Are you confused about home loans and looking for a home loan guide? We have got you covered!
From checking your eligibility for the home loan, collecting the necessary documents, learning about the interest rates of banks to finally waiting for the approval of the loan, it could be a lengthy process.
We have brought to you this best home loan guide for first-time home buyers in 2025 which simply explains the entire process. Read further to find out everything related to home loans
1. What is a Home Loan?
In simple terms, a home loan is a financial guarantee provided by a bank to an individual to help in the construction or buying of an apartment, land or house.
Find out more about home loans by reading our best home loan guide in India 2025 further.
2. What is the Process of Home Loan in Simple Steps?
It is important to learn about the entire process before you apply for a home loan by following these simple steps in this home loan guide below:
- Loan Application: You fill the home loan application form of the bank and deposit required documents for the same.
- Loan Approval: The bank checks your application and your eligibility for the home loan based on employment, CIBIL score, etc. and approves or rejects it accordingly.
- Loan Disbursement: The bank disburses the loan amount to you or to the real estate vendor directly based on your instructions.
- Repayment: After receiving the loan amount, you repay it based on the tenure specified by your bank along with the fixed interest rate.
3. What are the Different Types of Home Loan?
Let’s take a brief look at all the different types of home loan in our home loan guide.
Home Purchase Loans
These loans are availed by individuals for the purchasing of readily available apartments, flats, or houses. These loans are available at nearly every bank in India, but they follow their own interest rates and policies.
Land Purchase Loans
These types of loans are availed by individuals for the purchasing of real estate to construct a new house or building. Usually banks provide 85-90% of the cost, while the remaining 10-15% is left to be arranged by the individual.
Home Construction Loans
These types of loans are availed by individuals who wish to construct a house on their personal property, keeping the same as collateral.
Home Improvement Loans
These types of loans are availed by individuals who wish to renovate their existing house. The disbursement of such loans depends on an individual’s debt-to-income ratio (Calculate here) and financial standing.
If you are confused about buying properties in Odisha, do check out our two-part step-by-step beginner home-buyer’s guide.
4. What Is the Home Loan Eligibility Criteria in Odisha?
You must meet the home loan eligibility criteria in India laid down by individual banks to be eligible for home loans. Let’s take a look at some of the general eligibility criteria of all banks in this home loan guide.
- You must be aged between 18 and 60 years.
- You need to be a salaried individual with a steady income.
- Your salary should be above the required threshold laid down by the bank.
Other eligibility criteria that you should make sure to consider are:
- You must be able to prove to the bank that at least 50% of your salary every month is free to pay the EMIs (Equated Monthly Instalment).
- You must be able to prove to the bank that you are free from any other debts to be able to afford another significant loan amount, or else your total loan amount may decrease.
- You must be able to pay the down payment amount of the house for which you are taking a loan. Since the banks only provide approximately 80% of the house value as the loan.
5. What are The Documents Required for a Home Loan?
Before applying for a home loan, make sure to follow the checklist we have provided below in this home loan guide to keep all the required documents handy with yourself:
- Proof of Identity such as Aadhar Card, PAN Card, Voter ID Card, or Passport.
- Proof of Address such as Utility bills, Aadhaar card, or Passport.
- Proof of Income:
- For salaried individuals: Last 3 months salary slips and Form 16.
- For self-employed individuals: Income Tax Returns (ITR) and bank statements of the last 6 months.
- Property documents such as sale agreement, titled deed, and approved building plan.
- Employment detail documents such as Income Tax Returns (ITR) and Employment Certificate.
