Structuring home loan by its eligibility, documentation, down payment, loan and EMI calculation, part payment, pre payment, process fee, loan types and interest rate for full knowledge
Planning to build or buy a new home requires huge finance. Home loan financially helps to build or buy a home without much stress.
Factors in Home Loan
There are some factors in the process of home loan.
Equated Monthly Instalments (EMI)
Equated Monthly Instalment is said shortly as EMI. It is a mode to repay the loan in monthly instalments. It has been determined at the time of processing loan and will be continued till the closure of loan. It is calculated based on the interest rate and the tenure. Tenure is nothing but the time we take to repay the loan. EMI rate will change based on down payment and tenure.
Down payment is a small percent of amount that a loan holder must pay to the lender. The amount is calculated based on the estimated value of the loan. Down payment will lower the rate of interest and EMI. Usually 20 to 25% of the value will be taken as down payment. It is a kind of security for the loan givers.
When one apply home loan, there will be some charges for the administration of loan. It is known as Processing Fees. It differs between the financial institutions. Also, some banks charge no processing fees. Usually the fee will be between 0.5 to 1% of the loan.
When the borrower intended to repay the outstanding payment of the loan before the tenure, pre-paying the loan will take some charge which is called pre-payment charge. It is usually a least percent of the outstanding amount.
Home Loan Eligibility
Home loans are eligible for all those who have good income by profession. The loan amount is determined based on the income of a person. Normally, 40 - 60 times the net income of a person is offered as a loan. Some other factors determining the eligibility are age,employment type and status.
Home Loan Interest Rate
Interest rate for availing home loan starts from the minimum of 8% and it varies between banks. There exist two types of interest rates. One is fixed interest rate and the other is floating interest rate. Let's see both in detail.
Fixed Interest Rate
As per the name defines, the interest rate in this case is fixed till the loan period. There will be no change in the percentage of the interest. Some institutions provide an option to change the rate after a few years based on the prime lending rates.
Floating Interest Rate
This type of interest is subject to change during the loan period. It is based on the BPLR or the Base Rate of the bank. BPLR is the short form of Benchmark Prime Lending Rate. This BPLR depends on the average cost of the amount and the base rate depends on the cost of margin.
Home Loan Calculator
Calculation of the monthly instalments known as the EMI is done with the help of this home loan calculator. All the lenders provide this tool in their site. Also, one can find this calculator tool in online and in the app store.
Home Loan EMI Calculator
EMI calculation is based on some factors which are interest rate, tenure and the principal. This calculation is very simple and easy to plan before taking loan. One can pay the loan as monthly EMI with the affordable amount from his income.
Types of Home Loan
Many types of home loans are available in the market. For the construction of new home, extending the existing home, and buying a new home, banks offer loans. There are seven types of home loans.
New Home Construction Loans
Mostly, home loans are for the construction of new home. The person applying for this loan should fulfil the eligibility criteria. Loan amount will be 75% to 90% depending on the bank we choose. The land where the construction is done should be owned for a minimum period of one year and along with the land, loan will be estimated.
Renovation Home Loans
For the renovation works like rewiring, painting, flooring again, bore well works, one can avail home loans. The individual can improve the home with the help of this loan.
Home Extension Loans
It is a kind of renovation home loan. This loan is available for the extension of existing home,for instance, adding extra room.
Land Buying Loans
If a person needs to buy a land for the later construction of home, he can use this type of loan. From 80% to 85% of the value of the land will be given as loan. Home Buying Loans: For the purchase of new home, one can utilize this new home buying loan. Usually 80% - 85% of the value of the home will be offered as loan.
NRI Home Loans
Non-resident Indians can avail home loans. This type loan differs from other normal loans. Documentation and the charges are different. Some normal home loan benefits are not available in this type.
Conversion Home Loans
If the loan holder is intended to move to a new home or property from the home he already holds a loan, he can get the home conversion loan.
Gundu Narsaiah - Dec 17, 2017
Dear sir/Madam,i want home loan of Rs.20,00000,Please give me suggestion. How to apply & what is the required documents .I am doing job in UAE as a property Camp In charge. I have monthly salary of Rs.42,000. I have agriculture land in my native place also, so please sir wich is required documents advice to me and MY near SBI Branch khudavanpur, Mandal: Nandipet ,Dist: Nizamabad,State:Telangana. Thanks.
