How will a bank decide my home loan eligibility?
They assess the customers repayment capacity while deciding on the home loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, our main concern is to make sure that you can comfortably repay the loan amount.
What are the different interest rate options you offer?
We offer the following loan options
· Adjustable Rate Home Loans
· Fixed Rate
Can someone assist me in selecting accommodation of my choice?
We can assist you in finding the property of your choice. For information on this service, do contact our Property Services or call 9999787900.
What Documents do you need for a loan approval?
Here is the List of Documents that are normally required by most banks:
Application form with photograph
Identity and Residence Proof
Latest Salary-slip / Education Qualifications Certificate and Proof of business existence
Form 16 / Last 3 years Income Tax returns (self and business)
Last 6 months bank statements / Last 3 years Profit /Loss and Balance Sheet / Last 3 years Income Tax returns (self and business)
Processing fee cheque
What is an EMI?
You repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI Calculator.
What is pre-EMI interest?
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 upto the date of commencement of EMI.
Can I repay my loan ahead of schedule?
Yes, you can repay the loan ahead of schedule by making Lumpsum payments or choose accelerated repayment scheme offered by most banks. There are normally NO charges for choosing an accelerated repayment scheme and for lumpsum payments under Adjustable Rate Home Loan. But please confirm this with your bank.
Do I get a tax benefit on the loan?
Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. can get you a tax saving upto about Rs. 50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount upto Rs. 1,00,000 p.a. that can further reduce your tax liability by about Rs. 33,660 p.a.
What security will I have to provide?
The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.
Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to Bank.
Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.
Does the Agreement for Sale have to be registered?
In many states in India, the Agreement 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 four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.
Are there any restrictions on transfer of immovable properties?
In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.
Will Indian Banks finance persons of Indian origin holding foreign passports?
As per current guidelines of the Reserve Bank of India persons of Indian origin holding foreign passports are eligible for loans with Indian Banks.
How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.
They assess the customers repayment capacity while deciding on the home loan eligibility. Repayment capacity is based on factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. And, of course, our main concern is to make sure that you can comfortably repay the loan amount.
What are the different interest rate options you offer?
We offer the following loan options
· Adjustable Rate Home Loans
· Fixed Rate
Can someone assist me in selecting accommodation of my choice?
We can assist you in finding the property of your choice. For information on this service, do contact our Property Services or call 9999787900.
What Documents do you need for a loan approval?
Here is the List of Documents that are normally required by most banks:
Application form with photograph
Identity and Residence Proof
Latest Salary-slip / Education Qualifications Certificate and Proof of business existence
Form 16 / Last 3 years Income Tax returns (self and business)
Last 6 months bank statements / Last 3 years Profit /Loss and Balance Sheet / Last 3 years Income Tax returns (self and business)
Processing fee cheque
What is an EMI?
You repay the loan in Equated Monthly Instalments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement. EMI Calculator.
What is pre-EMI interest?
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 upto the date of commencement of EMI.
Can I repay my loan ahead of schedule?
Yes, you can repay the loan ahead of schedule by making Lumpsum payments or choose accelerated repayment scheme offered by most banks. There are normally NO charges for choosing an accelerated repayment scheme and for lumpsum payments under Adjustable Rate Home Loan. But please confirm this with your bank.
Do I get a tax benefit on the loan?
Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. can get you a tax saving upto about Rs. 50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount upto Rs. 1,00,000 p.a. that can further reduce your tax liability by about Rs. 33,660 p.a.
What security will I have to provide?
The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.
Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to Bank.
Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.
Does the Agreement for Sale have to be registered?
In many states in India, the Agreement 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 four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.
Are there any restrictions on transfer of immovable properties?
In terms of Chapter XX C of the Income Tax Act, 1961, the Central Government has the first option to purchase certain immovable properties exceeding certain value and as such transactions covered by this Chapter can be proceeded with only after complying with the requirements prescribed therein.
Will Indian Banks finance persons of Indian origin holding foreign passports?
As per current guidelines of the Reserve Bank of India persons of Indian origin holding foreign passports are eligible for loans with Indian Banks.
How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.
