The Property Launch

Home Loan

Following are eligible to apply for a Home Loan:
  • Salaried individuals
  • Self employed professionals/businessmen

You can include your spouse/parents/children as co-applicant if you require higher eligibility subject to maximum of three applicants.

Home loans are an easy option for buying a house but getting the right amount depends on many factors and this may depend upon the factors listed below:
 
Monthly Income

The income that he earns from which he will pay his home loan emi is one of the most important factors that affect the amount of loan. So if you are salaried your per month income and if you are self-employed, your yearly profit would identify your home loan max eligibility.

The loan amount basically depends upon the net income of an individual and a bank usually provides home loans up to 60 times of an individual net income. For e.g. if a person take home salary is Rs 30,000 he /she may be offered a home loan of around Rs 18 lacs. But it may not be so because a bank takes into account other factors as well while granting a loan.

Other EMI

Other Emi (Equally monthly installment) is the emi that we are paying to for any other Loan.

Available Income

The income that is left in our hand after deduction of any emi amount that we are paying for any kind of loan. Your Home Loan Eligibility Calculator will be calculated after deduction of the EMI’s that you are paying.

Property Attributes

Banks give max upto 85% of loan against the value of the property. So if you want a home loan for a 50 lac property max that u can get is 85% of that ie 42.50 lacs. This too if in case you have the income to give the emi of that loan. So based on Income and property value banks decide your exact home loan eligibility.

Banks also have certain specific criteria before accepting the property for granting a loan. The banks have specific norms with respect to the minimum area requirements for a flat which may be carpet area or built up area. The bank also considers the age of the property in case of an existing property, the location of the property and also the reputation of the builders constructing the property. The bank also performs a thorough analysis and inspection of the property to check whether the title is clear or not, or are there any ownership disputes, whether the bank is free from any encumbrances etc.

Duration of Loan (Years)

It’s one of the most important factors that one should keep in mind while taking loan. It refers to the no. of years for which the loan has to be taken. Longer the tenure higher will be the interest paid and lower will be amount of EMI to be paid and vice-a-versa. It is one of the parameters which helps in comparing the EMIs from different banks keeping it constant for relationship and easing the judgment.

Interest Rate (in percentage)

Today there are many lenders in the market. Every bank is offering loans whether it’s a nationalized bank, private bank or foreign bank each of them is there in the show. Every bank offers different rate of interest according to the profile of the customer. So, before finalizing a deal one should consider deals from various banks and than come to a conclusion. And aware of the fact that some people might mislead you by charging high rate of interest at reducing rate and might inform the same at flat rate of interest. So, its always advisable to check full detail with the banks and do better comparison in respect of EMIs , Tenure and Interest Ratesand keeping tenure as constant with all the banks will ease your comparison and will result in better analysis, finally leading to a prudent decision.

EMI

EMI stands for equally monthly installment; you need to pay a particular amount for the Home loan that you have taken.

Eligible Loan Amount

The net loan amount for which you are eligible for your Home loan is said as Eligible Loan Amount. The loan amount that a Bank can sanction you.

Credit History

The credit history of an individual plays an important role in deciding the amount of loan. Credit history is basically the credit information report of an individual generated by a credit information company on the basis of individual’s credit records. On the basis of the credit information report an individual is being given a credit score. Based on the credit score a bank or any other financial institution decides whether the individual is eligible for a loan or not. The credit history is generally affected by outstanding credit card payments and any unsecured loans. In India CIBIL is a reputed credit information company and it analyses the financial records of individuals and awards them a score which is known as the “CIBIL score”.

Age

Age also plays a crucial role in determining the eligibility for a home loan. One has to attain a minimum age of 21 to apply for a loan. The minimum age requirement may be different for different lending institution. The maximum age may vary from 58 to 65 years depending on the income source of the individual. The age also determines the tenure and EMI of the loan. For e.g. if an individual is 35 years of age and retires at an age of 60 then his/her loan tenure will be 60-35=25 years and his /her EMI will be calculated accordingly. Longer the tenure lower will be the EMI’s. However the longer the tenure, the costlier the loan is as one ends up paying more interest rates.

Co-applicant

In order to enhance the eligibility for having a loan one can have a co-applicant and in this way the total eligible income for having a home loan increases and thus as a result the loan eligibility becomes higher. However bank permits only certain relationships to become the co-applicant, friends and relatives who are not blood relatives to take a loan amount jointly.

