What are the fees and charges applicable and when should it be paid ?
A one time fee of 1% is to be payed on the loan amount applied for. The fee is in respect of costs incidental to the application. Taxes are also collected on the fees.
The redumption charges for fixed rate home loans and Adjustable rate home loans may vary from 1-2%.
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What are the documents required?
The application must include
Allotment letter of the co-operative society or association of the apartment owners
Copy of approved drawings of proposed construction, purchase or extension
Agreement of sale or sale deed or detailed cost estimate from the architect
If you have been in the job for less than a year, then a sheet having the details of occupation for the previous 5 years giving position held, reasons for changeand the time period.
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What is floating and fixed rate of interest?
Fixed rates
Fixed rate home loans are loans available with a fixed rate of interest for a given period of time
Floating rates
Floating rate home loans are linked to the prevailing market rate of interest. Floating rate loans are therefore subject to change at periodical intervals.
Part fixed, part floating rate
Some HFCs have now begun offering home loans which are divided into two parts- one part of the home loan amount has a fixed rate of interest while the other part is subject to floating rates.
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Applicable Processing Fees
Proof of residence - attested copy of any one of the following :-
- Ration card
- Passport
- Driving License
- Voters Idendity Card
- Current Telephone
- Electric Bill
- Gas Bill
Proof of Idendity - Attested copy of any one of the following
- Passport
- Driving License
- Voters Idendity Card
- Idendity card issued by Employer (if employed in Central/State Govt)
- PAN Card
Certificate loan outstanding issued by the lender
Any other information on your repaying capacity as prescribed by the particular bank.
If you are Employed
- Verification of Employment form giving by the banks
- Latest original salary slipor certificate showing all deductions
- A letter from your employer agreeing to deduct the EMI towords repayment of the loan from your salary.
- Your updated original Bank Pass book or original bank statement showing salary and savings enteries for the last 6 months.
- A photo copy of Form 16 for the last assessment year.
If you are self employed
- Balance sheets and profit and loss accounts of the business or profession along with the copies of individual income tax returns for the last 3 years certified by a chartered accountant
- A note giving information on the nature of your business or profession form of organisation, clients, suppliers etc
- Copies of individual tax challansfor the last 3 years
- Copy of advance tax challan
- Your updated original bank pass books or original bank statement showing savings enteries for the last 12 months.
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Who can be the co-applicants?
Proposed owners of the property in respect of which you are seeking financial assistance will have to be co-applicants. How ever all co-applicants need not be co-owners.
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What is the maximum period of repaying the loan?
You can repay the loan over a maximum period of 20 years. The repayment will not ordinarily extend beyond your age of retirement in case you are employed or on your reaching 65 years of age whichever is earlier.
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How is the loan repayed?
You repay the loan in EMI's comprising of principal and interest. Repayment by way of EMI commences from the month following in which you avail full disbursement. Pending final disbursement you pay interest on the portion of loan disbursed. This interest is called Pre EMI Interest. Pre EMI Interest is payable every month from the date of each disbursement upto the dte of commencement of EMI.
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Is there flexibility in the repayment terms?
Various banks offer various flexibility plans. This offers you the freedom to structure the repayment schedule to suit your individual needs.
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What is the security needed to be provided?
Security for the loan normally is the first mortgage of the property to be financed or such other other collateral security as may be necessary. Interim security may be required, if the property is under construction. It could be inform of life insurance policies, garuntee from sound and solvent guarantors, pledge of shares any other investments.
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When can the disbursement of the loan be taken?
You can take disbursement of the loan after the property has been technically appraised, all legal documentation has ben complete and you have invested your own contribution in full.
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Can I pay the loan ahead of my schedule?
Yes, you can repay the loan ahead of the schedule by making part or full payment. You can also acclerate the repayment of the loan by increasing the EMI anytime, this will always help you to repay the loan faster. Thsi facility does not have any charge.
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Do I get a tax Benefit for my loan?
Yes. You are eligible for certain tax benefits on the principal and interest components of a loan under Income Tax 1961. Check out the current benefits before taking a loan.
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Does the Agreement of sale have to be registered?
In many states in India the sgreement for sale between the builder and purchaser is required by law to be registered. You are advised in your own interest to lodge the Agreement for Registration within 4 months of the dat of the Agreement at the office
of the Sub Registrar appointed by the State Government under the Indian Registration Act. 1908.
