The above rates mentioned are only for limited period. These rates may vary from bank to bank and rates would be solely decided at the discretion of the bank.
Home Loan is offered to individuals who wish to purchase or construct a house. The property is mortgaged to the lender as a security till the repayment of the Home Loan is done. The bank or financial institution will hold the title or deed to the property till the Home Loan has been paid back with the interest due for it. The amount that can be financed typically depends on the status of the borrower (resident/non-resident), type of Home Loan (renovation, property purchase, property extension) and the financial institute.
It is generally offered for up to 80-85% of the cost of the property. In a Home Loan, the owner of the property (the borrower) transfers the title to the lender (bank) on the condition that the title will be transferred back to the owner once the payment has been made and other terms of the Home Loan have been met.
A Home Loan will have either a fixed or floating interest rate, which is paid monthly along with a contribution to the principal loan amount. As the homeowner pays down the principal over time, the interest is calculated on a smaller base so that future mortgage payments apply more towards principal reduction as opposed to just paying the interest charges.
Home Loan allows a much broader group of citizens the chance to own a property, as the entire sum of the house doesn't have to be provided up front. But because the lender actually holds the title for as long as the mortgage is in effect, they have the right to foreclose the home (sell it on the open market) if the borrower can't make the payments. A Home Loan is one of the most common forms of debt, and it is also one of the most advised. Home Loans come with lower interest rates than almost any other kind of debt an individual consumer can find.
Banks offers you the unique Smart Credit loan, where you decide what interest you pay. Smart Credit power packs your loan with transactional features that not only allow you to save on interest, but also help you repay your loan much faster. So, now you can make your every rupee work as hard as you do. In Smart Credit account deposit your excess savings rather than keeping it idle. In Smart Credit you will have the flexibility to withdraw the surplus money deposited in Smart Credit account. Deposit your excess funds in Smart Credit and save the interest on your Loan. In Smart Credit interest is calculated on daily outstanding balance. In Smart Credit you can use this account like current account. (Read More)
|Documents||Salaried||Self Employed Properitorship Firm||Self Employed Partnership Firm||Self Employed Pvt Ltd / Ltd|
|Application Form With Photograph Duly Signed|
|Clear Pancard Copy, (Applicant & Co-Applicant)|
|Latest Residence proof (Applicant & Co-Applicant)|
|Latest Office Proof (Applicant & Co-Applicant)|
|Last 3 Months Salary-Slips|
|Last 12 Months Bank Statements|
|Processing Fee Cheque|
|GST Certificate & GST 3b Copy Last 1yrs|
|Form 16 / Income Tax Returns Of Last 3 Yrs|
|All Loan Sanction Letter If Any|
|Proof Of Business Existence ( Gumasta License , Sales Tax Certificate , Form 26AS , )|
|Last 3 Years ITR with CA Certified / Audited Balance Sheet And Profit & Loss Account|
|Company Pancard Clear Copy|
|Shareholding Pattern On Letterhead|
|Sundry Debtor & Creditor List Last 1year|
|Property Papers ( Chain Of Agreement, OC, CC, BMC Approved Plan & Share Certificate Front and back copy,Society NOC) / Draft Agreement, Cost Sheets.|
Equated Monthly Installment - EMI for short - is the amount payable every month to the bank or any other financial institution until the loan amount is fully paid off. It consists of the interest on loan as well as part of the principal amount to be repaid. The sum of principal amount and interest is divided by the tenure, i.e., number of months, in which the loan has to be repaid. This amount has to be paid monthly. The interest component of the EMI would be larger during the initial months and gradually reduce with each payment. The exact percentage allocated towards payment of the principal depends on the interest rate. Even though your monthly EMI payment won't change, the proportion of principal and interest components will change with time. With each successive payment, you'll pay more towards the principal and less in interest.
In EMI calculator you will be able to analysis the total output of interest you will be paying. In this mechanism you will be able to know the total EMI paid and the interest payable. In EMI Calculator you can also come to know how much interest you will be paying throughout the tenure. To work effectively on EMI Calculator you must be aware of the Loan Amount and the rate of interest. In EMI calculator you will come to know the total interest paid at the end of the Loan tenure.
If you are not satisfied with the calculator output please call us for a personalized solution for your requirement.
All applications for credit are subject to Banks normal credit approval criteria. Terms and conditions are available on application of every bank in which loan will be applied.
This is an estimate and it is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a quote. To apply for a loan you must complete an application.
The repayment amount and total interest payable excludes Processing fees and Mortgage Insurance / Life Insurance.
