When you apply for a Home Loan, you would need to pay a certain amount of money as a down payment towards the loan. In short, Home Loans require a minimum amount of funding from your end. In general, you need to pay 20% of the loan amount as down payment, this percentage varies from lender to lender. If you don’t have this cash on hand, there are a multitude of ways you can raise the funds. You can cash in on your life insurance policies or liquidate the shares you may have invested in. Here, we’ll be discussing how to get a no deposit Home Loan.

Depending on the market value of your intended property purchase, your Home Loan lender will offer a specific amount. For example, with relatively inexpensive properties the lender could offer funding of up to 90% of the market value of your property. Conversely, if the loan amounts are higher than INR 75 lakhs, the funding could drop to just 80%.

Therefore, in most cases, you will have to immediately pay a certain percentage of the deposit out of your own pocket. However, if you are looking for a way to get 100% funding, you need to find out if there are any lenders who offer ‘no-deposit Home Loans’.

Besides this, you need to take care of several factors before choosing the right lender for your Home Loan. After you furnish the required documents, most banks and financing companies will go through a rigorous process to gauge your repayment ability.

If you are planning to apply online for a house loan, consider an NBFC like Bajaj Finserv. With online approval in 5 minutes, Home Loans offered by Bajaj Finserv have made the process easier and hassle-free.

How to Get a Home Loan without Deposit?

Before you start thinking, ‘Where can I get a no-deposit Home Loan?’ you have to understand what the term means. Essentially, a no-deposit Home Loan means 100% funding from the lender. This sort of arrangement is generally sought after by first-time home buyers who have minimal or zero savings.

Since most lenders offer a maximum of only 90% funding, you might want to look at other means of raising a down payment. If you are short on time, here are some ways in which you can raise your down payment

  1. Taking a loan from your family or friends is the cheapest and least risky option.
  2. Sell any investment or asset that you have or use them as a collateral to obtain a loan against securities.
  3. Take a loan against an insurance policy.
  4. You could raise your deposit by taking a personal loan, although that could be risky due to the high interest rates you’ll have to pay in addition to your Home Loans payment.

With the lowest Home Loan interest rates, Bajaj Finserv has a unique offering; Home Loan+. Though part of the overall loan package, Home Loan + offers you a separate amount to help pay for the fittings and the interiors of your home.

Will a No-Deposit Home Loan Work for You?

Before you take your decision on a Home Loan, take the time to negotiate with your lender regarding your down payments. Some lenders could even reduce the down payment to 5% of the purchase price of your property. Property Dossier by Bajaj Finserv is a value-added service that offers all the information you need before and after a property transaction.

If you are still unable or reluctant to deposit a margin, you could choose from one of the options listed above to make your contribution to the loan. Carefully consider the pros and cons of taking a Home Loan with no deposit before you sign on the dotted line.

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