1. I bought a property last month. Can I get a home loan for the same right now ?
2. I intend to co-own, the property with my brother, sister, father, mother. Will I be eligible for a loan?
3. Can a single woman get a loan ?
4. Can I get a home loan for an apartment that I want to purchase in New York ?
5. Do professionals have special eligibility norms?
6. Can I get two home loans against two different properties ?
7. Is there any loan provision for purchase of land ?
8. Can a NRI (Non Resident Indian) avail of a housing loan?
12. What is a fixed rate home loan ? When should one opt for a fixed rate home loan ?
13. What is a floating rate home loan ? When should one opt for a floating rate home loan ?
14. Can I convert my loan from fixed rate loan to floating rate loan & vice versa?
15. Can the Fixed Rate of Interest change during the loan repayment?
16. What happens to processing/administrative fees if I don't avail of the disbursement?
17. What is the difference between monthly rest & annual rest?
18. What are the charges other than interest that are levied by home loan lenders?
19. What are the tax benefits that I can avail of for repaying a home loan ?
20. Can I take advantage of tax benefits from a home loan as well as claim HRA?
21. I have a home loan in which I am a co-applicant. However, the total EMI amount is paid by me.
What is the total income tax exemption that I can avail of?
22. I have two home loans on two different properties. Can I get tax rebate under sec 80 C on both?
23. Is the EMI amount or the tenure of the loan affected if the value of the underlying property falls ?
24. Is it necessary to get property insurance, while availing a home loan ?
25. Can I sell the property, even when the home loan is outstanding ?
26. Can I increase or decrease the amount of the loan even after it has been sanctioned ?
27. Is it advisable to transfer a home loan from my existing provider?
Most lenders would consider any property bought during the last 3 -6 months as a regular home loan application. You would be eligible for the same rates and income tax benefits as any other home loan . However, if you delay and the property purchase becomes more than 6 months old it will be treated as Loan Against Property. The rates for the same are higher and there would be no tax benefits as well.
You would not be eligible for a loan as most home loan lenders allow only immediate relatives to co-own a property. This means that a parents-son combination and a husband-wife combination is only allowed. The reason for this restriction is that if some dispute arises between the joint borrowers, their incomes might not be pooled any longer and there might be a problem in repaying the loan to the bank.
Yes, a single woman can get a loan. Till a few years back, banks hesitated to give loans to single women fearing loss of income after marriage. With double income families becoming the norm rather than exception, lenders now are lending to single women as well. Many lenders also have special schemes for women offering them a discount up to 0.25%.
No, currently no home loan lender provides loan for purchasing properties abroad. The primary reason being operational difficulties in property verification, disbursement and different legal structure governing both home loan and repossession terms.
Most home loan lenders offer special privileges to self-employed professionals. They recognize the fact that in such cases, income is generally under stated and the earning potential of such individuals is higher that what has been disclosed. Every Housing Finance Institution (HFI) has its own conditions regarding the type of professionals they would cater to. The HFI also decides on the qualifications required for such professionals to qualify for the relaxed norms for loan eligibility calculations.
Yes, you can have as many loans against different properties. The only criteria being that you should be able to repay all the EMIs every month.
Yes, Non Resident Indians can avail of a NRI housing loan to buy a property in India. However, the loan disbursement process as well as the terms & conditions for a loan taken by a NRI are different than regular home loans granted to Indian residents.
Many large builders like DLF, Unitech and Hiranandani get their projects “pre-approved” by specific home loan lenders. The lender examines the legal documents of the title of that project, the stage of construction as well as the builder's track record to complete the project in time. It then declares all properties in the project to be “pre-approved”. You do not need to go for legal and technical checks in case of a “pre-approved” property.
You've chosen a property that's yet under construction. So the lender makes the disbursement in parts based on the progress of the construction of your property. However till the housing loan is fully disbursed you have to pay simple interest at the rate you have agreed upon with the lender. This is known as the Pre EMI. And from the month following in which the full disbursement is made you will start paying your EMI.
