WHAT IS A HOME LOAN?
Home Loan is a Secured Loan offered against the security of a house/property
which is funded by the b...
SBI Home Loan: Before borrowing any loan borrower compare
interest rates. Generally people prefer to take SBI Home
Loan be...
Name Loan Amount Minimum Salary
Requirements
Tenure
SBI Home loan It will be determined taking into consideration such
fac...
Loan Schemes Up to 30 Lacs From 30Lacs to 75 Lacs Above 75 Lacs
ICICI Bank
Home Loan
Scheme I :10.15% (Fixed 1 yr)
Scheme ...
ICICI Bank
Home Loan
Scheme I :10.15% (Fixed 1
yr)
Scheme II : 10.50% (Fixed
2yrs)
Scheme III : 10.50% (Fixed
3yrs)
then 1...
DOCUMENTS REQUIRED IN HOME LOAN
Generally the documents required to processing your loan application are
almost similar ac...
TYPES OF HOME LOAN
There are different types of home loans available in the market to cater
borrower’s different needs.
· ...
HOME LOANS ELIGIBILITY FACTORS
Home loans are an easy option for buying a house but getting the right amount depends on ma...
DURATION OF LOAN (YEARS)
It’s one of the most important factors that one should keep in mind while taking loan. It refers ...
AGE
Age also plays a crucial role in determining the eligibility for a home
loan. One has to attain a minimum age of 21 to...
7 Mortgages Loans
Loan Processing Charges / Renewal
Charges (Non Refundable)
0.50% - 1.00% of the loan amount or Rs. 1500/...
Cheque Swap Charges Rs. 500/-
Document Retrieval
Charges
Rs. 500/-
Cheque bounce charges Rs. 200/-
Amortisation Schedule R...
ICICI bank home loans
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ICICI bank home loans

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ICICI bank home loans

  1. 1. WHAT IS A HOME LOAN? Home Loan is a Secured Loan offered against the security of a house/property which is funded by the bank’s loan, the property could be a personal property or a commercial one. The Housing Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property. Impacts of RBI rates on Home loans July 2013 RBI Governor D Subbarao on 15 th July raised the cost of borrowing under the marginal standing facility by 200 basis points and narrowed the window of borrowing for banks from it to just 1 per cent of deposits at Rs 75,000 crore citing the need to "restore stability to the foreign exchange market". The rates are around 10% and expect them to be there for at least a month. Home loan rates in last six month have average dropped by 2-3 % by most Banks. Budget Bonanza for Home loan customers 2013 - Additional one lac deduction of interest allowed for home loans upto 25 lacs. Home Loan applications received for 225,861 crores till 20 August 2013
  2. 2. SBI Home Loan: Before borrowing any loan borrower compare interest rates. Generally people prefer to take SBI Home Loan because SBI (State bank of India) is main centralized and national bank. SBI provides loan at comparatively low interest rate HDFC stands for Housing Development Finance Corporation. It has counseling and advisory services for acquiring property. It provide loan from any office for purchase of home anywhere in India. It gives Loan approval even before a property is selected. Because of flexible feature and transparent policy, most people prefer. HDFC home Loan for their requirement ICICI Bank Home Loan: ICICI Bank offers a wide range of Housing Loan products, designed to meet the requirements of customer. ICICI home loan offers Doorstep service, Speedy loan sanction, Simplified documentation and Loan amounts ranging from Rs. 2 lakh to Rs. 3 crore Rupees only. MOST BORROWED HOME LOANS
