MEANING , TYPES , PROCEDURE, ADVANTAGES, PROCESS, ASSESSMENT , SECURITY ASSESSMENT, CONDITIONAL LOAN SANCTIONED, LOAN DISBURSEMENT, CASE STUDY, DOCUMENTS REQUIRED FOR LOAN APPLICATION, CALCULATION OF EMI,

1. ABHAY MEHTA
DEVESH VORA

2. *
Everyone dreams of owning his own land and
property.
Now a day there is a cut throat competition in
each and every sector of economy.
Due to migration they are demanding more for
housing loan.

3. *
* Home Purchase Loans:
* Home Improvement Loans:
* Home Extension Loans:
* Home Conversion Loans:
* Land Purchase Loans:
* Bridge Loans:
* NRI Home Loans:

4. *
*Help in owning a home:-
*Attractive interest rates:-
*Loan period:-
*Door-Step Services:-
*No requirement of guarantor:-
*For accidental death insurance

5. Assessment
Security Assessment
Conditional Loan Sanction
Loan Disbursement

6. At this stage, bank want to determine that applicant
can afford the loan repayments.
Credit Report:
Personal details such as:
1. Name
2. Residential Addresses
3. Date of Birth and PAN card number
4. Records of some recent credit accounts Overdue
Accounts (Defaults)

7. Technical Assessment: Valuation on the
property applicant intend to purchase and any
property that will be used as security.
Legal Assessment: Examine the property
documents i.e. chain of agreements/title.

8. 
Considering there are no major issues with
applicant income verification and credit
checks, bank will provide conditional sanction
for applicant loan. This means that bank will
issue a formal Letter of Offer cum
Acceptance .

9. 
After clearance of the final processing fees
cheque, the disbursement cheque for the
approved amount is prepared by the
Operations Manager and it is handed over to
the applicant.

10. Purpose:-To buy built up (new or second
hand) / semi built up house or flat.
Amount Required:- Rs15,50,000/-
Customer Information:-
Mr. Pradeep Singha
Giridhari Colony
Parsudih Jamshedpur
Jharkhand. 831001

11.  Applied for an amount of Rs.:-Housing loans
of Rs. 15,50,000/-
 Amount Approved:-
Rs 15,50,000/- as maximum limit.
 Interest rate:-
BR + 0.50 % = 10.90 %
 Repayment Period:-
20years (240 month)

12. Documents
Last 4 month payslip.
Last 6 months bank statements.
Identity proof copy of valid passport / driving
license / pan card/ voter ID card.
2 Passport size photograph of applicant.
Loan application Form-cum-process note.

13. Loan Amount:- Rs15,50,000
Loan Tenure :- 240 month
Interest Rate:- 10.90 %
Calculated monthly Emi:- Rs 15,893.57
Yearly Interest amount:- Rs 1,13,222.84
Total interest amount:- Rs 22,64,456.8
Total Amount with Interest:- Rs 38,14,456.8

14. 
Calculation of EMI
(L X i) X (1+i)^N
EMI = -----------------------------
{ (1+i)^N } – 1
L = Loan Amount
i = Interest Rate
N = loan period in months

15. 
(1550000X0.0090833)X(1+0.0090833)^240
EMI = ---------------------------------
{ (1+0.0090833)^240 } – 1
14079.115 X 8.75960
= ----------------------
7.75960
= Rs 15,893.57/-