Home Loan for Resale Flat: Interest Rate, Benefits, Documents

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Interest earned through any type of loan (car, home and others) in addition to various fees such as late payment, processing fee, prepayment fees, conversion fees etc. is what generates revenue for the bank. However when it comes to housing loan, revenue generated is high due to the tenure and high interest rates irrespective of whether the home loan is for resale flat/house, new house, reconstruction and other types.

Considering the delays in getting possession of the new flat, people prefer taking home loan for resale flat. Here are the benefits of housing loan for resale flat/house:

Benefits of buying resale flat over under construction or ready possession:

  • Available at price lesser than the ready one or under construction
  • Income tax benefit which owner starts to get right from the first EMI
  • It is a very common scenario that the under construction flat gets delayed due to various reasons such as material unavailability, labour issues etc. However this is not the case with resale flat as they do not have waiting period
  • What you see is what you get
  • You can get every detail checked such as the condition, legal title, electricity or water problem
  • Whether the society is registered or not

Eligibility:

Three most important factors considered by any loan provider are:

  • Income of the applicant
  • Location of the flat
  • Age of the flat

Who offers home loan for resale flat:

Almost every bank in India such as ICICI, SBI, Axis Bank, HDFC and others offer housing loan for resale flat/house. Apart from these housing finance companies such as HDFC, LIC Housing Finance, DHFL and others also offer this loan.

Here are the latest interest rates (as on 23rd Oct’15) for the top mortgage lenders both banks and housing finance companies. And higher the loan amount, higher is the interest rate. In addition to this, every lender has different loan schemes and with a minor difference in the interest rate. The rates may vary depending on:

  • Loan amount
  • Tenure
  • Salaried/Non-Salaried
Home Loan Providing - BanksFloating Interest Rate (p.a.)
Fixed Interest Rate (p.a.)
State Bank of India
9.55%
10.15%
ICICI Bank
9.60%
9.70%
Axis Bank
9.60% - 11.75%
11.75%
Punjab National Bank
9.95% - 10.45%
9.95%-10.45%
HSBC
9.55% - 10.10%
NA
Union Bank of India
9.65%
11.40%
Bank of India9.70 % - 9.95 %NA
United Bank of India
9.75%
NA
Bank of Maharashtra
9.70% - 10.70%
NA
Corporation Bank
9.65%
12.65%
Indian Bank
9.95%
NA
Allahabad Bank
9.70%
NA
Central Bank of India
9.95%
NA
UCO Bank
9.70%
NA
Bank of Baroda
9.65%
NA
Canara Bank
9.90% - 10.00%
NA
Kotak Mahindra Bank
10.25%
NA
Dena Bank
9.70% - 9.95%
NA
Citibank
9.85% - 10.35%
NA
Indian Overseas Bank
9.90% - 10.15%
NA
Andhra Bank
9.75% - 10.75%
NA
Federal Bank
9.95% - 10.35%
NA
Dhanalakshmi Bank

11.50%
NA
Vijaya Bank
9.85%
NA
Tamilnad Mercantile Bank
10.40% - 10.90%
NA
Syndicate Bank
9.70%
NA
State Bank of Travancore
9.95% - 10.20%
NA
State Bank of Patiala
9.65%
NA
State Bank of Mysore
9.70% - 9.85%
NA
State Bank of Hyderabad
9.75% - 9.85%
NA
Standard Chartered Bank
9.75%
NA
Home Loan Provider - Housing Finance CompaniesFloating Interest Rate (p.a.)
Fixed Interest Rate (p.a.)
DHFL
10.25%NA
LIC Housing Finance

9.00%NA
Indiabulls Housing Finance Limited

9.60% - 10.50%NA
Tata Capital Housing Finance ltd

9.70%NA
PNB Housing Finance

9.75% - 11%NA
Bajaj Finserv9.85%NA
L&T Housing Finance9.90%NA
Repco Home Finance10.50%
NA
HDFC
9.55% - 10.05%NA

Documents required for housing loan for resale flat:

Most of the mandatory documentation for home loan for resale flat remains the same irrespective of the bank or housing finance company. And these are as follows, though it may slightly vary for each lender:

  • All documents related to the title of the property. So if the same flat had been purchased by the existing buyer then documents related to that are also required. This applies for all the previous purchase sale deed of the same flat.
  • Payment receipts made to the seller
  • NOC from the society
  • Income Proof
  • Agreement copy
  • ID and Address Proof: Valid passport/voter ID/Aadhar card/driving license
  • PAN card
  • Salary slip for the last 3 months
  • Bank statement for the last 6 months
  • Form-16 and IT return
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