The
Project Villa Greens has already been approved by some of the
major Financial Institutions of India who provide services around
the world. Some of them are given as under :
HDFC
Canfin
Homes
|
ICIC
LIC
|
| What
are the types of home loans available ? |
There
are a variety of home loans available. They are:
a) Home Purchase Loan
b) Home Improvement Loan
c) Home Construction Loan |
| What
are the eligibility conditions for a home loan ? |
|
To
qualify for a home loan, most of the lending institutions
in India require you to be:
a) An
Indian resident or NRI
b) Above 21 years of age at the commencement of the loan
c) Below 65 when the loan matures
d) Either salaried or self employed
|
|
What
are the interest rates offered for home loans? What are: Daily
Reducing, Monthly Reducing and Yearly Reducing ?
|
|
Interest
rates vary from institution to institution and generally range
from 7% to around 9%. The interest on home loans in
India is usually calculated either on monthly reducing or
yearly reducing balance. In some cases, daily reducing basis
is also adopted.
Annual reducing:
In this system, the principal, for which you pay interest,
reduces at the end of the year. As such you continue to pay
interest on a certain portion of the principal which you have
actually paid back to the lender. This means the EMI for the
monthly reducing system is effectively less than the annual
reducing system.
Monthly reducing:
In this system, the principal, for which you pay interest,
reduces every month as you pay your EMI.
Daily Reducing:
In this system, the principal, for which you pay interest,
reduces from the day you pay your EMI. EMI in the daily reducing
system is less than the monthly reducing system.
|
| How
do HFCs decide on the loan amount ? |
|
Usually,
most companies give up to a maximum of 85% of the cost of
the house. The balance 15%, sometimes called ‘seed money’,
will have to be provided by the loan applicant. The amount,
for which the applicant is eligible, is determined by the
age, income, no. of dependents, monthly outgoing and repayment
capacity. This varies from case to case.
|
| Are
securities required for home loans ? |
|
In
most cases, the property to be purchased itself becomes the
security and is mortgaged to the lending institution till
the entire loan is repaid. Some institutions may ask for additional
security such as life insurance policies, FD receipts and
share or savings certificates in exceptional cases other fixed
assets.
|
| Do
I require a guarantor to get a home loan ? |
|
Some
institutions ask for 1 or 2 guarantors, others require no
guarantor at all.
|
| What
is the time required for loan application approval ? |
| About
0-15 days. |
| What
is the time required for loan disbursement ? |
|
On
an average, loans are disbursed within 3-15 days after satisfactory
and complete documentation and completion of all relevant
procedures, including proof that 15% of the cost has been
paid upfront to the seller of the property.
|
| What
is an EMI ? |
|
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 a portion of the interest as well
as the principal.
|
| How
is an EMI calculated ? |
EMI
Formula : l x r [(1+r)n /(1+r)n-1 ] x 1/12
l = loan amount
r = rate of interest
n = term of the loan |
| What
are the income tax benefits of home loans ? |
|
Both
principal as well as interest of home loans attract tax benefits.
As of now Section 88 of the Income Tax Act allows a 20% rebate
on the principal repaid, subject to a principal ceiling of
Rs.20,000 per annum. For loans availed of after April 1, 1999,
a deduction on interest paid with a ceiling of Rs.1,50,000
is allowed. This amendment was made in the February 2001 budget
to be effective from April 1, 2001. The above benefit is subject
to change from time to time as per Govt./RBI guide lines.
Home
loans taken to repay existing home loans are not eligible
for tax benefit.
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