Home Loan Enquiry

1.What is the Eligibility Criteria for Housing Loan?

Generally, below mentioned conditions must be satisfied:
      1. Required age of applicant: Minimum 21 Years
      2. Salaried or self-employed with consistent Income.

What are the Documents required for housing loan

Salaried Individuals

» Proof of identity and address - Passport /Voter ID card /Driving License /Aadhaar Card / PAN card (PAN Card only     as identity proof) or any other document as acceptable to the Bank
» Proof of Income - Latest 3 Months salary slip showing all deductions
» Form 16
» Bank statement / Pass Book where salary is credited - last 6 months

    Self Employed Individuals

» Proof of identity and address - Passport /Voter ID card /Driving License /Job Card issued by NREGA/Aadhaar     Card / PAN card (PAN Card only as identity proof) or any other document as acceptable to the Bank
» Proof of Income - IT returns for the last 2 years and computation of income for the last 2 years certified by a CA
» Bank statement or Pass Book Statement for last 6 months

2. When Can I apply for Home Loan and steps required in the Process?

You can apply for the Home Loan even before you have chosen your property or before the beginning of development.
You will get in -approval for the loan amount which will help you determine your budget and plan the buying of house/apartment.

There are two phases in the housing loan process:
      i)  Loan sanction
      ii)  Loan disbursement according to the construction progress of the property.

3. Who can be a Co-Applicant for the Loan?

All co-owners should be co-applicants but all co-applicant not required to be co-owners.

4. Can I get more than one Housing Loan?

Yes. Housing Loans can be given to people who are capable of repaying the loan.The loans can be for the same property (for maintenance or extension purpose) or for various properties.

5. What are basic Components of Net Monthly Income to Calculate Loan Eligibility?

The Net monthly income NMI is income from all sources of a salaried individual after taxes and other payroll deductions which Includes:
      i)  The NMI from the salary of applicant
      ii)  The NMI from the salary compensation of co-applicant
    iii)  The income from different sources like rent from the current/proposed flat, Agricultural wage, Income from tuition     fees, different business and so on.

For independently employed/professional the NMI is annual Income after derivation of income tax divided by 12 according to It return in addition to other income as above.

6. How much percent of loan can be availed to buy the Property?

Up to 80 to 85% Loan to Agreement Value can be availed.

7. What is contrast amongst EMI and Pre-EMI? How is Pre-EMI Calculated?

EMI-Equated Monthly Installment. This is the sum paid by a borrower to the bank or some other lending organization

It essentially has two parts -
      i)  The part of the Principal Amount
      ii)  The part of Interest amount for that Month

Pre-EMI - Prior to the final disbursement of the Housing Loan, you need to pay interest on the part of loan dispensed which is called pre-EMI interest.It is payable month to month/quarterly up to the date of EMI commencement.

8. Can the EMI Be Reset amid Tenure of Loan? Can I prepay towards loan closure?

Yes.If the rate of interest is substantially revised, the EMI reflexing provision can be made to a housing loan account.

You can make additional payment (more than your EMI) of any amount, at whatever time ahead of the schedule to prepay the credit/loan amount.

9. Over how long would I be able to pay the Loan?

The maximum tenure for loan repayment offered by the majority of loan providers is 30 years. For longer tenures, the EMI would be lower which makes it exceptionally enticing to go for a 25-30 year credit/loan. Nonetheless, it is best to take the loan for the briefest tenure you can afford. In a long tenure loan, the interest amount goes very high. For a 10-year loan, the interest paid is around 57% of the acquired sum which shoots up to around 128% for the 20-year tenure.

10. What is Floating and Fixed Rate Housing Loan?

Floating interest rate as the name suggests is the rate of interest which varies with current market conditions. Home loans with floating interests are tied to a base rate plus a floating element. So, if the base rate changes the floating interest rate will also be changed.

Fixed interest rate is repayment of your home loans in fixed equal installments over the entire loan period, In this case, the interest rate will not be changed according to market fluctuations. During the early stage of the loan tenure, the majority part of monthly payments are used towards the interest and the principal amount is served in the later stage of the loan tenure.

11. What are the tax benefits in the event of availing a Housing Loan?

You will be qualified to claim both the interest and principal elements of your loan repayment for the financial year.

      i)  Interest can be claimed as a derivation under Section 24. You can assert up to Rs. 150,000 or the actual interest reimbursed whichever is lower. (You can claim this interest only if you have the possession of the house)
      ii)  .Principal amount can be claimed up to Rs. 100,000 under Section 80C. This is liable to the maximum of Rs 100,000 overall the 80C investments.
      iii)  You need to present the statement provided by the lender demonstrating the repayment for the year with the interest & principal components.

12. For detailed information about home loan, you can visit the following links.


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