"Home is where you hang your hat". There is nothing much needed to say about the significance of a home for anyone after this phrase. Another very famous phrase in western countries says, "Your home is your reflection". Being a home owner is and always a dream for most of us but not everyone achieves it.
Over the time, more and more financial companies came into existence. They are offering services to help people achieve their dreams. Now every Indian can afford to buy a home through a home loan. So, Banknomics is here to enhance your reflection and let you proudly reside in it. Banknomics will share your load in buying a house that will be your dream home.
Purchasing a home or availing for a housing loan requires a cluster of planning. We are here to help you at your every step from applying for a loan, documentation till approval. Banknomics will share your load in buying a house that will be your dream home.
Features & Benefits
A person can avail maximum 90% of the cost of house or land or both which can be extended to 30 years. This may differ depending upon the amount of the loan. Any person availing for a loan gets following benefits:
List of documents required for home loan for all the Applicants are:
Additional documents needed for Self-employed professionals/ non-professionals:
Additional documents needed for salaried person
Home Loan Amortization Schedule
Home Loan Amortization Schedule is a table which gives you the following details:
Equated Monthly Installments (EMI)
Equated Monthly Installments (EMI) are monthly installments that borrower has to make after taking a loan as per amortization schedule.
Principle and Interest Rate Payment
EMI repays a part of interest and a part of borrowed amount. However, this proportion of interest and principle amount varies from time to time.
Amortization schedule and criterion of interest rate, loan amount tenure etc will be typically same for all. It is because all Banks and Financial Institutes calculate EMI with a common formula.
Initial EMI's will contribute more towards interest rather than principle amount. In later EMI's principle amount will contribute more as compared to interest.
Calculate your EMI on Home Loan EMI Calculator here.
Adjustable Interest Rate
Some Banks and Financial Institutes associate their rates to Adjustable Interest Rates. If they revise their benchmark rates, an effect on the loans will be from the following month. This will result in the change of proportion in principle and interest rate amount in your EMI.
With an increase in interest rate, the proportion of interest amount will get a hike, which will result in an extension of EMI and vice versa.
Reduction in Tax Obligation
As per Income Tax Law, interest paid on home loans can be deducted up to Rs. 2,00,000 per year under sec 24(c). Principle amount up to 1,50,000 is also allowed for deduction under sec 80C.
Home Loan Eligibility
A person can afford to pay back his loan or not is measured through Home Loan Eligibility. For calculating Housing Loan Eligibility, various factors are to be taken into consideration. It includes monthly income and obligation, current age, retirement age etc. Co-applicant's income can be included to enhance Home Loan Eligibility.
Factors Affecting Home Loan Eligibility
Following are the factors that will affect your eligibility:
Ways to Boost Your Eligibility
Top-up loans are loans you can avail on top up of your home loans. Usual tenure of the loan is 10 years and is provided only after few years of home loan repayments.
Refinance is an option for a person who has purchased a property with his own funds within last 12 months. He/she can now avail a loan for it up to the registered value of the property.
Home Loan Balance Transfer
Transferring balance payment of the housing loan to another bank is Home Loan Balance Transfer. This is done because of poor service by the bank, high Home Loan Interest Rate etc.
Part Prepayment Facility
This facility can be used if you want to pay back your loans faster. However, for prepayment minimum amount is 3 months EMI and there is no limit on maximum payment.
Nil Foreclosure Facility
A borrower can pay his entire remaining amount before completion of the term. But not all banks allow its borrowers to repay their loan before completion of its tenure without any additional charges.
To ease your repayment, some banks and financial institutes give you a grace period of 3 EMIs. This facility is provided so that you can manage your monthly expenses easily.
You can easily access loan information like payment track, interest certificate, payment schedule etc. through this facility. All the loan providers now provide this facility.