You can apply for a Home Loan even before you have selected the property. Most lenders sanction pre-approved loans based on your repayment capability as per your income.
Banks offers following types of home loans to cater borrower’s different needs:
Security for the loan is a first and exclusive charge of the property to be financed, by way of deposit of title deeds and / or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.
Yes, either the property or yourself should be based in the City where the home loan application is placed. For instance, a person based in Delhi NCR, but purchasing a property anywhere else in whole of India can apply thru any branch in Delhi NCR. Similarly, if the property is located in Delhi NCR but the person is working / based in another city anywhere in India, can apply thru any branch in Delhi NCR.
Although a co-applicant is not necessary for a home loan application in most banks, you can add one to increase the loan eligibility or if the co-applicant is also a co-owner in the property. A Co-Applicant can be spouse or a first blood relative say father/son, mother/daughter etc.
Yes, Income of spouse, parents or son can be added to your income subject to their meeting age requirement.
Yes, you can have as many loans against different properties. The only criteria being that you should have the repayment capacity as per your income credentials
The fees cheque is required to be given at the time of loan application. It is however sent for banking only after your loan sanction. In case the bank decides to disapprove the application or the sanction terms are non-favourable to you, the fee cheque alongwith other income papers are returned to you.
Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.
Yes, you can always go ahead with this option, in which your full EMI on the sanction amount will be charged to you. Of course, interest portion will be charged only on the partly disbursed amount & Rest will be Principal portion to be deduced from the partly disbursed amount on a monthly reducing basis.
An EMI has 2 components: interest and principal, where the interest is calculated on a monthly reducing basis. This means that the monthly principal component is reduced from the main principal outstanding and then next month’s interest is calculated. This way, the principal on which the interest is charged goes down every month. This results in significant savings for the customer over the tenure of the loan.
Banks currently offers two types of Interest Rate Scheme – Fixed Rate or Floating Rate:
Tenure change is the default option. From customer ease point of view, we understand that Tenure change remains the preferred method, but wherever required we might change EMI, we will intimate you on the necessary change in your EMI.
However, if you are not Ok with the tenure change, you can contact any of our home loan branches for further info on changing the EMI.
You can also consider a part-payment, at no additional cost or charges.
Switching from the Floating rate scheme to the Fixed rate scheme and vice versa is permissible. If a fixed rate customer wants to reschedule the loan to a lower interest rate, the same is also permissible. Charges for changing from fixed to floating rates of interest: Min. Rs. 5000 or 1% of the outstanding amount whichever is higher.
As per IT rules, only one certificate can be issued for a Home Loan hence one certificate will be issued in the name of both the applicant and co applicant.
As a home loan borrower, you also enjoy Tax Benefits on both Interest paid & the Principal re-paid as follows:
Yes, you can pay your loan ahead of schedule, anytime you want to. You are can either choose to reduce the EMI or the tenure or a combination of both.