Some of the features of home loans offered by different banks
NameLoan AmountMinimum Salary RequirementsTenure
SBI Home loanIt will be determined taking into consideration such factors as applicant’s income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc.Not AvailableMaximum 30 years or up to the age of 70 years of the borrower whichever is early.
ICICI Bank Home LoanIt depends on the repayment capability and is restricted to a maximum of 80% of the property value.Not AvailableMaximum 20 years
HDFC Ltd Home LoanMax amount up to 80% of the value of the property and also depend on the repayment capacity of the individualNot Available20 years for loans under fixed rate and 30 years under adjustable rate home loan products
Axis Bank Home LoanMinimum Rs 3 lacsNot AvailableMax. tenure is 25 years for salaried customers And 20 years for self-employed customers.
Axis Bank-Empower home loan scheme –a home loan for self- employed individualsMinimum Rs 10 lacs Maximum Rs 100 lacs in tier 1 & tier 2 cities and Rs 50 lacs in other citiesNot Available15 years and age of the borrower should not exceed 65 years of age at the time of maturity.
Bank of BarodaMaximum loan amount Rs 100 lacs, maximum finance upto 75-85% of the project cost.
The loan eligibility is as follows:
Gross monthly income Rs 20,000-36 times of the gross monthly salary
More than Rs 20,000-to Rs 1 lac-48 times of the gross monthly salary
More than Rs 1 lacs – 84% of the gross monthly income
Not AvailableMax tenure is 25 years
Citibank Home loanMin Rs 5 lacs and Max. up to Rs 10 croresNot AvailableMax tenure up to 25 years.
HSBC BankMin. Rs 2 lacs and max Rs 10 croreNot AvailableFor salaried customers its 25 years and for others 20 years
LIC Housing FinanceMin. Rs 1 lacs and max. Rs 150 lacs. Generally the loan is extended upto 85% of the property value.Not AvailableMax. 25 years. The term for the loan will under no circumstances exceed the age of retirement or completion of 70 yrs of age whichever is earlier

Apart from providing a comprehensive well researched information on the property market in Mumbai, Thane and Navi Mumbai, we have realized over the course of years one Mumbai Property Exchange will now provide Comprehensive Home Loan Assistance.

We have tied up presently with Top Banks to provide you the with maximum information on Home Loans for you to enable to buy a Home with far more ease with most of the processes of yours undertaken centrally under one roof.

We look forward to provide you all the best possible information and advisory services on Home Loans. As a Special Scheme and Offer if you are apply your Service Fee paid by you to any of the Banks shall be refunded by us. This is a Ltd Period offer.

Please mail Mr.Amit Kumar at amit@thepropertylaunch.com

Eligibility
  • It is essential for you to understand that how much Bank Loan you can get.
  • Most of the times we are all very confident that we should be able to get an X amount of money as Loan.
  • Please do not overlook this factor and always get a Pre-Approval done so that you are clear that how much Loan can you get and also at the same time you will be able to calculate that every month you can pay an X amount of EMI.
  • This way you will be able to get your homework done before you even step out in the market to look for apartments and ready to close a deal when required without worrying on your entitlement.
Minimum Age for Home Loan25 Years
Max Age LimitThe Loan must terminate before or when you turn 65 Years of age or age of retirement, whichever is earlier
OccupationBusiness or Self Employed and Salaried with a regular income and properly filed Income Tax Returns for 3 years.
Proof of residenceBank account statement or latest electricity bill / water bill / piped gas monthly bill or latest mobile or telephone bill or latest credit card statement or employers letter certifying the current mailing address or existing house lease agreement or registered lease or leave and licence agreement with a utility bill or ration card or latest property tax / water tax bill
Co-Applicant AgeMinimum age should be 18 Years
Co-ApplicationsA loan can be availed in the name of 2 family members who are earning and the eligibility could be enhanced clubbing the income of both the applicants
Documentation

In India, most of the Banks offer attractive interest rates and schemes to ensure that you get the best deal. The Interest rates keeps on varying every few years, but if you can get any deal under 9% it is a good one. These are your personal documents required for Pre-Approval of your Own Self. The Bank would verify the property documents at a later date. If you are buying a Property in Mumbai, Thane or Navi Mumbai most of the Developers/Builders are aware of the documentation required by them and you can surely connect with any of the Bankers after consulting the Developers office of any further details.

