• Employment Stability :
  It’s a crucial aspect for home loan consideration. Unless the applicant is salaried and employed for at least 2 years in the current profession or if the applicant is self-employed with minimum 5 years of total earnings loan will not be processed.
• Age Criteria:
  The younger the applicant is there is more probability of getting loan. Most banks offer home loan for salaried employees only if they are between the age group of 20 to 60 years. However for self-employed this will change to 24 to 65 years.
• Credit Rating:
  Apart from the applicant’s company’s performance, individual credit rating has a lot of importance. Good credit rating will increases the chance of getting the loan with more flexibility on loan amount, EMI, tenure and interest rates. Default payment records, fraudulent tracks, and outstanding loan, will reflect negatively on the applicant, this could lead to bank’s cancelling the loan request or will charge high rate of interest.
• Employer :
  If the applicant is working with an employer who has high reputation and impressive turnover, the credibility of the applicant will respectively increase. Being a part of reputed and high turnover companies is an asset for the applicant especially when it comes to applying for home loan.
• Financial Situation:
  For this factor, not just present status is considered, the past records of financial stability holds lot of value in deciding the eligibility for home loan. It is a key to success in all fields if you have good financial records, this can decide the interest rate percentage, loan amount and tenure when applying for loan.

Eligibility Criteria:

Eligibility Criteria:

• Aged between 21 – 65 years.
• Minimum 2 years of total work experience with regular source of income.
• Co-applicant minimum age limit is 18 years.

If you are looking for a bank that offers fast service with less interest rate, this is the best option. It is very transparent and flexible in its eligibility criteria.

Eligibility Criteria:

Eligibility Criteria:
There are two important factors when it comes to the eligibility for Bajaj Finserv home loans. First the applicant should be in the position to repay the loan. Secondly, the credit worthiness of the applicant which can be checked through the employer of the salaried applicant & through the business stability in case of self-employed & businessmen. Following is the eligibility criteria in terms of income for a salaried applicant:

• The age of applicant should be of at least 23 years. The maximum limit of the age is 65 years.
• The salaried applicant should be working in a reputed private company or a government company. Minimum work experience for the salaried applicant is 2 years.
• Last 2 years Income tax returns should be filed by the applicant.

Eligibility Criteria:

• The minimum age of the applicant should be at least 24 years. The maximum age of the applicant can be 65 years in case of self- employed. The maximum age limit for salaried is 60 years.
• A salaried applicant should have at least two years of work experience. A self-employed applicant should have 4 years of work experience with good turnover.
• CIBIL score of the applicant should be above 750.

Eligibility Criteria:

• The maximum loan amount offered would not exceed 80% market value of the property
• The applicant should be either a salaried person or a self-employed with the regular income earnings
• A salaried applicant must have at least two years of work experience.
• The tenure of re payment of the loan depends upon the age of applicant
• Maximum age limit is 70 years for self-employed & 60 years for salaried person.

Eligibility Criteria:

Eligibility Criteria:

• The applicant should be either a salaried person or a self-employed with the regular income earnings
• A salaried applicant must have at least two years of work experience.
• Maximum age limit is 70 years at the time of maturity of the loan.

Eligibility Criteria:

• The minimum age of the applicant should be at least 21 years. The maximum age of the applicant can be 60 years.
• An applicant must have at least two years of work experience
• Annual salary of the salaried applicant should be at least ₹480,000. Minimum yearly earnings in case of self-employed should be at least ₹600,000.

Eligibility Criteria:

• The applicant must be a citizen of India.
• The minimum age of the applicant should be at least 24 years. The maximum age of the applicant can be 65 years of age.

• Identify credit score reductions reason, it could be because of credit card late payments or loan EMIs defaults, etc. Defaulting and late payment is the core factor for bad credit scores thus it is essential that every individual should maintain a good track record.
• Never default payments in future. Make all payments on time and keep sufficient balance in your bank account for ECS transactions.
• Continuous rejection of Credit cards and personal loans will lead to drop in the CIBIL scoring, at these situations give it a break. This will help in gradually increasing the credit worthiness of the individual.

Apart from these, having good relationship with the bank manager is an add-on. Every branch manager has discretionary rights to alter loan requirements. Strive to maintain a good financial track record, to enjoy home loan benefits.

