Home Loan

Home Loan

Overview

Home is the biggest dream of everyone there is no place like home. Everyone dreams to build a beautiful home or buy a flat, villa to live in a relax and independent style. No need to wait for one’s retirement or high income time. Home loans are offered by the lenders to those:

  • Who wants to buy a new home
  • Who wants to build a dream house in own design
  • Who wants to buy a plot

Abmloans brings you enough opportunities to offer you a home loan from any lenders of the market. Our working loan experts would offer you a complete package to meet your home loan requirements. We have tie-ups with the pioneers of home loan lenders such as HDFC, ICICI, SCB, Axis Bank among others.

Everyone wants to build a home, purchase a home of his or her choice. Now there are real estate companies who construct beautiful homes and sell to the customers. Home loans are offered to them who wants to build a home on own or purchase a villa or apartment.

For beautification and reconstruction of any home one can take this loan. Some take it for both interior and exteriors. The interiors flaunt a style, so elegant interiors draw attention even of the fastidious one. Some of the lenders offer Home Improvement Loan both for internal and external repairs including improvements of structure.

Home loans are offered to those of who want to add extra rooms and lawns to the existing home. If you want to build an extra bedroom, a recreation room with the modern work-outs you can opt for this loan.

Land Purchase loans are suitable for those who want to purchase a land to build a house or who want to make an investment for future need. The interest rates and repayment differs to different lenders. You can choose either a fixed or floating interest, or the repayment period according to your resources.

As we have associate partners our clientele will get all the lenders here. Compare the amounts and interest rates provided by the banks. One might have difficulties to choose the best one as loan and its related formalities seem vague to some people who cannot calculate themselves to pick the affordable one that suit their budget. So, hand over your problem to us. Comprehensive products of all the lenders in one roof.

Balance Transfer of Home Loan & Top-up

SS International Financial Services is pleased to be able to help you with new opportunities to save on your Home Loan. You can avail special interest rates* on Loan transfer with top-up on your loan transfer amount.

Key Features

  • Transfer your loan to a lower interest rate
  • Top up amount which you can utilize for your needs.
  • Simple documentation and speedy processing

Features & Benefit

Balance  transfer is basically taking a loan, to pay off an existing loan(s). Future payments are made to the new Bank. Typically the choice of transfer is made when interest rates are lower than the original loan. A Top-up over the existing loan can provide you with ready cash for any of your needs.

You should go for Loan Transfer if:

  • You are just trying to reduce your interest rate and lower your payments.
  • You are just trying to reduce your Home Loan term to pay off your loan faster.
  • You want to use the equity in your house to get money for any of your needs. You can take a top-up over the existing loan to get the much needed cash to fulfill your needs.
  • Even a 1.0% reduction in the interest rate can save you more than Rs.1 lakh on a loan of 20 lakh over a 20 yr periods. The exact figure will depend on the rate on the existing loan, balance tenure etc.

Contact us now to know your savings under the Loan Transfer and find out how ABM Financial Services can meet your needs.

Eligibility Criteria

Home loans are an easy option for buying a house but getting the right amount depends on many factors and this may depend upon the factors listed below:

Monthly Income : The income that he earns from which he will pay his home loan emi is one of the most important factors that affect the amount of loan. So if you are salaried your per month income and if you are self employed, your yearly profit would identify your home loan max eligibility. The loan amount basically depends upon the net income of an individual and a bank usually provides home loans up to 60 times of an individual net income. For e.g. if a person take home salary is Rs 30,000 he /she may be offered a home loan of around Rs 18 lacs. But it may not be so because a bank takes into account other factors as well while granting a loan.

Other EMI : Other EMI (Equally monthly installment) is the EMI that we are paying to for any other Loan.

Available Income : The income that is left in our hand after deduction of any EMI amount that we are paying for any kind of loan. Your Home Loan Eligibility Calculator will be calculated after deduction of the EMI’s that you are paying.

Property Attributes : Banks give max upto 85% of loan against the value of the property. So if you want a home loan for a 50 lac property max that u can get is 85% of that ie 42.50 lacs. This too if in case you have the income to give the EMI of that loan. So based on Income and property value banks decide your exact home loan eligibility. Banks also have certain specific criteria before accepting the property for granting a loan. The banks have specific norms with respect to the minimum area requirements for a flat which may be carpet area or built up area. The bank also considers the age of the property in case of an existing property, the location of the property and also the reputation of the builders constructing the property. The bank also performs a thorough analysis and inspection of the property to check whether the title is clear or not, or are there any ownership disputes, whether the bank is free from any encumbrances etc.

Duration of Loan (Years) : It’s one of the most important factors that one should keep in mind while taking loan. It refers to the no. of years for which the loan has to be taken. Longer the tenure higher will be the interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the parameters which helps in comparing the EMI’s from different banks keeping it constant for relationship and easing the judgment.

