You can get a home loan starting from Rs. 2 lakh (Delhi, Mumbai & Bangalore Rs. 3 Lakhs). The loan amount depends on your repayment capability and is restricted to a maximum of 85% of the cost of the property or the cost of construction as applicable. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history.
You have the option of selecting a term you are comfortable with, ranging upto 20 years, provided the term does not extend beyond your reaching 65 years of age or retirement age, whichever is earlier.
There are two schemes:
If you opt for an Floating Rate Home Loan, the interest rate would vary with the Bank Home Floating Reference Rate. Under the Fixed Rate Home Loans the rate applicable on the date of disbursement remains fixed during the entire duration of the loan.
Depending on the documents of the customs and repayment capability.
You could include your spouse as a co-applicant for the loan and we shall include his/her income to enhance your loan amount. Further, in case there are any other co-owners they also need to be co-applicants.
No, there is no personal guarantor required in most cases.
Typically the security for the loan is a first mortgage of the property to be financed, by way of deposit of title deeds and/or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.
There are two main stages:
Sanction of the loan, whereby you get an approval for a specific loan amount based on the value of your property and repayment capabilities. Disbursement of the loan amount.
All of these are available on an Floating rate or a fixed rate.
An Equated Monthly Installment (EMI) has 2 components, interest and principal. When the interest is calculated on annual rests, the principal reduces only at the end of the year. Therefore, you continue to pay interest on a portion of the principal that you have already actually paid back to the lending company.
You can apply for a home loan even before you have selected your property. The loan amount would be sanctioned or approved for you, based on your repayment capability.
Your loan will be disbursed on:
An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan.
Moreover, the rebate is allowed up to the maximum limit of Rs.20,000 per financial year on the repayment of the principal sums, which need not be out of income chargeable to tax of the year in which such repayment is made.
Interest repaid: Under section 24 of the Income Tax Act , in case of self-occupied property, deduction is allowed up to Rs.1,50,000 per annum for houses acquired or constructed with capital borrowed after March 31, 1999 as long as the acquisition or construction is completed within 3 years from the end of the year in which such loan is taken.
As per the IT rules only one certificate can be issued for a home loan and hence one certificate will be issued in the name of both applicant and co applicant.
The IT certificate will be issued at the end of a financial year. You can expect to receive your copy of the IT certificate in the month of April or May.
You can request for a provisional IT certificate that can be issued any time during the course of the year.
General details of Home Loans, may vary case to case.
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