Yes, siblings are allowed to take joint loan from any bank for home loan. And with the help of this both can avail tax benefits under Income Tax Act section 80C. However, here are some of the points to be kept in mind while taking a joint loan with a sibling.

• Joint home loan means both will be the owner of the property thus both has rights on the property however if the sibling is just a borrowers then he/she has the right of liability. A sibling can be a co-owner of the property only if you share the liability of the property as co-borrowers, else banks will not consider you as a co-owner. Loan liability and co-ownership percentage can be altered as per each applicant’s requirements.
• In case if siblings are taking a home loan, usually banks will approve the loan amount upto 10 years of tenure. This is the maximum tenure that is offered if siblings are the applicants.
• Under section 24 (interest repayment) and 80C (principal repayment) both the applicants have the right to claim tax benefits on their home loan.
• If you have an option to apply for a joint loan, this option is the best if you are in need of huge amount. As the income and CIBIL scoring of both together will be considered by the bank, thus huge amount will be approved. This way you can be the owner of huge property.
• Pre-EMI option is available even if it is a joint loan. This means both the applicants/ borrowers just have to pay the interest on the loan amount as a pre-EMI until the possession of the property. This works in cases when the property is still under construction, the applicant have the benefit of avoiding the actual benefit until the construction is completed and possession of the property is taken.
• Do a complete research on the joint home loan for siblings as not every bank will allow this. In cases of disputes bank will have to suffer any delayed payments or failure to pay.

The number of people, who are availing the advantages of the home loan, is increasing day by day rapidly. Many home loan borrowers are now preferring to go for a joint home loan options due to various benefits such as the benefit to avail higher loan amount, income tax benefits and many more to name a few. A co borrower is the person that shares the ownership of the home loan in an asset with you or group or individual. The factors such as credit rating and CIBIL scores are being taken in to the consideration as far as home loan joint application is concerned.

However, there are certain eligibility rules and conditions that have to be satisfied that can be mentioned as follows.

• The joint home loan can be availed maximum by six people and minimum by two people.
• The co-borrower may or may not be the co-owner of the said property; however banks or lenders shall prefer that a co-borrower should be the co-owner of the property.
• The joint home loan repayment is the collective responsibility of the main borrower as well as co-borrower(s). Each of them is equally liable as far as repayment is concerned.
• If the home loan borrowers are married, then the same seems to be a perfect arrangement to the home loan lenders or providers. The couple is having the liberty to decide that which one of them wants to be the co-borrower and which one of them wants to be the co-owner.
• If the applicants of the home loan are the son and father duo, or unmarried daughter and father or mother and unmarried daughter or mother and son, then bank or lenders shall prefer that son or daughter should be the primary owner of the property.
• In the case of two brothers applying for the same, the lender or bank insist that they should be the co-owner of the property.
• Unmarried couple living together or friends claiming for the joint home loan are usually not allowed for the same.

Home loan co-borrower and co-applicant is one and the same thing if we take a larger picture in the consideration because the person is sharing equal responsibility as far as the repayment is concerned. Hence, in special cases, the lender may consider to transfer the loan completely to a co-borrower. However, there can be some disadvantage in being a co-borrower in certain cases that can be discussed as follows.

• Conflict between Wife and Husband: –
  If husband and wife, any one of them is a co-borrower and both of them are paying the EMIs for the home loan, and because of the conflict, any one of them stops paying the EMI then the other borrower faces the problem.
• In case of death of Prime borrower or co-borrower:-
  In case if the prime borrower or co-borrower meets death, then the rest of the amount that has to be paid by the borrower, who is alive. It becomes the person’s responsibility to repay the amount and that can create a burden for the person.
• WILL beneficiary can be different: –
  if husband and wife are the borrowers of a home loan and the husband decides to inherit property to the parents or siblings and not to wife or let’s say he decides to equally distribute the property between parents and wife, the if a wife is not co-owner but just a co-applicant then it can create a huge trouble for her.
• Default Case: –
  in the case of default, the home loan applicant assets can be at risk be it co-borrower of borrower.

To avoid such cases, It is very essential that the home loan applicants are having separate legal liability agreement that has all the terms and conditions mentioned. The agreement should have stated and classified the liability of each and every party that is involved. The parties involved should execute the same on the legal stamp paper and should notarize it. Banks promote the co-borrowing as the same reduces the risk in terms of repayment of the loan. The bank can also insist in terms of getting the insurance as far as protection of repayment is concerned. It is essential for the borrower and co-borrower that they safeguard the loved ones by properly following terms & conditions as the future is quite uncertain and one should be ready to encounter any situation.

