With the kind of price appreciation the real estate market saw in the last decade, buying a home is out of reach if we solely depend on our savings.

A home loan is a boon in such cases and buying or constructing a house with 100 percent home loan is the dream of every first-time home buyer.

Can I Get 100 Percent Home Loan in India?

Well, the answer is slightly complicated. 

Although home loans are available to help you with purchasing or constructing your house, you will have to pay a certain amount as down payment and the rest of it can be financed by lending institutions like banks, housing finance companies etc. However, collateral may still be required.

However, those who don’t have substantial savings for down payment can still avail a home loan but with some terms and conditions attached so that banks have a margin of safety against any possible decline in the value of the property. 

This article will help you explore genuine options to get the maximum financing for your property which can be up to 100 percent home loan.

100% Home Loan Options

There are many ways to fund your dream home with loans completely. While the entire amount may not necessarily come from a single home loan, there are other options that can be availed –

Getting a Home Loan

The first and most logical funding option for the buyer has to be a home loan. ‘How to get a 100 percent home loan’ is a question most first-time home buyers ask. Banks and other lending companies offer loans of up to a whopping 90% of the total value of the house property.

The Loan-to-Value ratio is guided by RBI regulations which state that individual housing loans can be funded up to 90% of the value if the total loan is up to Rs. 30 lakh.

Similarly, for the loan amounts between Rs. 30 lakhs and Rs. 75 lakh, loans can be up to 80% and loans above Rs. 75 lakhs can be given only up to 75% of the value of the property.

However, one must note that the higher the loan amount, greater is the risk for the lender which is why interest rates may be higher and credit score requirements will be stricter.

Thus, home loan meets the majority funding requirement. But what about the rest?

Funding through Personal Loan and Term Deposit

Another option that most are not aware of is to avail a personal loan to fund the purchase of your dream home. The amount of loan will depend on your credit score, existing loans/credit cards, disposable income, and repayment capacity. Popular lenders like Money View provide affordable loans that are disbursed within a few hours of loan approval. 

Additionally, you may also avail loans against term deposits which come at relatively cheaper interest rate and are much easier to get as these are secured loans.

In Conclusion

While you may not be able to avail a 100% home loan, by following the methods given above, you can definitely finance your home construction or purchase through loans completely and use your savings for an emergency.

Don’t worry if you are short of cash for the down-payment of your dream home. A personal loan is just a click away with Money View Loans . Apply today!