Banks offer loans to buy new land, build a house on it, buy a new house, buy a new apartment, buy an old house or apartment, and upgrade an existing house. Eligibility for credit ranges from the age of eighteen to the age of fifty. Some banks offer doctors, engineers, accountants or legal professionals up to the age of sixty. Banks check whether the EMI will be completed by the time the borrower retires if he is employed.
Banks will lend but not fully lend. Banks lend from 80 per cent to 85 per cent. The balance is our responsibility. The rest will be lent. It will be divided into three or four times when the construction is completed. Eighty percent of the value of the home or approximate value of the loan will be available, but the loan amount will be determined according to one’s income.
It is said that if you want to buy a house at the age of 25 – 30 you will get seventy times our salary, if you are under 45 you will get fifty to sixty times our salary and if you are over 45 and self-employed you will get four or five times our annual income. Banks will consider whether we are eligible to repay the bank loan. To go to other EMIs and home loans we can only afford housing expenses today if we have thirty-five percent of the salary. With this in mind, the bank will come forward to determine its loan amount.
Additional credit:
You can also get an additional loan from the ‘Top Up Loan’ facility at the bank to do interior decoration or home appliances after the house is completed. Accordingly fifteen per cent will be available from the loan amount. But only available after three years. The bank will take 1 per cent of the loan amount as process fee. Bank to bank will vary. Many banks also have the facility to take loans from other banks. That means we can transfer our loan to another bank subject to legal schemes once we have paid off half the loan.
Required Documents:
Generally when we apply to the banks it is better to consider all our documents and keep them ready.
Completed application form
Photo of the applicant
With photo
• ID
Address Certificate
• Age Certificate (Tenth or Twelfth Class Mark List)
• Land Deed (Sir Registrar
• Office Registered)
• Mother bond
Animal Certificate
Copy of deed of sale
Opinion of a legal expert
• Map of the house,
Copy of authorization
Engineer’s report on house valuation and construction cost
Income Certificate
Copy of Bank Passbook for the last six months
Copy of Income Tax Return Form
Copy of PAN card
Interest rate:
Is ‘Fixed Interest Rate’ Better? Or is the ‘Floating Interest Rate’ that changes over time better ..? The confusion of being will be for many. It should be noted that although a person borrows at a fixed interest rate, there may be changes in the fixed interest rate after a certain period of time. Also, at ‘floating’ interest rates, there may be a small return on interest rates. So it is a good idea to read the terms and conditions for home loans carefully and to clear up any doubts.
Down Payment:
‘Down Payment’ is the payment of a certain amount on a home loan. Depending on the bank, a home loan of Rs 10 lakh may have a down payment of Rs 1 lakh or Rs 2 lakh. It is essential to have this amount on hand at the time of getting the loan. Also, if the bank values a person’s property less than the market value, the borrower must pay the remaining amount. So it is better to self-assess the property in advance and keep the proposed amount on hand.
Unrestricted Proof and Bonds:
It is necessary to provide proof of non-refoulement in the forms requested by the bank. Failure to pay them in the right forms and at the right time can lead to delays in getting a home loan. Therefore, it is necessary for the banks to inquire into all the required documents and prepare and hand them over.
Priority:
Generally, with a CIBIL score of 300 to 900, banks prefer to lend to those with a score above 750. That is, based on the background of the loans the borrower has received over the past 6 months. High scorers are referred to as low ‘Risk’ and low scorers are referred to as high ‘Risk’.
Benefits of Income Tax on Home Loan:
Income tax concessions in the federal budget on interest payments on home loans up to Rs. Came up with a plan to raise Rs 1.5 lakh. As a result, borrowers now have to pay Rs. Up to Rs 3.5 lakh can be obtained.
This exemption is available under Section 80EEA, which pays up to Rs. Provides income tax benefits up to Rs 1.5 lakh.
• Home loan tax concessions under Section 24 (b) of the existing Rs. More than 2 lakh exemptions and more are available.
Home loan tax deductions stamped value Rs. It can only be asked to buy houses up to Rs 45 lakh.
Income tax benefits under Section 80EEA are available to home loan borrowers under the PMAY CLSS scheme.
