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Home Loan

Check Your Own Installments

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Exam-Eligibility.jp

Eligibility criteria

● Age- You need to be at least 21 years old when your loan starts and up to 65 years old or younger when the loan reaches maturity.Salaried person- 21 to 58 yearsSelf-employed person- 25 to 65 Years
● Income- For a salaried individual, a minimum monthly income of Rs. 10,000 is required. For self-employed individuals, a minimum annual income of Rs. 5,00,000 is necessary.
● Employment- For a salaried individual, a minimum of 2 to 3 years of experience in an MNC, private company, or public limited company is required. For self-employed individuals, a minimum of 3 years of experience in the current field is necessary
● Credit score- A credit score of 650-749 is considered a good
score for approval.

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Document required for the Home Loan

Salaried Individuals

● Provide a recent passport-sized photo.
● Submit a copy of your PAN card for identity verification.
● Include a digital copy of your Aadhar card.
● Furnish your most recent salary slips covering the last three months.
● Provide your Form 16 as a declaration of your income and taxes.
●Include your company ID card, offer letter, or visiting card to confirm your employment status.
●Present proof of your current residence through utility bills, maintenance bills, rent agreement, and a light bill with the owner's name.
● Provide comprehensive bank statements for the past six months, highlighting the credited salary amounts.

It's important to note that specific requirements can vary between financial institutions, and applicants should check with the lender for the most accurate and up-to-date information. Providing complete and accurate documentation is crucial for a smooth application process.

Features and benefits of your home loan

● Competitive interest rates.
● Flexible repayment options.
● Quick processing and disbursals
● Tax benefits on principal and interest repayments

How it works

● Application: Submit your application online or at the nearest branch.
● Verification: The documents are verified.
● Approval: Loan approval is provided.
● Disbursal: Funds are disbursed after property valuation.

Terms and conditions of the loan

  • The loan amount is determined based on a specified Loan-to-Value ratio.

  • LTV ratio may vary depending on the market value of the property.

  • Fixed vs. Floating Interest Rate:

    • Borrowers may choose between a fixed or floating interest rate.

    • The choice made at the inception of the loan may have implications on interest payments.

  • Escrow Account for Taxes and Insurance:

    • The borrower may be required to maintain an escrow account for property taxes and insurance premiums.

    • The bank manages disbursements from the escrow account on behalf of the borrower.

  • Homeowner's Association (HOA) Compliance:

    • If the property is part of a homeowners association, compliance with their rules and fees may be mandatory.

    • Non-compliance could impact the loan terms.

  • Home Inspection and Appraisal:

    • The bank may require a professional home inspection and appraisal as part of the loan approval process.

    • The cost of these assessments may be borne by the borrower.

  • Loan Assumption:

    • The loan may be assumable, allowing a qualified third party to take over the loan under certain conditions.

    • Approval from the bank is typically required for a loan assumption.

  • Construction Loan Conversion:

    • For construction loans, there may be an option to convert to a permanent mortgage upon completion of the construction.

    • Specific terms and conditions for the conversion will be outlined in the agreement.

  • Joint Ownership Restrictions:

    • Restrictions or conditions may apply if the property is owned jointly.

    • Joint owners may need to provide additional documentation and approval for the loan.

  • Force Majeure Clause:

    • The agreement may include a force majeure clause, specifying how unexpected events (e.g., natural disasters) affecting the property will be handled.

  • Renovation Restrictions:

    • Restrictions on major renovations or alterations to the property without prior approval from the bank.

    • Approval may be subject to compliance with local building codes.

  • Loan Recasting Option:

    • Some home loans may offer a loan recasting option, allowing borrowers to reduce their monthly payments by making a lump-sum payment towards the principal.

    • Conditions for recasting, including minimum payment amounts, will be detailed in the agreement.

Late Payment Penalties

  • Late payment penalties and interest rates for delayed payments will be clearly outlined.

  • Timely payment is crucial to maintaining favourable loan terms.

It's essential for borrowers to thoroughly review and understand all terms and conditions associated with a home loan, seeking clarification from the lender if needed. This ensures informed decision-making and compliance throughout the loan duration.

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