OasGroupsHome Loan
Flat & Constrution
Home Loan:
A house door with your name on it is the ultimate dream of any living individual. In India, owning your own house is considered as one of the major signs of success.
As the average income ratio of Indians is increasing with globalization, the desire to buy your own house is also increasing simultaneously. Along with this, the price of property too is increasing day by day, irrespective whether it's an urban or rural area.
Thus it becomes highly impossible for a common man to buy a house only with his or her savings. This has lead to an increase and extreme popularity in purchasing home loans from Banks and NBFCs to fulfill their dream.
Home loans is the best selling banking product.
It also assures a stronger and longer relationship with your bank. A home loan that is also known as a housing loan refers to an amount borrowed by a consumer from a bank or NBFC to buy, construct, repair or renovate a residential property. This borrowed amount or loan is lent on a fixed or flexible tenure and an interest rate on the borrowed amount.
The borrower is supposed to pay off the principal amount of loan with the interest within the fixed tenure.
HOW MUCH CAN I APPLY?
Home Loan can be availed up to 90% of agreement Value subject to Property Market Value.
90% of Market Value up to Loan amount of 30 Lakh
80% of Market Value up to Loan amount of 75 Lakh
75% of Market Value for Loan amount above 75 Lakh
LOW CIBIL SCORE VS HOME LOANS?
Cibil score is a major factor for home loans if your cibil score is less than 650 you may face rejection in Home Loans, Few Banks consider Low Cibil Score with proper justification and payment records /Low-Income ITR with good business records.
What are the Types of Home Loan?
Home Purchase Loans:
Obvious to the name, this type of loan is given to the borrower specifically to buy a home. Be it a flat or a bungalow, all banks and NBFCs offer home purchase loan. This is the most popular type of loan and highest number of consumers opts for this type of loan.
Home Loan to Purchase a Piece of Land:
Consumers, who want to live in a self-built house, need a piece of land or property to do so. People also buy a land with an intention of sheer investment. To buy such a land in your name costs a fortune. Here you can opt for this type of loan. But this type of loan is not necessarily offered by all banks or NBFCs.
You can get this type of loan only if you are purchasing a vacant plot. The term, the interest rate and procedure for this type of loan is similar to basic home purchase loan.
Pradhan Mantri Awas Yojana:
This government scheme also known as PMAY, was earlier known as Indira Gandhi Awas Yojana. In June 2015, the government announced Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana which gives every Indian citizen a chance to get his/her dream house. Almost all banks offer loan in coalition with this scheme and also get 2.67 Lakh govt, Subsidy in your loan account.
NRI Home Loan:
People who are living outside India, also known as Non-Resident Indians (NRI) buy property in India for investment or for their family back home. The terms, requirements, interest rates and procedures are different for them as compared to the basic home loan. These are specifically designed for NRI's.
Home Loans for Extension/Renovation:
Many times consumers wish to further construct or renovate their existing house. Like adding an extra floor or renovating the exteriors and interiors keeping the original structure the same. These loans are becoming popular day by day as people are more interested in renovating existing house than buying a new one. Also this type of loan offers similar interest rates as basic home loan.
Home Conversion Loan:
Many time consumers change their residence. It can be for any personal or professional reason. But moving into another house doesn't come cheaper either. If one already has a home loan on an earlier purchased house and wishes to move into a new house by opting for a new home loan, this comes as a savior for them. The home conversion loan helps you to transfer the current loan from your old house to your new house.
What are the Characteristics of Best Home Loan?
There are many Characteristics of best Home Loan. Go for best Home loans by choosing any one or all from below:
@The home loan amount varies from bank to bank. But the minimum is Rs 2,00,000/-.
@Best Home loans come with longer repayment period, as long as 30 years. It includes repaying the principal amount along with the interest costs. The minimum tenure is 5 years.
@Best Home loan can be repaid in the form of EMI (Equated Monthly Installment).
@The EMI (Equated Monthly Installment) of the loan is formed by combining the principal amount and the interest together.
@The repayment of best home loans is done in equal monthly installments.
@The home loan charges are inclusive of registration charge, processing fees, prepayment penalty, commitment charge and miscellaneous charges for documentation and consultation.
@Best Home Loans are considered as secured advances.
