Home Loan :
To be eligible for a home loan, the applicant must be at least 21 years of age with a regular source of income from employment or self-employment. The loan must terminate before or when the applicant turn 65 years of age.
Commercial Loan : To be eligible for a commercial loan, the applicant must be at least 21 years of age with a regular source of income from employment or self-employment. The loan must terminate before or when the applicant turn 65 years of age. The loan can be for the purchase/construction/extension of a non-residential property. A loan for renovation will only be given at the time when the property has been acquired. Professionally qualified and self-employed individuals can apply but a minimum of 3 year’s work experience is a necessary.
Anyone, including Non Resident Indians, with a steady source of income.
The loan amount depends on a number of factors such as age, income, number of dependents, qualifications, assets and liabilities, income stability, business profits, etc.
Loans are generally disbursed up to a maximum of 85% of the cost of the apartment. In most cases, housing loan is sanctioned depending upon your repayment capacity and income. Your spouse’s income can be included, if you want to increase the amount of your loan. The maximum loan that can be sanctioned varies with housing finance companies and ranges from Rs. 10 lakh to Rs. 1 crore.
On the contrary, if there are any co-owners they must necessarily be co-applicants. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility. However, the most important factor in sanctioning loans is repayment ability. The total cost includes registration charges, transfer charges and stamp duties.
Equated Monthly Installment (EMI) is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.
A fixed rate housing loan is a loan where the rate of interest is constant through the entire term of the loan.
A floating interest rate housing loan is a loan where the interest rate payable is linked to market conditions such as the lender bank’s retail Prime Lending Rate (PLR). A floating interest rate fluctuates as the bank rate varies. Floating interest rates are generally lower than fixed interest rates.
- Latest salary slip (proof of income for salaried individuals)
- Proof of age
- Identity papers
- Proof of residence
- Bank statements for the previous six months
- For self-employed: Certified copies of balance sheet, profit and loss statement and tax challans / tax returns for the previous 3 years.
- For partnership /private limited companies: The Articles of Association, partnership deed and details about the firm.
- For NRIs: Latest salary certificate specifying name (as it appears in the passport), date of joining, passport number, designation, salary and perquisites, photocopy of labour card / identity card, photocopy of valid resident visa stamped on the passport, photocopy of monthly statement of local bank account and other property related documents.
Banks and insurance companies. You can avail loan against your Provident Fund Account, Fixed Deposits, Post office Savings; against shares and debentures of listed companies and government bonds and securities.
A Home Extension Loan is a loan which helps you to meet the expenses of alterations like extension / expansion or modification of your home. You can avail of a Home Extension Loan after obtaining the requisite approvals from the Municipal Corporation.
A Home Improvement Loan is one that is made available for you to carry out certain external work like structural repairs, waterproofing or internal work like tiling and flooring, plumbing, electrical work, painting, etc.
The loan will be sanctioned after the selection of property and submission of the required legal documents. The process might take some time as each document needs to be verified for the safety of the applicant. The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed. Once the above has been submitted and verified, the registration of the conveyance deed and investment of the applicant’s own contribution and the loan amount will be disbursed by the bank. The disbursement will be in favor of the builder.
Documents required for disbursement:
• Loan agreements
• Disbursement requests
• Post-dated cheques
• Personal guarantors documents