1. HOME LOAN
Knowledge Center Series – Part 1

2. WHAT IS A HOME LOAN?
Housing Finance
Company/ Bank Home
A Home Loan is a kind of Loan offered to person to
assist in Buying a house or flat

3. Process of Home Loan
Mr. A’s desired
home value
Mr. A’s Savings
account
Mr. A’s home costs 20-30
times more than his monthly
income. What can he do?
Come to RAHF
Mr. A

4. Process of Home Loan
Mr. A pays 20% of the house value as Down payment,
and asks for a home loan!
Down payment of Rs. 2 Lakhs
paid by Mr. A
Mr. A needs
Rs. 8 Lakhs from RAHF

5. Process of Home Loan
Meet with
RAHF
representative
Submit
application
form, relevant
documents,
and
processing fee
RAHF checks
personal and
property
documents
Loan granted
on prescribed
terms and
conditions
Mr. A

6. Process of Home Loan
Mr. A’s Home Loan Con
tract
 Amount:
Rs. 8,00,000
 11% fixed rate
 10 year term
Mr. A will pay
11%
interest per year
Mr. A will pay
this rate
for the next 10
years
irrespective of
movements in
interest rates.
** This could have also been variable or floating
rate, which moves in line with interest rates.
Mr. A

7. Loan Repayment Process
Mr. A
As Mr. A keeps repaying the money lent
by RAHF from his monthly income in for
m of EMI
What Mr A
Earns
RAHFEquated Monthly Installment
(EMI) is the fixed amount paid
every month to clear home loan.
EMI

8. Home Loan At a Glance
Get your Loan
Sanctioned
Start paying
monthly EMI
Own
Your
Home

9. Mr. A
Landlord
Use money to pay rent
Use money to pay EMI to O
WN
your house
Your Income offers two options:

10. Thank You