Do You Know You Can Make Your Home Loan Free? How? Ask Us…
Q Who can apply for a Home Loan?
Ans. Any person either self-employed or salaried with a regular source of income can apply for a home loan. Good Credit/CIBIL score is also mandatory.
Q What is the Minimum & Maximum age to avail a Home Loan?
Ans. Minimum age norm may be different from company to company. The maximum age for applying for a home loan for Self-employed is 65 years & for Salaried is 60 years.
Q Who can be a co-applicant in a Home Loan?
Ans. In general, an immediate family member can be a co-applicant. Co-applicant can be salaried or a self-employed. Most preferred combinations are… Husband & Wife, Father & Son, Mother & Son. It’s to be noted that all co-owner must be co-applicant in a home loan but a co-applicant not necessarily be a co-owner.
Q What is a maximum repayment period for a home loan?
Ans. It may differ from company to company but in general, for adjustable rate home loan, it’s 30 Years.
Q What are the eligibility criteria applying for a home loan?
Ans. Generally, it depends upon the repayment capacity of the individuals. Following are the important factors for the eligibility:
- PAN Card
- Aadhar Card
- Last 1 Year Complete Bank Statement
- Job continuity proof for salaried & Business track record for self-employed
- Resident status
- Credit/CIBIL Score
- Past repayments history
- Outstanding loan amount, if any
Q What documents are required for applying for a Home Loan?
Ans. Following documents are required for availing a home loan:
- Complete application form
- Colored photographs of all applicants
- Identity Proof – PAN/Aadhar/Voter ID
- Address Proof – Telephone Bill/Electricity Bill/Bank Statement/Letter from the employer in case of salaried
- In case of salaried bank statement of last 1 year in which salary is credit. Current account statement of last 1 year in which daily transactions happens
- Income Proof – For salaried, last 03 months salary slip, Form No. 16 or Last 2 years ITR. For self employed, Last 02 years ITR with computation & GST certificate.
- Site plan from the allotted authority
- Approved plan of the property in case of construction/extension
- Allotment letter from the development authority/Society/Builder
Q Is there any tax benefit on taking a home loan?
Ans. An individual gets tax benefit on both principal as well as an interest amount which he pays in a financial year. Following are the limits:
- Repayment of the principal amount – Under income tax section 80C maximum deduction for Rs. 1,50,000/- on principal amount repayment.
- Repayment of the interest paid on home loan – Under income tax section 24 maximum deduction limit is Rs. 2,00,000/-
Q What factors to be considered while taking a home loan?
Ans. Following factors need to be considered:
- Purpose of the loan
- Your house is ready for possession or not
- Loan eligibility amount
- Processing Fees
- Interest rate & EMI amount
- Applicable pre closure fees and pre payment fees
Q What is an EMI?
Ans. An EMI is the Equated Monthly Instalment which is a monthly payment that an individual pay towards his/her home loan on a specified date until the loan in fully paid. It’s calculated in a manner that, in the initial years of the loan interest amount is much larger than the principal component whereas in later years of the loan duration principal component is larger than the interest.
Q What is Pre EMI Interest/Charge?
Ans. When an individual avail of a part of his/her home loan, he or she will be charged simple interest on the amount that has been paid out till the entire sanctioned home loan amount is disbursed. This payment of simple interest on part payment is called Pre EMI interest.