DEFINITION of 'Home Mortgage' A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that the title will be transferred back to the owner once the payment has been made and other terms of the mortgage have been met.

1. What is the process of applying for a Home Loan/Mortgage Loan?

  • 1. Submit your loan application along with required set of documents.
  • 2. Your application would be accessed on the basis of various eligibility and funding norms.
  • 3. 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.
  • 4. 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.
  • 5. Based on the internal and regulatory guidelines, BANK/NBFC may approve or reject the loan application.
  • 6. Submission of the original property documents are required along with signing of agreements, handing over of registered property papers and submission of post-dated cheque /ECS.
  • 7.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.

2. What is a CIBIL Score?

To minimize defaults and maximize 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.

3. 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 dependents, 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.

4.What percentage of property value can be funded for Home Loan/Mortgage Loan?

We can fund up to 80% of the property value in case of Home Loan and up to 65% in case of Loan Against Property. However, BANK/NBFC funding norms may change from time to time.

5. 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

6. 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

7. What are the documents required for applying for a Loan ?

Note: Income Documents should be self attested by Applicant's

  1. Salaried
  2. Self employed professional
  3. Balance Transfer
  4. Propety details

Application form

Photograph of Applicant & Co-applicant (Self attested)

Age proof (Applicant & Co-applicant)

Address Proof (Applicant & Co-applicant)

Signature Proof (Applicant & Co-applicant)

3 Months pay Slip

1 years Salaried Account Bank Statement

Latest 2 years Form 16

Appointment letter & Reliving letter (If applicable)

Processing fee cheque(Ac. Payee Cheque in Fever of BANK/ NBFC)

Self employed professional

Photograph of Applicant & Co-applicant (Self attested)

Age proof (Applicant & Co-applicant)

Address Proof (Applicant & Co-applicant)

Signature Proof (Applicant & Co-applicant)

Business Proof

Qualification Certificate

Latest 3 years Income tax returns with all the financials including Auditors report

1 year Business Account Statement

1 year saving Bank Account Statement

Last 12 Months Repayment Track Record of all loans (which reflects in Balance Sheet & Bank Statement)

Closure letter (if loan are closed, which reflects in Balance Sheet & Bank Statement)

Processing fee(Ac. Payee Cheque in Fever of BANK/ NBFC)

Balance Transfer

Sanction letter

List of Document

Out standing letter

Repayment Track record (last 12 Months)

Propety details

Sale Agreement

Construction Agreement (Is Applicable if the property is under Construction)

Sale Deed (Vendor's)

15 years Title Deed Records

Latest Tax Paid Receipt

Khatha (Vendor's)

E.C From 1990 to Till date

Building Plan

Estimate (Is Applicable only in Self Construction Cases)

Self Employed

  1. Proprietor
  2. Partnership Firm
  3. Private Limited Company

Proprietor

Application form

Photograph of Applicant & Co-applicant (Self attested)

Age proof (Applicant & Co-applicant)

Address Proof (Applicant & Co-applicant)

Signature Proof (Applicant & Co-applicant)

Business Proof

Latest 2 years Income tax returns with all the financials including Auditors report

1 year Business Account Statement

1 year Saving Bank Account Statement

Last 12 Months Repayment Track Record of all loans (which reflects in Balance Sheet & Bank Statement)

Closure letter (if loan are closed, which reflects in Balance Sheet & Bank Statement)

Advance Income Tax paid Receipt

Processing fee(Ac. Payee Cheque in Fever of BANK/ NBFC)

Partnership Firm

Application form

Photograph of Applicant & Co-applicant (Self attested)

Age proof (Applicant & Co-applicant)

Address Proof (Applicant & Co-applicant)

Signature Proof (Applicant & Co-applicant)

Business Proof

Partnership Deed

Latest 3 year's Income tax returns with all the financials including Auditors report (Partnership firms)

1 year Business Account Statement (Partnership firms)

Last 12 Months Repayment Track Record of all loans (which reflects in Balance Sheet & Bank Statement)

Closure letter (if loan are closed, which reflects in Balance Sheet & Bank Statement)

Advance Income Tax paid Receipt

Individual Income Tax Returns of (All Partners)

1 year Saving Bank Statement Account of (All Partners)

Processing fee (Ac. Payee Cheque in Fever of BANK/ NBFC)

Private Limited Company

Application form

Photograph of Applicant & Co-applicant (Self attested)

Age proof (Applicant & Co-applicant)

Address Proof (Applicant & Co-applicant)

Signature Proof (Applicant & Co-applicant)

Business Proof

MOA OR AOA

Latest 3 year's Income tax returns with all the financials including Auditors report (Company's)

1 year Business Account Statement (Company's)

Last 12 Months Repayment Track Record of all loans (which reflects in Balance Sheet & Bank Statement)

Closure letter (if loan are closed, which reflects in Balance Sheet & Bank Statement)

Advance Income Tax paid Receipt

List of Director & Share holder Pattern with CA attestation

3 years Income tax returns of Individual (Director's)

Salary Certificate or 3 Months Salary Slip of All the Directors

6 Months Director Salaried Account Bank Statement

Processing fee.(Ac. Payee Cheque in Fever of BANK/ NBFC)

9. 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.

10. 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

11. 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.

13. 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

14. 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.

15. 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.

16. 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.

17. What does 10 years fixed rate of interest mean ?

BANK/NBFCoffers 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.

18. 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.

19. 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.

20. 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.