Mob.: +91 96 1919 4464 / +91 98 20 49 4464
Email: dsubhash1980@gmail.com
Email: info@subhashdhanawade.com
 
home loan

HOME LOAN

BALANCE TRANSFER

LOAN AGAINST PROPERTY { MORTGAGE LOAN}


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.Investing in a home is considered as one of the most significant financial investments in ones life. In fact, it is one of the most important decisions an individual ever makes. Hence, it is advisable to get into a detailed market research as well as survey prior to finalizing on a specific property.A home or a property in India is usually bought through home loan. It is a kind of secured loan. The loan provides prospective buyer with the necessary amount to buy their dream home.

We are working constantly to get you the BEST Loans Deal & have brought a small guide which would answer some important questions related to Home Loans, Balance Transfer, Lap & help you decide your loans deal.

Loan Interest Rates?
Loan Eligibility ?
Processing Fee?
Loan Tenure?
Prepayment Charges?
Loan Interest Rates


Interest rate is the most important thing that has to be taken into consideration while you opt for any type of loan. Interest rates differ with type of loans and banks. So, one has to be careful while applying for loans and must compare interest rates before choosing the amount as well as the bank.

Home Loan Criteria by various banks

The borrower’s eligibility of getting a housing loan depend upon his/her repayment capacity & the banks establish this repayment capacity by considering various factors such income, spouse's income, age, number of dependants qualifications , assets, liabilities, stability and continuity of occupation and savings history. Eligibility Factors in Housing loan
Your Home Loan eligibility is determined by your repayment capacity, taking into consideration, factors such as: Your:

» Income
» Qualifications
» Age
» Spouse's income
» No. of dependants
» Stability and continuity of occupation
» Assets/LiabilitiesM.
» Savings history.


The most important concern of banks in determining your loan eligibility is that whether or not you are contentedly able to pay off the amount you borrow.

Documents Required for Sanction Salaried:-


1. Application for completed with 2 photo duly filled in and signed
2. ID Proof: Pan Card & Last Qualification Proof
3. Residence Proof: Letter from Employer/ Bank statement containing address for last 6 month/ Latest Electricity bill/ Latest Telephone Bill.
4. Salary slip for last 3 months & latest form 16
5. Appointment Letter with Latest CTC & Confirmation Letter
6. Original Bank Statement of salary A/C for last 6 months updated.
7. Investment Proof & Repayment Track if any.
8. Processing Fees cheque


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:
In case of Self-employed,


» Copy of audited financial statements for the last 3 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 and Balance Sheet for the last 3 years
» Income tax assessment order.


Home Loan Balance transfer


Home Loan Balance transfer need not only mean saving money, you can also utilize the same for investing in different options. After all securing a home loan is not the end of journey. Balance transfer - by switching to another lender may give you a better deal. While a balance transfer will certainly reduce your EMI outgo, there is no one-size-fits-all solution for everybody. To know if it will help you, you need to decipher its workings and calculate the actual benefit before taking a call. All you need to do is know your existing home loan rate and prepayment charges and based on that it gives you detail of four other bank rates as well and tells you how much you can save.

WHY THE SWITCH?

Many a times, it is possible that the new lender may be offering buyer a lower interest rate as compared to the present lender. However, prior to switching, one must consider few important things in order to make sure that the home loan transfer from one lender to another is actually profitable.

WHAT TO CONSIDER BEFORE THE SWITCH?

Loan Tenure

Switching to a new lender is specifically favourable in the initial stages. This is because during this period, the interest is deducted from the loan amount. When only a few years are left for the loan tenure to complete, the majority of EMI (equated monthly instalments) payment is shifted towards principal repayment. Switching early gives an opportunity to the buyer to pay lower interest amount.

Prepayment Charges


The charges must be paid as you are terminating loan prior to the stipulated term. This is a kind of penalty charged by home loan lenders. The lenders in India usually charges prepayment fee ranging between nil or 2 per cent of the outstanding amount (loan). So before making the decision of switching, consider whether prepayment would be a comfortable option for you.

Home Loan Process & various steps involved

There are various steps involved in getting a Home Loan from selecting your property to filling up the loan application. Following are the various stages in Home Loan:The first step involved in the process is to find your property which is followed by the verification of property documents, post that the documents are examined & simultaneously you can start searching for the lender who can offer the BEST Home Loan Deal after checking your eligibility criteria.

