Home Loan

You can start the process of applying for a Home Loan in any of the following ways:

• Compare offers from different banks
• Check your eligibility basis the income and current loans being serviced
• Apply online with multiple banks, to assess the best & competitive loan offers

Among the multiple factors that a Bank considers in determining Home Loan eligibility are:

• Income of all applicants.
• Age of the primary applicant.
• Number of dependents that the applicants have to support.
• Assets and liabilities of the applicants.
• Stability and continuity of the primary applicant's occupation.

Yes! You can avail of a Home Loan for any of the following:

• Purchase of a home.
• Construction of a home.
• Home repairs.
• Home improvements.
• Home extension

Offers of Fixed and Floating rates as explained below:

• Fixed Home Loan rates: The rate of interest applicable for the Home Loan is fixed throughout the term of repayment of Loan.
• Floating Home Loan rates: The rate of interest applicable for the Home Loan changes with change in the Bank's Base rate.

If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant on the loan. You may also consider adding your spouse or parents or children as co-applicants to boost the eligibility on your loan.

Once a bank receives a completed application form along with the necessary supporting documents two things happen:

• Determination of your eligibility for the Home Loan: For this it considers internal policy guidelines and also examines all the documents submitted by you. If you are deemed eligible, you will get an approval for a specific loan amount based on your requirement, repayment capability and the value of the property.

• Legal and Technical verification: Lawyers and property valuers empanelled by the Bank will verify your title documents and conduct a technical evaluation of the property. Once both these are complete, the Bank will process the disbursement of your Home Loan.

Yes, banks charge a non-refundable processing fee for every application. The processing charge to avail a Home is up to 1 - 2% of the loan amount plus service tax as applicable.

There may be. It’s always wise to completely read the “Charges Section” of the loan agreement before signing the same.

The EMI consists of the principal amount and the interest on the principal amount. It is calculated by taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum. The EMI may be subject to change when interest rate changes or a part-payment of the Loan is made.
Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

The EMI will be due on a fixed date each month. This date will be notified when your loan is disbursed.

Pre-EMI interest is the interest on the loan amount disbursed by the Bank. It is payable every month from the date of each disbursement until the commencement of the EMI payments.

In order to avoid burdening you with a higher EMI, the Bank will first attempt to increase the tenure of the loan subject to permissible limits. If, however, despite the increase in tenure, the EMI is not adequate to cover the interest payment, then the Bank will increase your EMI amount.

Each Home Loan applicant's EMI is decided upon his/her repayment capability. In order to enable reassessment of your EMI, you will need to submit the following documents:

• Last 3 months' salary slip.
• Last 6 months' bank statements reflecting your salary.
• Your photo identity and address proof.
• A letter requesting the change

In order to avoid burdening you with a higher EMI, when the rate increased, the Bank would have first attempted to increase the tenure of the loan subject to permissible limits. If, however, despite the increase in tenure, the EMI is not adequate to cover the interest payment, then the bank is entitled to increase your EMI amount.

To reduce your EMI, we recommend making a part prepayment on the loan.

Yes! Banks usually offer you the unique facility of switching from a higher rate of interest to a lower rate of interest. They may however charge you a one-time fee to do the same.

Yes, resident Indians are eligible for tax benefits on both the principal and the interest of a Home Loan under the Income Tax Act. Please consult your tax advisor for details.

You may place request for Statement of Account or Repayment Schedule or Interest Certificate in either of the following ways:

• By calling the bank’s Call Center at any of their toll free numbers:
• By using your registered email id the to write to the loans department of the respective bank
• Walk-in person to the branch to get the physical statements

Yes! The EMI consists of the principal amount and the interest on the principal amount. Since only a part of your loan has been disbursed, the interest component of your EMI will be proportionately lower to reflect this.

You may repay your Home loan in any of the following three ways:

• Standing Instruction (SI): This mode can be used if you have an existing savings, salary, or current account with the lender. You may wish to open a savings account with the lender to use this option. Your EMI amount will be debited automatically at the end of the monthly cycle from the account you specify.

• Electronic Clearing Service (ECS): This mode can be used if you have a different Bank account other than the lender’s and would like your EMIs to be debited automatically at the end of the monthly cycle from this account.

• Post-Dated Cheques (PDCs): You can submit post-dated EMI cheques from a different Bank account for a specific period of time. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques are usually collected for non-ECS locations only.

We recommend that you opt for either the SI or ECS mode of payment as they are both faster and less prone to error than the use of PDCs.

Yes, you can make a part-prepayment towards your Home Loan at your nearest Bank Loan Center.

Before banks process a foreclosure, all outstanding dues must be cleared. So we suggest you to first check for and clear any remaining amount that may be payable towards your Home Loan by requesting a foreclosure statement from your Bank Loan Center. Once all outstanding dues have been cleared, submit a foreclosure request at the Loan Center, and they will begin processing your request.