All about Home loan

  1. Home loan eligibility:

Most of the famous banks give 60 months of your monthly income as home loan. For eg if you are earning Rs 60,000/- as salary per month, then you are eligible for Rs 36,00,000/- as home loan. However if you have any other loans and still  you are paying EMI, then outstanding amount payable will be deducted from home loan eligibility.

home-loan

 

 

Though you have loan eligibility expenditure depends upon margin money / down payment paid by you (contribution from you on total home value). Margin/ down payment money will be 25% of home loan. In the above example to avail Rs 36, 00,000/- loan margin money to be paid is Rs 9,00,000/-. If you cannot give Rs 9,00,000/- loan payout will be reduced proportionately.

 

 

  1. Home loan from public sector bank Vs private bank:

It is always good to have a loan  from Public sector because it is not only cheaper home finance but also gives legality on the documents of home. However public sector banks does not give loan for projects which has slight variation or the borrower does not have perfect track record on loan repayment. In those conditions it is better to go to private banks who are ready to take risk.

  1. Checklists before applying for Home loan:
  •  Check your Credit Score and Credit Report (Don’t apply for loans with many banks which will affect your score
  • Regularly pay your existing loan EMIs
  • Fix your borrowing amount and tenure of loan
  • Have all KYC documents

Anjali Radhakrishna

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