S. Khunjaoba - Jun 15, 2014
I AM SALARIED PERSON . I WANT TAKE HOME LOAN Net Salary : 25000 - 27000 per month Mobile: 8010509239
suraj bhan - Jun 6, 2014
Sir, i m govt employee. Want to take hom loan for purchase of land at bhalgarh in sonepat. Plz sugest me bank name and other details. Thanks
Dusa RAmulu - May 23, 2014
Sir, I taken home loan at SBH Yalal,Ranga Reddy Dist in 2005, Rs 425000/-,for 15 years,EMI Paying regularly,Now I want to additional loan on the same house.Do you give suggetion
SUBIKASH C MISHRA/BINAYINI MISHRA - Jun 18, 2013
Sir/Madam, 18 June 2013 Respectfully we beg to state that, we belong to Kharsawan, Beherasahi and we want Home Loan for to construct our house. Please do the needful. My property is in my name only. We have an account saving account in your esteem branch 14357 as Either and Survivor Account. Please advise how we can get loan from your branch at Kharsawan - 14357. Thanking you SUBIKASH C MISHRA/BINAYINI MISHRA : Beherasahi, Kharsawan Garh, Kharsawan - 833 216. Email: email@example.com Phone nos. 094446 47208, 094456 31788.
P.ZAKIR HUSSAIN - Jun 11, 2013
I have in my name a land in tirupathur,dindukal road, sivaganga district interested to construct a building in the said land i am working as a Govt Service with Andaman and Nicobar Administration, Secretariat, Port Blair MY GROSS SALARY 30,000 THOUSAND PER MONTH net pay is 20,000/- My Home town declared in my service book in Thirukalambur village, Melasivapuri viz Pudukkottai Dist, Tamil Nadu. MOBILE NO. 09434278560 PL SUGGEST PROCEDURE OF HOME LOAN BEST REGARD
NANDLAL RAGAR - Mar 29, 2013
I AM SALARIED PERSON . I WANT TAKE HOME LOAN I HAVE 33*40 PLOT BUT HAVE NOT RESISTERED YET PLEASE GIVE ME SUGESTION FOR HOME LOAN.
Raghvendra singh - Mar 18, 2013
I want home Contraction loan for 2 lakhs. I am working in Surat. My income is 10,000/- . my mobile no: 9898190707. please give the requirments and details about that, regarding rate of interest.duration etc
subhamay - Mar 10, 2013
i am a state govt. employee of KMDA. i joined service on 18 th july,2012. so i am now under provisional period.but i passed type test which is the main criteria for being permanent. so please inform me, am i eligible for home lone? thanks, Subhamay Datta 8013075704
apa tage - Mar 6, 2013
I want to know my car loan balance, so how i ?
pravin deshmukh - Feb 8, 2013
krishnakumari - Jan 11, 2013
I want home loan for 5 lakhs. I am working in hotel for reception list. My income is 10,000/- . my mobile no: 9840876143. please give the requirments and details about that, regarding rate of interest.duration etc thanks you, by kumari
Subhash Chand - Dec 25, 2012
Hi Sir, I have myself plot of 1 knl at panchrukhi distt kangra(H.P) need a home loan of Rs. four lacs for construction.So please give me the details & how much time it will take to get the amount after submitting all the formalities.I am working with a reputed firm in Chandigarh as a Manager-Dispatch and my monthly salary is fifteen thousand only. Best Reg. Subhash Chand Cont. No 09872673943 firstname.lastname@example.org
P Venkatesh - Aug 23, 2012
Sir, I , am central govt employ serving in Indian Army in EME (Electronics Mechanical Engineering) . At present I am serving in MCEME ( Miltary College of electronics and mechanical engineering) in secunderbad. My monthly salary is Thirty thousand only(30000) , I need a home loan of Ten lakh (1000000) for construction of new house in KGF ( Kolar gold Fields) . Please give me the details & how much time it will take to get the amount after submitting all the formalities.
Gajendra kumar Tailor - Jul 29, 2012
I want home loan Rs.14 Lac.for 15 years,what is the EMI AND What is the interest rate? I am a Govt. teacher,,my net pay is Rs. 30,000 per month I leave Rani,Pali, Raj.my date of birth is 15 July 1975. please tell me what will the EMI for 15 years & for 20 years of Rs.14 lac. mob no. 9829864782
rajesh kumar - Jun 23, 2012
RAJESH KUMAR 22 JUNE 2012 SIR, MY GROSS INCOME IS 28000.TAKEN PERSONAL LOAN 450000 IN MAY 2012.WANT TO PURCHASE A FLATE WORTH 900000. WHAT AMOUNT OF LOAN I WILL GET.(TEACHER IN KENDRIYA VIDYALAYA) AT-BAIKATPUR,PARAIYA,GAYA, BIHAR,MOB NO 8011393837.