To avail a best home loan, borrower has to give mortgage. The collateral here is usually the property that is being bought or even the existing property can also be given as collateral.
The banks and NBFCs offer best home loan with three main types of interest rates: Fixed, Floating or a combination of fixed and floating.
@The Indian government has introduced MCLR (Marginal Cost of funds based on Lending Rate). This is used by banks and NBFCs to decide the rate of interest at which they want to lend money to borrowers.
@To reduce liability, banks accept pre-payments. It is allowed by all banks and NBFCs. Very few banks charge for pre-payment.
In home loans, you can get loans in higher amounts compared to other types of loans i.e. 85% to 90%.
@To avail the best home loans you can have your spouse or parents as co-applicant or joint applicant. You get tax benefits from that.
The interest rate on best home loan is comparatively lower than personal loan as it is a type a secured loan.
@The amount bank will give you under the best home loan will vary based on your income, credit history, the locality/city you are planning the purchase a house in and various other factors.
@You can enjoy tax benefits on the best home loan according to the Income Tax Act, 1961.
What are the Eligibility Criteria to avail a Best Home Loan?
To determine whether you are eligible to get a best home loan or not, there are various criteria involved.
Such as income, employment status, loan tenure etc.
The criteria differ from bank to bank. But we have given some of the important eligibility criteria below:
Any consumer who has a regular and steady source of income can get the best home loan.
Irrespective of consumer's profession (salaried, self-employed or business person) he/she can get the best home loan.
The consumer, who wants to apply for the best home loan, should be of minimum 21 years old. Whereas the repayments has to be done by the age of 60, maximum 65.
Applicant's savings history with bank plays an important role in approval of the loan.
If you have a bad credit history, especially before 3 months of applying for the best home loan, it can become a large hurdle in accessing the loan.
Those who have their own business or are self employed, have to present their profits and turn over to determine the value of loan they'll be applying.
The applicant also has to give proof of their current residence. He or she should be staying at that current residence for at least a year. This will be seen as a proof of stability along with employment and financial records.
Applicant needs a good credit score. (750-900 is considered as a good credit score).
What are the Documents Required to avail a Best Home Loan?
The process of getting the best home loan can be made easier if you know exactly what documents you need to submit with your application.
The documents are filed according to the eligibility criteria.
The list of required documents differs from lender to lender. But we have given a generic list of required documents below:
Neatly signed and filled home loan application form
Passport-size photographs
Statements of investments (if any)
Copy of plan approved for the proposed construction/extension (in case of applying for home loan for extension)
Cost estimation or valuation report from the bank's (or finance company's) panel CA
Allotment letter of housing board/NOC of the society/builder etc.
Bank statements and salary slips of last 6 months from application date
Identity and signature proof - Passport, Pan card, Driving License, Voter ID card, Aadhar card, employee identity card in case of government employees
Address Proof - Bank statement, Rent Agreement, Voter ID card, Ration card, Passport, Driving License, telephone/electricity/water/credit card bill or Property tax
Age Proof - Voter ID card, Secondary school leaving certificate (class 10), birth certificate, Passport, Aadhar Card, pension payment order or receipt of LIC policy
Valuation/cost estimation report from evaluator approved by the NBFC or Bank
Property papers with OC and CC.
What are the Fees and Charges Applicable to get a Best Home Loan?
There are specific fees and charges applied by banks and NBFCs while processing the best home loans.
These charges are different from the interest rates. These charges differ in value from lender to lender, but the types of charges are the same everywhere.
Processing Fee:
Banks charge a non-refundable processing fee for your home loan request. Different banks charges different amounts as processing fee. This fee is either a specific percentage of the loan amount or a fixed amount of money. Depending upon applicant's profile and considering some terms and conditions, banks often negotiate and lower the processing charges or waive it off completely.
Late payment charges:
If the borrower is late in paying any of the loan installments, almost all the banks impose late payment charges on the borrower. Be it any reason, financial crunch or some other financial liability or plain oversight, banks do not bend their rules.
Conversion charges:
Banks offer best home loans on two types of interest rates: Fixed interest rate or Floating interest rate. The borrower can choose between these two interest rates. Every time a borrower applies for switching from fixed rate to floating or vice versa, conversion charges are applied by the bank. These charges are some specific percentage of the principal amount of the loan.
Contact us to our team for BEST DeaL & ROI