1.
From where can I get home loans?
There
are several Housing Finance Institutes who are currently
providing Home Loans.
- SBI
- HDFC
- ICICI
Bank
- LIC
Housing Finance
- HSBC
- CITI
Bank
- ABN
AMRO
2.
How much loan can one get?
You
can get a Home Loan of up to 85% of the Total Consideration
Value, or, your eligibility whichever is lower.
3.Can
a Home Loan be Pre-approved?
Yes,
you can avail for a pre approval from any financial institution.
However all pre approvals has a validity period, which
may be checked out with the concerned Financial institution.
4.Can I have Co-Ownership in
the Property?
Yes
you can have your wife, son/daughter, father/mother as
a Co-Borrower. However you are again requested to check
with the Financial Institution regarding their permissible
ownership grid.
5.Who
can be a co-applicant for the loan?
The
spouse of the applicant can be included as a co-applicant
for the home loan and his/her income shall be included
to enhance the loan amount. Further, in case there are
any other co-owners, they also need to be co-applicants.
6.Is
Co-Applicant/Local P.O.A mandatory for applying for Home
Loans, even if
I don't have a Co-Borrower in the property?
Certain Financial
Institution has made it mandatory for a Co-Applicant to
join in the Loan (irrespective of his/her being/not being
a Co-Owner in the property, with a Local Power of Attorney
Holder in India. This may further be clarified with the
Financial Institution.
7.
What is the repayment period of the loan?
You
can select the payment period you are comfortable with
up to 15 years or Retirement age whichever is earlier.
8.
What is the Process for Application?
Application needs
to be made in the prescribed Application Form of the Financial
Institution, along with relevant documents and Processing
Fees to the concerned
Financial Institution.
On Approval/ Sanction of the Application the Financial
Institution forwards a Approval/Sanction Letter to the
Applicant & Co-Applicant.
On Receipt of the approval Letter, the property can be
selected/ if selected the disbursement process can be
initiated.
9. What documents are
required to get the loan sanctioned?
An indicative list
is given below. Representatives of the concerned financial
Institution will give you the details.
10.
How is the loan disbursed ?
The
loan will be disbursed on:
- The
identification and selection of the property.
- Submission
of legal documents.
- Legal
and technical clearance of the selected property.
- On
satisfactory completion of the above and on the investment
of the owners' contribution, the loan amount (as warranted
at the stage of construction) will be disbursed.
11. How are home loans repaid?
The
home loan repayment is by Equated Monthly Installments
(EMIs) comprising of interest and principal amount calculated
on monthly rests through Post Dated Cheques or ECS mode.
In
case of part disbursement of the loan, monthly interest
is payable only on the disbursed amount. This interest
is called Pre-EMI interest and is payable monthly till
the final disbursement is made, after which the EMIs would
commence.
12.
What is the security provided for the loan?
The Property being
financed is mortgaged with the Financial Institution as
the Primary security. However other Co-Lateral security
can be asked for based on the Applicants Financial Profile/
Others, which are solely determined by the financial Institutions.
13.
What tax benefits do I enjoy?
Tax
benefits are available on the principal and interest components
of a loan as per the Income Tax Act, 1961. As the benefits
could vary from year to year, it is advisable to check
the current benefits available, with your Tax Consultant
or with the Income Tax Dept. of India (www.incometaxindia.gov.in)
For any further clarification please Call or mail us at
info@axiomestates.com