Home Loans help to fullfil all housing finance related needs. But to do so, they need certain documents to be sure of the borrower. Also, home loans are secured loans. As such, the lenders need to have the property documents before they approve the loan. Different lenders have their own specific requirements, criteria and documents required.

Here is a complete list of the documents required for a home loan.

1. Passport Size Photographs
2. Identity Proof: Passport / Driving License / Voter ID / PAN Card / Aadhaar Card.
3. Address Proof: Driving License / Registered Rent Agreement / Electricity Bill (up to 3 months old) / Passport.
4. Employment Appointment Letter: Required if the current employment is less than 1-year old.
5. Financial Documents:
   • Last 3 months salary slip.
   • 6 month bank statement.
   • 2 year Form 16.
6. Property Documents: Sale deed, Khata, transfer of ownership.
7. Advance Processing Cheque: A cancelled cheque for validation of bank account.
8. Financial Documents:a. For Salaried Individual: 3 month salary slip, Form 16 and bank statement

   b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant

   c. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant

9. Complete Home Loan Application form duly filled.

• Complete Home Loan Application Form with one passport size photograph.
• Photo Identity Proof: Passport / Driving License / Voter ID / PAN
• Residence Address Proof: License / Registered Rent Agreement / Utility Bill
• Residence Ownership Proof: Sale deed or rental agreement
• Income Proof: salary slip, bank statement and Form 16
• Job Continuity Proof: Appointment letter at employment and validation letter from HR
• Bank Statement: Past 6 months’ document
• Property Documents: Sale deed, Khata, transfer of ownership.
• Advance Processing Cheque: A cancelled cheque for validation of bank account.
• Financial Documents:a. For Salaried Individual: 3 month salary slip, Form 16 and bank statement

  b. For Self-Employed Individual: IT returns for last 2 years along with computation of income tax for past 2 years certified by a Chartered accountant

  c. For Self-Employed Non- Professionals: IT returns for last 3 years along with computation of income tax for past 2 years certified by a Chartered accountant

• Loan Form: Bank loan application form to be filled with passport size photographs affixed
• Address Proof: Leave and License / Registered Rent Agreement / Utility Bill (up to 3 months old), Passport
• Identity Proof: Passport / Driving License / Voter ID / PAN
• Income Proof: 3 month payslips, 2 years Form 16, Copy of Income Tax PAN
• Bank Statement: 6 months bank statement that shows salary from the employer and any EMI paid for outstanding debit.

• Identity Proof: Passport / Driving License / Voter ID / PAN.
• Address Proof: License / Registered Rent Agreement / Utility Bill.
• Office Address Proof: Property Documents, Utility Bill.
• Office Ownership Proof: Property Documents, Utility Bill, Maintenance Bill.
• Business Existence Proof: 3 years old Saral Copy, the Company Registration license, Shop Establishment Act.
• Income Proof: Latest 3 years Income Tax Returns including Computation of Income, Profit & Loss Account, Audit Report, Balance Sheet, etc.
• Bank Statement: Past 1 year bank statement.
• 1 passport size color photograph.

There are many reasons why people transfer their home loan from one financial institute to another. Most prominent reason is lower interest rate which saves cost of borrowing. You must identify the objective of transferring the loan before actually doing it. The process of home loan balance transfer is not much different than applying for the home loan. That is the reason why documentation part is very important for transferring the home loan from one financial institute to another. The process not just includes the documentation but also the validation of documents. The documents are r validated by the bank or NBFC that you apply to. One has to accept that the reliability of a person for repayment is decided from the documents that the person has to offer. The documents of the applicant will describe if he / she will able to repay the loan amount or not. The prerequisite key documents for home loan transfers are the following:

• Passport-size photographs
• Filled application form for loan transfer (of the bank / NBFC)
• Latest three months’ Salary Slips indicating break up of Gross salary that is the Basic Pay, House rent and Net Salary after deductions, if any.
• Six months’ bank statement, reflecting salary credits updated within 15 days before the loan application.
• Identity Proof (Any One): Pan Card, Passport / Driving License / Voter’s ID card / employee identity card (as identity proof and signature proof in case of government employees).
• Proof of address: utility bill / voters ID / Aadhar card.
• Proof of Age (Any One): 10th or 12th Marks Cards / birth certificate / PAN Card / Voters ID Card.
• If you are a self-employed professional or businessperson, then instead of Points (3.) and (4.), you need to provide documents proving the existence of your business (for businesspersons) and academic qualifications (for professionals) ; and financial statements for both.
• Bank statements from wherein the home loan EMIs were deducted amounting to last 12 months of the account.
• The Loan statement copy and complete set of documents relating to the property that is currently in possession of the present home loan lender.