Interest Rate (in percentage) : Today there are many lenders in the market. Every bank is offering loans whether it’s a nationalized bank, private bank or foreign bank each of them is there in the show. Every bank offers different rate of interest according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and Interest Rates and keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision.

EMI : EMI stands for equally monthly installment; you need to pay a particular amount for the Home loan that you have taken.

Eligible Loan Amount : The net loan amount for which you are eligible for your Home loan is said as Eligible Loan Amount. The loan amount that a Bank can sanction you.

Credit History : The credit history of an individual plays an important role in deciding the amount of loan. Credit history is basically the credit information report of an individual generated by a credit information company on the basis of individual’s credit records. On the basis of the credit information report an individual is being given a credit score. Based on the credit score a bank or any other financial institution decides whether the individual is eligible for a loan or not. The credit history is generally affected by outstanding credit card payments and any unsecured loans. In India CIBIL is a reputed credit information company and it analyses the financial records of individuals and awards them a score which is known as the “CIBIL score”.

 Age : Age also plays a crucial role in determining the eligibility for a home loan. One has to attain a minimum age of 21 to apply for a loan. The minimum age requirement may be different for different lending institution. The maximum age may vary from 58 to 65 years depending on the income source of the individual. The age also determines the tenure and EMI of the loan. For e.g. if an individual is 35 years of age and retires at an age of 60 then his/her loan tenure will be 60-35=25 years and his /her EMI will be calculated accordingly. Longer the tenure lower will be the EMI’s. However the longer the tenure, the costlier the loan is as one ends up paying more interest rates.

Co-applicant : In order to enhance the eligibility for having a loan one can have a co-applicant and in this way the total eligible income for having a home loan increases and thus as a result the loan eligibility becomes higher. However bank permits only certain relationships to become the co-applicant, friends and relatives who are not blood relatives to take a loan amount jointly.

Documents

Documentation for Home Loan

General documents

  1. Photo of all Applicants / Co-Applicants / all Directors / Partners and Property owner.
  2. Pan Card of all Individuals, firm & company.
  3. Address Proof of all Individuals, Firm and Company.
  4. Company Profile, Networth Certificate
  5. Professional Degrees

Papers Property: 

Salaried:-

  1. Last three month Salary Slip
  2. Latest 3 year ITR with Form 16.
  3. Bank account statement with salary credit.
  4. Appointment Latter
  5. All Rent Agreement
  6. Bank A/c Statement of Last six months (Individual saving A/c)
  7. Bank account statement with Rental credit

Private Limited Company

  1. List of Director & Shareholding on company’s letter head or CA`s letter head as on date.
  2. MOA of Pvt Ltd Company.
  3. 3 year Financials with all Annexure, Schedule, Audit report and Form 3CD, 3CB
  4. All Rent Agreement.
  5. 5 Bank account statement with Rental credit
  6. Individual ITR with Computation of income of Last 3 Years of all directors.
  7. Bank A/c statement of Last 12 Months (Current A/c)
  8. Bank A/c Statement of Last three months (Individual saving A/c)
  9. Latest copy of Vat / Sales Return

Partnership Firm

  1. List of Partners & Share on firm’s letter head or CA`s letter head as on date.
  2. Partnership Deed of firm.
  3. 3 year Financials with all Annexure, Schedule, Audit report and Form 3CD, 3CB
  4. Individual ITR with Computation of income of Last 3 Years of all Partners.
  5. All Rent Agreement.
  6. 6.Bank account statement with Rental credit
  7. Bank A/c statement of Last 12 Months (Current A/c)
  8. Bank A/c Statement of Last three months (Individual saving A/c)
  9. Latest copy of Vat / Sales Return

Proprietorship Firm

  1. Individual ITR with Computation of income of Last 3 Years.
  2. 3 Year Financials with all Annexure, Schedule, Audit report and   Form 3CD, 3CB
  3. Bank A/c statement of Last 12 Months (Current A/c)
  4. All Rent Agreement.
  5. Bank account statement with Rental credit
  6. Latest copy of Vat / Sales Return.
  7. Bank A/c Statement of 12 Months ( Individual saving A/c)

NRIs

  1. Latest salary certificate (in English) specifying the following :-
    • Name (as it appears in the passport)
    • Date of joining
    • Passport Number
    • Designation
  2. Photocopy of the Employment Contract or Labour Contract and English translation countersigned by your employer
  3. Perquisites and salary
  4. Photocopy of Identity card / Labour card
  5. Photocopy of latest work permit
  6. Photocopy of valid resident visa stamped on the passport
  7. Overseas Bank Account and NRE/NRO statement for the last six months.
  8. Continuous Discharge Certificate (CDC)- if applicable
  9. Latest Credit Bureau Report [Applicable to customers residing in countries where Credit Bureaus exists. eg. USA, UK etc.]

