There are different types of home loans available in the market to help new home buyer to borrow as per needs. Home loan can be borrowed for purpose of existing home improvement.
A planned home loan is often the smartest way to secure your future and solve a financial problem or overcome a crisis.
LoansDelhi.com provides an easy to use platform to review the various home loans offered by banks and financial institutions.
Purpose for Home loan:
1. Home Purchase loan
- This loan is for Purchase of ready to move in flats or under construction flats / Floors / Row houses / Bungalows in the resale market / Development Authority / Developers / Societies
- 80% of the cost of the property and based on the repayment capacity of the customer and credit report.
2. Land Purchase Loan
- This loan is for purchase of vacant lot of land for house construction
- 60% – 80% of the cost of plot and based on the repayment capacity of the borrower. Loan repayment period varies between 15-20 years depending on borrower profile and credit report
3. Home Improvement / Construction Loan
- upto 80% of the estimated cost approved by bank. Loan repayment period varies between 15-20 years depending on borrower profile and credit report
What is the maximum home loan repayment period?
Mostly home loan repayment period is 20 years but some lenders can extend it longer on case to case basis.
What is floating rate or a fixed rate home loan?
Floating home loan rates are joined to some standard interest rate by the lender and the rates may vary depending on the standard.
Fixed rate home loans offer you the opportunity to fix an amount of loan payment per month for the complete loan period.
Home loan approval time
Mostly it takes 2-3 weeks after all required documents are provided on time to the lending bank.
Home Loan Eligibility:
While computing home loan eligibility, banks take into account the age of the applicant, their salary, repayment/credit history, savings, profession, location of property, and other debts. Some professions are categorized as risky by the lenders while some jobs fall in the preferred list. As a thumb rule, the EMI for your home loan must not exceed 40 percent of your gross monthly income.
Basic Eligibility Criteria:
- An individual who is Salaried, self-employed or self employed professional.
- A person with Net Monthly Income is in excess of Rs.12, 000/- or Net Annual Income (others) is in excess of Rs.1, 50,000/-.
- The income of the spouse can be added if he/she is a co-borrower or a guarantor.
- Maximum age limit for home loan self employed is 70 years and for Salaried is 60 years.
*Special Note: We do not provide home loan or loan against property. Home loan eligibility varies on bank to bank and case to case basis. So contact now.
Documents needed for approval
- Identity Proof
- Duly Filled Proposal Form
- Resident Proof
- Sale Agreement
- Bank Statements for last 6 months
- For Salaried Persons – Salary Slips (last 3 months) and Form 16A
- For Business Persons – IT returns file, documents that describe your business, etc
Home Loan Process
- Application form
- Personal Discussion
- Bank’s Field Investigation
- Credit appraisal by the bank and loan sanction
- Offer Letter
- Submission of legal documents & legal check
- Technical / Valuation check
- Registration of property documents
- Signing of agreements and submitting post-dated cheques