Frequently asked questions about Home Loans
Know what questions the users frequently asks about Home loans and calculators
It is the most common type of home loan. All banks and housing finance companies offer loan for residential properties at different rates coupled with discounts and rebates. It can be availed for both resale properties and builder allocated units.
Banks offer such type of loan to buyers intending to purchase land parcels for constructing their residential units. About 70 percent of the total cost of the land can be availed.
Most common type of home loan availed by a major share of semi-urban population to build a home meeting their requirements on a land parcel you already own. All housing finance companies and banks provide home construction loan.
You can also avail loan for any sort of extension or improvement in your house, be it a new room or a new floor. The housing finance companies and banks offer loan for home improvement/renovation purposes such as painting, plumbing, electrical system, interior designing and waterproofing.
Such home loan is taken by people who have bought a house on a home loan but would now intend to buy and move to new house. With these loans, applicants can fund the purchase of the new house by shifting the running loan to the new unit.
It can be availed when an applicant wishes to transfer home loan from one bank to another. It is usually adopted to repay the remaining amount at lower interest rates.
It is designed for NRIs who wish to construct or buy a home in India.
Taking home loan on a fixed interest rate implies that your EMI will not be impacted during the loan tenure irrespective of any market conditions. The interest rate will be pre-determined and remain unchanged. On the flip side, home loan EMIs vary periodically over the loan tenure, if taken on floating interest rate.
There are some hidden charges applicable while opting for a home loan.
- Conversion Fees
- MODT Charges (Memorandum of Deposit of Title Deed)
- Document Retrieval Charges
- Administrative Charge
- Legal Fees
- Valuation Fees / Inspection Fees
- Documentation Charges
- Switching Loan Package
- Changing Loan Tenure
- Statement of Account
Calculating the monthly interest levied on your home loan is easy. Follow these steps -
- Divide interest rate by the number of payments. If you are making monthly payments, divide by 12.
- Multiply it by the loan amount. Doing this will give you the amount of interest.
The process of getting a home loan is simple. But you need to be aware of all documents required before applying for the loan.
- Fill loan application form with all required documents
- Pay processing fee
- Discussion with the bank
- Valuation of the submitted documents
- Loan approval process
- Processing of the offer letter
- Legal check
- Final loan deal, signing the agreement, and disbursal
