If you are at-least 21 years of age and are employed or self-employed with regular income. In fact, you can even apply for the loan, before you have identified your home/apartment.
You can avail Home loans ranging from Rs.2 lakhs to Rs.500 lakhs depending on your eligibility viz., income and repayment capacity.
You can avail Loan:
- For Purchase of an ready-built Apartment/Apartment under construction/Re-sale of an Apartment.
- For Purchase of ready built house/house under-construction/re-sale of House.
- For purchase of Land-cum-construction.
- For renovation and extension of existing Home.
How many persons can be co-applicants and whether their income can be clubbed for taking Home loan?
The maximum repayment period for the loans is:
Home Loan: 20 years. Some Institutions now even consider Home Loans up to 25 years.
Home extension Loan: 20 years.
Home improvement Loan: 8 to 15 years.
Loan Against Home: Up to 15 years for all applicants.
Land Finance: 15 years (Selected Banks).
NRI loan: Up to 15 years for all applicants. The tenor varies from Bank to Bank.
The repayment period of your loan should not exceed your retirement age or 65 years if you are self-employed, whichever is earlier.
Mode of repayment will be through Post-Dated Cheques or E.C.S. or Deduction of Installment by the Employer from your salary.
Most of the Banks charge 2% and above towards pre-payment if the loan is shifted to some other Bank/Institution.
Some Banks has certain restrictions reg. pre-payment period.
Some Banks charge part-payment penalty. They also have restriction on the number of times re-payments are accepted in a year.
The primary security for the loan shall be first mortgage of the home being purchased / constructed. It is in your interest to ensure that the title of the house is clear, marketable and free from encumbrances. All the Nationalized Banks insist for Registration of Mortgage for which the Fees are to be borne by the borrowers.
While Guarantor is not mandatory, lender will insist for Guarantor on case-to-case basis.
Age, Address, Identity & Signature Proof, which can be established from the Ration Card / Birth Certificate / School Leaving Certificate / Election ID / Pan Card / Driving License / Passport.
Bank statement for the last six months.
For salaried individuals :
Latest 3 months’ salary slip.
Form 16 from the employer.
For self-employed individuals :
Certified copies of the Balance Sheet and Profit & Loss Account, Income Tax Returns’ acknowledgments, Advance Tax challans (for company / firm and individuals) for last 3 years.
Repayment of your loan will be in Equated Monthly Installments (EMIs), comprising of principal and interest calculated on a monthly rate basis.
The EMIs will commence from the month following full and final disbursement.
The EMIs are payable every month and will be collected in the form of postdated cheques.
Till the commencement of EMI, a pre EMI interest is payable during the interim period.
Once you accept the sanction letter, your home loan will be disbursed upon:
Selection of the property.
Submission of legal and property documents.
Payment of your own contribution.
Execution of Loan Documents by the Applicant & Co-applicant.
The loan amount will be disbursed in full or in installments depending on the progress of construction.
Rates and Fees vary from Bank to Bank and are given separately which may be referred.
Most of the Banks/Home finance companies keep the documents in a centralized vault.
Of-course! It is advisable to obtain a legal opinion from an Advocate and this will help in obtaining a second opinion over and above the opinion provided by the Builder/Developer and also the Lender.
Physical Verification of Your Office & Residence, Salary Slip & Bank Statements.
Phone Verification – Residence and Office.
Verification through your references provided in the Application Form.
Credit Check through C.I.B.I.L.
If you have already availed Loans from Banks/Housing Finance Companies or NBFCs, Banks will ensure your repayment track for the same and also verify your Credit Card Status.
Based on the revised Income, the repayment is re-scheduled. It will be done on the outstanding balance as on that particular.