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asas
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Every venture of
Sansar Builders begins with clear Titles and carries legal
documents. Since the home loan lending agencies are
interested only in genuine ventures with clear titles, you
can be assured that getting a home loan to finance a house
at any of our projects is going to be an easy job. Our
esteemed clients can testify to this.
We will be more than delighted to introduce you to reputed
lending agencies such as Housing development and Finance
Corporation (HDFC) or State Bank of India (SBI – Home
Loans), once you decide to become our valued client. |
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GENERAL INFORMATION ON HOME LOANS |
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Eligibility
Criteria |
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Most lending
institutions in India require you to be an Indian resident
Above 21 years of age at the commencement of loan
Below 65 years when the loan matures
Either salaried or self employed. |
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Who can
apply for a housing loan? |
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One can either
apply for Home Loans-individually or jointly. Any person,
including Non Resident Indians, with a steady source of
income can borrow funds from housing finance companies and
banks. |
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Requirement
of Securities |
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Normally the
property being purchased becomes the security and is
mortgaged to the lending institution till the entire loan is
repaid. Some institutions may ask for additional security
such as life insurance policies, FD receipts, share or
savings certificates. |
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Guarantors |
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Some
institutions ask for 1 or 2 guarantors, others don’t need
any. |
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Applying
for the Loan |
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One can apply
for the loans any time – before or after selection of a
property. Based on their criteria, the lending agency
decides on the maximum amount that can be sanctioned to an
applicant. Knowing this amount helps the home buyer
budgeting his purchase. The actual disbursements are made
when all required documents are submitted and verified, and
when all procedures are completed.
Most financial institutions can give loan up to 75 – 85% of
the cost of the home. It varies with institutions. Repayment
period options range generally from 5 to 15 years. |
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Documents
Required |
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The lending agency will specify the required documents,
but following are the generally required documents: |
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Latest salary
slip as proof of income for salaried individuals
Photographs
Proof of age
Proof of Identity
Proof of residence
Bank statements for the previous six months
For self employed, certified income tax related documents of
previous years
For partnership/private limited companies, the Articles of
Association, partnership deed and details about the firm
loan limit |
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Monthly
Installments |
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Rather than looking at the rate of interests of different
lending agencies, compare the monthly installment payment
(EMI) and loan processing charges, to be more realistic. |
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Lending
Institutions |
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asas
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Some Frequently Asked Questions (FAQs) |
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What are
the types of home loans available? |
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Financial
institutions offer various housing loans. Prominent among
these are: |
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a. Home Purchase
Loan.
b. Home Improvement Loan.
c. Home Construction Loan.
d. Loans to Professionals.
e. Home Equity Loans.
f. Land Purchase Loans.
g. Bridge Loans. |
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How much
can a person borrow? |
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Loans can be
availed up to a maximum of 85% of the cost of the property
(including the cost of the land). HDFC lends up to a maximum
of Rs.1, 00,00,000 on a Home Loan to an individual. The
balance 15% cost of the flat is to be funded by the flat
purchaser from his own contribution. |
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What
securities are required for a home loan? |
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In most cases,
the property to be purchased it self becomes the security
and is mortgaged to the lending institution till the entire
loan is repaid. As per the requirements some institutions
may ask for additional security such as life insurance
policies, shares, bonds, fixed deposit receipts, national
savings certificates. |
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Do
Bank/Lending companies require guarantors? |
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Yes. Many
lending companies require 1 guarantor. |
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What are
the documents required at the time of making an
Application for a housing loan? |
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If
you are Employed - Latest salary slip/salary
certificate showing all deductions. |
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you are Self Employed - Balance Sheets and Profit &
Loss Accounts of the business/profession along with
copies of Individual Income Tax Returns for the last
three years certified by a Chartered Accountant and
a note giving information on the nature of your
business/profession, form of organization, clients,
suppliers, etc. |
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What is
the time required for approval of a loan
application? |
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About 0- 20 days. |
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What is
the time required for loan disbursement? |
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Usually loans are disbursed
within 3-15 days after completion of verification by the
institution, documentation (such as handing over of the
original agreement for sale / lodging receipt to the lender)
and completion of all relevant procedures including proof
that 15% of the cost has been paid upfront to the seller of
the property. |
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Can I
repay the loan ahead of schedule? |
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Yes. You can repay the loan
ahead of schedule. An early redemption charge is payable,
which varies from time to time. Currently, the early
redemption charge is 2% and is payable on the amount being
prepaid in case you decide to repay the loan in part or
full. |
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Do I get
a tax benefit on the loan? |
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Yes. Resident Indians are
eligible for certain tax benefits on principal and interest
components of a loan under the Income Tax Act, 1961. You can
save tax up to Rs. 47,250 p.a., on an interest repayment of
Rs. 1,50,000 p.a. Under Sec 88, you can get added tax
benefits on repayment of principal amount up to Rs. 20,000
p.a. This further reduces your tax liability by Rs. 4,000
p.a. |
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What are
the interest rates offered for home loans? |
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12.50%
(Annual Reduction) on the amount. |
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What is
an EMI? |
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EMI-Equated Monthly Installment
is the amount payable by a borrower to the lender every
month, comprising a portion of the interest and the
principal loan amount. EMI commences from the month
following the month in which you take full disbursement. |
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