Floor Space Index refers to the ratio of the built up area of a property to the area of the land on which it is built. An FSI of 60% would mean that the total built up area of the building can be equal to only 60% of the area of the land on which it is being built. There are FSI specifications released by the relevant municipal body or development authority for all construction in its area. It is also known as Floor Area Ratio (FAR).
A fixed rate home loan is one where the interest rate on home loans charged by the lender is constant over the tenure of the loan. It is advisable to go in for a fixed rate only if you feel that the rate of interest prevailing in the market have touched rock bottom and the rates can only move upwards. Here are the latest offers on a 10 year fixed rate home loan and 20 year fixed rate home loan from the leading banks and housing finance companies in India.
A floating rate home loan is one where the home loan interest rate charged by the lender keeps changing with respect to the rates in the market over the tenure of the loan. Typically, the rate charged is on the basis of their cost of funds and the prevailing market rates. These rates change periodically. Accordingly the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the rates move upwards or downwards. Every home loan lender decides whether to change the rate of interest or change the tenure at the time of sanction. It is advisable to go in for the floating rate if you feel that the interest rates have reached its peak and can only go downwards. Here are the latest offers on a 10 year floating rate home loan and 20 year floating rate home loan from the leading banks and housing finance companies in India.
Yes, you can convert floating rate home loan into a fixed rate one with no extra charges. However, to convert a fixed rate product to a variable rate product, most banks will charge a small fee. The swap can be done any number of times and at any point of time.
The Fixed Rate of Interest ideally remains fixed over the tenure of the loan. This rate does not change after the final disbursement has been made. It is ideally suited for situations where you expect the rates of interest to go up in the future and this fluctuation in the rates does not affect you adversely. In cases where the disbursement is spread out over a period of time and the rates might have changed in the interim. The rate of interest would remain fixed at the final weighted average rate at which the loan was disbursed.
Nowadays, many lenders are reserving the option of changing the rate on a fixed rate home loan after 3 or 5 years. So please read the fine print before you sign up for a fixed rate home loan.
Most lenders do not refund the fees that you pay to them if you cancel the loan after taking the offer letter from them. However, there are few Govt. owned banks which do offer full or partial refund. Almost all the lenders refund the money in case the loan is not sanctioned.
In a monthly rest, the interest is calculated on the outstanding principal at the beginning of every month. Once the interest is calculated at the rate applicable to you for the month it is deducted from the EMI received during the month.
Annual rest works on the same principal only the interest is calculated on your outstanding principal at the beginning of every year. It is also commonly known as “Yearly Reducing Balance”.
Monthly reducing balance is a better option all other things being equal as you get immediate credit for repayment and the interest component keeps reducing almost immediately on a monthly basis.
Almost all lenders charge certain administrative or processing fees apart from interest for providing a home loan in India . You must compare all these charges as well before signing on to a home loan contract.
You will be eligible to claim both the interest and principal components of your repayment during the year.
If you took a home loan and are still living in a rented place, you will be entitled to:
Of course, you can claim tax benefits on the home loan only if your home is ready to live in during that financial year. Once the construction on your home is complete, the HRA benefit stops. If you took a home loan, got possession of the house, have rented it out and stay in a rented accommodation, you will be entitled to all the three benefits mentioned above. However, in this case, the rent you receive would be considered as your taxable income.
Yes, you can claim income tax exemption if you are a co applicant in a housing loan as long as you are also the owner or co owner of the property in question. If you are only person repaying the loan, you can claim the entire tax benefit for yourself (provided you are an owner or co-owner). You should enter into a simple agreement with the other borrowers stating that you will be repaying the entire loan. If you are paying part of the EMI, you will get tax benefits in the proportion to your share in the loan.
Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will be a total of Rs 100,000 across both the homes.
