Loan Help

 

home loan from icici bank,sbi,hdfc,loan details
bank loan help Documents for Bank Loan
bank loan help Check Documents before buy a Land
bank loan help Types of Home Loans
bank loan help Criteria for a home Loan
bank loan help Home Loan For NRI
bank loan help Home Loan For PIO
bank loan help What is EMI ?
bank loan help Loan Interest Rate ?
bank loan help Security for a Loan
bank loan help Tax Benefits
bank loan help RBI Guidelines

 

  Meet all your Housing Loans Needs in India
Loans may be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.The loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 15% of the cost has been paid upfront to the seller of the property.Most institutions are willing to consider the joint incomes of the applicants for deciding the loan amount. Some institutions do not require the co-applicants to be co-owners of the property to be purchased.Both principal as well as interest of home loans attract tax benefits. Section 88 of the Income Tax Act allows a 20% rebate on the principal repaid, subject to a principal ceiling of Rs.10,000 per annum.
Main certificate for bank loan
Original document
Previous document
Encumbrance Certificate
Possession Certificate
Land & Building Tax receipt
Location Map
And Non-attachment Certificate.
 
Important things that you should check and verify before buying a property
Documents relevant to the Land / Project / Building / Apartment
Documents relating to the Premises,Encumbrance and Possession Certificate
Original Documents other than Photocopy and verify Stamp Duty and Registration
The banks are given Different types home loans. They are
Home Purchase Loan : This is the common loan for purchasing a home.
Home Improvement Loan: This loan is given for implementing repair works and renovations to your home.
Home Construction Loan: This loan is available for the construction of a new home.
Home Extention Loan:Given for expanding or extending an existing home. For example, addition of an extra room, etc.
Home Conversion Loan : Available for those who have financed the present home with a Home Loan and wish to purchase and move to another home for which some additional funds are required. Through a Home Conversion Loan, the existing loan is transferred to the new home, including the additional amount required, eliminating the need for pre-payment of the previous loan.
Land Purchase Loan : Sanctioned for purchase of land, for both home construction or investment purposes.
Bridge Loan :The Bridge Loan is designed for people who wish to sell the existing home and purchase another. The bridge loan helps finance the new home, until a buyer is found for the old home.
Balance Transfer Loan : Balance Transfer loans help you pay off an existing home loan with a higher interest rate, and avail of a loan with a lower rate of interest.
Refinance Loan : This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.
Stamp Duty Loan : This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of a property.
Loan To NRIs: This loan is tailored for the requirements of NRIs wishing to build or buy a home in India
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For getting a house loan, you must satisfy the following criteria:-
An individual aged 21 years or above having a regular source of income.
The maximum amount of Loan you can take from leading banks depends on a number of factors, such as the cost of house/flat, applicant's age, income, repayment capacity etc.
Margin for purchase or construction of new house/flat is 15 percent of the project cost for individual borrowers and it is 10 percent when both husband and wife seek the purchase loan, with the latter acting as a co-borrower.
The rate of interest whether for fixed-rate loans or for adjustable-rate ones are governed by the market conditions prevailing at the time of loan disbursement.
Documents required for approval (businessman/ self employed professional)
Application form along with a recent photograph
Proof for identity and residence
business profile with income statement of last three years
last three years income tax return
Documents required for approval (Salaried Class)
Application form along with a recent photograph
Salary slip for the current month
Proof for identity and residence
Bank's statement for the last six months
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Bank loans For NRI
The period of repayment of the loan is normally in the range of three to 10 years. However in Kerala there are most of the banks are providing the home loan for their customer up to 25 years , These loans from leading Housing Finance Institutions can be arranged with your minimum involvement (subject to the terms conditions by the financial institutions).

The document's which are required to obtain a housing loan
1. Passport size photograph of all applicants
2. Copy of passport and visa
3. Bank statement for last six months both international ( in which the salary is credited) and domestic NRE account.
4. Copy of work permit
5. Copy of appointment letter or Contract.
6. Copy of Labour card or Identity card if employed in Middle East.
7. Salary certificate specifying Name, Date of joining, Designation Salary details and deductions if any or latest four months salary slips.
Repayment of Loan
By foreign inward remittance through Indian banks.
By debit to his NRE/FCNR(B)/NRO account
From the income that is gained from rents of such property
Crediting amount to the account of close relatives in India
Guidelines issued by the by the Reserve Bank of India for grant of Housing Loans to NRIs
The loan amount shall not exceed 85% of the cost of the dwelling unit. The loan amount shall not exceed 85% of the cost of the dwelling unit.
The loan amount shall not exceed 85% of the cost of the dwelling unit. Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
The loan amount shall not exceed 85% of the cost of the dwelling unit. Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India
Bank loans For PIO
Person of Indian Origin may submit the above documents with Photocopy of PIO card. If the PIO card is not available, photocopies of any of the following documents:
1. The current passport, with birthplace as ‘INDIA’.
2. The Indian passport, if held by the individual earlier.
3. Parents/grandparents Indian passport/birth certificate/marriage certificate substantiating the individuals claim as a person of Indian origin.
What is an EMI ? How is an EMI calculated ?
EMI (Equated Monthly Installment) is the amount payable to the lending institution every month, till the loan is paid back in full. It consists of a portion of the interest as well as the principal.The size of the monthly installment comprising principal and interest depends on the quantum of the loan, the interest rate applicable and the term of the loan.

EMI Formula : l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount,r = rate of interest,n = term of the loan
What are the interest rates offered for home loans? What are: Daily Reducing, Monthly Reducing and Yearly Reducing ?
Interest rates are different from institution to institution and generally range from about 9.25% to around 12 %. The interest on home loans in India is usually calculated either on monthly reducing or yearly reducing balance. In some cases, daily reducing basis is also adopted.
Securities required for home loans. Guarantor require a to get a home loan?
In most cases, the property to be purchased itself 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 and share or savings certificates.Some institutions ask for 1 or 2 guarantors, others require no guarantor at all.
What are the tax benefits of home loans ?
Both principal as well as interest of home loans attract tax benefits. Section 88 of the Income Tax Act allows a 20% rebate on the principal repaid, subject to a principal ceiling of Rs.10,000 per annum. For loans availed of after April 1, 1999, a deduction on interest paid with a ceiling of Rs.1,50,000 is allowed. This amendment was made in the February 2001 budget to be effective from April 1, 2001. For loans availed of before April 1999, a deduction on interest paid, with a ceiling of Rs.30,000, is allowed. Home loans taken to repay existing home loans are not eligible for tax benefit.
NB: The above details are subject to change. Kindly refer to the respective bodies for complete and up-to-date information