The bank wants to make sure that you are able to repay the loans on time. It seeks an assurance that you are capable of repaying the loan. The tenure and interest rate will also determine the loan amount.
Banks sanction home loans to help you buy house/property. You need to have a good credit score to get the home loan sanctioned.
Want to know more on Home Loans? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
Banks or NBFCs normally give 80-90% of the property value as a loan and you have to arrange the remaining amount. The total loan amount includes registration, transfer and stamp duty charges.
If you apply for a joint home loan with spouse or brother, he/she is the co-applicant. Having a co-applicant makes you eligible for a higher quantum of loan.
Along with the home loan application, you have to furnish documents like Income Proof, Identity Proof, Age Proof (Birth certificate), Address Proof, Employment details, Educational proof (school/diploma/degree certificates), Bank statements, Property details for which the loan is availed and so on.
Sanctioning is one of the most important stages of a home loan. This is a trial by fire. Your home loan could be approved or rejected. It all comes down to the bank. If the bank is not satisfied with any of the documents provided by you (applicant), then the probability of approval is quite low.
After the bank completes technical, legal and valuation exercises, the home loan is sanctioned. Interest on the home loan depends on the rate on the date of disbursement and not on the date of sanctioning.
The loan can be disbursed by the bank either in installments or all at once. If it is an under-construction property, the disbursement is in installments based on the progress of construction, as assessed by the bank and not necessarily according to the developer's progress in construction. In case of a constructed property, the disbursement is made in full.
In a fixed rate home loan, interest rate is fixed. In Floating rate home loans, interest fluctuates depending on market conditions.
Availing a home loan is not just the home loan EMIs. There are other charges like processing fees, technical evaluation fees and so on. Processing fees are around 1-2% of the home loan amount.
They are many modes of repaying a home loan. There’s standing instructions to the banker to pay the installments through ECS (Electronic Clearing System), opt for direct deduction of monthly income provided by your employer or issue post-dated cheques from your salary account.
Banks must provide the borrower with a statement showing the total interest and principal to be paid during the year. This statement helps you claim the tax benefit. Banks are supposed to send a statement showing the actual amount of interest and principal repaid, that would help you claim tax benefits.
Be Wise, Get Rich.
The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.
Subscribe to our Youtube Channel
Hello friend! I am your personal financial advisor. By the end of this interactive session, I will help you to plan yours and your family's finances to ensure a better future.