Housing loans in india


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Housing Loans or Home Loans are availed by the borrowers in order to help them gain monetary benefits while purchasing a property.

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  • they are offering a legitimate loan offer. i got a loan from them without any stress. Website:http://www.dennishopkinsfinancehome.com/ Skype ID:roger.n.william Tel: USA +12404374240
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Housing loans in india

  1. 1. Home Loans in India Jake Rubi
  2. 2. Housing Loans or Home Loans are availed by the borrowers in order to help them gain monetary benefits while purchasing a property. Home Loans are generally considered to be secured loans, as the purchased house acts as a security or collateral to the loan. Banks often provide the borrower with a financial margin of up to 80%, depending on the income and eligibility criteria of the borrower. Apart from the 80 percent supplied by bank, the rest has to be arranged by the borrower. Loan borrowers have to keep in mind the repayment charges which occur every month called the “Equated Monthly Installments” (EMI) and whether they can afford to pay this amount on a monthly basis before availing a loan.
  3. 3. Housing loans gives one an opportunity to purchase a property without having to pay the whole price of a property in a single payment. The Home loan interest rates vary from bank to bank, which is generally based on the loan tenure. The following are few factors which are very much necessary to consider before availing a home loan. They include Home Loans with lower interest rates, low processing fee, and zero or low prepayment charges.
  4. 4. Home Loans are generally a very important financial decision, so it is very vital to have a thorough knowledge on the following aspects: Effect of Home Loan on one’s personal finance It is better to have a good idea about the impact of availing a home loan and its subsequent EMI payments from a monthly and yearly perspective. Maximum Loan Eligibility Banks assess the income criteria based on only those income heads which can be used to repay the loan amount; it does not include the salary slip heads which calculates the net monthly income. For example, banks do not consider deducted amount of the LTA and medical allowances in a monthly salary slip.
  5. 5. Co-application In the case of higher loan amount, beyond a person’s eligibility, one can always choose to apply along with an earning co-applicant. It can either be a spouse or parent. This helps in increasing the overall loan amount and the sharing of loans reduces the burden of repayments as well. Moreover, applying along with co-applicants also helps one in availing tax benefits on the payment of interest of an EMI. Duration The lower the duration, the higher the EMI amount and the longer the duration, the lower the EMI amount. Depending on the capability to repay, one can take a decision on the number of EMIs to pay. Generally, it starts with 5 years and can also exceed up to 20 years.
  6. 6. Pre-Payment & Foreclosure Charges This is the most important aspect to be considered before going for any loans. Checking for the pre-payment or pre- closure facility with a zero penalty or penalty of a small percentage of the principal amount is a must before choosing your banker. This will help one reduces the interests’ burden earlier by early repayment of the loan. Documents Checking the documents to see what we have agreed upon, the terms & conditions involved, and the various applicable charges like the processing fees, pre-payment amount, and late payment fees etc is very important before signing the loan application.
  7. 7. Some of the important documents required while applying for a home loan include income documents, residence proof, age proof, legal documents, business proof and other legal documents. The borrower should be clear about his income and repayment capacity, the interests’ rate calculated, monthly EMIs and other kinds of fees that he/she would have to pay.
  8. 8. Home loans are provided by many renowned banks at more affordable prices like the Axis Bank, ICICI, Bank of Baroda, HDFC, SBI, Standard Chartered and Andhra Bank etc. Many banks generally have a processing fee of 0.5% to 1%. The interest rates are as follows (as on date): • HDFC: interest Rate- up to Rs30 lakhs -10.15% and Rs. 30 lakhs & above-10.40%, processing fee – 0.5%, Prepayment charges- Nil • State Bank of India: interest Rate- up to Rs.30 lakhs-9.95% & above Rs.30lakhs- 10.10%, processing fee-up to Rs.25lakhs- 0.125% (Rs.1000) & Rs.25 to Rs.75lakhs-Rs.3250 & Rs. 75lakhs and above- Rs5000, Prepayment charges-Nil • ICICI: interest Rate-10.25% (fixed for first 3years) and thereafter 10.50%, processing fees-0.5%, Prepayment charges-Nil
  9. 9. Find more properties in Chennai locality,  Medavakkam Properties  Properties in Pallikaranai  Porur Properties  Properties in Sriperumbudur  Property in Velachery Thanks