Home Loans

Loans are generally disbursed up to a maximum of 85% of the cost of the apartment. In most cases, housing loans are sanctioned depending upon your income and repayment capacity. Your spouse's income can be included, if you want to increase the amount of your loan. The maximum loan that can be sanctioned varies with housing finance companies and ranges from Rs. 10 lakh to Rs. 1 crore.

Equated Monthly Installment (EMI) is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.

A floating interest rate housing loan is a loan where the interest rate payable is linked to market conditions such as the lender bank's retail Prime Lending Rate (PLR). A floating interest rate fluctuates as the bank rate varies. Floating interest rates are generally lower than fixed interest rates.

Yes.

• Latest salary slip (proof of income for salaried individuals)
• Photographs
• Proof of age
• Identity papers
• Proof of residence
• Bank statements for the previous six months
• For the self-employed: Certified copies of balance sheet, profit and loss statement and tax challans/tax returns for the past three years.
• For partnerships/private limited companies: The Articles of Association, partnership deed and details about the firm.

Banks and insurance companies. You can take a loan against your Provident Fund Account, Fixed Deposits or Post Office Savings, as well as against shares and debentures of listed companies and government bonds and securities.

A Home Extension Loan is a loan which helps you to meet the expenses of alterations like extension, expansion or modification of your home. You can avail of a Home Extension Loan after obtaining the requisite approvals from the Municipal Corporation.

A Home Improvement Loan is one that is made available for you to carry out certain external work like structural repairs and waterproofing or internal work like tiling, flooring, plumbing, electrical work, painting, etc.

Interest rates vary from time to time and from institution to institution. The current trend ranges from about 9% to 11% per annum. The interest is calculated either on a daily or monthly reducing or a yearly reducing balance.

The repayment period options generally range from five to 20 years.

• Processing Fees: payable to the lender on applying for a loan. It is either a fixed amount not linked to the loan or could also be a percentage of the loan amount.
• Commitment Fees: in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned then some institutions levy a commitment fee.
• Prepayment Penalty: between 1% and 2% of the amount being prepaid is charged by some institutions when a loan is paid back before the end of the agreed duration.
• Stamp duty and registration fee on a deed of mortgage.
• Miscellaneous costs such as administrative costs, legal documentation charges, technical consultant charges.

The flat purchased is the primary security and is mortgaged to the lending institution till the entire loan is repaid. Additional security such as life insurance policies, shares, bonds, fixed deposit receipts, national savings certificates can also be offered, as per the requirements of the institution.

Yes. Many lending companies require one guarantor.

About 15 - 20 days

Usually loans are disbursed within a week, after the institution has completed the verification process, the documentation (such as taking over of the original agreement for sale/lodging receipt from the borrower) and all other relevant procedures. It can only be done after there is proof that the borrower's own contribution has been paid to the vendor/builder/developer.