Ability to reimburse the credit takes factors, for example, age, capabilities, pay, and life partner’s salary, number of dependents, resources, reserve funds history, liabilities, dependability and persistence in occupation in thought. The candidate is called as the individual and the co-candidates can be candidate’s mate, guardians, or even real youngsters. The co-candidate requires not be co-proprietor of house, but rather co-proprietor of property should be the co-candidate. In Floating-rate of intrigue credits any adjustment in the base rate will be directly affecting financing cost of the Home Loan.

• Age proof along with address proof.
• Income proof.
• Bank statements.
• Identity proof.
• Educational Qualification proof i.e. mark sheets or certificates.
• Filled application form.

• 1 passport size color photograph
• Photo Identity Proof: Passport / Driving License / Voter ID / PAN
• Residence Address Proof: License / Registered Rent Agreement / Utility Bill
• Age Proof: Pan Card or Passport
• Income Proof: Pension Returns Or Bank Statement

Basically there are just 5 documents to be received once you close your existing home loan and the list of these documents are below:

1. No Objection Certificate (NOC): This is an authorization certificate confirming there is no outstanding due and it is issued by the lending bank assuring that all payments have been settled. It is considered as the important documents to acquire during closure of home loan.
2. Retrieve original property documents: Take back all documents from the bank that was submitted while applying for home loan. Check for misplaced or missing pages and documents. If possible, go the bank and personally retrieve your loan documents thus courier delays and problems can be avoided.
3. Retrieve Security Cheques: Everyone would have submitted 3-4 security cheques at the time of applying loan to the lending bank. Make sure to take these back after filing necessary documents for the same. This was just shared with the bank for security reasons in case if you default the payments.
4. Encumbrance Certificate (EC): An EC is a certificate listing all monetary transactions on your house. Once the home loan is closed, it must reflect in the EC. This is necessary to complete the home-loan closure procedure.
5. Get Legal Clearance: Though this is optional, it is advisable to get a legal clearance certificate from a lawyer. In this way, you can be sure that all necessary formalities are completed from a legal stand-point. Also in case of any issues, a lawyer is the best person to make any decision on the same.

Documents Required:

Documents Required:

• Valid identity proof (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card).
• Valid address proof (latest utility bill/ ration card/passport).
• Valid age proof (PAN card/Passport/ Driving License/ Voter id card/ Birth certificate/ Employee ID card /School/ college leaving certificate).
• Valid proof of business in case of business holder applicants (PAN card/sales tax/ excise/ VAT/ service tax registration/Copy of partnership deed/ Trade license/ certificate of practice/ registration certificate issued by RBI, SEBI).

• Proof of identity (passport/ voter’s ID/ driving license/ PAN card/ Aadhar card).
• Proof of address (latest utility bill/ ration card/passport).
• Proof of income (Salary slip of last 6 months, 6 months bank statement, form 16 of current year).

Documents Required:

Documents Required:

Documents Required:

Documents Required:

Documents Required:

Documents Required:

Indian Loan Bazaar is one of the leading DSAs where you can get Home Loan at reasonable interest rate without any hassle and stress. We understand your emotions for your home as it is the place where you make best of your memories with your family and near and dear one’s. We also understand the value of your time and the difficulty which you face while the documentation regarding your home loan, hence we try to keep it as minimal as it can be.

Documentation is a very important part, as this is the only way by which lenders can know their customer in a better way. The documentation process regarding a home loan is bit complicated as it as a secured loan. Here you need to give a guarantor and security in form of any of your property paper or anything else, so that we can build a trust on you and can lend you without any risk.