If a Variable Rate Loan is selected, the interest rate will be subject to market change throughout the term of the Loan.
Results are based on amortised scheduled repayments and, once any discount or fixed rate period expires, the current variable rate or the variable rate is applied for the remainder of the loan term (unless another fixed rate period is taken).
Creative Finserve will not store the information provided in this calculator.
The general factors taken into account while determining the eligibility of Home Loan are listed below:
1. Age (Min. 21 Year)
2. Maximum 58 age at time of closure of the loan for the salaried
3. Maximum 65 age at time of closure of the loan for the self employed
4. Total work / business Experience 3 yrs
5. Indian resident
The process involved in availing the Home Loan is as follows:
• Property Valuation
• Personal discussion
• Sanctioning of the Loan
Following are the list of the documents for Home Loan:
• Application form with photograph
• Identity Proof and Address Proof
• Latest Salary Slips (Latest 3 months)
• Form 16 / appointment letter
• Bank Statements (Last 12 months)
• All Loan Sanction Letter(if any)
• Processing fee cheque
• Spouse income(if required)
Application form with photograph
Identity proof and Address Proof
Proof of business existence
Last 3 years ITR
Last 3 years P&L and Balance Sheet with Audit Report
Bank Statements (Last 12months)
All Loan Sanction Letter (if any)
Processing fee cheque
The Thumb rule for calculating eligibility in Home Loan:
• Net salary per month is calculated after tax deductions then 40% to 65% of that amount is taken as loan servicing capability.
• If one has additional income like Incentives, Overtime, LTA, Medical Reimbursements, Car Allowance, it is averaged out to per month income and then it is added to income.
• If you have any ongoing EMI then it is deducted from the income, this amount is then divided by EMI per lac for the considered term, The arrived figure is the eligibility in lacs.
• Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal.
• Yes in Home Loan the banks also add-up the co-applicants income to determine the eligibility.
• The eligibility is based on the years remaining for retirement & the income.
• The banks readily add-up Spouse & parents income.
Most of the Lenders sanction Home Loan for salaried customer in 7 working days; for Self Employed the time taken for sanctioning a case can be longer as various verification and calculations are involved & there is also "Personal Discussion" done at the place of customer office.
In Home Loan Rate of interest will remain same throughout the tenure is fixed interest rate.
Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.
Yes in few conditions you can get the loan amount enhanced / revised.
If the income eligibility is there and you have applied for lesser loan amount or,
If you have not added co-applicants income while applying the loan or,
If your salary has increased after your Home Loan sanctioned than with the revised salary slip you can ask bank to increase the loan amount.
Where you have availed only a part of Home Loan, you would be required to pay Banks/NBFC only the interest on the amount disbursed till the full loan is availed. This interest is called pre-EMI interest and is payable monthly till the final disbursement of Home Loan is made, after which the EMIs would commence.
Pre Approved property Home Loan is also called as APF [Approved Project Finance]. This means that the developer had got the legal aspect of the property approved form various banks and NBFC's, Under such circumstances banks need not required to do technical verification if the customer has selected the property in the said project.
Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.
Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.
Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.
CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Home Loan CC is very much important document required for sanctioning your loan specially when it is under construction project.
OC means Occupation Certificate. This certificate issued by the local municipal body to the builder /developer once the said building is complete in all respects and fit for occupation. During Home Loan OC is very important document required for sanctioning your loan.
Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.
In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Home Loan Share Certificate is very much important document required for sanctioning your loan.
It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.
The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.
In Home Loan chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Home Loan process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.
The minimum area required in Home Loan is 400sqft.It may vary from bank to bank.
In Home Loan legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.
In Home Loan technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.
OCR means Own Contribution Receipt. It is the amount paid by the purchaser to his seller and a receipt acquired for the same. It is advisable for the purchaser to pay his own contribution to the builder / seller by cheque and obtain receipts for the same.
NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format under Maharashtra Co-operative Society Act, 1960 u/s 79(2)(a).
MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.
LTV - Loan to Value Ratio It is the percentage of Loan amount that can be provided with respect to the Value of the property.
The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.
An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.
In this case property is registered with sub-registrar and charge is created against the property in Government records.
Yes ! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement.
NO! One cannot get Home Loan from banks to purchase property overseas.
Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier. Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.
Home Loan balance transfer is a process where the customer transfers the existing Home Loan from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.
The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.
In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.
Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.
An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.
In case of an under construction property, Banks/NBFC will disburse your Home Loan in installments based on the progress of construction, as assessed by Banks/NBFC and not necessarily according to the developer's agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.