When an applicant applies for a loan the eligibility criteria is determined by the bank. The bank analyses whether the applicant's new loan will affect the repayment of their existing loans which could be a personal or any vehicle loan. If the cur
Changes in home loan interest rate doesn't usually affects the EMI. Incase if there are any changes in the rates that get introduced it would accordingly change the ratio of interest and the principal amount collectively in the following years. If there is an increment in the interest rate, then the EMI's interest margin will also simultaneously increase whereas the Principal loan amount would decrease and vice-versa.
Here is good news for everyone out there who seek answer to the same question. The section 80C of our Income tax Act, an individual is entitled to the benefit of tax exemption up to 1.50 lakh on the principle amount of loan. Also, according to the section 24 act of Income tax Act, a taxpayer can avail tax exemption of up to 2 lakhs on the interest paid against their annual home loan
It means the amount of home loan you can get on the total value of the property. Loans up to 30 lakhs can be financed at up to 90% of the property value. Loans above 30 lakhs to 75 lakhs can be granted at up to 80% of the property value. Loans above 75 lakhs can be offered at 75% of the property value
There is a provision of transferring outstanding loan amount to another creditor who might offer a lenient or relaxed interest rate. This helps the person to save on the total interest margin of the loan amount approved by the first creditor.
Every E.M.I has 2 components attached to it one is interest and the other is principal amount. After each installment of E.M.I is paid a part of the principal amount gets reduced with each consecutive month.
A tabular layout with multiple columns and rows which enlists the payments during the tenure of the loan repayment. EMI's of every month are categorically segregated to indicate the share of interest, principal amount and the unpaid principal balance. Ideally the EMI amount remains the same and with each passing month the interest share reduces, and the share of principal amount increases.
This is the interest paid against the applied loan amount before the EMI cycle starts. The situation which requires you to pay a pre-EMI is when the disbursal amount is utilized for a self-construction property or during the construction stage of a property. This scenario requires a payment of the interest charged on the partially disbursed loan amount which is termed as Pre-EMI.
The two different types of interest rate that is offered on home loans one is fixed and the other is floating. As the name suggests the fixed interest rate remains the same and unaltered throughout the repayment time period regardless of the changes in loan regulations of the lender bank or even R.B.I for that matter. Floating rates can be affected by the implementation of any new regulation that the bank or R.B.I might introduce during any financial year.
Co-Applicant is usually a closely related family member (blood relatives or spouse) of the initial applicant. This Co-applicant is equally part of the standard credit application. The underwriter will review the credit scores and credit profiles of both applicants in their approval decision. Applying for a loan with a co-applicant improves the chances of loan approval and entitles both the applicants collectively to better loan terms and loan amount.
Income of applicant
Age of the applicant
No. of dependents
Existing loans status
NO. It is not compulsory to have a co-applicant, but a co-applicant can get you higher eligibility and increase your chances of getting a home loan. A parent, a spouse, even children can be nominated as co-applicants.
Original registration stamp duty receipts
Original copies of the chain of title agreements and building plan approvals
Original Share certificate
Proof of payment of all dues (electricity bills, maintenance charges, Property taxes, Phone and water bills until the day of possession
NOC from the concerned body confirming possession
Yes. There is an option of pre-closing the loan but then pre-closure charges will be levied accordingly.
MCLR stands for marginal cost of funds-based lending rate. MCLR is the benchmark rate below which the banks cannot provide loans to the customers who are availing loans linked to MCLR. This is applicable for all new loans which have been sanctioned from April 1, 2016 onwards.