Our Loan Services

Trusted, Transparent, Tailored.

At The Lending Monk, we simplify the borrowing process by connecting you with the right loan product—whether you’re building a business, managing personal needs, or buying your dream home. Explore our wide range of services below:

Business Loans

Tailored business loans designed to support your business growth, expansion, or operational needs with flexible terms and conditions.

Home Loans

Affordable home loans with low-interest rates and customizable repayment options for purchasing, building, or renovating your dream home.

Personal Loans

Flexible personal loans with competitive interest rates to meet your financial needs for any personal expenses or emergencies.

Credit Cards

Versatile credit cards offering rewards, cash back, and exclusive benefits to enhance your purchasing power and financial flexibility.

Home Loan Terms and Conditions

The Reserve Bank of India (RBI), in collaboration with the Government of India, formulates the rules and regulations that govern the banking and financial sector. These policies apply to banks, non-banking financial institutions (NBFCs), investors, and borrowers alike, and are periodically updated to align with the evolving economic landscape.

Recently, the RBI introduced several reforms to the home loan framework in India, aiming to make home ownership more accessible and borrower-friendly. Below is a summary of the key changes and guidelines:

1. Loan-to-Value (LTV) Ratio

The Loan-to-Value ratio represents the percentage of the property’s value that can be financed through a loan. As per the latest RBI guidelines:

Up to 90% financing for properties valued at ₹30 Lakhs or below
Up to 80% financing for properties valued between ₹30 Lakhs and ₹75 Lakhs
Up to 75% financing for properties valued above ₹75 Lakhs

Note: LTV calculations exclude stamp duty, registration charges, and other documentation costs. These are to be borne by the borrower, thereby ensuring a minimum upfront contribution of at least 10%.

2. Prepayment Charges

To encourage early repayments and reduce borrower burden, the RBI has waived prepayment charges for floating interest rate home loans. This applies to both partial and full prepayments. Fixed-rate loans, however, may still incur such charges depending on the lender’s terms.

3. Home Loan Balance Transfer and Foreclosure

Borrowers now have more flexibility in transferring their home loans to other lenders:

Home loan transfers are permitted without foreclosure charges, provided the loan is on a floating interest rate
Fixed-rate loans are not covered under this benefit

This allows borrowers to refinance their outstanding loan amounts for more favorable terms without incurring penalties.

4. Home Loan Insurance Recommendation

The RBI advises all home loan borrowers to consider loan protection insurance. In the event of an unforeseen circumstance affecting the borrower, such insurance ensures that the repayment burden does not fall on family members, providing peace of mind and financial security.

Impact of New Tax Regime on Home Loan Benefits

Under the new tax regime, certain deductions that were available under the old system have been removed or limited:

Not available:
- Deduction under Section 80C (principal repayment, stamp duty, registration charges)
- Deductions under Sections 80EE and 80EEA (for first-time homebuyers)
- Section 24(b) interest deduction for self-occupied properties
Still available:
- Section 24(b) deduction for let-out properties
- Loss from let-out properties can be set off only against income from other house properties, not against salary or other income sources

Tax Deduction on Interest Paid (Section 24)

To claim deductions on interest paid toward a home loan, the following conditions apply:

The loan must be taken for purchase or construction of a house
Construction must be completed within 5 years from the end of the financial year in which the loan was taken
If construction exceeds 5 years, the deduction is limited to ₹30,000 per annum

Deduction Limits:

Self-occupied property: Maximum deduction of ₹2,00,000 per annum on interest paid
Let-out property: No cap on interest deduction; the full amount is eligible

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