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Everything You Need to Know About Getting a Home Loan

4 minute read

By Christopher Brown

You’ve saved your money, found the home of your dreams, and now you’re bank shopping. Before you commit to a home loan, you should take the time to better understand what you’re getting yourself into, the sorts of paperwork you’ll need to provide a potential lender, and how much you can afford to borrow in order to finance your home.

Today, we’re going to walk you through the home loan process. What is a home loan, who is eligible, what does the home loan application process look like, and how can you calculate your Equated Monthly Installment (EMI)? Read ahead to find out.

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What Is a Home Loan?

Home loans let potential homebuyers like you cover the cost of a new property without having to come up with the money all at once. Home loans provide borrowers with a lump-sum to be put towards a new property and a payment structure, called an EMI, that’s spread out over a maximum of 30 years.

Banks offer a variety of different home loan types depending on the borrower’s needs. There are loans to:

Who Is Eligible for a Home Loan?

Even if you have a great credit score, you may not qualify for a home loan.

Eligibility can vary from bank to bank, but most lenders require borrowers to be at least 21 years of age and a citizen of India. The bank also heavily considers the borrower’s income, as well as any prior external liabilities that may get in the way of an applicant paying their EMI.2

Home Loan Steps

It’s always a good practice to familiarize yourself with the various steps involved in the home loan process. It really is the only way to ensure that you have all of the needed paperwork ahead of time. Arriving at the bank unprepared won’t necessarily prevent you from being approved for a home loan, but it will add extra stress — and that’s never a good thing.

Before you apply for a home loan, it’s important that you take some time to shop around at different banks. Shopping around could save you a lot of money over the long term.

Once you settle on a bank that you’re comfortable with, it’s on to the application process.

Step 1: The Application

The first step to securing a home loan is the application.

Home loans can usually be completed online or in-person at a local branch. Expect to be able to provide documented proof of your:

Most home loan applications require the potential borrower to pay a processing fee. These processing fees are used to pay the agent in charge of handling your application and various other costs.3

Step 2: The Loan Sanction

This part of the application process is mostly out of your hands. You may need to meet with a representative of the bank, but the rest is up to the bank.

During this step, the bank investigates the validity of the information provided in the application before approving the home loan. If all of the information satisfies the bank, then they’ll notify you that your home loan has been approved and sanctioned.

Step 3: The Review

This is the part of the home loan application process that involves the purchased property.

Once the loan has been sanctioned, your bank will require you to provide them with information and documents pertaining to the property that you’re planning to purchase. Among other things, you’ll be asked to provide the bank with:

Step 4: Approval and Disbursal

Finally, the good part.

Once the bank and their lawyers approve all of the documentation, you will be presented with an official home loan agreement. As soon as the loan agreement is signed and all of the legalities are cleared up, the loan will be approved and disbursed to the borrower.

Calculating Your Home Loan EMI

Securing a home loan can sometimes be complicated. There are a lot of steps and even more paperwork. Thankfully, the internet is full of tools designed to help simplify the home loan process.

Calculating your EMI is definitely a lot easier than it used to be. You don’t even have to open up your phone’s calculator app. If you know your loan amount, your illustrative interest rate, and tenure in months, then calculating the EMI for a potential home loan is as simple as punching the numbers into a handy home loan EMI calculator.4


Purchasing a home can be a dream come true, even if applying for a home loan to help finance it is a bit of a headache. We hope today’s brief breakdown of the home loan process has simplified things for you.

As confusing as applying for a home loan can be, remember that there are lots of knowledgeable professionals willing to help you. Additionally, there are just as many online tools designed to make your home loan application process much simpler.

Christopher Brown