Well, banks & financial institutions ask for numerous documents because of following reasons:

1. To know the nationality & age of the applicant. Age is important as home loan is long term loan & the person should be at the age of repayment till the loan is over.
2. Financial documents clearly state all the records that you have. For example, if the current loan’s EMI was not paid on time it will be traceable from bank statement.
3. Credit score is easily verifiable from the list of documents that you are supposed to submit for loan transfer. If your credit score is not as per the requirement of bank of NBFC they will reject the application
4. Monthly income can be determined easily from the employment & business documents. It is very important for bank / financial institute to make sure that you are eligible for the loan & you will able to repay t on time.

When you are looking for a Home Loan you must be looking for lump sum money. Mortgage or property loan is the easiest form of loan that can be a help here. In mortgage loan you need to mortgage one of your assets say land to the lender. You get a lump sum amount of money against the asset you are mortgaging. Now the question is why should one need an income proof to avail such loan?

Mortgage Loans are easy to avail but it is not easy to access in case of dispute. According to the guidelines of mortgage loan if the borrower fails to repay the loan amount then the lender can easily cease the asset that is being mortgaged. The lender put the asset on sale and realise the money. But in case of asset, if we consider it as land, it is not easy to sell it off so quickly and realise the money. Hence the lender checks on borrowers’ income proof so that they can be sure of the EMIs. There is also a possibility of lowering down the property value in future, so it gets risky for the lender in mortgage loan.

Khata is one of the essential legal revenue documents. It is required while authorizing any property for trade. Khata is basically an account of a person who is having a property in Bangalore which contains the tax details of the property. This Khata i.e. account is basically with Municipal Corporation.

Khata (account) contains all the details related to the property which includes the property’s owner name, property size, location of the property and all the other details which are required for filling the property tax. In Bangalore, Khata decides evaluation of the property’s owner. In Khata the nature of property is also mentioned like whether the property is commercial or residential in nature. As when this is mentioned in the Khata it becomes easy in Licensing and for using it for trade purpose and to acquire Loan on it.

Details which a Khata contain are:-

• Name of the owner.
• Location of the property.
• Plot number.
• The number of the floors.
• Area and size of the Property.
• The day of establishment and some more.

All the above mentioned details are very important for filling the Property tax. Overall Khata is the document which licence the property and ensure that your property is eligible for paying the property tax. There are two types of Khata in Bangalore one is A Khata and the second is B Khata. These two are different in nature having their own significance.

What is A Khata?

A Khata is a register which contains the details of the property like, its name and their other tax details too. A Khata is basically the Khata which was being talked about above.

If a property is in Khata A that means that for that property the property taxes are being paid. And they are having no outstanding tax amount on them.

There are two elements of A Khata those are:-

The Khata Certificate

The Khata Certificate is fundamentally a document that a property proprietor / owner requires to enlist his / her property or for the exchange of the ownership that basically happens when a property is sold or even if an owner wants to transfer his / her property to any other. With a specific end goal to make a demand for the Khata authentication the proprietor of the property needs to compose a letter to the BBMP (Bruhat Bangalore Mahanagara Palike ) and furthermore join their most recent paid assessment receipt to it. These reports should be submitted with the board alongside a standard cost of Rs. 25 for every property they present the letter for. It is this permit or declaration issues by Khata that will empower the property proprietors to apply for water and power associations or so far as that is concerned getting their hands on a business permit.

The Khata Extract

The Khata extract is the document which contains all the documents regarding the property details. Those details are name of the owner, area of the property, tax details, plot number and mainly such details.

What is B Khata?

B Khata is totally different from the A Khata. B Khata contains the Name of properties which have outstanding taxes on them. And the taxes are yet to be given. Those properties which are in B Khata have yet not received their Khata certificate or any legal status.

How to apply for a Khata?

If you have not applied for Khata of your Property don’t delay this as from the above details now it would be clear to you that how important is Khata.

For applying for a Khata all you need is to take an application form from the BBMP, fill that complete from and submit it to the revenue officer of the concerned area along with the tax details paper of the property.

Why is Khata important?

It is very important to have Khata of a property because you will need a Khata for taking electricity connection, water connection and even for any kind of loan.

A sale deed is a legal document which has all the information regarding the sale, purchase and transfer of a property. A sale deed holds lots of importance as it proves your ownership on a particular property which you purchased.

A sale deed when talking basically is the main document which has all the details related to the deal of the property. A sale deed denotes proof that you have paid a particular amount against your house and hence it belongs to you now. This deed also contains some other information such as details the of previous owner, previous to previous owner, value paid against the property, location and dimensions of the property.