  3. 3. Name Loan Amount Minimum Salary Requirements Tenure SBI Home loan It will be determined taking into consideration such factors as applicant’s income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. Not Available Maximum 30 years or up to the age of 70 years of the borrower whichever is early. ICICI BANK It depends on the repayment capability and is restricted to a maximum of 80% of the property value. Not Available Maximum 20 years HDFC Ltd Home Loan Max amount up to 80% of the value of the property and also depend on the repayment capacity of the individual Not Available 20 years for loans under fixed rate and 30years under adjustable rate home loan products Axis Bank Home Loan Minimum Rs 3lacs Not Available Max. tenure is 25 years for salaried customers And 20 years for self-employed customers. Axis Bank-Empower home loan scheme –a home loan for self- employed individuals Minimum Rs 10 lacs Maximum Rs 100lacs in tier 1 & tier 2 cities and Rs 50 lacs in other cities Not Available 15 years and age of the borrower should not exceed 65 years of age at the time of maturity. Bank of Baroda Maximum loan amount Rs 100 lacs, maximum finance upto 75-85% of the project cost. The loan eligibility is as follows Gross monthly income Rs 20,000-36 times of the gross monthly salary More than Rs 20,000-to Rs 1 lac-48 times of the gross monthly salary More than Rs1lac-84% of the gross monthly income Not Available Max tenure is 25 years Citibank Home loan Min Rs 5 lacs and Max. up to Rs 10 crores Not Available Max tenure up to 25 years. HSBC Bank Min. Rs 2 lacs and max Rs 10 crore Not Available For salaried customers its 25 years and for others 20 years LIC Housing Finance Min. Rs 1lac and max. Rs 150 lacs. Generally the loan is extended upto 85% of the property value. Not Available Max. 25 years. The term for the loan will under no circumstances exceed the age of retirement or completion of 70 yrs of age whichever is earlier Some of the features of home loans offered by different banks
  4. 4. Loan Schemes Up to 30 Lacs From 30Lacs to 75 Lacs Above 75 Lacs ICICI Bank Home Loan Scheme I :10.15% (Fixed 1 yr) Scheme II : 10.50% (Fixed 2yrs) Scheme III : 10.50% (Fixed 3yrs) then 10.15% Scheme I :10.40% (Fixed 1 yr) Scheme II : 10.40% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs) then 10.40% Scheme I :10.40% (Fixed 1 yr) Scheme II : 10.40% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs) then 10.40% ICICI Bank Home Loan One of the largest Home Loan financing company is ICICI Bank Home Loan. The attractive rate of interests, simple documentation & fast processing makes the customer to take the Home loan from them ICICI Bank Home Loan offers you Home Loan for following purposes 1. Home Loan- If you want to purchase a new home then you can apply individually or jointly. 2. Home Improvement Loan- For your home improvement you can take the Home Improvement Loan from ICICI Bank. 3. EMI Under Construction- EMI Under Construction helps you to make payments in EMI, in a partly sanctioned loan for an under construction project. 4. Balance Transfer-ICICI Bank Home Loan gives you facility to transfer your running loan from an other Bank 5. Top-Up Loan- ICICI Bank Home Loan facilitates the Top-Up Loan, an additional funding against the security of your property. Current Home Loan Interest Rates of ICICI Bank Home Loan
  5. 5. ICICI Bank Home Loan Scheme I :10.15% (Fixed 1 yr) Scheme II : 10.50% (Fixed 2yrs) Scheme III : 10.50% (Fixed 3yrs) then 10.15% Scheme I :10.40% (Fixed 1 yr) Scheme II : 10.40% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs) then 10.40% Scheme I :10.40% (Fixed 1 yr) Scheme II : 10.40% (Fixed 2yrs) Scheme III : 10.75% (Fixed 3yrs) then 10.40% Salaried Self employed Age 21years to 65years 21years to 65years Income Rs.1,44,000 (p.a) Rs.1,50,000 (p.a) Loan Amount Offered 2,00,000 - 1,00,00000 2,00,000 - 2,00,00000 Tenure 5years-20years 5years-20years Current Experience 1years 3years Processing Fee 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher Documentation 1) Application form with photograph 2) Identity & residence proof 3) Latest salary slip 4) Form 16 5) Last 6 months bank statements 6) Processing fee cheque 1) Application form with photograph 2) Identity & residence proof 3) Proof of business existence 4) Profile of the Business 5) Last 3years ITR 6) Last 6 months bank statements 7) Processing fee cheque Documentation required for ICICI Bank Home Loan
