Buying a home is a big dream for many people. But let’s be honest — homes are expensive. That’s where home loans come in. If you’re planning to buy a flat or house this year, this guide will help you understand what a home loan is, how to get one, and which banks offer the best deals in 2025.
Whether you’re buying in a metro like Pune or a growing town, this guide is for you, especially if you’re looking for a home loan in Pune, searching for property financing options, or need help as a first-time homebuyer.
What is a Home Loan?
A home loan is a kind of loan that you borrow from a bank or a housing finance company for the purpose of buying, building, or renovating a house. You repay the money in equal monthly instalments known as EMIs, which is an acronym for Equated Monthly Instalments, and includes the principal amount and the interest.
Let us assume that you are going to buy a flat for ₹50 lakhs. You can take ₹40 lakhs (80%) as a loan, and the rest of the amount you have to pay as a downpayment from your own pocket.
How to Get a Home Loan in 2025
Home loans are easier to obtain today than in the past because of the internet services available today. Here’s how you do it:
- Check your affordability – Determine how much you can afford to pay every month in the form of EMI.
- Check your credit score – A good credit score of 750 and above will help you get better interest rates.
- Bank comparison – Do not accept the first offer. Look at 3–4 options.
- Online or in branch – Fill in the application and submit the necessary documents.
- Wait for approval – If everything is fine, the bank issues a sanction letter.
Compare Home Loan Interest Rates in 2025
Here is a table that shows the initial interest rates provided by the leading banks and other financial institutions in India:
| Bank/Institution | Starting Interest Rate (per year) | Processing Fees |
| SBI | 8.00% | 0.35% + GST |
| Central Bank of India | 8.10% | 0.50% up to ₹20,000 + GST |
| Bank of India | 8.15% | Nil |
| Canara Bank | 8.15% | 0.50% of the loan amount |
| LIC Housing Finance | 8.25% | ₹15,000 to ₹50,000 + GST |
| Union Bank | 8.35% | 0.50% |
| Bank of Baroda | 8.40% | No fee |
| Kotak Mahindra Bank | 8.65% | 0.5% to 1% |
| HDFC Ltd. | 8.70% | Up to 0.50% + GST |
| Axis Bank | 8.75% | 1% or ₹10,000 + GST |
| ICICI Bank | 8.75% | Up to 2% |
| IDFC First Bank | 8.85% | Up to 3% |
What is the EMI?
EMI stands for Equated Monthly Instalment and is the monthly payment made towards the home loan. It includes interest and part of the principal sum. You can also use the EMI calculators available on the bank’s website to know the EMI you will be required to pay.
Example:
- Loan amount: ₹30 lakhs
- Interest rate: 8.5%
- Tenure: 20 years
- Monthly EMI: Around ₹26,000.
You can reduce your EMI by paying a higher down payment or by opting for a longer loan period.
What is an Affordable Housing Loan?
These are loans that are given to people with low or middle incomes in society. The interest rates are lower, and the government also offers incentives through various schemes like:
- Pradhan Mantri Awas Yojana (PMAY)
- Credit Linked Subsidy Scheme (CLSS)
This makes it possible for first-time homeowners to own a home without having to pay large amounts of money in monthly installments. Many banks do this – just check whether you qualify.
Well, if you are in the market for affordable housing loans, this is something that you might want to look into.
Simple Mortgage Tips for 2025
Here are five tips that will assist you in saving your money and getting the best deal:
- Keep your credit score above 750.
- One should compare at least three banks before joining any of them, as this will help in making the right decision.
- Choose a shorter loan period in order to pay less interest.
- It is also important not to take out other loans or make any credit card payments during the loan process.
- If you are in a position to benefit from government subsidy schemes, then you should do so.
Here are some guidelines that may help you in the process of planning and saving money in the long run when it comes to mortgages.
Buying a Home in Pune? You Have Great Options!
If you are looking for a home loan in Pune, then you are at the right place. Pune is one of the most emerging sectors for real estate, IT parks, good schools, and new structures. Also, many developers offer houses that are affordable to first-time buyers.
This is because there are many banks in the country today that are offering easy property financing, hence making it easier to get a home loan today than in the past.
Namrata Group is the right destination for your dream home.
Selecting the right developer is as important as selecting the right financier when buying your dream home. Namrata Group is one of the most reputed real estate companies in Pune with over three decades of experience in the field of construction and development of residential properties that are well located, well designed and delivered on time.
Below are some of the projects that they are currently undertaking to show their dedication to quality and innovation:
- Namrata Sarvam (Talegaon) – Well-planned 1, 2 & 3 BHK homes in a lively neighbourhood from ₹25 lakh (all inclusive).
- Amberwood (Pawana Nagar) – Lavish 2, 3 & 4 BHK homes with a touch of luxury and comfort at an affordable price of ₹1.05 crore onwards.
- 7 Plumeria Drive (Tathawade) – A premium lifestyle project offering 2, 3 & 4 BHK apartments, ideal for modern urban living.
- 32 Pinewood Drive (Hinjewadi Phase 3) – New age 2 & 3 BHK homes in the IT hub starting at ₹82 lakh.
All of these projects are aimed at meeting the needs of different clients – first-time homeowners, investors, or those who want to improve their quality of life. They also cater to housing loans and financing requirements and provide value-added solutions in the growing areas of Pune.
Final Words
It is not impossible to own a house in 2025 if one is strategic enough. Understand what loans are, how to compare banks, how to calculate EMI, and know about subsidy schemes. Below is a first-time homebuyer checklist that will be useful whether you are a first-time buyer or a buyer who is moving up from a smaller home.
If you are looking for a property in Pune, then you should consider Namrata Group’s projects as they may be the answer to your prayers.
FAQs
- What is the minimum income that is needed to avail a home loan in India?
Salaried employees need to have a minimum monthly salary of about ₹25,000 to get a personal loan from most banks. However, this may differ depending on the loan amount, the city, and the specific bank’s policies. When it comes to a home loan in Pune, the cost of living and the value of the property may also determine eligibility.
- Is it possible to get a loan of 100% of the cost of a house?
No. The loan amount ranges from 75% to 90% of the property’s value, which is offered by most banks. The down payment should be at least 10–25% of the total cost of the property. That is why it is necessary to start saving or search for housing loans that will be more suitable for your financial conditions.
- What is the minimum credit score required for a home loan?
A credit score of 750 or above is considered good. It improves your chances of being approved and also enables you to secure a lower interest rate. Another factor that is considered when comparing property financing options is the score.
- How many days does it take to get a home loan?
After submitting all the documents, it takes approximately 3–7 working days to get the approval. Some of the banks include instant approval if you have a pre-approved offer or if you apply online.
- Should one opt for a bank or a housing finance company?
Each has its advantages and disadvantages; banks tend to have lower interest rates than housing finance companies, but the latter may be more flexible with self-employed or first-time homebuyers. Always compare based on your needs, especially if you are looking for a first-time home buying guide or a home loan in Pune.
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