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Home Loan Tips |
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All our Projects are Clear Title and are approved by HDFC, ICICI, IDBI, UTI Bank, State Bank of India, State Bank of Travancore etc.
You can choose the home loan which best suit your requirements. Following are few Home Loan Tips. |
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| 1. How much loan can one get? |
| You can get a Home Loan of up to 85% of the Total Consideration Value, or, your eligibility whichever is lower. |
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| 2.Can a Home Loan be Pre-approved? |
| Yes, you can avail for a pre approval from any financial institution.
However all pre approvals has a validity period, which may be checked out with the concerned Financial institution. |
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| 3 .Can I have Co-Ownership in the Property? |
| Yes you can have your wife, son/daughter, father/mother as a Co-Borrower. However you are again requested to check with the Financial Institution regarding their permissible ownership grid. |
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| 4.Who can be a co-applicant for the loan? |
| The spouse of the applicant can be included as a co-applicant for the home loan and his/her income shall be included to enhance the loan amount. Further, in case there are any other co-owners, they also need to be co-applicants. |
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| 5.Is Co-Applicant/Local P.O.A mandatory for applying for Home Loans, even if I don't have a Co-Borrower in the property? |
| Certain Financial Institution has made it mandatory for a Co-Applicant to join in the Loan (irrespective of his/her being/not being a Co-Owner in the property, with a Local Power of Attorney Holder in India. This may further be clarified with the Financial Institution . |
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| 7. What is the repayment period of the loan? |
| Financial Institution give loans having repayment period from 5 year to 20 year considering the age, salary & repayment capacity of the Client. |
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| 8. What is the Process for Application? |
| Application needs to be made in the prescribed Application Form of the Financial Institution, along with relevant documents and Processing Fees to the concerned
Financial Institution.
On Approval/ Sanction of the Application the Financial Institution forwards a Approval/Sanction Letter to the Applicant & Co-Applicant.
On Receipt of the approval Letter, the property can be selected/ if selected the disbursement process can be initiated. |
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| 9. What documents are required to get the loan sanctioned? |
For All Applicants:- |
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| 1. Allotment letter of the Co-operative society/association of apartment owners. |
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| 2. Copy of approved drawings of proposed construction/purchase/extension. |
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| 3. Agreement for sale/ sale deed/ detailed cost estimate from architect/ engineer for the property to be purchased/constructed/extended/renovated. |
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| 4. If you have been in your present employment/business or profession for less than a year, mention on a separate sheet details of occupation for previous 5 years, giving position held, reasons for change and period of the same. |
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| 5. Applicable Processing Fees. |
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| 6. Proof of Residence: Attested copy of any one of the following: |
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| a) Ration Card; (b) Passport; (c) Driving License; (d) Voters Identity Card; (e) Current Telephone/Electric Bill/ Gas Bill. |
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| 7. Proof of Identity: Attested copy of any one of the following: |
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| a) Passport; b) Passport; c) Driving License; d) Voters Identity Card; e) Current Telephone/Electric Bill/Gas Bill. |
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| 8. Certificate of loan outstanding issued by the lender (for refinance cases only) |
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9. Any other information regarding your repayment capacity that is necessary and will assist Housing Institute in appraising the loan proposal.
Additionally, |
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IF YOU ARE EMPLOYED: |
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- Latest original salary slip/salary certificate showing all deductions.
- If your job is transferable, permanent address where correspondence relating to the application can be mailed.
- A letter from your employer agreeing to deduct the EMI towards repayment of the loan from your salary. This will expedite the processing of your loan application.
- Your updated original Bank Pass Book/s or Original Bank Statement/s showing salary and savings entries for the last six months.
- A Photo copy of your Form 16 (issued by the employer) for the last Assessment Year.
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| IF YOU ARE SELF-EMPLOYED: |
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Balance Sheets and Profit & Loss Accounts of the business/ Profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant.
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A note giving information on the nature of your business/ profession, form of organization, clients, suppliers etc.
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Copies of Individual Tax Challans for the last three years.
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Copy of Advance Tax Challans (if any)
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Your updated original Bank Pass Book/s or Original Bank Statement/s showing savings entries for the last 12 months.
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| 10. How is the loan disbursed? |
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| The loan will be disbursed on: |
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- The identification and selection of the property.
- Submission of legal documents.
- Legal and technical clearance of the selected property.
- On satisfactory completion of the above and on the investment of the owners' contribution, the loan amount (as warranted at the stage of construction) will be disbursed.
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11. How are home loans repaid? |
| The home loan repayment is by Equated Monthly Installments (EMIs) comprising of interest and principal amount calculated on monthly rests through Post Dated Cheques or ECS mode. |
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| In case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called Pre-EMI interest and is payable monthly till the final disbursement is made, after which the EMIs would commence. |
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| 12. What is the security provided for the loan? |
| The Property being financed is mortgaged with the Financial Institution as the Primary security. However other Co-Lateral security can be asked for based on the Applicants Financial Profile/ Others, which are solely determined by the financial Institutions. |
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| 13. What tax benefits do I enjoy? |
| Tax benefits are available on the principal and interest components of a loan as per the Income Tax Act, 1961. As the benefits could vary from year to year, it is advisable to check the current benefits available, with your Tax Consultant or with the Income Tax Dept. of India |
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| (www.incometaxindia.gov.in) |
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| For detail information about home loan, you can visit the following links; |
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| http://www.hdfc.com/Loans/Loans1.asp?tn=1 |
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| http://www.icicibank.com/Pfsuser/loans/homeloans/hlhomepage.htm |
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http://www.idbi.com/products/homeloan.asp |
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| http://www.statebankofindia.com/viewsection.jsp?id=0,1,20,115 |
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