Duly Completed Application Form
  • Photograph
  • Fee cheque
  • Photo Identity Proof
  • Residence Address Proof
  • Property documents as required
Document specific for Salaried
 
  • Last 3 months’ salary slips
  • Form 16
  • Bank Statement for the last 6 months from salary account
  • Repayment details on any existing loans or loan closure letter
Document specific for Self Employed
  • Income Tax Return / Computation of Total Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 2 years (3 years for Home Equity) (both for business and personal of partners/directors)
  • Bank Statement for the last 6 months from the operating account
  • Repayment details on any existing loans or loan closure letter
  • Board Resolution in case of a company
  • Proof of the existence of the business entity
  • Proof of Office Address
  • Photo Identity Proof, Residence Address Proof, Signature Verification must be provided for all the main partners/directors
Documents required for NRI’s for Loan
  • Application form with photograph
  • Photocopy of the Employment Contract or Labour Contract and English translation countersigned by your employer
  • Latest salary certificate (in English) specifying the following:
    1. Name (as it appears in the passport)
    2. Date of joining
    3. Passport Number
    4. Designation
  • Perquisites and salary
  • Photocopy of Identity card / Labour card
  • Photocopy of latest work permit
  • Photocopy of valid resident visa stamped on the passport
  • Overseas Bank Account and NRE/NRO statement for the last six months.
  • Continuous Discharge Certificate (CDC)- if applicable
  • Latest Credit Bureau Report [Applicable to customers residing in countries where Credit Bureaus exists. eg. USA, UK etc.]
  • Property related documents
  • Processing fee cheque

Rates & Fees

TenureTypeRate
20 Yrs (ICICI)Variable10.25 %
20 Yrs (HSBC)Smart Home11.00 %
20 Yrs (HDFC)Floating Below 30 Lacs10.25 %
20 Yrs (HDFC)Floating Between – 30 -50 Lacs10.75%
20 Yrs (HDFC)Floating Above 50 Lacs10.75%
20 Years (ING Vysya)Fixed10.25%

The following documents are required along with your loan application:

PurposeSalariedOthers
Proof of identityVoter’s ID card or driving license or PAN card or photo credit card or employees ID card or defense or police or government department ID cardVoter’s ID card or driving license or PAN card or photo credit card
Proof of incomeLatest salary slip showing all deductions or Form 16 along with recent salary certificateIT returns for the last 2 years and computation of income for the last 2 years certified by a CA
Proof of residenceBank account statement or latest electricity bill / water bill / piped gas monthly bill or latest mobile or telephone bill or latest credit card statement or employers letter certifying the current mailing address or existing house lease agreement or registered lease or leave and licence agreement with a utility bill or ration card or latest property tax / water tax billBank account statement or latest electricity bill / water bill / piped gas monthly bill or latest mobile or telephone bill or latest credit card statement or employers letter certifying the current mailing address or existing house lease agreement or registered lease or leave and licence agreement with a utility bill or ration card or latest property tax / water tax bill
Bank statement or Pass Book where salary or income is creditedLast 6 monthsLast 6 months
Guarantor formOptionalOptional

The Home Loans that are available in the market have different criteria to avail. They also have number of segments that are categorized according to varied demand of the market – different home loans for different requirements.

The following is the list of different types of Home Loans you can avail from the market:

  • Home Purchase Loans
  • Home Construction Loans
  • Home Improvement Loans
  • Home Extension Loans
  • Home Conversion Loans
  • Land Purchase Loans
  • Stamp Duty Loans
  • Bridge Loans
  • Balance Transfer Loans
  • Refinance Loans
  • Loans to NRIs
Home Purchase Loans:

Home Purchase Loans are the basic home loan you can opt for purchasing new home. This type of Home Loan is offered by all kinds of Banks and HFCs

Home Construction Loans:

Home Construction Loans are especially meant for the construction of a new home. Formality of availing this loan has a little different from the normal Housing Loan. The plot on which the construction is being erected is purchased within a period of one year, the cost of the plot is then also included as the component for the valuation of total cost of the property. But in case the date of purchase exceeds one year to the date of application the above condition is not applicable.

Home Extension Loans:

Home Extension Loans is offered for meeting the operating cost of alteration to an existing building. Extension here means addition of an extra room etc.

Home Conversion Loans:

Home Conversion Loans are offered to those who want finance for the purchase of another home by converting the already existing home and on which loan is already sanctioned. Through this loan, the existing loan is transferred to the new home including the extra amount required and there is no need for pre-payment of the previous loan.

Land Purchase Loans:

Land Purchase Loans can be availed for purchasing land for both home construction as well as investment purposes.

Stamp Duty Loans:

Stamp Duty Loans is offered for the payment of stamp duty in the transaction of the property.

Bridge Loans:

Bridge Loans are offered for selling the existing home and purchasing of another. The bridge loan assists in the finance of new home, until a buyer is found for the old home.

Balance-Transfer Loans:

Balance Transfer of the loan is the transfer of the balance of an existing home loan at a higher rate of interest (ROI) to either the same company or another.

Re-finance Loans:

Refinance loans are availed when a loan from an organization at a particular ROI is dropping leading to a loss. Then the option of swap of the loan can be availed. One can avail this from either the same HFI or other at the current rates of interest.

NRI Home Loans:

NRI Home Loans are meant for Non-Resident Indians who wish to build or buy a home or property in India.

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