Own your dream home,with the lowest rates.

Features

How a home loan works

Getting a home loan sometimes seems difficult and complex for borrowers, but it follows a lenient and structured process. This is how it works when you apply through Bikesh Finserv:

• Step 1: Check Eligibility: Fill in your basic details, income, employment type, and loan amount required, and get your eligibility assessment within minutes.
• Step 2: Submit Documents: Share your KYC, income, and property documents. Our team will go through all the documents and reach out to you.
• Step 3: Sanction Letter: The lender verifies your CIBIL score and income profile, then issues a sanction letter, which is typically valid for at least 6 months.
• Step 4: Property Verification: A legal and technical check is done on the property's title verification, valuation, and NOC from the builder or society.
• Step 5: Loan Agreement & Disbursal: You sign the loan agreement, and the loan amount is disbursed directly to the seller or builder. For under-construction properties, disbursal happens in stages linked to construction progress.

How Home Loan Interest Rate is Determined

What Decides Your Home Loan Interest Rate?

Home loan interest rates in India are not fixed at a flat number; they are determined by various factors. Understanding these factors helps you negotiate better and choose the right lender.

• RBI Repo Rate (RLLR): Most banks today follow the repo-linked lending rate (RLLR) model. When the RBI changes the repo rate, your floating interest rate adjusts accordingly. Over 95% of home loans in India are at floating rates.
• Your CIBIL Score: A CIBIL score of 750 or above gets you the lowest available rates. A lower score either increases your rate or leads to rejection.
• Loan-to-Value (LTV) Ratio: Banks typically fund 75–90% of the property value. The more you contribute as a down payment, the lower the perceived risk.
• Employment Type & Income Stability: Salaried applicants working with reputed organizations generally get better rates than self-employed borrowers.

Indicative Interest Rates (2026)

The interest rate on your home loan depends on the lender, your CIBIL score, income, property type, and loan amount. Here is a current comparison:

NOTE: Interest rates are indicative and subject to change. Contact Bikesh Finserv for current rates. Home loan interest rates start from 7.35% p.a. for public sector banks.

Unlike most intermediaries, Bikesh Finserv offers Up to 100% cashback on processing fees which saves you thousands upfront.

Home Loan Processing Fee & Other Charges

Charges You should Know Before Taking a Home Loan

Beyond the EMI, a home loan comes with various upfront costs that need to be budgeted in advance, and these are not covered by only the loan amount.

Home Loan Tax Benefits (Old Tax Regime, FY 2025–26)

You can claim a deduction for principal repayment up to ₹1.5 lakhs a year under Section 80C. Interest paid on a self-occupied property up to Rs 2 lakhs p.a. is deductible under Section 24(b). These benefits are available only under the old tax regime.

Eligibility for Getting a Home Loan

Who Can Apply for a Home Loan?

Here is eligibility criteria for a home loan for salaried & self-employed individuals

Key Factors That Improve Your Eligibility

• Higher credit score (750+)
• Stable and regular income
• Low existing debt obligations (FOIR under 50%)
• Clean repayment history on past loans or credit cards

Can I get a home loan without a CIBIL score?

It is difficult, but not impossible. Some NBFCs and housing finance companies consider applicants with no credit history on the basis of alternate data such as bank statements and regularity of income. But you will probably pay a higher rate and get less favorable terms. It's always a good idea to establish a credit history before you apply.

Types of Home Loan

Which Type of Home Loan Do You Need?

• Home Purchase Loan: The most common type. Used to buy a ready-to-move apartment, villa, builder floor, or under-construction property. Loan amounts from ₹10 lakh to ₹50 crore based on property value and eligibility.
• Home Construction Loan: For building a home on your own plot. Disbursement is done in stages linked to construction milestones. You pay interest only on the amount disbursed during construction.
• Home Renovation Loan: For interior upgrades, modular kitchens, painting, or structural improvements. Loan range: ₹2 lakh to ₹30 lakh with faster approval with a shorter tenure than a full home loan.
• Plot Loan: Combined financing for buying a residential plot and constructing a home on it. Disbursement is linked to plot purchase and construction phases separately.