  6. 6. DOCUMENTS REQUIRED IN HOME LOAN Generally the documents required to processing your loan application are almost similar across all the banks; however they may differ with various banks depending upon specific requirement etc. Following documents are required by financial institutions to process the loan application: Age Proof Address Proof Income Proof of the applicant & co-applicant Last 6 months bank A/C statement Passport size photograph of the applicant & co-applicant In case of Salaried Employment certificate from the employer, Copies of pay slips for last few months and TDS certificate Latest Form 16 issued by employer Bank statements In case of Self-employed Copy of audited financial statements for the last 2 years Copy of partnership deed if it is a partnership firm or copy of memorandum of association and articles of association if it is a company Profit and loss account for the last few years Income tax assessment order
  7. 7. TYPES OF HOME LOAN There are different types of home loans available in the market to cater borrower’s different needs. · Home Purchase Loan: This is the basic type of a loan which has the purpose of purchasing a new house. · Home Improvement Loan: This type of loan is for the renovation or repair of the home which is already bought · Home Extension Loan: This type of loan serves the purpose when the borrower wants to extend or expand an existing home, like adding an extra room etc. · Home Conversion Loan: It is that loan wherein the borrower has already taken a housing loan to finance his current home, but now wants to move to another home. The Conversion Housing Loan helps the borrower to transfer the existing loan to the new home which requires extra funds, so the new loan pays the previous loan & fulfills the money required for new home. · Bridge Loan: This type of loan helps finance the new home of the borrower when he wants to sell the existing house, this is normally a short term loan to the borrower & helps during the interim period when he wants to sell the old house & want to buy a new one, It is given till the time a buyer is found for the old house. · Home Construction Loan: This type of loan taken when the borrower wants to construct a new house. · Land Purchase Loan: It is that loan which is taken to purchase a land for construction & investment purposes.
  8. 8. HOME LOANS ELIGIBILITY FACTORS Home loans are an easy option for buying a house but getting the right amount depends on many factors and this may depend upon the factors listed below: Monthly Income The income that he earns from which he will pay his home loan emi is one of the most important factors that affect the amount of loan. So if you are salaried your per month income and if you are self employed, your yearly profit would identify your home loan max eligibility. The loan amount basically depends upon the net income of an individual and a bank usually provides home loans up to 60 times of an individual net income. For e.g. if a person take home salary is Rs 30,000 he /she may be offered a home loan of around Rs 18 lacs. But it may not be so because a bank takes into account other factors as well while granting a loan. OTHER EMI Other Emi (Equally monthly installment) is the emi that we are paying to for any other Loan. Available Income The income that is left in our hand after deduction of any emi amount that we are paying for any kind of loan. Your Home Loan Eligibility Calculator will be calculated after deduction of the EMI’s that you are paying. PROPERTY ATTRIBUTES Banks give max upto 85% of loan against the value of the property. So if you want a home loan for a 50 lac property max that u can get is 85% of that ie 42.50 lacs. This too if in case you have the income to give the emi of that loan. So based on Income and property value banks decide your exact home loan eligibility. Banks also have certain specific criteria before accepting the property for granting a loan. The banks have specific norms with respect to the minimum area requirements for a flat which may be carpet area or built up area. The bank also considers the age of the property in case of an existing property, the location of the property and also the reputation of the builders constructing the property. The bank also performs a thorough analysis and inspection of the property to check whether the title is clear or not, or are there any ownership disputes, whether the bank is free from any encumbrances etc.