6. Document Checklist for Availing a Home Loan in India
| Document Category | For Salaried Individuals | For Self-Employed Individuals |
|---|---|---|
| Proof of Identity | Aadhaar Card, PAN Card, Voter ID Card, Passport | Aadhaar Card, PAN Card, Voter ID Card, Passport |
| Proof of Address | Utility bills, Aadhaar card, Passport | Utility bills, Aadhaar card, Passport |
| Proof of Income | Last 3 months’ salary slips, Form 16 | Income Tax Returns (ITR), Bank statements of the last 6 months |
| Property Documents | Sale agreement, Title deed, Approved building plan | Sale agreement, Title deed, Approved building plan |
| Employment Details | Income Tax Returns (ITR), Employment Certificate, Last 6 months’ bank statements showing salary credits | Business Address Proof, Business License/Registration Certificate, GST Returns (if applicable) |
| Other (General) | Duly filled and signed loan application form | Duly filled and signed loan application form |
| Passport-sized photographs | 2. Passport-sized photographs | |
| Processing fee cheque (if applicable) | 3. Processing fee cheque (if applicable) |
7. What are the Different Types of Home Loan Interest Rates in India?
The home loan interest rates differ for each bank in Odisha. Let’s take a look at the interest rates found in the top 10 most preferred banks for home loans in India in our home loan guide. :
| Sl. No. | Bank | Interest Rate (p.a.) |
| 1 | Canara Bank | 7.40% |
| 2 | State Bank of India (SBI) | 7.50% |
| 3 | Kotak Mahindra Bank | 8.20% |
| 4 | HDFC Bank | 8.45% |
| 5 | ICICI Bank | 8.50% |
| 6 | Axis Bank | 8.75% |
| 7 | Bank of Baroda | 8.90% |
| 8 | Punjab National Bank | 8.95% |
| 9 | Union Bank of India | 9.00% |
| 10 | IDFC FIRST Bank | 9.25% |
8. Which Bank is Best for a Home Loan with Low Interest Rate in India 2025?
State Bank of India (SBI) is the best bank for availing a home loan in India with a starting interest rate of 7.50%.
It is a trusted bank since it is under the government of India jurisdiction. State Bank of India also has a wide branch network and transparent terms.
9. What are the Top 5 Things that You Should Keep in Mind Before Taking a Home Loan in India?
- Eligibility Criteria
You should always check the eligibility criteria for a home loan, such as your debt to income ratio and your repayment capacity.
- Loan Amount
You should always use an EMI calculator before availing a home loan to keep track of your finances, and adjust your expenditure accordingly.
- EMI/Pre-EMI
Keep in mind that: The longer the loan tenure, the lesser is the EMI. You can always repay in bulk within the loan tenure to reduce your burden.
- Home First or Loan First
You can always avail a loan before shortlisting the property making your decision flexible.
- Types of Home Loan
While availing home loans, you could choose between floating rate and fixed rate loans, providing you with both flexible and stable options respectively.
10. Ending Note
Choosing the right home loan option in the market is difficult, hence making a smart and informed decision is really important for you.
From finalizing the property of your choice to calculating your loan amount based on your financial future could save both your time and money.
We hope this home loan guide provides you with the right information on your journey. If you are looking for premium apartments in Bhubaneswar, the Sri Jagannath Promoters and Builders have the best offers for you, which you can make yours today with the right home loan options. If you liked this blog, consider checking out our available apartment ranges from premium to luxurious.
Frequently Asked Questions (FAQs)
How much home loan can I get based on my salary?
Generally, you can get a loan amount up to 60 times your net monthly salary from banks, depending on your credit score and other liabilities.
What is the minimum credit score required for a home loan?
Most banks prefer a CIBIL score of 750 or above for the loan approval and better interest rates. However, a CIBIL score of 700 or above is also acceptable.
How long does it take to get a home loan sanctioned?
It usually takes between 7 to 15 working days, depending on documentation and property verification.
Are there any tax benefits on home loans?
Yes, you can claim tax deductions under Section 80C and Section 24 (b) of the Income Tax Act.
What is the difference between fixed and floating interest rates?
A fixed rate stays constant throughout the loan tenure, offering stability, while a floating rate varies with market conditions, which can lower or increase your EMIs over time.
I’m planning to buy a property in Odisha. Where can I find a beginner-friendly guide?
If you’re a first-time buyer, it is crucial to understand the key locations and processes which can yield you a good return of investment. Check out our detailed beginner’s guide to buying property Buying in Odisha for expert tips and steps.
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