How will my home loan be re-examined if my status becomes Resident Indian from Non-Resident Indian?
You may have to produce some documents for the lender to re-examine your home loan application.
Should the property be insured?
Not really. It is up to the people. If they want they can insure. Or else, they can leave the idea.
Is there an option for pre-closure?
Yes, of course.
What do I have to provide as a means of security?
Your property will be pledged by the money lender.
What does LAP mean?
LAP stands for Loan against property. This is a process of pledging borrowers’ properties to their respective banks as a form of security to avail home loans.
What kind of security is required for availing home loans?
Most banks offer up to 85% of the property’s value as home loans, based on the borrowing capacity of individuals. Just like other forms of secured loans, the borrower should pledge his or her house as a with an insurance company security against the home loan. The house will remain on mortgage with insurer till the borrower repays the home loan. In case, the borrower misses an EMI, the insurance company would take of the situation.
How to repay home loans?
Generally, home loan repayments are done in EMIs, initially thorough a couple of bank cheques and later via Direct Debit or ECS. There are also pre-closure options. However, the terms and conditions may vary with different banks.
How do you distribute the Home Loan?
Once all the necessary are documents are validated, a letter of authorization will be drafted. The allotment will be validated based on this letter. Once these things are done, the bank will disburse the loan depending on the payment scheme. There are numerous payment schemes like Special Payment Plan, Down Payment, and Construction Link Plan.
What is the Process required for application for a home loan?
Paperwork is one of the most important formalities that are a minimum required. Banks will require documents that provide proof of your identity and other important information needed. All approved it will be easy for an individual to get the home loan approved.
What is the time period bound for repayment of the loan?
The repayment of a loan depends upon the tenure chosen by the individual. The EMI amount may vary as per the contract term. The period can be of 10, 15, 20 to 25 years. It simply depends on the age and the financial status of the person.
Who can be a co-applicant for the loan?
A co-applicant is one who applies along with the borrower for a loan. A borrower has the compulsion now to have a co-applicant to a loan along with himself. It is important to note that co-applicant cannot be a minor.
Is there any possibility of keeping Co-Ownership in the Property?
Yes. Co-ownership or joint ownership prevision is always there.
Is there any possibility of Pre-approval of Home Loan?
Yes, banks can pre-approve a home loan. It depends on the average balance kept by the individual.
How much loan one can obtain from home or commercial property?
The percentage of loan is likely to depend upon the property as well as the financial health of an individual.
Where to search for home loans?
When searching for home loans in India, there are several options to explore to find the best terms and interest rates. Here are some key places to look:
1. Banks
- Public Sector Banks: Examples include State Bank of India (SBI), Punjab National Bank (PNB), and Bank of Baroda. They often offer competitive interest rates and special schemes for different customer segments.
- Private Sector Banks: Examples include HDFC Bank, ICICI Bank, Axis Bank, and Kotak Mahindra Bank. These banks usually provide quicker processing times and various loan products tailored to different needs.
2. Housing Finance Companies (HFCs)
- Specialized Lenders: Companies like Housing Development Finance Corporation (HDFC), LIC Housing Finance, and PNB Housing Finance focus specifically on home loans and often provide customized solutions.
- Non-Banking Financial Companies (NBFCs): NBFCs like Bajaj Finserv and Tata Capital offer home loans with flexible terms and may have different eligibility criteria compared to banks.
3. Online Platforms and Fintech Companies
- Online Lenders: Platforms like Paisabazaar, BankBazaar, and MyLoanCare allow you to compare home loan offers from multiple banks and HFCs online. They provide instant quotes and can simplify the application process.
How we can help you?
We have years of experience in this field and are very much aware of the pros and cons in relation to this trade. We currently are working with different renowned developers and sold successfully over thousands of properties. We are aware of the pros and cons of all sectors and thus can work as a helping hand for you.
What are the different forms of investments that one can do when it comes to purchasing of property?
There are various forms of investment that one can do for their future use. This includes investment in commercial real estate; investment in plots and investment in residential property are some of the most common options available currently.