Loans can be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.
In most cases, the property to be purchased itself becomes the security and is mortgaged to the lending institution till the entire loan is repaid. Some institutions may ask for additional security such as life insurance policies, FD receipts and share or savings certificates.
Some institutions ask for 1 or 2 guarantors.
About 5-15 days. After the submission of the requisite documents, banks generally sanction loans for salaried individuals within 5-7 working days and for self employed individuals within 10-15 working days.
On an average, loans are disbursed within 3-15 days after satisfactory and complete documentation and completion of all relevant procedures, including proof that 20% of the cost has been paid upfront to the seller of the property.
Most institutions are willing to consider the joint incomes of the applicants for deciding the loan amount. Some institutions do not require the co-applicants to be co-owners of the property to be purchased.
There is no lock in period as far as the home loans are concerned.
Statutory expenses including the stamp duty, registration, VAT, service tax, legal charges are generally not covered by the banks. Banks only consider the cost of property and car parking while funding. Although, there are certain NBFCs that fund the statutory expenses only if the market value supports.
Yes, you can pay your loan ahead of schedule. However, it must be noted that housing finance companies charge a fee for early redemption of loan. This fee can vary between 1-2% of the loan amount being prepaid. Prepayment penalty may vary according to the reasons and source of funds - if you obtain a loan from another bank for pre-payment the charges are usually higher than when you pay from your own sources. However, you may credit more than your EMI amount into your loan account on a periodic basis and bring down your interest burden as and when funds are available with you. Most banks do not charge a pre-payment penalty if you deposit more than your EMI payable on a periodic basis.
A loan that enables elderly homeowners, to use their home's equity without selling their home or moving from it. A leading institution makes a check out to the homeowners each month. This payment is really a loan against the value of a home.
Yes, you can take loan for construction in one city while working in another city after getting details of the plot legally verified.