Take over Documents

  1. Sanction Letter of Previous Loan.
  2. Six Month Track Record.
  3. Latest loan amount outstanding Letter.
  4. List of Property documents issued by previous Bank.
  5. list of document mortgage in the bank(LOD)
  6. Closer latter

All Documents should be Self Attested by Applicant or Co-Applicant


 

FAQs

What are the types of home loan packages?

The most sought after home loans by the customers are home purchase loans, improvement loans, construction loans, extension loans, land purchase loans, bridge loans for those of customers who want to sell the old home and buy another. There is also refinance loans to help the borrower to pay the debt and balance transfer loans which helps to pay-off for an existing home and avail a loan with low interest rates.

I am an NRI. Could I apply for a home loan in India?

Some banks offer home loans to Non resident Indians (NRIs). You can apply for it to build a home in India. There may be separate terms for the NRIs for judging the eligibility criteria. We advise you to take guide of an expert before purchasing a loan.

Is it a secured loan? Which are the collateral securities I need to provide?

Home loan is a secured loan which is given against security or collateral’s. You have to mortgage your property to avail this loan. The collateral securities that the banks take are surrendering value of a life insurance policy, deposit of shares, and guarantee from one or two persons. In case the loan cannot be paid back the lender may take action against such securities.

Does my credit history matter for availing a home loan?

Yes, if you have a good credit history, it would be the most privileged for you to get a home loan. Your limited credit history can be a hurdle to get a secured home loan.

How do I apply for a home loan?

Before applying for a home loan, research on the offers of the major providers in the market. After selecting the bank, fill up the application form and submit all the necessary documents along with your bank. You can apply online also. Applying through a loan marketing company like us you get some benefits and can choose the best home loan packages using our online loan calculator considering the loan amount, interest rates, etc.

How does a bank judge the eligibility criteria of a borrower?

The most important factor that determines your home loan eligibility is your repayment capacity. The bank considers all the factors such as your income, qualifications, age, spouse’s income, how many dependents you have, stability of your jobs, assets, liabilities, etc. The lender studies all these factors to check whether you are able to repay the loan comfortably.

How many days it would take for loan sanction?

If your submitting documents fulfill the criteria, it would take at least two weeks for processing of your application. As the bank scrutinizes the property papers it takes another one week for final disbursement.

How much amount can I borrow?

The amount that you want to borrow as a home loan is related with other factors, the purpose of the loan for each type of home loans, the cost of the property and its land. The maximum amount limit for an Indian or an NRI could not be same. Normally 75%-85% of the cost of the property is paid to the borrower.

Do I need to insure the purchasing property or building property?

Yes, you need to insure the property against natural and man-made disasters as per the requisite of the bank. The beneficiary of this home insurance policy will be the bank.

What is the charge of the interest rates?

The interest rates of all home loan providers are not same. Generally it varies from 9% to 12.5%

How does the bank calculate the interest rates?

The bank calculates the interest rates in two ways, one is monthly reducing balance and the other is yearly reducing balance. In a monthly calculation your interest rates payment through an EMI reduces the balance every month. In a yearly reducing balance your principal and rates are reduced in a year, hence you need to pay interest on a fixed part of the principal again.

Do all the banks have Fixed Rate of Interest and floating rate of interest?

It is not same for all. As the floating rate wavers according to the market lending rate, you may get benefit from it. The fixed rate is same all over the loan tenure; you will not get benefit even the interest rate falls down in the market.

Is the repayment period of all banks same?

No, each bank has its own repayment period term. Each scheme has different repayment period. Generally the banks offer 5-30 years repayment period for Indian resident and for NRIs, the period is for 7 years or less.

I want to repay my loan before the term period. Can I do it?

Yes, you can repay it; the bank may charge a fee (1-2% of the loan amount) for early repayment.

Can I apply with my spouse or other members of my family?

You can apply jointly for a home loan with your husband/wife, parents, etc who will be the co-owners of the property. All co-applicants may be not co-partners.

What are the fees, charge and extra cost that the bank charge?

The fees are processing fees and administrative fees charged by the bank at the time of loan sanction. Each bank has own rate of fees and charge. There may be other costs such as interest tax (can be included in interest rate), commitment fees and miscellaneous cost.

Can I take the loan amount in one installment?

The bank usually disburses the loan in one installment or in three installments.

Does home loan provide any tax benefit?

Under the Income Tax Act, 1961 the borrower gets tax benefits on the principal and interest of the loan. The benefit is not same always, it may fluctuate yearly.

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