Benefits of Home Loan

Key Advantages of Taking a Home Loan

• Own Your Dream Home Without Waiting: Without spending years saving the full property cost, a home loan lets you buy now and repay gradually while you live in your own home.
• Long Tenure, Manageable EMIs: With tenures up to 30 years, your monthly EMI stays affordable even on a large loan amount.
• Tax Savings: Home loan borrowers enjoy dual tax benefits on principal (Section 80C) and on interest (Section 24b) under the old tax regime.
• Benefits of Home Loan for Women: Women co-applicants or primary applicants often get a 0.05% – 0.10% lower interest rate from most lenders. Several state governments also offer stamp duty concessions for properties registered in a woman's name.
• Builds a Long-Term Asset: Real estate appreciates in value over time. It appreciates your capital needs.
• Improves Your Credit Profile: Timely EMI payments on a home loan significantly strengthen your credit score over time, making future loan applications easier and cheaper.
• PMAY Subsidy Access: Eligible borrowers under EWS, LIG, and MIG categories can reduce their effective loan cost by up to ₹1.80 lakhs through the government's PMAY-U 2.0 Interest Subsidy Scheme.

Why Home Loan Application Gets Rejected

Common Reasons for Home Loan Rejection

Understanding rejection reasons helps you avoid them and reapply with confidence.

• Low CIBIL Score: A credit score below 650 is a common reason for rejection.
• High FOIR (Fixed Obligation to Income Ratio): If your existing EMIs plus the proposed home loan EMI exceed 50% of your net monthly income, lenders consider you over-leveraged and may reject the application.
• Incomplete or Incorrect Property Documents: If any of the documents seem to be fake or mismatched, your application may be rejected.
• Unstable Employment History: Frequent job changes or employment gaps within the last 2 years reduce lender confidence in repayment ability.
• Property Not Approved by Lender: Some banks do not lend on properties built without proper approvals, in unauthorized areas, or by builders on their negative list.
• Too Many Recent Loan Enquiries: Multiple loan applications in a short period show up as "hard inquiries" on your CIBIL report and can temporarily lower your score.

What to do if rejected?

These are the mistakes, but you can improve your credit score, clear existing debts, correct documentation issues, and wait 3–6 months before reapplying. We can help you identify the exact issue and connect you with the right lender.

Government Schemes for Home Loan

PMAY-U 2.0: Pradhan Mantri Awas Yojana Urban 2.0

The Government of India's flagship housing scheme, PMAY-U 2.0, was launched in September 2024 with an aim to provide affordable housing to 1 crore urban families by 2029. Under the Interest Subsidy Scheme (ISS) vertical of PMAY-U 2.0, a subsidy is provided on home loans sanctioned and disbursed on 1st September 2024 or after to eligible beneficiaries of EWS, LIG, and MIG categories for the purchase, repurchase, or construction of houses.

Who is eligible?

People from EWS (Economically Weaker Section) with annual household income up to ₹3 lakh, LIG (Lower Income Group) with income between ₹3 lakh and ₹6 lakh, and MIG (Middle Income Group) with income between ₹6 lakh and ₹9 lakh are eligible for the ISS scheme.

Key Benefits

A maximum subsidy of ₹1.80 lakh is given to eligible beneficiaries under ISS. Home loans with a value of up to ₹25 lakh for property values up to ₹35 lakh with a carpet area up to 120 sqm are eligible for a subsidy at 4% on the first ₹8 lakh for a tenure up to 12 years.

Important Conditions

• The subsidy under the scheme is provided only once for a property.
• Preference under the scheme is given to widows, single women, persons with disabilities, senior citizens, transgenders, persons belonging to Scheduled Castes/Scheduled Tribes, minorities, and other weaker sections of society.
• The beneficiary must not own a Pucca House anywhere in India in their name or in the name of any family member.