Check the Process of Home Loan Application and The Right Way to Calculate EMI Online

A home loan can simplify the process of buying a house in India. As a home loan is the most popular loan option in India, lenders offer attractive terms, long tenure, easy eligibility criteria, and a host of other benefits.

If you are curious to know the process of home loan application in India, then you are in the right place. Grab a cup of coffee and go through the best tips you need to conveniently apply for a home loan with the lowest interest rates in India.

The Step-By-Step Process of Home Loan Application

A home loan application is a six-step process, and it starts with a home loan calculator. Here are the things you need to do to ensure quick approval of a home loan.

  1. Calculate Your Eligibility and EMIs With a Home Loan Calculator

A home loan calculator simplifies the task of applying for a home loan. You have to enter details like your Gross Monthly Income, Tenure (maximum term), Interest Rate, and Existing EMIs. Once you enter the details, the home loan calculator will display the total loan amount you can avail and the EMI you have to shell out every month. For example, if your gross monthly income is INR 50,000, tenure is 30 years, the interest rate is 7.35%, and the existing EMI liability is nil, you can get a loan amount of up to INR 36 lakh, and your monthly EMI will be INR 25,000.

  1. Hunt the Right Property

Now that the home loan calculator has provided with a realistic assessment, the next step is to look for a property that matches your requirements and eligibility. If you want to construct a house, try to keep the cost below the loan amount. If your credit score is above 800 and the property you wish to purchase is in a prime location, the lender may offer you up to 90% of the property value as a loan.

  1. Fill the Application Form

While a home loan calculator helps you determine the eligibility, you need to use that information to apply for a home loan with the lowest interest rates in India. You can download the application form online or visit the nearest branch of the lender. Some lenders, such as PNB Housing, offer doorstep service, and you can apply for the loan from the comfort of your living room or office. You need to attach the required documents and the processing fee cheque with the application form.

  1. Document Verification

Once you submit the application form and the documents, the lender will evaluate the documents. During this process, they may use the home loan calculator for verifying the loan amount. Additionally, they may enquire about the property and your income details. The lender will issue a sanction or loan approval letter on satisfactory verification of property and documents.

  1. Issuance of Loan Approval Letter

Once you get the sanction or loan approval letter, you need to read the terms and match it with the information you obtained from the home loan calculator. In India, a home loan sanction letter contains information like the interest rate, loan amount, tenure, and interest type. After going through the terms, you need to sign it and send a copy to the lender.

  1. Credit of the Loan Amount

After receiving the signed copy of the loan approval letter, the lender will prepare a legal agreement and transfer the loan amount to your bank account. You can use the funds to build or purchase the house you dreamed about.


A home loan calculator gives you an accurate estimate of the loan amount and EMI. You can modify the tenure to arrive at the right EMI figure. Moreover, a high credit score can enable you to get the lowest home loan interest rate in India.

Cheryl Henson

Cheryl Henson is a passionate blogger and digital marketing professional who loves writing, reading, and sharing blogs on various topics.

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