When can I apply for a home loan?
If you are at-least 21 years of age and are employed or self-employed with regular income. In fact, you can even apply for the loan, before you have identified your home/apartment.
What are the minimum and maximum loan amounts?
You can avail Home loans ranging from Rs.2 lakhs to Rs.500 lakhs depending on your eligibility viz., income and repayment capacity.
For What purpose can any-one avail Home Loan?
You can avail Loan: For Purchase of an ready-built Apartment/Apartment under construction/Re-sale of an Apartment. For Purchase of ready built house/house under-construction/re-sale of House. For purchase of Land-cum-construction. For renovation and extension of existing Home.
How many persons can be co-applicants and whether their income can be clubbed for taking Home loan?
In case of home loan, the loan eligibility can be increased/ enhanced by clubbing income of maximum three persons which can be Father/Mother/Spouse. Some Institutions accept brother also as co-applicant and include his income for eligibility purpose.
Do I have to provide any specific security?
The primary security for the loan shall be first mortgage of the home being purchased / constructed. It is in your interest to ensure that the title of the house is clear, marketable and free from encumbrances. All the Nationalized Banks insist for Registration of Mortgage for which the Fees are to be borne by the borrowers.
What will be the repayment period for Home loan?
The maximum repayment period for the loans is:
Home Loan: 20 years. Some Institutions now even consider Home Loans up to 25 years.
Home extension Loan: 20 years.
Home improvement Loan: 8 to 15 years.
Loan Against Home: Up to 15 years for all applicants.
Land Finance: 15 years (Selected Banks).
NRI loan: Up to 15 years for all applicants. The tenor varies from Bank to Bank.
The repayment period of your loan should not exceed your retirement age or 65 years if you are self-employed, whichever is earlier.
Mode of repayment will be through Post-Dated Cheques or E.C.S. or Deduction of Installment by the Employer from your salary.