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A Comprehensive Guide to Home Loans

Aim for your dream home!

Written by
Yash Kaur, Indirow

Imagine, stepping into a home, calling it yours, and decorating every corner with your own hands—everything you ever imagined.

Owning a home, especially for first-time buyers, can be a significant and cherished step. But for many, this dream is unrealized. Most people fear the process of applying for a home loan and procrastinate over their decision to buy their dream house. Fear not! This guide simplifies the process and breaks down every aspect, empowering you to make better and more informed decisions.

Understanding Home Loans

A home loan, also called a mortgage, is a financial aid extended by banks, housing finance companies, and other financial corporations which allows the borrower to purchase a property. You are liable to repay the loan with interest over a predetermined tenure, decided at the time of lending.

The key parts of the loan are:

  1. Principal

    The amount you borrow to purchase the property.

  2. Interest Rate

    The cost of borrowing the loan (principal).

  3. Interest type

    Floating or Fixed, depending on the preference of the borrower.

  4. Loan Term

    The tenure over which you have agreed to pay the loan.

  5. Down Payment

    An upfront amount, some percent of the total value of the property.

  6. EMI (equated monthly installment)

    Regular payments combining principal and interest that are paid monthly.

Types of Home Loans

  1. Purchase Loan

    To buy a property.

  2. Balance Transfer

    To transfer an existing loan to another lender, offering better interest rates and terms.

  3. Renovation Loans

    To renovate and improve the existing home and property.

Key Factors to Consider

  1. Loan Amount

    Borrow wisely, considering your needs, income, existing spending, and future commitments.

  2. Interest Rates and Type

    Opt for the lowest interest rates, as they significantly impact the EMI. One may choose fixed-rate loans in markets where interest rates are expected to keep rising, whereas a floating-rate loan may be better if one estimates that interest rates may come down in the future.

  3. Tenure and Repayment

    Longer tenure reduces EMIs but increases the interest paid; choose the tenure wisely to manage affordability and repayment. Ask for the repayment terms if you wish to repay the loan in a lump sum.

  4. Fees

    Lenders levy fees for processing the loan. Compare the rates across lenders before moving forward.

  5. Prepayment Charges

    Some lenders charge fees for the prepayment of the loan before the tenure ends, inquire about this while choosing the lender.

The Home Loan Process

  1. Know the Amount Needed

    Know the required amount, based on the property and down payment.

  2. Check Your Eligibility

    Review your credit score, income documents, and ITR, before making the loan application.

  3. Gather the Required Documents

    Gather KYC, address proof, income proof, and property documents.

  4. Loan Application

    Fill out the loan application form.

  5. Loan Approval and Processing

    After the application, the bank verifies the details, approves the application, and disburses the loan.

How Can Indirow Help?

Indirow helps get access to quick and affordable loans from India’s best lending institutions. We aim for new-age financing solutions, through a blend of fintech and partnerships with top-notch banks and financing companies.

What do we have to offer you? Handheld application support, quick credit score check, reduced paperwork, transparency, and faster loan approvals.

We offer a wide range of loans at competitive rates from multiple institutions, along with expert guidance. Do not wait, embark on your journey toward home ownership. We stand with you to assist in managing the finances, ensuring a stress-free process.


Understanding the home loan process is vital to the journey of owning a home. With this guide and Indirow, you can turn your dreams of owning a home into reality!