How Do Home Loans Work in India?
For many Indians, buying a house is a lifelong dream. But with rising property prices, most families rely on a home loan to make that dream possible. If you are wondering “How exactly does a home loan work in India?”, here’s a step-by-step guide simplified by Mortbuzz.
Step 1: Loan Application
The journey begins when you apply for a home loan with your basic details:
- Age
- Income proof
- Employment/business details
- Property details (if finalized)
At Mortbuzz, we make this step easier by connecting you with multiple banks at once, so you don’t have to submit documents separately everywhere.
Step 2: Loan Sanction & Verification
The bank verifies your credit score (usually 700+ preferred), income, and repayment capacity. If everything matches the criteria, your loan gets sanctioned.
💡 Pro tip from Mortbuzz: Even if your credit score is slightly low, our experts can suggest lenders who still approve loans with flexible terms.
Step 3: Loan Disbursement
Once sanctioned, the loan amount is disbursed directly to the seller or builder, not to you. For under-construction properties, it may be released in stages.
Step 4: EMI Repayment
A home loan is repaid in EMIs (Equated Monthly Installments).
Each EMI includes:
- Principal (actual loan amount)
- Interest (charged by the bank)
Example:
If you borrow ₹40 lakhs for 20 years at 8%, your EMI will be approx. ₹33,458.
Mortbuzz provides a home loan EMI calculator to help you plan better.
Step 5: Benefits of Home Loans in India
✔️ Tax savings on principal (Section 80C) and interest (Section 24b)
✔️ Build long-term property wealth
✔️ Flexible repayment up to 30 years
✔️ Opportunity to transfer your loan to another bank with lower rates (Balance Transfer)
Why Mortbuzz Makes It Simple
Many borrowers waste time by running around multiple banks. At Mortbuzz.in, you can:
- Compare top banks like SBI, HDFC, ICICI, Axis in one place
- Get expert guidance to choose the right loan
- Save money with cashback offers on legal, technical, and processing charges
- Easily switch lenders with our loan balance transfer support
💬 “Mortbuzz helped me save ₹80,000 by suggesting a better lender for my home loan.” – A Verified Customer
Conclusion
Now you know how home loans work in India – from application to EMIs. The process can look complex, but with the right guidance, it’s smooth and stress-free.
👉 Ready to begin? Apply with Mortbuzz.in today and get the best home loan deals with expert support.