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AHome Loan/Mortgage Loan

  • What is the process of applying for a Home Loan/Mortgage Loan ?
    • Submit your loan application along with required set of documents.
    • Your application would be accessed on the basis of various eligibility and funding norms.
    • The bank also checks your credit history through the CIBIL score, which is crucial in getting an approval for your loan application. After the credit appraisal, the bank decides the loan amount you are eligible for. You then receive an offer letter, which highlights details such as rate of interest, duration of your loan, etc. If the terms and conditions are acceptable, you send an acceptance copy to the bank.
    • A property valuation and title check may be carried out by the company representative to determine the property value and legal clearance of the property to arrive at the loan amount.
    • Based on the internal and regulatory guidelines, BANK/NBFC may approve or reject the loan application.
    • Submission of the original property documents are required along with signing of agreements, handing over of registered property papers and submission of post-dated cheques/ECS.
    • Upon finding all the documents in order, BANK/NBFC will disburse the loan amount to the developer/contractor based on the progress of construction. The EMI/Pre-EMI will commence after the disbursement.
  • What is a CIBIL Score?
    To minimise defaults and maximise credit penetration, the Credit Information Bureau (India) Limited (CIBIL) in association with Dun & Bradstreet and Trans Union, gives India’s first generic score. This CIBIL score is a trusted indicator for prudent decision-making by lending institutions. With this score, the lender can effectively predict your credit-taking ability and payment track record. A low CIBIL score implies that the bank rejects your application upfront on the basis of earlier credit defaults; a high credit score eases your loan approval.
  • Am I eligible for a Home Loan/Mortgage Loan?
    You are eligible for a loan if you are a salaried, self- employed professional or a businessman. Your loan eligibility will be determined by BANK/NBFC on the basis of factors such as income, age, qualifications, number of dependants, co-applicant’s income, assets, liabilities, stability and continuity of occupation and savings history. Further, the loan eligibility will also be dependent on the value of property selected by you.
  • What percentage of property value can be funded for Home Loan/Mortgage Loan?
    We can fund upto 80% of the property value in case of Home Loan and upto 65% in case of Loan Against Property. However, BANK/NBFC funding norms may change from time to time.
  • I purchased a property 3 months back; can I get a Home Loan/Mortgage Loan ?
    Yes, you can avail re-finance at applicable Home Loan rate within 6 months from the date of property purchase.
  • What is EMI and Pre-EMI ?
    Your loan is repaid through Equated Monthly Instalments, 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.
  • How does floating rate change during the loan tenure ?
    Floating rate is linked with our reference rate BANK/NBFC and may change from time to time as per the market conditions.
  • In case of change of floating rate of interest, will my EMI change or tenure ?
    Keeping the borrower’s interest in consideration, EMI is kept unchanged till a point. In exceptional situations, the EMI is changed to support the principal repayment within a time frame
  • What security do I need to provide ?
    The prime security for the loan is by way of deposit of title deeds and/or such other collateral security as may be necessary. The title of the property should be clear, marketable and free from any encumbrances.
  • Can I prepay my Home Loan ? Are there any charges applicable ?
    Yes, you can prepay your Home Loan any time during the loan tenure. Currently it is free from any charges; however prepayment norms may change from time to time.
  • Can I get additional loan through my existing loan account ?
    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.
  • How do I get my loan statement and income tax certificate ?
    You need to contact your nearest BANK/NBFC branch to get the required documents; we also send income tax statement to all our customers at the end of every financial year.
  • How do I replenish exhausted PDCs ?
    Kindly submit the Post Dated Cheques to your nearest BANK/NBFC branch before the EMI due date to avoid any late payment charges.
  • Does the property need to be insured ?
    Property insurance is mandatory in order to protect your property against uncertainties like earthquake, fire or any damage and destruction due to natural and man-made calamities, during the tenure of the loan.
  • What does 10 years fixed rate of interest mean ?
    BANK/NBFC offers a pure fixed rate of interest from the day of first disbursement for the period of 10 years (120 months); thereafter residual loan amount automatically moves to a floating rate of interest which prevails at that time.
  • Can I convert my existing loan from “ Fixed rate of interest “ to Floating rate of interest to or vice versa?
    You will have an option to convert an existing loan under Fixed Rate of Interest scheme to Floating Rate of Interest scheme or vice versa by paying applicable switch fee, please refer to the schedule of charges under “fair practice code” section.
  • Can I prepay my Home Loan ? Are there any charges applicable ?
    Yes, you can prepay your Home Loan without any charges any time during the loan tenure if the same is under floating rate scheme. For home loan under other schemes, prepayment charges may be applicable, please refer to the schedule of charges under “fair practice code” section.
  • What are hybrid home loans ?
    Hybrid loans offer a low fixed rate for an initial period, after which, the interest rate is reset to a floating rate.

Documents required

  • Proof of Identity ( Pan Card /Passport Copy/ Voters ID card/ Driving License )
  • Address Proof (Ration card /Driving License/ Voter Id Card/ Utility Bill (Latest) / Registered Rental Agreement. / Credit Card Statement / Passport copy )
  • One Pass Port size Photo
  • Bank Statements ( Latest 3- 6 Months Bank Statement )
  • Latest 3 month`s salary slip along with latest Form 16 / ITR
  • Appointment Letter ( For Joining Date Confirmation )