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Home Loan

A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that the title will be transferred back to the owner once the payment has been made and other terms of the mortgage have been met. 
A home mortgage will have either a fixed or floating interest rate, which is paid monthly along with a contribution to the principal loan amount. As the homeowner pays down the principal over time, the interest is calculated on a smaller base so that future mortgage payments apply more towards principal reduction as opposed to just paying the interest charges.  HOME LOANS - INTEREST RATES With effect from 01.05.2016

Borrowers' category Home Loan interest rate, irrespective of loan limit EMI per Lac for 30 year Tenor
Women 20 bps above the MCLR i.e. 9.35% p.a Rs. 830
Others 25 bps above the MCLR i.e. 9.40% p.a. Rs. 834


Great savings
We offer variable and semi-fixed rate housing loans with just a one-time processing fee. No hidden charges.

Tailored to your needs
You have a requirement, we have a product! Loans available for ready/under construction flat or house, home extension and renovation.

Flexible tenures
Standard Chartered offers home loans for salaried and self-employed customers with a wide range of tenure

Refinancing options
Stuck with a High Interest home loan? Transfer your existing loan to a lower interest Standard Chartered Bank Home Loan and save money

The following are some popular types of home loans available in the Indian housing finance market :

1. Land purchase loans Land purchase loans are taken to buy a plot of land on which a borrower wishes to construct her/his house. Most banks offer up to 85 per cent of the price of the land. These loans can be availed for residential as well as for investment purposes. Almost all leading banks offer this loan like ICICI Bank (land loan), Axis bank (loan for land purchase) etc.

2. Home purchase loans The home purchase loans are the most popular and the most commonly available home loan variants. These loans can be used to finance the purchase of a new residential property or an old house from its previous owners.

3. Home construction loans These loans can be availed by those individuals who want to construct a house according to their wishes rather than purchasing an already constructed one. The loan application and approval process for home construction loans are somewhat different from those of the commonly available housing loans.

4. Home expansion/Extension loans Home expansion or extension loans are useful in situations when people want to expand their existing house. Expansion includes alteration in the current structure of the residence to add extra space such as constructing a new room, a floor, a bigger bathroom or enclosing a balcony. Though many banks provide loans for these purposes as part of home expansion loans, some banks lend for the same purposes as part of their home improvement loans.

5. Home improvement loans Home improvement loans are availed by individuals who already own a house but lack the funds to renovate it. All kinds of renovations and repair works can be financed using this variant of home loans such as internal and external painting, external repair works, electrical work, water-proofing and construction of underground or overhead water tank etc.

6. Home conversion loans Those borrowers who have already purchased a house by taking a home loan but now want to buy and move to another house opt for the home conversion loans. Through these loans, they can fund the purchase of the new house by transferring the current loan to the new house. There is no need to repay the loan on the previous home.

7. NRI home loans NRI home loans is a specialised home loan variant which has been developed to assist non-residents in acquiring housing finance to buy residential property in India. These loans are meant exclusively for the non-resident Indians.

8. Balance transfer loans Balance transfer option can be availed when an individual wants to transfer his home loan from one bank to another bank. This is usually done to repay the remaining amount of loan at lower interest rates or when a customer is unhappy with the services provided by his existing lender and wants to switch to another lender.

9. Stamp duty loans Stamp duty loans are provided to pay off the stamp duty charges on the purchase of a property. The amount from this loan can be used solely for this purpose. This segment of home loans has yet not gained much popularity.

10. Bridged loans Bridge loans are short term loans which are meant for people who already own a residential property but are planning to buy a new house. It helps borrowers to fund the purchase of the new house until a buyer is identified for the old house.

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