Planning to buy a home? Or, thinking of reconstructing the same? Well, a home loan can help you in a number of ways. You can apply for the same any time you want and this can be done even if the construction of the property has not commenced yet. The following FAQs on home loan are going to come to your great aid.Q1. What are the categories of home loans available in the market?
Following are the types of home loan given to the buyers-
At first, you are required to submit the application along with all the important documents. After the bank is done with the necessary review, they will let you know about the loan amount you are eligible for and articulate its decision to you. However, you are always advised to check around more than one bank and opt for the one that gives you the highest loan amount with lowest interest rate.Q3. What is EMI?
Equated Monthly Installment (EMI) is the fixed amount of money that is payable to the bank every month until the full amount is paid. However, comprised of both the interest as well as principal payment, the total sum of the EMI rests on the interest rate, the term of the loan and the quantum of loan.Q4. Is there any tax benefit on home loan?
Yes, there are certain tax benefits under the income tax act, 1961. Nevertheless, the benefits are subject to change each year and you should look into the current benefits available.Q5. What are the eligibility criterions required for a home loan?
The Monthly or Yearly Reducing Balance is considered as the yardstick on which the interest rate is calculated for a home loan. As you pay your EMI, the principal on which you pay your interest trims down every month. Nevertheless, in case of Yearly Reducing Balance, you have to continue to pay interest on the certain amount of principal which you have paid back to the bank earlier. So, opting for the Monthly reducing system is more effective, as the EMI for this scheme will be lesser than the Yearly Reducing System.Q7. Can you get a pre-approved home loan?
We, at Fourrwalls.com, have a tie-up with more than 20 banks and thus, make sure that you get a pre-approved home loan for your dream home. For availing the loan, the potential buyers can make an application for the same and once the banks are done with cross checking the necessary medians like the applicant’s age, credit history, the income etc, he/she will be permitted to get the advantage under certain terms and conditions.
Although getting a home loan is not what that takes a long gap of time, still some basic formalities are always needed, so that you don’t have to face any discrepancy in future. The evidences of your address, income, age and identity are some of the most important documents required for home loan.
|Documents||Salaried||Self Employed Professional||Self Employed Non Professional|
|Application form with photograph duly signed|
|Identity, residence and age proof|
|Last 6 months bank statements|
|Last 3 months Salary-slips|
|Processing fee cheque|
|Form 16 / Income Tax Returns|
|Proof of business existence|
|Education qualification certificate and proof of business existence|
|Last 3 years Income Tax Returns with computation of Income|
|Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account|