Soma Chakma - Jun 16, 2012
Dear Sir, Recently approached SBI,Chawngte Branch, Mizoram for car Loan but simply denied by the manager without giving any reasons though I am a Govt. employee serving since 2002 under the Directorate of Higher Education as Head Assistant. Kindly help me Soma Chakma
gigigeorge - Apr 9, 2012
sir, i am working as a staff nurse in abroad.i wish to apply for home loan. please give the requirments and details about that,regarding rate of interest.duration etc thanks gigi george
Hiralal P Pariskar - Feb 16, 2012
Loan Amount Required : 2 lakh Service : Indian Ordnance Factory Net Salary : 17000 per month Mobile No : 9011001320 City : Bhusawal (m/s)
Bobby Kalluzhathil - Feb 16, 2012
please give me details for home loan to purchase a flat at cochin. please e-mail details. Thanks.
SANTOKVAN - Jan 21, 2012
My MONTHLY INCOME 20000 HE KESE MERA LOAN PASS HOGA PLEASE ADVICE ME
Arup Chandra - Jan 6, 2012
Pl let me know that is sbi provide loan for land purchase and its consider as home loan. Is this land purchase loan be helpful for tax purpose.
shajahan - Dec 22, 2011
i want to house purchase loan.now working in kuwait moh last three years
R.PUSHPARAJ - Dec 17, 2011
I want to transfer my account at present in sikkim state of SBI to TN state
NAVIN THAPA - Nov 16, 2011
I am Navin Thapa. Railway Employee, working in DHR Section ie Darjeeling Himalaya Railway,PO Tindharia, 734223, Kurseong Sub Divison. PS: Kurseong, Dixt: Darjeeling, West Bengal. Actually, I am residing at SILIGURI West Bengal wants to know How & What the process to purchase Home (Two Stored Building) at Hyderpara Anchal, Siliguri. which is my sister's home.Who want's to sell it now, Infact the land was(before construction two stored building) in our's Name ie My mother & my self. which we gifted to my unmarried sister, and she made two stored building after few years.But now she is going at abord and she need a cash,Infact, she wants to sell her building to us.(My self & my mum). But we dont have a such amount to buy above said building, what & how to process to get home loans from SBI/Siliguri branch.Please give me some idea & your sugession to me that how i can apply the home loans from SBI.
Dayananda br - Nov 11, 2011
we are interested to concatenation new home near your bank byalahally i am working with Xindia steels limited koppal dist karanataka my gross salary 10.000 Ten thousand per month BEST REGARD DAYANANDA BR XINDIA STEELS LIMITED KOPPAL DIST MOB NO: 9686076492
Dayananda br - Nov 11, 2011
Dear sir requested to apply home loan
rishi raj - Nov 1, 2011
To AGM RACPC , SBI, New Delhi. Sir/Mam I had applied for a home loan in your branch on 24, September 2011, for purchase a flat in IRWO New Delhi in Kundli sonepat project. but I have not received any call or response against sanction of my loan. Please tell me the status of my file. Thanking You. With regards Rishi Raj 88/7, Bhim nagar, Sarang Road, Sonepat (haryana) Ph 09968825677, 09416564731,0124-2818582
RIZWAN ABDUL KARIM - Oct 13, 2011
I HAVE NRE ACCOUNT WITH YOUR BANK AND INTERESTED IN HOME DEVELOPMENT LOAN. A/C NO--31949100246 CUSTOMER ID NO--86143546479 REQUIRMENT OF 50LACK RUPEES. PLS GIVE DETAILS. RGDS, RIZWAN
s.b.ishwar rao - Oct 3, 2011
we are interested to procure a residential land at near anandpuram tagarpuvlas from subhagruha venter i am working with MSP STEEL & POWER LTD. RAIGARH CHHATTISGARH STATE MY GROSS SALARY 40,000 THOUSAND PER MONTH PL SUGGEST PROCEDURE OF HOME LOAN BEST REGARD S.B.ISHWAR RAO 09752596409
butchireddy - Aug 25, 2011
it's very helpful to us. thanks to SBI team.
k.s.saraswathi&selvanathan - Jul 25, 2011
Home loan for old home and land purchase loan amount Rs 20 Lacs