Home loans can be used to buy new property, 2nd sale property as well as under construction property. Banks generally provide 80% to 90% of the property value as a home loan. The balance has to be arranged as the initial down payment to the builder/ seller. One can arrange the balance from savings, securities, fixed deposits, life insurance or through a personal loan. Nowadays some builders provide fully furnished flats to enable higher loan amounts. This also reduces the cost of furnishing the house on possession. Home loans are available from Rs.2 lakh to Rs.5 crore.
Indicative rate of interset for a 20 year loan would be: Floating Rate 7.95% to 10% The above rates are purely indicative.The actual rates that you can get from the bank depends on various factors like income, profile,turnover,repayment history,builder track and negotiating power etc.
Process...
Once you decide to invest in a home, you can apply for a Home Loan. Yes, even before you have selected the property. AAMSPL helps you to get the best rates in Mumbai. Various stages in a Home loan process is basically divided in three stages:
1 Pre-Approval
2 Legal and Valuation
3 Disbursal
Pre-Approval
This is basically an individual credit approval based on the financials and Personal Identification documents like Photographs,Photo Identity,Signature Proof,Date of Birth Proof,etc.
Legal and Valuation
In This process the property documents are examined by the banks valuer who checks the legality of the documents and evaluates the market value of the property.
Disbursal
This is the final stage wherin the customer gets the disbursement after submitting all the original documents as per the valuation report and signing of the agreement between the bank and the applicants of the loan. Refinancing is also possible within 6 months from the date of purchase of property .
How is Eligibility Caculated?
Various factors are taken into account when assessing the repayment capacity. Income, age, number of dependants,qualifications, assets and liabilities, stability/ continuity of employment / business and subject to maximum provided by the bank,to name some factors.
How can eligibility be increased ?
Your spouse can be a co-applicant if he/she is earning. The incomes can be clubbed to enhance your loan amount. You can also include Parents/Children as Co-Applicants for higher eligibility. Additional securities like bonds, fixed deposits and LIC policies may also help to enhance eligibility .
Who can apply for a Home Loan ?
Salaried Individuals Self employed Professionals/Business men NRIsRequirements.
Min Age should be 21 years when the loan is sanctioned . The loan tenor is from 5 years - 25 years subject to a maximum till 58/60 years or retirement ,whichever is earlier in case of salaried and for selfemployed before 65 years. The final amount to be sanctioned will depend on the repayment capacity and the maximum provided by the lending bank. CO-Applicant can be taken for overcoming the age barrier as well.
What are the Features of Home loan ?
- Attractive interest rates.
- Door-step service from enquiry till loan disbursal.
- Balance transfers from other banks possible.
- Maximum loan 80/90% of the cost of the property (including the cost of the land) and based on the repayment alignment of the customer.
- Floating and Fixed Home Loan Interest available.
Various rates offered in Surat
Floating Rate
Fixed Rate
* Floating Rate Home Loan
Loan under Floating/Adjustable Rate is linked to Retail Prime Lending Rate rates of banks. The Rate of interest will be revised every time there is a change in Retail prime lending rate . Generally the EMI is retained and the tenor of the loan is increased /decreased as applicable.
* Fixed Rate
Currently some banks are offering fixed rates only for 3-5 years.
Repayment
Repayment is normally done through Equated Monthly Instalments (EMIs) comprising both
principal and interest.Normally post dated cheques (PDC) are taken in advance ranging
from 12 months onwards
Documents Required.
The following documents needs to be submitted for Pre-Approval
- Application form with photograph.
- Identity and Residence Proof.
- Latest 6 months Salary-slips-for salaried.
- 3 years I T Returns-for self employed.
- Education/Qualification Certificate.
- Proof of business existence- min 3 years..
- Form 16/ Last 3 years Income Tax returns.
- Business profile.
- Last 6 months bank statements.
- Processing fee cheque for valuation payable to the bank.
Fees
Currently ranges from 0.5%- 1% of the loan amount applied plus applicable service taxes and cess