  9. 9. DURATION OF LOAN (YEARS) It’s one of the most important factors that one should keep in mind while taking loan. It refers to the no. of years for which the loan has to be taken. Longer the tenure higher will be the interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the parameters which helps in comparing the EMIs from different banks keeping it constant for relationship and easing the judgment. Interest Rate (in percentage) Today there are many lenders in the market. Every bank is offering loans whether it’s a nationalized bank, private bank or foreign bank each of them is there in the show. Every bank offers different rate of interest according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and Interest Ratesand keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision. EMI EMI stands for equally monthly installment; you need to pay a particular amount for the Home loan that you have taken. ELIGIBLE LOAN AMOUNT The net loan amount for which you are eligible for your Home loan is said as Eligible Loan Amount. The loan amount that a Bank can sanction you. CREDIT HISTORY The credit history of an individual plays an important role in deciding the amount of loan. Credit history is basically the credit information report of an individual generated by a credit information company on the basis of individual’s credit records. On the basis of the credit information report an individual is being given a credit score. Based on the credit score a bank or any other financial institution decides whether the individual is eligible for a loan or not. The credit history is generally affected by outstanding credit card payments and any unsecured loans. In India CIBIL is a reputed credit information company and it analyses the financial records of individuals and awards them a score which is known as the "CIBIL score“.
  10. 10. AGE Age also plays a crucial role in determining the eligibility for a home loan. One has to attain a minimum age of 21 to apply for a loan. The minimum age requirement may be different for different lending institution. The maximum age may vary from 58 to 65 years depending on the income source of the individual. The age also determines the tenure and EMI of the loan. For e.g. if an individual is 35 years of age and retires at an age of 60 then his/her loan tenure will be 60-35=25 years and his /her EMI will be calculated accordingly. Longer the tenure lower will be the EMI’s. However the longer the tenure, the costlier the loan is as one ends up paying more interest rates. CO-APPLICANT In order to enhance the eligibility for having a loan one can have a co-applicant and in this way the total eligible income for having a home loan increases and thus as a result the loan eligibility becomes higher. However bank permits only certain relationships to become the co-applicant, friends and relatives who are not blood relatives to take a loan amount jointly.
  11. 11. 7 Mortgages Loans Loan Processing Charges / Renewal Charges (Non Refundable) 0.50% - 1.00% of the loan amount or Rs. 1500/- (Rs. 2000/- for Mumbai, Delhi & Bangalore), whichever is higher + applicable Service Tax & Surcharge Prepayment Charges No prepayment charge on floating rate home loan irrespective of the source of fund 2% of the outstanding loan amount plus applicable service tax and surcharge on fixed rate home loan and Home plus loan 4% of the outstanding loan amount plus applicable service tax and surcharge on Loan against property, Lease rental discounting and Non residential premises For one year, two year and three year fixed rate loan the prepayment charge is 2% of the outstanding loan amount plus applicable service tax and surcharge till the time loan is under fixed rate. Once loan moves into floating rate there would be no prepayment charge irrespective of the source of fund Charges for late payment Home Loans : 2% per month Home OD : 1.5% of the outstanding amount subject to minimum of Rs. 500/- & Maximum of Rs.5000/- Conversion charges for home loan Floating to Floating0.5% of the principal outstanding plus applicable taxes Dual fixed rate to Floating0.5% of the principal outstanding plus applicable taxes Floating to Dual fixed rate0.5% of the principal outstanding plus applicable taxes Life time fixed to floating 1.75% of the principal outstanding plus applicable taxes
  12. 12. Cheque Swap Charges Rs. 500/- Document Retrieval Charges Rs. 500/- Cheque bounce charges Rs. 200/- Amortisation Schedule Rs.100 per schedule (Inclusive of S.T.)* Statement of Account Rs.100 per statement (Inclusive of S.T.)* Final prepayment statement Rs.100 per statement (Inclusive of S.T.)* Duplicate No Objection Certificate / No Due Certificate Rs.100 (Inclusive of S.T.) Revalidation of No Objection Certificate Rs.100 per NOC (Inclusive of S.T.)* Provisional Income Tax Certificate Nil Final Income Tax Certficate Nil Interest Certificate NA Change of Address Nil Agreement Copy Nil No Objection Certificate / No Due Certificate Nil

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