 |
|
|
| |
1. What
are the types of housing loans available?
Various housing loans are offered by financial institutions.
Prominent among these are:
a) Home Loans: This
is the basic housing loan for the purchase of a new home which
covers cost of the flat and parking space, deposits and charges,
stamp duty and registration charges.
b) Home Improvement
Loans: For implementing repair works and renovations in
a home that has already been purchased by you.
c)
Home Construction Loans: For the construction of a new house.
d) Home Extension Loans: For expanding or extending
an existing house.
e) Home Conversion Loans:
The existing loan on a house is transferred to a new house,
including the extra amount required, eliminating the need for
pre-payment of the previous loan.
f) Land Purchase
Loans: For both home construction or investment purposes.
g) Bridge Loans: For people who wish to sell
the existing house and purchase another and need finance for
the new house, until a buyer is found for the old house.
h) Balance Transfer: To pay off an existing housing
loan and avail of the option of a loan with a lower rate of
interest.
i) Refinance Loans: To pay off the
debt you have incurred from private sources such as relatives
and friends, for the purchase of your present house.
j) Loans To NRIs: As per requirements of NRIs who want
to buy a house in India.
|
|
| |
|
|
| |
2. Who can apply for
a housing loan?
Any person, including Non Resident Indians, with a steady source
of income can borrow funds for financing the cost of a flat
from housing finance companies and banks. |
|
| |
|
|
| |
3. Can a
Non Resident Indian avail of housing loans?
Yes. Repayment of loan should be made within a period not exceeding
20 years out of inward remittances or out of funds held in the
borrower's NRE/FCNR/NRO accounts.
|
|
| |
|
|
| |
4. How much
can a person borrow?
Loans are generally disbursed upto a maximum of 85% of the cost
of the flat. The balance 15% cost of the flat is to be funded
by the flat purchaser from his own contribution. |
|
| |
|
|
| |
5. How does
Kalpataru assist a flat purchaser for procuring Housing Finance?
All projects at Kalpataru are pre approved for grant of home
loans by leading housing finance companies and banks. The Kalpataru
sales team liase with the all leading Housing Finance Institutions
for processing the loan, documentation and disbursement of loans.
|
|
| |
|
|
| |
6. What
is an EMI?
Equated Monthly Installment ("EMI") is the amount comprising
a portion of the interest and the principal loan amount which
is payable by a borrower to the lender every month. |
|
| |
|
|
| |
7. How is
the rate of interest calculated in India?
Interest rates vary from time to time and from institution to
institution. The current trend ranges from about 9% to 11% pa.
The interest calculated either on a daily or monthly reducing
or yearly reducing balance. |
|
| |
|
|
| |
8. What
is a fixed-rate housing loan?
A fixed-rate housing loan is a loan where the rate of interest
is constant through the entire term of the loan period.
|
|
| |
|
|
| |
9. What
is a floating interest rate housing loan?
A floating interest rate loan is a loan where the interest rate
payable is linked to the market conditions such as the bank
retail prime lending rate and rises and falls with the bank
rate varies. Hence a borrower bears the risk of interest rate
fluctuations. Floating interest rates offered are usually lower
than the fixed interest rates. |
|
| |
|
|
| |
10. What
is the difference between monthly reducing interest rate and
yearly reducing interest rate?
In a monthly reducing interest system the principal on which
interest is paid reduces every month as EMI is paid. In the
annual reducing system the principal is reduced at the end of
the year, and the borrower pays interest on a certain portion
of the principal, which is actually paid back to the lender.
The EMI for the monthly reducing system is effectively lesser
than the yearly reducing system of calculating interest. |
|
| |
|
|
| |
11. What
are the repayment period options?
Repayment period options range generally from 5 to 20 years.
|
|
| |
|
|
| |
12.
What are the charges for availing a housing loan?
- Processing Fees: payable to the lender on applying for
a loan and is either a fixed amount not linked to the loan
or may also be a percentage of the loan amount.
- Commitment Fees: in case the loan is not availed of within
a stipulated period of time after it is processed and sanctioned
then some institutions levy a commitment fee.
- Prepayment Penalty: between 1% and 2% of the amount being
pre paid is charged by some institutions when a loan is
paid back before the end of the agreed duration.
- Stamp duty and registration fee on a deed of mortgage.
- Miscellaneous costs: such as administrative costs, legal
documentation charges, technical consultant charges.
|
|
| |
|
|
| |
13. What
security is required for a housing loan?
The flat purchased is the primary security and is mortgaged
to the lending institution till the entire loan is repaid. Additional
security such as life insurance policies, shares, bonds, fixed
deposit receipts, national savings certificates can also be
offered, as per the requirements of the institution. |
|
| |
|
|
| |
14. Do lending
companies require guarantors?
Yes. Many lending companies require 1 guarantor. |
|
| |
|
|
| |
15. What
is the time required for approval of a loan application?
About 15 - 20 days |
|
| |
|
|
| |
16. What
is the time required for disbursement of loans?
Usually loans are disbursed within 5-7 days after completion
of verification by the institution, documentation (such as handing
over of the original agreement for sale / lodging receipt to
the lender) and completion of all relevant procedures and only
after proof that the borrower's own contribution has been paid
by him to the Vendor / Builder / Developer. |
|
| |
|
|
| |
17. Do institutions
accept joint loan applications?
Yes. |
|
| |
|
|
| |
18.
What are the documents required at the time of making an Application
for a housing loan?
- Latest salary slip (proof of income for salaried individuals)
- Photographs
- Proof of age
- Identity papers
- Proof of residence
- Bank statements for the previous six months
- For self employed, certified copies of balance sheet,
profit and loss statement and tax challans / tax returns
for the previous 3 years
- For partnership/private limited companies, the Articles
of Association, partnership deed and details about the firm
- For NRIs Latest salary certificate specifying, Name (as
it appears in the passport), Date of joining, Passport Number,
Designation, Perquisites and salary, Photocopy of labour
card/identity card, Photocopy of valid resident visa stamped
on the passport, Photocopy of monthly statement of local
bank account, Property related documents.
|
|
| |
|
|
| |
19.
Do lending institutions offer incentives for housing finance?
Sometimes lending institutions offer incentives for a specified
period or under a special scheme. Incentives could be any
of the following:
- Free accident insurance
- Waiving of pre payment penalty
- Waiving of processing fee
- Property insurance
|
|
| |
|
|
| |
20.
Which sources, other than housing finance companies, can give
loans for purchasing a flat?
A loan for purchasing a flat can be availed of from the following
sources:
- Housing Finance Companies
- Banks
- Employer
- Insurance company
- Against Provident Fund Account , Fixed Deposits, Post
office Savings
- Against Shares and Debentures of listed companies,
government bonds and securities.
- Private parties such as relatives, friends
|
|
| |
|
|
| |
Back To Top
|
|
