Where to Apply:

Choice of lender institution:-

  • National Housing Bank (NHB) governed companies like HDFC Ltd., LIC, NBFC,s like Reliance Capital, Tata Capital , First Blue ;
  • Foreign Banks like Deutsche, HSBC
  • RBI governed Scheduled banks SBI, PNB , Canara Bank etc
  • Private Banks like HDFC, AXIS. Lender Company which has transparency, commitment and customer friendly policies and procedures.
How to apply for Home Loan:-
  • Options 1: Pre Approval: Before finalising the property, Application is submitted to bank to check loan amount possibility, Terms & Conditions for bank(s)
  • Options 2: Post Property Approval: Property is identified, Project approval is considered from institutions , Various Payment options are considered. Allotment money is paid and then , Application is submitted to bank. Bank Sanctions the loan along with Terms & Conditions for bank(s)
Important Pointers in Home:
  • Credit History: Your chances of getting a home loan are increased if you have a good credit history which is known by banks by checking the borrower’s Cibil score. Now it is very hard to get a loan from another bank when you already have a bad debt with one bank.
  • Clubbing of income: Your eligibility to take a home loan will augment when you club your income with your spouse’s income, bank in this case will calculate your eligibility on the basis of the clubbed income of both the applicants. You can club incomes of spouse, children & parents staying with you and having regular income.
  • Enhance your loan tenure: Longer is the loan tenure, lower will be the EMIs which further increases the repayment capacity of the borrower & in turn enhances the loan eligibility.
  • Step-up Loan: In this type of loan EMIs remain low in the beginning & increase gradually as and when the borrower’s spending power increases. Therefore lower EMIs in the initial years enhance the borrower’s ability to pay & further increase the loan eligibility.
  • Increase the down payment: You must know that in a home loan bank finances only 85 to 90% for the property & the rest amount has to be funded by the borrower. You should increase the down payment if you have more than required amount which will mitigate your debt considerably.
FACTORS:
  • Rate of Interest: Fixed Vs Floating, Calculated in reducing balances of Daily, Monthly, Yearly.
  • Loan Amount: Incomes considered for eligibility and Loan to Value of Property with Tenure.
  • Tenure: Varies from Minimum 3 yrs to 30 Yrs as per Bank NBFC Policies Loan to value: Commercial Purchase can be funded upto 60% where as Residential Property can be funded upto 80% .Although few banks NBFC permit Furniture and Fixtures funding also along with purchased
  • Insurance: All Bank Insist on Property to be 100% insured, whereas few bank wants Loan to be covered from any eventuality of Lender not able to repay the loan due to death of permanent incapability.
Others Factors to be Consider:
Rate of Interest (ROI): Mortgages loan rate of interest is most important factors in calculation of loan amount, eligibility, EMI amount.

Fixed Rate of Interest: For a period as agreed upon by the borrower and the bank/ NBFC ROI remain constant, and after the expiry of stipulated time, ROI is current rate of the bank at the time of shift. Fixed home loan rate is generally higher by 1-2% then floating home loan rate, but provided hedge against market volatility


Floating Rate of Interest: All Banks that are governed by Reserve Bank of India (RBI). RBI governs Repo Rates, which forms the Bank MCLR= Margin Cost of Lending Rates [erstwhile] Base Rate Base rate components are:-


  • Cost of deposits
  • CRR and SLR
  • Overheads cost
  • Returns on net worth
  • Insurance: All Bank Insist on Property to be 100% insured, whereas few bank wants Loan to be covered from any eventuality of Lender not able to repay the loan due to death of permanent incapability.
 
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