The interest paid on a home loan is not directly deductible from your salary income for either of your flat loans. Income from house property will be calculated for each flat you own. If either of theses calculations shows a loss, this loss can be set off against your income from other heads.
As for Section 24 deduction, on your self occupied house you can take advantage of interest payments up to Rs.1,50,000. For the other property, you can claim actual interest repaid, there is no limit for the same.
Fluctuating value of the property does not affect your EMI or your home loan liability. If you fail to repay your home loan you will be damaging your credit profile and any chances of getting a loan in the future. In such a case, where you want to dispose of the property because of loss in value – you will be much better off if you prepay your home loan and then sell the property.
Most lenders do not insist on a property insurance when disbursing a loan. However, it is strongly advised to buy an insurance as your home would be one of your most valuable assets. The home insurance rates are very affordable especially when bought for a long duration say 10 years. It would cost close to Rs. 50 per lakh of property value per year.
Yes, you can sell the property with the consent of the lender. This consent letter usually mentions the amount at which the home loan can be considered fully paid off. This amount is inclusive of prepayment charges as applicable and calculated at a future date to give you enough time to find a buyer. Based on this letter, you can negotiate with potential buyers.
If the buyer, wants to take a loan to purchase the property the process is much simpler if he approaches the same lender. Then the lender does not need to release the title papers to another lender before getting the payment.
If the buyer wants to make an outright payment- he can make the payment out to the bank directly based on the consent letter. And the balance amount is paid out to you. The property papers will be released only after the bank has recovered the entire amount including prepayment charges.
Yes, the change in amount can be done at any point before disbursement. Any increase in loan amount will however be subject to the eligibility conditions. The bank might also charge you excess fees on requesting an increase in the loan amount. The bank is not obliged to return excess fees paid in case you are requesting for a reduction in the loan amount.
Please be clear on why you wish to change your loan provider?
There is usually a pre-payment penalty for the loan, so please understand that you will lose some money when you transfer out of your present lender. Additionally, the new lender might also charge you a loan processing fee. So, you might end up paying two types of fees during this transfer. Ask both the lenders what the fee will be.
Make sure that you do the calculations of whether you will really save money with the transfer or not. The last thing you want to do is pay all these hidden charges. Also, practically speaking, you want to make sure that you are not going to add to your headache on the service levels.
r jayasree said :
|i have loan against property at one bank and at another bank i have home loan. so i have two properties. whether i can take over home loan from existing bank to the bank in which i have loan against property. also whether both could be merged into one loan? because i can save interest rate . please advise me|
Lin Poh said :
|Dear Investors/Financial Seekers. We are a Registered Private Investors/Loan Lender, Do you need FINANCIAL ASSISTANCE? Are you in financial mess OR debts? We offer loan at 3% interest rate within 1 year to 30 years repayment duration period to Individual and Companies that are in need of financial assistance and to any part of the world. We give out loans ranging from $5,000.00 to $500,000,000.00, CURRENCIES: USD, CAD, KWD, OMR, SGD, RUB, GBP, AUD, MYR, ZAR, IDR, UAH, PHP, EURO. Our loans are well insured for maximum security is our priority, Are you losing sleep at night worrying how to get a legit loan lender? Are you in poverty? Do you need financial assistance to set-up a business? We can assist you financially. Interested Individual OR Companies should contact us via: Email: email@example.com Regards, Lin Poh Loan Firm Team.|
Mrs Merimu Bujuham said :
