Certainant

Loan Enquires

Who can apply for a housing loan ?

Bank offers Loans to Resident as well as Non Resident Indians.

You must be at least 21 years of age on sanction of the home loan
The loan must terminate before or at 65 years of age or age of retirement, whichever is earlier.
You must be salaried or self-employed with a regular source of income
Minimum age of co-applicant should be 18 years

What is EMI ?

EMI stands for Equated Monthly Instalments. This instalment comprises both principal and interest components. Use our EMI calculator to find out your monthly payments based on the loan amount, the rate of interest and the repayment period. Choose the combination that best meets your financial resources and requirements.

What is the repayment tenure ?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. There are a wide range of options for the tenure of the loan. You can take a home loan for up to 20 years provided you do not reach the age of 65 years or retire within that period.

If I have funds, is it still worthwhile to avail of a bank loan for buying a house ?

It is generally advantageous to take a Housing loan as it would enable you to get tax exemptions. However, please consult your CA/ income tax advisor to know benefits/disadvantages in your specific case.

When does the repayment start ?

EMI payments start from the month following the month in which the full disbursement has been made.

How long does it take to get my loan sanctioned ?

Your loan can get sanctioned in a matter of days provided you have all the documents in place.

How to enhance your eligibility ?

If your spouse is an earning member, you can make him/ her the co-applicant. Their income will be considered to enhance the eligibility. In case of co-owners, they must necessarily be co-applicants.

Do I 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.

How is the rate of interest calculated in India ?

Interest rates vary from time to time and from institution to institution. There are two schemes,

Fixed Rate Home Loans.
Adjustable Rate Home Loans.

The current trend is 10.25% pa. Under the Fixed Rate Home loans the rate applicable on the date of disbursement remains fixed during the entire duration of the loan. If you opt for an Adjustable Rate Home Loan, the interest rate would vary with the bank Home Floating Reference Rate.

What is a fixed-rate housing loan ?

A fixed-rate housing loan is a loan where the rate of interest is constant through the entire term of the loan period.

What is a Floating interest rate housing loan ?

A floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the bank retail prime lending rate and rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations. Floating interest rates offered are usually lower than the fixed interest rates.