To choose a Property
|
Anybody wishing to
book a flat with a developers / promoter in India is expected to keep in mind
following few basic points before deciding to book a flat on ownership basis.
|
Q1.
What are the types of housing loans available?
|
Financial
institutions offer various housing loans. Prominent among these are:
|
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.
|
Home Improvement
Loans - For implementing repair works and
renovations in a home that has already been purchased by you. It is also
called as “Top-up Loans” by certain banks and home Finance Companies.
|
Home Construction
Loans - For the construction of a new house. d) Home
Extension Loans: For expanding or extending an existing house
|
Land Purchase Loans
-For both home
construction or investment purposes.
|
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.
|
Balance Transfer - To
pay off an existing housing loan and avail of the option of a loan with a
lower rate of interest.
|
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.
|
Loans To NRI’s - As
per requirements of NRI’s who want to buy a house in India
|
Q2.
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.
|
Q3.
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.
|
Q4.
How much can a person borrow ?
|
Loans are generally
disbursed up to a maximum of 75 - 85% of the cost of the flat. The balance cost of the flat is to be funded by the flat purchaser from his own
contribution. Some banks can fund upto 90% of the cost of flat.
|
Q5.
What are the documents required at the time of making an Application for a
housing loan?
|
Financial
institutions offer various housing loans. Prominent among these are:
|
Latest 3 months
salary slip (proof of income for salaried individuals)
|
Photographs
|
Proof of age
|
Photo 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 /private limited
companies, the Articles of
Association, partnership deed and details about the firm
|
For NRI’s 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, Statement of
NRI/NRO a/c, credit bureau report (CBR) if applicable, Property related
documents.
|
Q6.
How does UNI assist a flat purchaser for procuring Housing Finance?
|
Our All projects are pre-approved for grant of home loans by leading housing finance
companies and banks. Our Sales team liaise with the all leading
Housing Finance Institutions/ Banks for processing the loan, documentation
and disbursement of loans.
|
Q7.
What is an EMI?
|
Home Loan Calculator
|
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.
|
Q8.
How is the rate of interest calculated in India?
|
Interest rates vary
from time to time and from institution to institution. The interest is
calculated either on a daily or monthly reducing or yearly reducing balances.
|
Q9.
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.
|
Q10.
What is a floating-interest-rate housing loan?
|
Floating interest
rate loan is a loan where the interest rate payable is
linked to the market conditions such as the bank’s retail prime-lending rate
(PLR) it 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.
|
Q11.
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.
|
Q12.
What are the repayment period options?
|
Repayment period
options range generally from 5 to 20 years
|
Q13.
What are the charges for availing a housing loan?
|
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.
|
Bank statements for
the previous six months
|
Q14.
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
|
Q15.
Do lending companies require guarantors?
|
Yes. Many lending
companies require 1 guarantor. But it may not be mandatory.
|
Q16.
What is the time required for approval of a loan application?
|
About 15 - 20 days
|
Q17.
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 / Developers / Developer.
|
Q18.
Do institutions accept joint loan applications?
|
Yes
|
Q19.
Do lending institutions offer special schemes/incentives/offers for housing
finance?
|
Sometimes lending
institutions offer special schemes / incentives/offers for a specified period
or under a special scheme. Incentives could be any of the following:
|
Free accident
insurance
|
Waiver of pre
payment penalty
|
Waiver of processing
fee
|
Property insurance
|
Q20.
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
|
About Home Loans
Subscribe to:
Posts (Atom)