Sale deed is also a declaration that you are selling your property with your own will.

Who prepares a Sale Deed?

A sale deed is prepared by an authorised lawyer on behalf of an individual. The sale deed declaration should include all details of the property, ownership and the financial deal and it has no fixed format.

Information a Sale Deed contains:

• Property Seller’s name & address.
• Property Buyer’s name & address.
• Details of the property – location, dimension, jurisdiction.
• Details of previous owners of the property.
• Cost paid against the property.

If you own a piece of land then Government issues a legal document as a proof of ownership of the land. This piece of document is called Patta. Patta generally issues in the name of the owner of the land. But government issues Patta only for those properties which are in constant use. As for example if your land is unproductive then you can’t get the Patta for it. You will only get the document issued if there is any house or building built on it.

If there are multiple owners for a single plot then a single Patta is being issued for all the owners. But in that case the there must be a division of the property. If there is an undivided land Patta will not get issued.

Is it compulsory for every property owner to have a Patta?

Patta is a legal document and definitely it has immense importance when it comes to property dealing. It is an important ownership record that is required to set up right of ownership for the owner of the particular land under the law. Also holding a Patta will make things much easier, especially the government’s compensation from the plot and such will become much easier for the owner.

Patta, on the other, works like a Will Draft. Those who don’t have any Will Paper before his / her death then the land ownership will be automatically transfer to the next family member if the deceased person held a Patta for the land. There will be a small name transfer and renewal process that one must go through to transfer the name (s) of the Patta holder.

Where can we obtain Patta?

Patta is issued by the administrative authority or Tehsildar of the district. There is a small process of obtaining the Patta. The owner (s) has to submit an application or requisition along with necessary documents and details of the owner. There might be an interview of the owner or verification and inspection of the land and the owner. There is a specific format of the required details that the owner has to follow during the process of obtaining Patta. The authority will enquire and do survey of the land as well. The Patta does not need annual or monthly renewal. The renewal takes place only at the time of name transfer.

Home Loan Application Form is the first basic step to start the processing of home loan, post validation of all details in the application form the bank with process the loan and will let you know the next steps to make your dream come true.

• Age
• Annual Income
• Occupational stability
• Resident type [Indian Citizen, Non-Resident Indian (NRI), Person of Indian Origin (PIO)]
• Number of co-applicants
• Co-applicants’ income
• Credit score
• Other ongoing loans, if any

Ans. The rate of interest associated with fixed rate loans remain unchanged during the entire tenure of the loan. On the other hand, the interest rates applicable on floating rate loans can be revised from time to time depending on the RBI key policy rates. The equated monthly instalments can increase or decrease depending on the prevailing RBI rates in the case floating rate type loans.

Ans. Yes, you can choose to prepay your outstanding loan amount either partially or in full before the completion of your loan tenure. While banks do not charge any prepayment fee on floating rate loans, fixed rate home loans attract a penalty up to 2% of the loan amount if prepaid through refinance.

Ans. Yes, you can avail tax benefits on both the interest and principal component paid against your home loan. As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakh on the principal amount repaid annually.

Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.

Ans. The co-applicant can be an immediate family member such as your spouse, your parents or even your major children. It is also mandatory for all co-owners of the property to be co-applicants while applying for a loan. However, the co-applicant need not be a co-owner.

Ans. Pre-EMI is defined as the interest that is to be paid to the loan provider until the entire loan amount is disbursed. The Pre-EMI is payable on a monthly basis until the last disbursement, post which the regular EMI will be applicable comprising the principal and interest components.

Ans.

• Home Purchase Loan: Suitable for those looking to purchase a new house/flat or an under-construction property.

• Home Construction Loan: Can be availed by those looking to construct a house/property according to his/her plan.

• Home Conversion Loan: Suitable for those looking to purchase and move to another property when they have already bought a house with a home loan.

• Plot Loan: Can be availed by eligible borrowers looking to purchase a residential plot for the purpose of construction of a house/dwelling unit.

• Home Improvement Loan: These loans are sanctioned to those looking to repair/improve/renovate an already existing property.

• Home Extension Loan: Suitable for those looking to extend/expand/alter the structure of an existing property.

