What is an EMI?
You repay the loan in the form of Equated Monthly Instalments (EMIs) which is made up of 2 parts- principal and interest. Loan repayment EMI begins from the month in which you take full disbursement.

What is pre-EMI interest?
Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement upto the date of commencement of EMI. Some Financial Institutions, on you request, could consider to start the EMI before the loan is fully disbursed.

What are the different interest rate options available?

1. Floating Rate of Interest- the Rate of Interest is reviewed periodically every six months based on the prevailing market conditions and RBI policies. The revised Floating Rate of Interest could increase, decrease or remain the same.
2. Fixed rate of Interest- The Rate of Interest ordinarily remains the same throughout the term of the loan.
3. 2 in 1 rate of interest- This Home Loan provides customers with a choice of breaking up the loan requirement into Floating and Fixed Rate loans.

Can I repay my loan ahead of schedule?
Yes, you can repay the loan ahead of schedule but some companies have prepayment charges.

How much does a Housing Finance company lend?
Loan amount is determined on the basis of the repayment capacity of the applicant/s. Repayment capacity takes into consideration factors such as age, income, dependents, assets, liabilities, stability of occupation and continuity of income, savings etc. The maximum loan varies from company to company. Most companies extend loans upto 85 % of the cost of property (including Stamp duty, Registration charges, and other govt. charges).

What is the period for which I can Get a Loan?
The maximum period of the loan is 20 years subject to age of retirement or completion of 70 years whichever is earlier.

What Is The Security For The Loan?
The security for the loan is the first mortgage of the property to be financed by way of deposit of the title deeds, subject to local laws. Guarantors are usually asked for.

What is the procedure to apply for a loan?
NEW FLAT:
Firstly the Purchasers has to enter into a Registered Agreement of Sale with the Builder and pay the requisite margin money. Then he has to approach the Financial Institution and collect the necessary details including application form from them. On application, copy of registered agreement, registration receipt, receipt of payments made and NOC from Builder have to be handed over to the Financial Institution.

In case of purchase of a new flat, loan will be disbursed in installments depending on stage wise progress of work.

Supporting Documents:
Requirements for Salaried Applicants:
Employer's salary certificate in requisite format/and latest salary slip.
Photo Identity
TDS certificates, ESIC/ PPF certificate

Requirements for Businessmen / Self-employed
3 years IT returns together with P/L account, etc duly certified by a Chartered Accountant

Does the applicant get a tax benefit on the loan?
Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. can get you a tax saving upto about Rs. 50,490 p.a. Moreover, you can get added tax benefits under Sec 80 C on repayment of principal amount upto Rs. 1,00,000 p.a. that can further reduce your tax liability by about Rs. 33,660 p.a.

Do financial Insitutions finance purchase of land?
Yes, some financial institutions finance purchase of land either for construction of your own house or just as an investment for the future.