Know the Home Loan Eligibility: Banks offer the loan amount only after checking your profile & based on various eligibility criteria’s like age, income & salary banks lend you the money.
Select the Best Home Loan after evaluation: Comparing home loan interest rates is the primary feature in the home loan selection, however other fees & charges like Application fees, processing fees, legal charges should not be neglected when comparing various loan offers. To check the interest rates & other charges incurred by various banks.
Applying for the Loan : After you have selected your lender, you have to fill in the application form wherein the lender requires complete information about your financial assets & liabilities; other personal & professional details together with the property details & its costs.

Documentation & Verification Process: You are required to submit the necessary documents to the bank which will be verified together with the details in the application.
Credit & default check: Bank checks out the borrower’s loan eligibility (through repayment capacity) & the amount of loan is confirmed. The borrower’s repayment capacity is reached which is based on the income, salary, age, experience & nature of business etc. Bank also checks credit history through the Cibil Score which plays a critical role in deciding & approving your loan application. Low Credit Score implies that the bank upfront rejects your application on the basis of earlier credit defaults; on the other hand high credit score gives a green signal to your application.

Bank sanctions Loan & Offer letter to the borrower: After the credit appraisal of the borrower bank decides the final amount & sanctions the loan, the bank further sends an offer letter to the borrower which constitutes the details like rate of interest, loan tenure & repayment options etc.

Acceptance Copy to the Bank: The borrower needs to send an acceptance copy to the bank after the borrower agrees with the terms & conditions in the offer letter.Bank checks the legal documents: The bank further asks the legal documents of property from the borrower to check its authenticity so as to keep them as a security for the loan amount given. The next step involved is the valuation of the property by the bank which determines the loan amount sanctioned by the bank.Signing of agreement & the loan disbursal: The borrower signs the loan agreement & the bank disburses the loan amount.


Loan Against Property

Loan against Property refers to the secured loan category like home loan where the borrower gives a guarantee by using his property as a security. The right of ownership of the property is still with the borrower, and if he/she is unable to repay the loan amount, he/she can sell the property to pay off the debts.

Typically these loans are used to start or expand business or to renovate your house. But it can also be used to repay existing high rate loans.
» The maximum loan amount varies from bank to bank. It could range from Rs.2 lacs up to Rs.100 lacs. The exact amount depends on your property valuation, income and of course
    repayment capacity.
» The rate of interest is usually high, but depending on one's profile and the Bank's criteria, it may vary.
» The maximum loan amount can come upto 50% of property value for commercial setups and up to 70% for residential properties.
» The maximum loan tenure is 15 years.
» You require security, collateral or guarantors for obtaining a Loan Against Property.
» The maximum age limit of eligibility is 60 years.
» You can choose either Fixed or Floating rate of interest. You also have an option of changing from Fixed to Floating interest rates and vice versa once every year.
» A processing fee is usually 0.05% to 2% of the loan amount and is payable upfront. This fee however will be deducted from the disbursal amount payable to you.
» You pay your loan in EMIs through post-dated cheques or through ECS to debit your Bank account through ECS with the EMI amount.


Also know these pointers before availing a LAP:

» Decide on the basis of what you really need. Also see if the cost fits into your estimated budget.
» Compare the quotations given and interest rates from 3-4 banks, select the one which offers maximum benefit and serves your purpose.
» Also determine the tenure of the loan. The EMI may come less for longer tenure, but the total interest outgo will be higher.
» Know all about processing fees and time. Some banks may waive the processing fee for processing loan but they build this cost on their interest rates.
» Consider pre-payment options. All banks charges 2% of the loan in case you decide to pre-pay the outstanding amount.
» Default in payments results in penalties. It can also adversely affect your credit history and profile. So make sure to make your payments on time.
» Make sure that all deals and offers agreed upon are supported by relevant papers. So make sure you always ask for a letter in a banks letter-head mentioning the likes of, exact rate of
    interests, processing fees, pre-payment charges along with interest-schedule.
» Also before signing the documents, make sure you recheck all terms and conditions.
» Do not at any circumstance give any false information. This may amount to fraud and could land you in trouble.
» Finally, once you have received a loan do your best to pay it back as quickly as possible. Banks make their money off the interest they charge and the sooner you pay back a loan the
    less money you will have to pay in interest.

 
 
 
Mob.: +91 96 1919 4464 / +91 98 20 49 4464
Email: dsubhash1980@gmail.com
Get Social: