Home Loan FAQs

Home Loan is a secured loan given by a bank against the security/hypothecation of an underlying property. In the event of failure to repay by the borrower, the bank can, subject to laws of India, attach/sell the underlying property and recover the principal amount and any outstanding interest thereon. A home loan can be availed for buying an under-construction property, built-up house, resale property or even to construct a house on a vacant piece of land.

Loan eligibility is dependent on primarily the following factors:

1. Cumulative net monthly salary of the applicant and co-applicant.
2. Quantum of loans and credit card outstanding that you already have. Typically a bank will not give a loan if the total EMI obligation (including the current home loan that your are trying to apply for) exceeds 50-60% of your total net take home salary.
3. Loan to asset Value (LTV) ratio of 75% which means that the customer has to fund the remaining 25% through his savings or any other source.

Pre closure means that a customer wants to close the entire principal outstanding amount at one go. Whereas part payment means that a customer wants to repay only a certain portion of the outstanding amount. Please ask our advisor for more details on this when you loan is being processed.

Home Loan preclosures are allowed without any extra charges as long as the mode of repayment you have chosen is Floating rate of Interest and not a fixed rate of interest. Regarding part payment, some banks may have a restriction on the number of times you can do a part payment per year and also the amount that can be part paid in a year. Please ask for clarifications to our or the banks’ loan advisor on all these factors before signing the loan document.

Apex Realty will work with the banks to try and get you the loan within 7 to 15 working days of submitting completed documents.

You can borrow up to 90% (upto 80% for original loan between Rs. 20-75 Lacs, & 75% for original loan above Rs. 75 Lacs) of the cost of the property in case of Home Loan Balance Transfer.

Your home loan repayment capacity as determined by Bank will help decide how much you can borrow.

You can opt for a loan period of up to 25 years or outstanding tenure of the proposed loan to be taken over whichever is lower and can vary depending on your profile.

If you are an individual – your spouse, your parents, or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.

You can take the disbursement after credit, technical and legal appraisals of the property have been done, besides execution of relevant documents & deposit of original property documents is required to be completed prior to disbursement.

You Can avail a home loan with Multinational Private Bank and Nationalize Bank, by applying online or you can get door step service from Apex Realty Group.

Online Process:

Your home is your pride and joy. Don’t let unplanned events take it away. Property insurance will take care of home in case an unforeseen event strikes.

In most cases, the property itself, bought or intended to be bought, becomes the security till the entire loan is repaid.

Yes. Borrower can claim tax benefits on the availed home loan as per below details.

• Tax benefits on principal repayments:  Up to Rs. 1.5 lakh as principal repayment on your home loan will be allowed as a tax deduction under U/S 80C and 80CCE of the IT Act of 1961 if it’s a first home. In case of second home or under construction properties, tax benefits on principal repayments will not be applicable.
• Tax benefits on interest paid: Tax benefits on interest paid vary depending on self-occupied or let out property or if the property is under construction.

Summary of tax benefits on principal and interest paid is as below

Nil – There is no Charges for Full Payment and Part Payment on home loans

There is no capping of upper limit of number of co-borrower, however minimum one co-borrower is required.

Note: Member who all are party to agreement must have to come up as o borrower / co-borrower.

No, borrower cannot sell property without clearing outstanding home loan amount of existing bank/financial institution.

The market value of a property is the price at which that property is exchanged between a buyer and a seller on the date of valuation / execution of Agreement.

A beneficiary family that does not have any pucca house in any part of India is eligible for a subsidy through PMAY, as per the income criteria defined for the family.

It is not.

Women ownership or co-ownership is mandatory for EWS and LIG only. However, this condition is not mandatory for self-construction / extension. Women ownership is not mandatory for MIG-I and MIG-II.

After the loan is disbursed, the required details are sent by the bank to the NHB (National Housing Bank) for validation of data and other checks. The NHB, after necessary due diligence, approves the subsidy to the eligible customer/borrower.

Once the subsidy amount is received from the NHB, it is credited to the borrower’s home-loan account as a part payment, and the EMI is proportionately reduced.

There is no limit. However, the subsidy will be limited to a defined loan amount for each category (see details in the table above); any loan amount in excess of this defined amount will bear the non-subsidised rate of interest.

You do not need to provide additional documents except for a self-declaration (in the format that the bank will provide) that you do not own any pucca house.

Yes

Yes, you can avail this facility, subject to meeting the income and other criteria defined under this scheme.

MCLR stands for Marginal Cost of Funds based Lending Rate.

Processing fees is a one-time charge collected while availing a fresh home loan. A processing fee of upto 0.5% of loan sanction amount (as applicable) plus GST, is payable.

A Housing Loan EMI Calculator helps you to calculate the monthly installment amount and decide whether you can afford the financial commitment of a home loan in the long term. If you want, you can change your EMI amount depending on the amount of loan you are taking and the time period for which you’ll be paying the EMIs

Pre-EMI refers to the payment of the interest component on the disbursed loan amount. With Pre-EMI, you are not repaying the principal amount, but only paying the interest on the amount borrowed. The option of pre-EMI is applicable only when the home or the property you intend to purchase is under construction. Once you receive possession of the property, you will be asked to repay the EMIs in full.

Buying your own house requires a lot of financial commitment, especially if you want to buy a house in a metro city. However, to get a Kotak home loan, you must meet some eligibility criteria. These are:

• Age: 18 to 60 years for the salaried applicant and 18 to 65 years for self-employed applicant
• Minimum qualification: A Bachelor’s Degree is a must for an applicant employed in a private sector firm
• Credit Score: Minimum 750
• Minimum income: Rs. 20,000 for residents of Delhi, Bangalore, Pune, Chennai, and Mumbai and Rs. 15,000 for other cities like chandigarh, mohali, panchkula, zirakpur, patiala.

Whenever there will be an increase in the rate of interest floating, then bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased.

Yes, the bank will help you. You can switch your rate of interest as per the following switching amounts: Fees while switching from higher floating rate to lower is 0.5% of the outstanding principal Switching fees from floating rate to fixed rate of interest: 1% and cannot be greater than INR 10,000 Fees while switching from higher fixed rate to lower fixed rate is 0.5% of the outstanding principal Switching fees from fixed rate to floating rate of interest: 2%

Yes, NRIs can easily get a home loan in India. Some of the banks even offer special home loan schemes for NRIs. The eligibility criteria and documents required are slightly varied form a regular home loan but availing a home loan is not difficult.

To avail a NRI home loan these documents are required: Employer Identity Card, Attested copy of valid Passport and visa, Address proof mentioning the current overseas address, Copy of Continuous Discharge Certificate (CDC)-for applicants employed in the merchant navy, PIO Card issued by Government of India. (in case of PIOs), The attestation of documents may be done by FOs/Rep. Offices or Indian Embassy/Consulate or Overseas Notary Public or officials of Branch/Sourcing outfits based in India, Loan Application: Completed loan application form duly filled with 3 Passport size photographs, Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card, Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or a copy of Passport/ Driving License/ Aadhaar Card & Bank account details for the previous 6 months overseas account.

A home loan and a loan against property are two different products. A home loan is a credit taken for purchasing a home whereas a loan against property is a multipurpose loan which is taken by collateralizing your property.

Before you apply for a mortgage loan you must ask some important questions. What is the interest rate? Is there any prepayment penalty? Can I balance transfer my loan? Are there any hidden charges?