Home sweet home, who doesn’t want to possess a home of their own? Almost, everybody does, but everyone cannot pay a whopping sum of money all at once to the builders and realtors, this is where home loan comes to play. A home loan is generally taken for either buying a house or a flat or a plot of land for construction of a house, home loans also includes renovation, extension and repairs to your existing house. However, there are some other eligibility criteria to determine whether ones housing loan eligibility such as:

1. REPAYING CAPACITY

The eligibility for the home loan generally depends on the repaying capacity of the borrower which again depends on monthly disposal / surplus income, spouse’s income, assets, liability, stability of income, etc.

Questions should be

2. DOCUMENTS

Documents need to be proper for applying for a home loan. While applying for a home loan, a check list of documents is provided which is required to be furnished along with self photograph. Some other supporting documents may include identity and residence proofs, latest salary slips which needs to be self attested and authenticated by the current employer for the salaried buyer. In case of businessmen or self-employed person income tax return would be required along with the bank statements of last 6 months.

3. AMOUNT ELIGIBILITY

A bank can assume that about 50% of monthly disposable / surplus income is available for repayment. Almost 10% — 20% of the home loan needs to be paid by the buyer whereas the remaining 80% — 90% is being paid by the bank. The bank will produce a sanction letter stating the loan amount, tenure and the interest rate, among other terms of the home loan. The stated terms will be valid till the date mentioned in that letter.

4. CO-APPLICANT

Almost all banks has mandated the requirement of a co-applicant. If someone is willing to buy a property, he/she should also have a co-applicant. In case of sole owners, any member of the immediate family can be the co-applicant.

5. MCLR MODE

Marginal Cost of funds based Lending Rate or MCLR has been made effective from April 1, 2016, following which loans are sanctioned as MCLR linked loans. Under this, banks have to review and declare rates as on — overnight, 1 month, 3 months, 6 months, 1 year, 2 year and 3 year. MCLR rate is computed by determining the spreading and adding the amount to the MCLR. For example if at 1 year, the MCLR is 8%, while keeping a spread of 0.5%, the actual lending rate will then become 8.5%

Also, in home loan, there are different types of slabs which determines the rate of interest, this slab can vary from Women to Senior Citizens. Lets have a sneak peek onto the slabs:

Loan Slab Home Loan Interest Rates (% p.a.)

For Women (Above 75 Lacs)

8.40 to 8.90

Above 30 lacs and up to 75 lacs

8.40 to 8.90

For Others (Above 75 lacs)

8.45 to 8.95

The rates however may vary from bank to bank. With various schemes and plans, it has become much easier for anyone to opt for home loans and get a home they can call their own.

If you are looking to buy an affordable property with home loan which is approved by banks then we have Shriram code Superstar to suggest you. You can be assured of the authenticity of this property as it comes from a trusted builder like Prestige.