Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Home > Familiarize Yourself with these Terms before Applying for Home Loans to Buy a House

Loan for Home

Familiarize Yourself with these Terms before Applying for Home Loans to Buy a House

Familiarize Yourself with these Terms before Applying for Home Loans to Buy a House

Very few people have the full amount to purchase the house they need. For most people, the normal course of action is to arrange for 15-20% as down payment and take a home loan for the rest of the amount. And it’s not difficult to get a home loan these days if you have a stable income and a good credit history. Check your home loan eligibility.

Know More

Also, given the fact that property prices have more or less stagnated and interest rates on loans are low too, it can be safely said that this is one of the best times to purchase a house.

If you haven’t taken a home loan before, then there are few terms that you should become familiar with. We discuss 4 important ones here

1. Credit Appraisal Process

Lenders are in the business of lending money. But they won’t lend if they are not sure of getting their money back with interest. Right? So this is what credit appraisal process is all about. They will check your financials like income, age, qualifications, nature of work and employer, tax history, existing loans, etc. to arrive at their decision about how much to lend, at what rate, for how long and with how much down payment.

2. Down Payment

You will never get 100% of the cost of the house as home loan. You need to bring in some money initially from your own pocket. This is known as the down payment. The amount varies from 20% to higher depending on various factors.

3. EMI

Of course you know that. Don’t you. EMI is a fixed monthly amount that you pay back to the lender every month. It consists of a part principal and a part interest. EMIs are calculated depending on the principal, repayment period and rate of interest on the loan.

4. Pre-EMI

Payment to builders of under construction houses are linked to construction, i.e. payment is made in parts as and when certain milestones are achieved in house construction. Now your regular EMIs will begin when the final disbursement is done. But until that time, you need to pay a Pre-EMI to the lender, i.e. only the interest on the disbursements made so far.

Apply For Home Loan

Say Hello to Your New Home with Our Easy Home Loans!

Apply now
Popular Searches
anyror modt charges 712 utara online gujarat pre emi calculator earnest money deposit Goa Land Record earnest money khasra number meebhoomi Assam Land Record
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.