a home is a major financial decision, but it also comes with several advantages. One of the biggest advantages of a home loan is that it allows you to purchase a home without having to pay the full amount upfront. This makes the home-buying process much more accessible to people who may not have the funds to purchase a home in cash.

Advantages of Home Loan

Lower loan Value

Depending on the area or state where you live, banks will normally offer finances 70% to 90% of the property's market value with the latest home loan interest rates as a housing loan. You must make a down payment on the remaining amount. To determine the loan amount you qualify for and the required down payment, utilise the home loan EMI calculator on the Repco website.

Multiple End-uses

You can apply for Home Loans to purchase any property you like. You may use the loan money, for instance, to purchase a plot of land, build a new home on land you already own, buy a brand-new, previously owned, or under-construction property, etc. With money from a home loan, you can even modify or renovate your house.

Choice of interest type

With Home Loans, you can choose between fixed and floating interest rates. If you opt for a fixed-interest loan, your EMI remains the same throughout the loan tenure. Conversely, if you opt for a floating-interest Home Loan, your EMI depends on the applicable latest home loan interest rates in the real estate market. During a market where the demand for Home Loans is low, your floating interest Home Loan EMI may reduce significantly.

Tax Benefits

Home loans include a number of important benefits, including tax savings. You are eligible for tax savings on principal repayment of up to INR 1.5 lakh under Section 80C of the Income Tax Act of 1961. You may deduct up to INR 2 Lakh in taxes from the portion of your mortgage interest payments that go towards repayment under Section 24. Under Section 80EEA, first-time homeowners are eligible for a tax incentive of up to INR 1.5 lakh. The Home Loan had to be approved between March 31, 2019, and April 1, 2022.

Minimal Prepayment Charges

Banks normally do not impose prepayment fees if you decide to pay off your loan before the agreed-upon duration, which is another benefit of a home loan. Prepayment is only relevant if you choose floating-interest home loans or close your loan early within the loan repayment period.