Housing Finance Companies (HFCs)/Nationalized Banks usually give home loans for properties located in India to people who are employed or self-employed, with a regular source of income. An individual can apply for a home loan even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house. Loan eligibility is calculated based on the ability to repay. Factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.
Repayment is done through Equated Monthly Installments (EMI). Both the principal amount and the interest are taken care of in the EMI & Fixed interest. Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure. The maximum amount is 85% of the cost of the property, including the cost of land, subject to a maximum amount of Rs 1 crore for a period of 5 to 15 years.
Documentation to avail loan: