Home Loans at Best Rates: We've Done it for You
If you are planning on buying a home or renovating your present one, a home loan can be of help to you in a variety of ways. You can apply for the loan at any time suited to your convenience, and it is not necessary for the construction of the property to have begun when you are applying for the same. However, people face a number of basic problems in the process, and we have answered a few of the most common queries that people need resolved to make the entire operation a smooth one for You.Q1. Are there different categories of home loans available in the market? What are they?
Yes, there are a variety of different types of home loans available to you as per your need and operation. Following are the types of home loans given to the buyers-
- Home purchase loan - Loans given for buying a home
- Home improvement loan - Loans taken for renovation and other domestic repair works
- Home construction loan - For the construction of a new home
- Home extension loan - For broadening/expanding the area of a new home
- Land purchase loan - For procurement of land in order to construct new homes
- Home conversion loan - For the buyers who have already bought a new home and are now looking for extra finances for the purchase of a new, more expensive one
- Balance transfer loan - For helping the buyers pay the loans with higher rates of interest and get a loan with lower interest rate
- Refinance loan - For paying off the liabilities you have acquired from your friends or relatives for the purchase of your new home
- NRI home loan - Loans given to the NRIs planning to buy home in India.Click here to know more about our NRI Services.
Initially, you are required to submit an application along with all the required documents. After the bank conducts a definite review, they will fix upon the loan amount you are eligible to receive and communicate their decision to you. To get the best possible outcome, we advise you to research and enquire after more than one bank and choose the one that gives you the highest loan amount with lowest interest rate.Q3. What is EMI?
Equated Monthly Installment (EMI) is the fixed amount of money that is payable to the bank every month until the full amount is repaid. However, consisting both, the interest as well as principal payment, the total sum of the EMI rests on the rate of interest, the duration of the loan and the amount of loan.Q4. Is there any tax benefit on home loan?
Yes, there are certain tax benefits under the income tax act, 1961. However, the benefits are subject to change each year and it is advised that you look into the current benefits available and applicable to your loan.Q5. What are the eligibility criterions required for a home loan?
The amount of home loan you get is determined by the following criteria-
- Savings history
- Number of assets
- The income of your spouse
- Your qualification
- Your income
- Your age
- Your stability in your occupation
The Monthly or Yearly Reducing Balance is considered as the yardstick on which the interest rate is calculated for a home loan. As you pay your EMI, the principal on which you pay your interest lessens every month. Nevertheless, in case of Yearly Reducing Balance, you have to continue to pay interest on the certain amount of principal which you have paid back to the bank earlier. So, opting for the Monthly reducing system is more effective, as the EMI for this scheme will be lesser than the Yearly Reducing System.
|Documents||Salaried||Self Employed Professional||Self Employed Non Professional|
|Application form with photograph duly signed|
|Identity, residence and age proof|
|Last 6 months bank statements|
|Last 3 months Salary-slips|
|Processing fee cheque|
|Form 16 / Income Tax Returns|
|Proof of business existence|
|Education qualification certificate and proof of business existence|
|Last 3 years Income Tax Returns with computation of Income|
|Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account|