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Step-by-Step Guide to Home Loan Procedure in India

4 tips that can help if you need a higher loan amount

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How to Apply for a Home Loan

A Home Loan is an amount borrowed to purchase or construct a new home. It can be procured from a bank or non-banking financial institution. Applying for a Home Loan today is easier than before. Borrowers need to be eligible for the loan, be financially able to repay it, provide the required documents, have a good credit score and so on.

To apply for a Home Loan you need to:

Step 1: Check your Eligibility

Before applying for any loan, check if you are eligible for it. Financial institutions stipulate and set a criteria to assess and determine whether potential borrowers are risk-free prospects. Now you can check your eligibility online in few minutes with ICICI Bank's eligibility calculator.

You will have to mention your name and employment details. Feed in your mobile number for verification with a One-time Password (OTP). Mention the amount you wish to borrow. Fill in additional details like your income, date of birth, employment details etc. Then click ‘Check Eligibility’. You will receive an instant response. 

Step 2: Select the loan amount and tenure

Once you have determined your eligibility, you need to select the loan amount and tenure. The loan amount will depend on the cost of the property you wish to purchase, your income and other financial factors. The loan tenure is the duration of the loan repayment which can go up to <30> years.

Step 3: Submit the application

After selecting the amount and tenure, you need to provide your personal and financial information with property details to complete the application. Once this is done, submit the Home Loan application. You can apply for a Home Loan through ICICI Bank Net Banking or iMobile Pay.

Step 4: Submit the documents

The next step will require you to submit the necessary documents such as identity proof, address proof, income proof, property documents and bank statements. You can submit these documents through ICICI Bank Net Banking or iMobile Pay.

Step 5: Get the loan sanctioned

The lender will review your application and the approval process will begin. If your application is approved, the Bank will sanction the loan amount and issue a Sanction Letter. The Sanction Letter will contain the loan amount, interest rate and other important details.

Step 6: Get the loan disbursed

After verifying the documents, the lender will disburse the loan amount to the property seller or builder.

Borrowers need to submit the following documents for a Home Loan:

  1. Identity Proof - Aadhaar card, Passport, PAN card or Driving licence

  2. Address Proof - Aadhaar card, Passport, Voter ID card or Utility bills

  3. Income Proof - Salary slips, Form 16, Income tax returns or Bank statements

  4. Property Documents - Sale Deed, Agreement to sell, NOC from the builder and Property tax receipts

  5. Bank statements of the last 6 months.

Taking a Home Loan at fixed interest rate or floating interest rate

Fixed interest rate Home Loans will have an interest rate fixed from start to end of the loan. This means the EMI amount will remain fixed throughout the loan repayment period. These loans are suitable for people who prefer stability and wish to avoid fluctuations in repayments. However, the fixed interest rate on loans is usually higher than floating interest rate.

On the other hand, floating interest rate Home Loans have an interest rate that is subject to change based on market conditions. This interest rate is linked to the Bank's base rate or Repo Rate set by the Reserve Bank of India (RBI). This means the EMI amount can increase or decrease during the loan repayment period. Floating interest rate Home Loans are ideal for people ready to take on the fluctuations in their loan repayments and wish to take advantage of lower interest rates.


Applying for a Home Loan may appear to be confusing but with the right information you can make it a smooth process. ICICI Bank Net Banking and iMobile Pay app make it easy to apply for loans and keep a track of loan applications and repayments. Remember, before you apply for a Home Loan: check your eligibility, choose the type of Home Loan and the kind of property you are planning to buy, select the loan amount and tenure and submit the required documents. While choosing a Home Loan understand the difference between fixed and floating interest rates.

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