Home Loan

A Home Purchase Loan is a secured financial product designed to help individuals or families purchase a new or resale residential property.
The loan amount is disbursed directly to the seller or builder, and the property itself serves as collateral until full repayment. Borrowers can repay the loan through easy Equated Monthly Instalments (EMIs) over a pre-determined tenure ranging from 5 to 30 years, depending on eligibility and financial profile.

• High Loan Eligibility – Avail up to 85–90% of the property value, subject to income and credit profile.
• Attractive Interest Rates – Competitive fixed or floating rates through our wide network of banking partners.
• Flexible Tenure Options – Choose repayment periods from 5 to 30 years to suit your cash flow and affordability.
• NRI Home Loan – Quick approvals, flexible EMIs, tax savings, global accessibility, and complete compliance for stress-free property investment in India.
• Balance Transfer Facility – Switch your existing home loan to a lower interest rate effortlessly.
• Top-Up Loan Option – Access additional funds for home interiors, furnishings, or personal use.
• No Hidden Charges – Transparent processing, zero surprises, and clear communication throughout the process.
• End-to-End Assistance – From eligibility assessment to documentation and disbursement, our experts handle every step.

• Make your dream home a reality – instead of paying rent, invest in your future by owning a house.
• Cash flow convenience – spread the cost over years with manageable EMIs.
• Tax advantages – interest and principal repayments are eligible for tax benefits under Indian law.
• Real Estate Wealth – Build long-term wealth through property ownership.
• Tax Rebate – Get tax deductions on principal (Section 80C) and interest (Section 24(b)) payments under the Income Tax Act.
• Loan-Term Stability – Gain security and stability for your family.
• Your Space, Your Way – Freedom to design and customize your own space.

• PMAY (Pradhan Mantri Awas Yojana) – Credit Linked Subsidy Scheme (CLSS)
  Under PMAY-Urban and PMAY-Gramin, eligible home-buyers (especially in Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group (MIG)) can get an interest subsidy on their home loans.
• Interest Concessions / Subsidies for Women or First-time Buyers
  Some banks offer slight rate discounts (e.g., 0.05% lower rate for female borrowers).

• Applicable for home loans sanctioned for purchase or construction of a house.
• Family should not own a pucca house in any part of India.
• Maximum annual household income eligibility: up to ₹18 lakh.
• Property must be registered in the name of a female member or jointly.

Increased Interest Deduction Cap under Section 24(b)

• The Union Budget 2025 has proposed raising the maximum deduction for interest paid on home loans from ₹2,00,000 per annum to ₹3,00,000.
• This increase helps homeowners reduce their tax burden more, especially in high-interest loan years.

Extension of Additional Deduction for Affordable Homes

• The additional deduction (often associated with affordable housing) for interest up to ₹1,50,000 has been extended until 31 March 2026.
• This aims to support buyers in the affordable housing segment and sustain incentives for lower-cost homes.

New Default Tax Regime & Loss of Some Deductions

• The new tax regime (Section 115BAC) is now the default from FY 2025-26, with revised slab rates.
• Under this new regime, many of the familiar deductions (including home loan interest deduction under Section 24(b)) are not permitted unless the taxpayer opts into the old regime.
• Thus, taxpayers must carefully decide whether to stay in the old regime (and lose simplified slabs) or switch to the new regime (losing many deductions).

Changes to House Property Rules / Select Committee Suggestions

• The Select Committee on the Income Tax Bill 2025 has proposed (or recommended) that interest deduction on home loan be allowed when computing income from rented / let-out properties (in some amendments).
• Also, proposals were made to allow the standard deduction of 30% from annual value of house property after deduction of municipal taxes.

Impact of Higher Basic Exemption & Section 87A Adjustments

• Budget 2025 has increased the basic tax exemption / rebate thresholds (for instance, under the new regime, incomes up to ₹12 lakh may have nil tax liability).
• This affects the real utility (marginal benefit) of home loan deductions, especially for middle-income taxpayers whose tax liability may already be low.

• Typical home loan rates currently start around 7.35% per annum (for certain profiles/ banks).
• Your effective rate will depend on your credit score, loan amount, tenure, property, and whether the rate is fixed or floating.

Below is a consolidated and polished list of documents you can feature. The list may be adapted to VFS’s internal policy and partner banks.

Common Documents (for all applicants)

• Completed & signed loan application
• Identity Proof (any one): PAN, Aadhaar, Passport, Voter ID, Driving License
• Address Proof (any one): Aadhaar, utility bills, rental agreement, voter ID, driving license
• Passport-size photographs

Additional for Salaried Applicants

• Duly filled and signed loan application form
• PAN Card and Aadhaar Card
• Identity and address proof (Passport, Voter ID, Driving License)
• Latest 3 months’ salary slips
• Form 16 or ITR for last 2 years
• Bank statements for past 6 months

Additional for Self-Employed / Professionals

• PAN Card and Aadhaar Card
• Proof of business existence (GST registration, license, or CA certificate)
• ITRs and financial statements for last 2–3 years (P&L and Balance Sheet)
• Bank statements for 6–12 months
• Business address proof

Property Documents

• Sale Agreement or Allotment Letter
• Title Deeds and chain of ownership
• Approved building plan, sanctioned layouts
• Encumbrance certificate
• Cost estimations, architect / engineer’s designs (for under-construction)
• NOC from local authorities / housing society/ builder
• Payment receipts to developer / seller
• Latest property tax receipts/TS1

(Note: For resale / takeover / balance transfer, additional lender-related statements, NOC, etc., may be required.)

At VFS Alliance, we understand that buying a home is more than a financial decision—it’s a lifelong dream and a foundation for your family’s future.
Through our Home Purchase Loan solutions, we make home ownership simple, transparent, and affordable. Partnering with leading banks and NBFCs, we provide customized loan options with competitive interest rates, flexible tenures, and expert support at every stage.