|I am Mrs Merimu Bujuham,currently living in New jersey city,USA.I am a widow at the moment with three kids and i was stuck in a financial situation in may 2012 and i needed to refinance and pay my bills. I tried seeking loans from various loan firms both private and corporate but never with success,and most banks declined my credit. But as God would have it, I was introduced to a man of God a private loan lender who gave me a loan of $85,000.00USD and today am a business owner and my kids are doing well at the moment, if you must contact any firm with reference to securing a loan without collateral , no credit check, no co signer with just 3% interest rate and better repayment plans and schedule,please contact Mrs Katherine Bruce.He doesn’t know that am doing this but am so happy now and i decided to let people know more about him and also i want God to bless her more.You can contact him through his email: firstname.lastname@example.org|
Rachael Urbanek said :
|I am Richael Urbanek from New Jersey, if you need a loan then I advise you contact Henry Melvin Global Loan Firm cos I receive a loan from them three days ago without credit check and low interest rate of 4% without cosigner, If you need an urgent loan then contact then with this email email@example.com|
rahul said :
|can i get home after 6 month of service .|
Muthu said :
|I want to take a home Loan, in the mean time i have taken a personal which i want to close the personal loan immediately. But the bank is not accepting the preclosure of personal loan before 6 months of availing of loan. I am ready to close the loan but bank is not accepting. Whether this will affect the eligibility cretiria of my housing loan?|
Srinivasan said :
|Is it possible to sell a part of residential property bought on home loan? Does that part need to be constructed area? Thanks.|
Abhijit said :
|Loan of 20 lacs have been sanctioned by my bank. I have taken 2 disbursements of 5 lacs each. The next one is for 2 lacs. I currently have that much amount with me. Is it possible not to go for disbursemnt from bank and pay the money directly to builder?|
radha said :
|We have taken jointly House loan. This year, we have paid 3,23,000/- towards interest charges. Do we get exception 1.5 lakhs for individual or together 1.5 lakhs.|
kumar said :
|Sir, i have home loan with SBH bank. The propery is in my my father name and The loan is in my name and signed as a guarantor of that loan in the year 2010. So far i have paid all the EMI to the bank at the same time i'm paying income tax for my salary.i have not shown the loan payment Now can i avail the Income tax deduction for the loan payment.or is there any formalities available to excempt the tax that i'm paied so far. My father is not claiming any tax benifits.|
Praveen Kumar said :
|Sir, i have home loan with SBH bank with my father name and document is with my father name only and i signed as a guarantor of that loan in the year 2007. So far i have paid all the EMI to the bank at the same time i'm the one paying income tax for my salary.i have not shown the loan payment Now can i avail the Income tax deduction for the loan payment.or is there any formalities available to excempt the tax that i'm paying so far.|
Pandian said :
|Sir, i have home loan with SBI bank with my father name and document is with my father name only and i signed as a guarantor of that loan in the year 2007. So far i have paid all the EMI to the bank at the same time i'm paying income tax for my salary.i have not shown the loan payment Now can i avail the Income tax deduction for the loan payment.or is there any formalities available to excempt the tax that i'm paying so far.|
Khushal said :
|Dear Sir, I was purchased under construction flat in July 24th 2010 and the cost is 1695000.00 up to sept. 17th 2010 i was paid to builder 401000.00 as decided and after that i was demanded to builder for property paper to sanction the home loan but builder was not able to issued that papers and in April 2011 builder was demand for sale agreement and for that i was also paid 98000.00|
Amit Arora said :
|I had a home loan in which i am main applicant and my mother is co-applicant. Can i eligible for income tax rebate if registry of my house is made on my mother name. She is housewife (NO INCOME)|
rajesh said :
|my one of the client purchase residential house property with a co-applicant of his wife. can both are disclose the 50 percent Value of property in assets side of their balance sheet|
Rabindra Hembram said :
|I will take a loan from U K for house building.Please confirm me I will get the benit of Income tax ribate? The loan can I take ? or have any problem? please inform me.|
DS said :
|My father has one home loan in which I am a co-applicant(This loan was taken when I was single) However, I was not making any payments to the same and have not claimed any Income Tax benefits. Also, the EMI is being borne by my father(till date). Now, I am married and my husband and I intend to go for a house loan together (for a new house)as my income is crucial to qualify for this loan.Am i eligible for a joint loan for this house?|
swapna said :
|I want to take site loan.what will be interest rate for this?|