HOME LOAN FAQ
No, it’s not possible, usually banks have kept a margin of 20% when offering individual with a Home Loan. Which implies lender can offer you the loan up to 80% of the value as a Home Loan. While the remaining 20% have to shell out by yourself. Sometimes, lender may agree to sanctioned loan up to 90% of value of Home (depending on area or others facts).
Who else can sign along with me in Home Loan? Is it okay to co-sign a Home Loan for a flat by my friend?
Co-sign can be signed by only your family members for applying a Home Loan. Family members includes your blood relation people such as – Parents, Siblings, spouse, adult children, etc. But your friend can’t co-sign for Home Loans because they are not in blood relation with you.
Yes, both the loan principle amount and the interest paid as a loan repayments offers a tax benefit under section 24 and 80C of the IT Act respectively.
In case of a floating rate there is no pre-payment penalty according to RBI directives however penalty is applied in case of fixed rate Home Loan.
Up to 7 candidates can co-sign a Home Loan along with the primary applicant. However, all the co-sign applicant must be in blood relatives of the family members.
Loan disbursal time Loan eligibility Rate of interest- fixed or floating Hidden charges Terms and conditions associated with the Home Loan
Home Purchase Loans Land Purchase Loans/Plot Loans Home Construction Loans Home Improvement Loans Home Conversion Loans Home Extension Loans
State Bank of India (SBI) Housing Development Finance Corporation Limited (HDFC) LIC Housing Finance Limited PNB Housing Finance Limited Axis Bank
Home loans are long term borrowing plan with minimum period of 5 years and a maximum period of 30 years. The period in which you can repay the loan is depend on the loan amount you receive and some factors.
Before issuing Home loan to a candidate, Bank first check for the eligibility criteria/ payment capability of the candidate then after that they look for some other factors which include: Age of the applicant Income level of the applicant Qualification Resident status Status of existing loans No. of dependants Credit history and score
No, Joint loan can be applied only with blood relation/family members. Thus, it’s not possible to apply loan with your friend.
Yes, but not all lenders will allow you to change your interest rate type. However, you can’t change this for all types of home loans also for doing this into action you will incurred with some charges in this conversion. Complete details you will get to know from your lender.
There is no such benefits or loss when you go for either private or public. Just you need to compare the interest rate, tenure, and some other factors before applying for the loan.
These are charges associated with any Home loans- Processing Fee- Commitment Fee Pre-payment Charges Miscellaneous charges
No, no lender will allow you to sell your car, before the repayment of the car loan. Because, before selling a car you required a NOC from the bank also you must have to get the released documents of the car from a bank. And that you can get only after you have paid off the total car loan.
The tax benefits associated with home loans are divided into two sections they are- Tax exemption on repay of the home loan principle: This come under Tax Section 80C with annual tax deduction of Rs, 150, 000 within the section. Tax advantage on the interest rate for home loan: You can avail tax benefit maximum limit up to 2 lakhs for a self-occupied property. Under section 24 of the income Tax Act. Tax Benefit associated with Joint Borrowers: You can avail home loan tax benefit, each of the borrowers up to Rs.3.5 Lakhs (2 Lakhs Under Section 24 + 1.5 Lakhs under section 80C) as Tax exemption. In case of co-sign Home loan for a couple can avail upto total exemption of Rs. 7 Lakhs on their home loan.
If you want to take loan and you have an existing home loan, which you have paid on time without any late then you can request for the extra amount of loan which you have already paid for your home loan and the rate of interest for that loan will be less than the personal loan and it doesn’t requires any paper work. You can make use of that loan for any other purposes, you don’t need to explain anything regarding expenses of that amount. The amount which you have taken on your home loan after paying a certain amount is referred as top up loan.
As home loan is long term loan and bank definitely check for the repayment capability of the candidate. To ensure they will get their money back. Therefore, any bank first check your credit history or CIBIL score before going for any other loan sanctioning process. If you have a good credit card score then the risk of getting denied of your loan will decrease. Also you will be able to get preferred interest rates and waivers on various bank fees based on your credit history.
What if I have a low credit score, still can I get the Home loan or my loan won’t be get sanctioned?
It’s very difficult to get the home loan, if you have low credit score, still you can get home loan if you start improving your credit score. Or you can take your co-signed candidate with very good credit score. Your co-signed candidate must be a family or blood relation candidate.
If candidates are interested in taking a home loan, with respect to their eligibility prior to they have decided on a property to purchase. This preapproval facility is offered by the Bank or NBFCs to their customers.