Home Loan Process

Once you decide to invest in a home, you can apply for a Home Loan. Yes, even
before you have selected the property.
Eazeeloans.com helps you to get the best rates in Mumbai.

Various stages in a Home loan process is basically divided in three stages:

1 Pre-Approval
2 Legal and Valuation
3 Disbursal

Pre-Approval
This is basically an individual credit approval based on the financials and Personal Identification documents like Photographs,Photo Identity,Signature Proof,Date of Birth
Proof,etc.

Legal and Valuation
In This process the property documents are examined by the banks valuer who checks
the legality of the documents and evaluates the market value of the property.

Disbursal
This is the final stage wherin the customer gets the disbursement after submitting all
the original documents as per the valuation report and signing of the agreement between
the bank and the applicants of the loan.

Refinancing is also possible within 6 months from the date of purchase of property .

How is Eligibility Caculated?

Various factors are taken into account when assessing the repayment capacity. Income,
age, number of dependants,qualifications, assets and liabilities, stability/ continuity
of employment / business and subject to maximum provided by the bank,to name some factors.

How can eligibility be increased ?

Your spouse can be a co-applicant if he/she is earning. The incomes can be clubbed
to enhance your loan amount.
You can also include Parents/Children as Co-Applicants for higher eligibility.
Additional securities like bonds, fixed deposits and LIC policies may also help to enhance
eligibility .

Who can apply for a Home Loan ?

Salaried Individuals
Self employed Professionals/Business men
NRIs

Requirements.

Min Age should be 21 years when the loan is sanctioned .
The loan tenor is from 5 years - 25 years subject to a maximum till 58/60 years or
retirement ,whichever is earlier in case of salaried and for selfemployed before 65 years.
The final amount to be sanctioned will depend on the repayment capacity and the
maximum provided by the lending bank.
CO-Applicant can be taken for overcoming the age barrier as well.

What are the Features of Home loan ?

* Attractive interest rates.
* Door-step service from enquiry till loan disbursal.
* Balance transfers from other banks possible.
* Maximum loan 80/90% of the cost of the property (including the cost of the land)
and based on the repayment
alignment of the customer.
* Floating and Fixed Home Loan Interest available.

Various rates offered in Mumbai

Floating Rate
Fixed Rate

* Floating Rate Home Loan

Loan under Floating/Adjustable Rate is linked to Retail Prime Lending Rate rates of banks.
The Rate of interest will be revised every time there is a change in Retail prime lending rate .
Generally the EMI is retained and the tenor of the loan is increased /decreased as applicable.

* Fixed Rate

currently some banks are offering fixed rates only for 3-5 years.

Repayment

Repayment is normally done through Equated Monthly Instalments (EMIs) comprising both
principal and interest.Normally post dated cheques (PDC) are taken in advance ranging
from 12 months onwards

Documents Required.

The following documents needs to be submitted for Pre-Approval

* Application form with photograph.
* Identity and Residence Proof.
* Latest 6 months Salary-slips-for salaried.
* 3 years I T Returns-for self employed.
* Education/Qualification Certificate.
* Proof of business existence- min 3 years..
* Form 16/ Last 3 years Income Tax returns.
* Business profile .
* Last 6 months bank statements.
* Processing fee cheque for valuation payable to the bank.

Fees
Currently ranges from 0.5%- 1% of the loan amount applied plus applicable
service taxes and cess

Part Payment/Prepayment.

Part /Prepayment of loan is possible.Charges vary from bank to bank.

For what purpose can I avail a home loan?

You can take a loan for constructing a house, purchasing of a ready possession house / flat
or a flat in resale, takeover of existing loans from approved banks / housing
finance companies, the purchase of a plot of land, for renovation of and
extension of the house.

Who can avail of the loan?

Salaried individuals, Self employed professionals or businessmen and individual NRI's.

Who can be a co-applicant for the loan?

All co-owners need to be co -applicants.
Spouse/parents/children can be co-applicants and his / her income can be clubbed to
to enhance The loan amount.

What security is to be provided?

Security for the loan is a first mortgage of the property to be financed,
by way of deposit of title deeds / or such collateral security as may be necessary.
The title to the property needs to be clear, marketable and free from encumbrance.
There should not be any existing mortgage, loan or litigation, which is likely to
affect the title to the property adversely.

Can loan be repaid ahead of schedule?

Yes, the loan can be paid ahead of schedule, however if the loan is prepayed or
transferred to another bank or HFC, a nominal fee @ 2% of principal outstanding
is charged

Are the Bank policies subject to change?

Yes. These policies are reviewed periodically.

How is the loan repaid?

An EMI refers to an equated monthly instalment. It is a fixed amount which one pays
every month towards the loan. It comprises of both, principal repayment and intrest payment.

What is an EMI?

An EMI refers to an equated monthly instalment. It is a fixed amount which one pays
every month towardsthe loan. It comprises of both, principal repayment and interest payment.

When does the repayment start?

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

What happens in case if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues
will be charged as per the prevailing company policy.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on
the disbursed amount. This interest is called pre-EMI interest (PEMI) and is
payable monthly till the final disbursement is made, after which the EMIs would commence.

What is the minimum /maximum loan amount?

Home loan are availabe from 5 lakh to 5 crores.

What is the time frame for a loan to be approved?

It takes a 7/10 working for the loan to be sanctioned after submission of all all documents.

When is the loan disbursed?

The loan will be disbursed on:
- Submission of the legal documents.
- Legal and technical clearance of the property
- Submission of Registered copy of agreement.

What is an amortization schedule?

An amortization schedule is a table giving the reduction of the loan amount
by monthly installments. The amortization schedule gives the breakup of every EMI
towards repayment of interest and outstanding principal of loan.