• Home Loan Balance Transfer: Can be availed by those who wish to transfer their outstanding home loan balance from their existing lender to another lender due to reasons such as reduced interest rates or better customer service.

• Home Loans for NRIs: These home loans cater to the housing needs of NRIs in the country. They also include PIOs and OCIs.

Ans. Marginal Cost of funds-based Lending Rate is the benchmark rate set by a lending institution below which they cannot provide loans to their customers.

Ans. Yes, you can switch from a fixed to floating rate of interest on your home loan during the repayment tenure. However, you will be charged a conversion fee by the lender in such cases.

Ans. The loan repayment period begins only after the loan provider has disbursed the entire home loan amount. However, you will be required to pay the interest i.e. pre-EMI on the partially disbursed loan on a monthly basis, in most cases.

Ans. Yes, you can take 2 home loans at the same time provided that your lender approves your eligibility to manage 2 Equated Monthly Instalments (EMIs) at the same time. However, the tax benefits on the second house will be different and you will be required to establish the property as self-occupied or let-out property.

Ans. No. Banks/financial institution do not grant 100% of the property value as home loan. Home loan lenders establish a margin on their loan i.e. the percentage of the cost that the lending institution will be covering. For example, if the margin on the loan is set at 10%, the bank will cover 90% of property value. In such cases, you will be required to a make a down payment of the balance amount, i.e. 10% in order to cover for the rest of the cost.

Ans. When determining your home loan eligibility, the lender makes sure that your monthly repayments are not being affected by any other ongoing loans such as personal loan, two-wheeler loan, etc. However, other ongoing loans ultimately tend to affect your eligibility as your overall spending power is reduced. If your other loan commitments exceed 50%-60% of your monthly income, your home loan application may be rejected.

Ans. If you are buying a house, home loan is the best option. Usually you will not be eligible for a personal loan for as high an amount required for the purchase of a house. If you want extra money for non-specific personal needs, then go for a personal loan. Home loans also have an added advantage of top-up loans wherein you can request a top up on your loan amount to cover additional needs such as furnishing your house.

Ans. No, you cannot avail two home loans for the same property. Any such practice will be considered fraudulent. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) ensures that fraudulent practices such as availing two housing loans for the same asset/property are prevented.

Ans. A joint home loan can be availed by adding a co-applicant such as your spouse, parents, or an immediate family member on your application. Adding a co-applicant will increase your home loan eligibility as the lending institution will also be considering the co-applicant’s income and credit score when determining your loan eligibility. All co-owners of the property are required to be the co-applicant for a loan. However, the co-applicants need not necessarily be the co-owner of the concerned property.

Ans. Loan eligibility is dependent on primarily the following factors:

1. Cumulative net monthly salary of the applicant and co-applicant.
2. Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current home loan that your are trying to apply for) exceeds 50-60% of your total net take home salary.
3. Loan to asset Value (LTV) ratio of 75% which means that the customer has to fund the remaining 25% through his savings or any other source.

Ans. The final decision to grant a loan lies with the credit department of a bank. Some of the reasons why a loan can be rejected are:

Possible Issue:
Already running several loans and hence a bank may not be comfortable with your existing leverage levels vis-a-vis your salary level.

Possible Way Out:
a)If you have a spouse who is also working, you can add her as a co-applicant to boost the combined salary levels or
b) Try to pay off some of your debt so that your leverage levels can come down or
c) Do a balance transfer/debt consolidation/re-financing of your existing loans such that the rate of interest on loans can also come down and additional loan can also be providedPossible Issue:
Issues in your credit history as reflected in your CIBIL, Equifax reports.Possible way out:
a) If the issue is a minor one like some delay in payment of credit card due then we can try your application in some other bank who can possibly take a lenient view on the deviation.
b) If you think that the credit report is erroneous and you have sufficient documentary proof we will represent the case to the bank and try to convince the credit team.
c) If the issue is a major one like write off, settlement of any past dues etc then it might be difficult to obtain a loan. Certain mitigation factor like if you/your spouse/your parents have an own house in India can give comfort to certain banks to give you a loan.Possible Issue:
Most banks have certain internal credit parameters to evaluate a loan which is kept confidential and not shared with us. Several demographic, financial and credit aspects go into these internal evaluation. You might not have met the minimum cut off for obtaining a loan.Possible way out:
Finance Buddha can re-apply for your loan in one of the other 10 plus lenders that we are affiliated to