Home Loan Guide

Home loan means a loan under an agreement to borrow money in order to buy a property and the property being mortgaged to the lender until all the money has been repaid by the borrower to the Lender.The Home Loan is repaid over an agreed time period, together with interest thereon. Once the Home Loan is fully repaid, the property is released by the Lender from the Mortgage.

Paying a fat portion of your salary towards the EMI payment is not the happiest feeling and for most of us it’ll be the one of the biggest investment decisions. Before you jump the gun and panic thinking that you must pay off your home loan as soon as you can or at least think about a refinance option for your home loan.

+ How much can one borrow loan from Private Bank / Natanalized Bank to buy a apartment?

Loans are generally disbursed up to a maximum of 85% of the cost of the apartment. In most cases, housing loan is sanctioned depending upon your repayment capacity and income. Your spouse's income can be included, if you want to increase the amount of your loan. The maximum loan that can be sanctioned varies with housing finance companies and ranges from Rs. 10 lakh to Rs. 1 crore

+ Who can apply for a housing loan?

Any one, including Non Resident Indians, with a steady source of income.Bank offers higher home loan amount on your income. You may further increase your home loan eligibility by adding the income of a co-applicant for your Home Loan.

+ What is a fixed rate housing loan?

The Reserve Bank of India has granted general permission to certain financial institutions providing housing finance. HDFC, LIC Housing Finance Ltd., etc., to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions.

+ Can NRIs and PIOs gift residential / commercial premises to relatives / registered chartiable trusts / organizations in India?

Yes. General permission has been granted by Reserve Bank to NRIs and PIOs to transfer by way of gift immovable property held by them in India to relatives and chartiable trusts/organisations subject to compliance of the condition the provisions of other applicable laws.

+ Can NRIs and PIOs give residential / commercial premises on rent if not required for immediate use?

Yes. Reserve Bank has granted general permissions for letting out any immovable property in India. The rental income or proceeds of any such income are eligible for repatriation subject to payment of taxes and production of a certificate issued by a chartered accountant with the guidance of an Authorised Dealer such as a bank for completion of formalities.

+ What are the factors lending institution takes into consideration before giving any amount towards an individual?

The profession that he/she is in and whether the same is considered as a negative profession; the location of the property and whether the same comes within the ambit of the organization to sanction the said loan. The personal profile of the individual also plays an important factor in sanctioning the loan .any legal proceedings being instituted in the court of law or if a person has been convicted or charged with moral turpitude such individuals will not be entertained.

+ What is the right time to apply for a home loan? Is it before or after selection of property?

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.

+ What is EMI and Pre-EMI?

Your loan is repaid through Equated Monthly Installments, which include principal and interest component. EMI repayment starts from the subsequent month of full loan disbursement, while Pre-EMI is the simple interest, payable every month till the time loan is fully disbursed.

+ Can I get additional loan through my existing loan account? If yes what is the eligibility to get additional loan?

Yes you can get additional loan through the existing loan account based upon your repayment capacity and title/value of the property. You may contact any of our branches or place a request on our website for any such requirement.

+ What are the repayment period options?

Repayment period options range generally from 5 to 20 years. DHFL offers loans from whose tenure ranges from 5 to 20 years.