Bank Loan FAQ

  • 1. What are the eligibility conditions for a Home Loan?
    Ans: To qualify for a Home loan, you must be:
    • An Indian resident or NRI
    • Above 21 years of age at the commencement of the loan
    • Below the retirement age for Salaried or 65 years in case of Self Employed ,when the loan matures
    • Either Salaried or Self Employed

  • 2. Who can be a Co-Applicant?
    Ans: A Co-applicant is /are the Co-owners of the property which is being offered as collateral/security to the loan. However, all co-applicants need not be Co-owners. Co-applicants to the loan are generally Husband/Wife, Father/Son, etc.

  • 3. Income papers of Co-Applicant (Spouse/Father) is required or not?
    Ans: Not Mandatory, only required in order to increase the loan eligibility

  • 4. Co-Applicant is required for bank loan or not, if yes what documents are required to be submitted for applying for Home Loan?
    Ans: Yes, Co-Applicant is required, KYC is mandatory with photo of Co-applicant

  • 5. What is the Home Loan EMI?
    Ans: EMI (Equated Monthly Installment) is the amount payable to the lending institution every month till the loan is paid back in full. It consists of portion of interest as well as the principal.

  • 6. What amount I have to pay before full amount is disbursed from bank/nbfc?
    Ans: Customer has to pay interest every month on amount disbursed till the time full amount is disbursed by bank/nbfc.

  • 7. When will my EMI start?
    Ans: EMI shall start after the full disbursement of loan from bank/nbfc.

  • 8. What is Min/Max. Loan Amount an Applicant is eligible for?
    Ans: Minimum loan amount - 7.5 lacs
    Maximum loan amount - As per income eligibility or up to 75% of total cost

  • 9. Processing charges for Home Loan?
    Ans: As per bank's norms applicable from time to time

  • 10. What is Min/Max. Tenure for Plot Loan?
    Ans: Minimum tenure - 5 years
    Maximum tenure - 15 years

  • 11. What will be the rate of interest (ROI) for Home Loan?
    Ans: As per bank's discretion from time to time

  • 12. What is a fixed rate of interest?
    Ans: Fixed rate of interest means the rate of interest remains unchanged for the entire duration of the loan

  • 13. What is a Floating rate of interest?
    Ans: In this case, the rate of interest fluctuates based on the market lending rate

  • 14. Can I close my Home Loan? What are the charges for prepaying my Loan?
    Ans: YES one can prepay, Prepayment charges are NIL for Home Loans and Home Improvement loans with Floating rate of Interest.

  • 15. Can I Part Prepay Loan ? What is the impact of part payments on EMI ?
    Ans: Yes one can part pre-pay , customer has both the options either to reduce EMI and keep the tenure same or keep the Emi same and reduce the tenure.

  • 16. Can I make a part pre-payment on my Home Loan Account through NEFT ?
    Ans: YES , some banks/nbfc's accept part pre-payment of your Home Loan through National Electronic Funds Transfer (NEFT).

  • 17. What is the minimum part pre-payment amount that I can pay ?
    Ans: The minimum part pre- payment amount should be an amount equivalent to 1 EMI

  • 18. In case of change of floating rate of interest, will my EMI change or Tenure?
    Ans: Keeping the Borrower's convenience in consideration , EMI is kept constant and residual loan tenure is adjusted . Under exceptional situation , the EMI is changed to support the principal repayment, within a time frame.

  • 19. What are the Tax benefits of Home Loans ?
    Ans: Resident Indians are eligible for certain tax benefits on Principal and interest components of a home loan. As per Income Tax Act 1961 rules , the current applicable exemption under section 24(b) is , 2,00,000/- for the interest paid in the financial year and up to 1,50,000/- (under sec 80 C) for the principal amount repaid in the same year

  • 20. Does the property need to be insured ?
    Ans: Property Insurance is Mandatory in order to protect your property against uncertainities like earth quakes , fire , or any damage and destruction due to natural and man-made calamities, during the tenure of the Loan.

  • 21. How many times customer has to visit bank/nbfc? (Submission of Application / Disbursement time)
    Ans: Discretion of Bank/Nbfc, information will be given from time to time

  • 22. Online application form is acceptable or not ?
    Ans: Discretion of Bank/ Nbfc, information will be given from time to time

  • 23. Can Pensioner apply for Home Loan ?
    Ans: Most banks are not comfortable

  • 24. Can applicant who is about to retire in 3/4/5 years time pay EMI from his pension account after retirement or Loan has to be cleared before retirement?
    Ans: As per bank's/Nbfc's discretion

  • 24. What are the documents I need to submit when I apply for Home Loan?
    Ans: Documents Required for loan processing
    Applicant's Documents:
    • 3 Photographs
    • Latest Form 16 - last 2 yrs (fy 2014-15 & 2015-16)
    • Latest 3 months salary slips
    • Serving Certificate (photocopy)- signature of official duly verified by nearest SBI officer
    • 6 months updated bank statement, including 1st Page of Passbook.
    • Repayment schedule of all existing loans if any
    • Resi. Proof (Adhar card/voter ID/Passport copy)
    • Pan card copy
    • Office ID
    • Allotment letter by Builder(Developer) & Builder Buyer Agreement
    • Application form duly filled and signed by Applicant and Co-applicant wherever applicable
    • Processing Fee cheque as applicable

    Co-Applicant's Documents:
    • 3 Photographs
    • Resi proof (Adhar card/Voter Id/ Passport)
    • Pan Card

    Note:
    • All photocopies to be self attested (duly signed) by Applicant and Co-Applicant respectively
    • If additional paper is required, information will be provided from time to time
    • Bank may ask for bank account details of Co- Applicant, if required