Frequently Asked Questions

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Some Important Terms / Definitions :

Home Improvement Loans:

These loans are given for implementing repair works and renovations in a home that has already been purchased by you.

Home Construction Loans:

This loan is available for the construction of a new home.

Home Extension Loans:

This is given for expanding or extending an existing home. For example addition of an extra room etc

Home Conversion Loans:

This is available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through a home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need for pre-payment of the previous loan.

Land Purchase Loans:

This loan is available for purchase of land for both home construction or investment purposes

Bridge Loans:

Bridge Loans are designed for people who wish to sell the existing home and purchase another. The bridge loans help finance the new home, until a buyer is found for the old home.

Balance Transfer Loans:

Balance transfer loans help you to pay off an existing home loan and avail the option of a loan with a lower rate of interest.

Refinance Loans:

This loan helps you pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present home.

Stamp Duty Loans:

This loan is sanctioned to pay the stamp duty amount that needs to be paid on the purchase of property.

Loans to NRIs:

This is tailored for the requirements of NRIs who wish to build or buy a home in India. EMI is the Equated Monthly Installment payable till the loan is paid back in full. It consists of a portion of the interest as well as the principal. Some of the incentives offered by lending institutions are:

Some companies sanction the loan without requiring you to identify property as a pre-requisite for eligibility Free accident insurance

  • Discounts
  • Waiving of pre-payment penalty
  • Waiving of processing fee
  • Free property insurance
1 Q. When can I apply for a home loan?
2 Q. How much time does it take to get an application processed and the loan getting sanctioned?
3 Q. What is the maximum amount which I can borrow?
4 Q. How much time does it take to get an application processed and the loan getting sanctioned?
5 Q. What is the maximum amount which I can borrow?
6 Q. How is the maximum amount derived?
7 Q. How is my loan eligibility determined?
8 Q. What are the repayment period options?
9 Q. What are Collateral Securities taken by the Housing Finance Companies?
10 Q. What is the range of interest rates offered?
11 Q. How is the interest calculated on my loan?
12 Q. What is the basis of interest rates calculation?
13 Q. What is the fixed rate of interest?
14 Q. What is a floating rate of interest?
15 Q. What are the fees and charges payable and when are they payable?
16 Q. What security do I have to provide for the loan I want to take?
17 Q. What are the tax benefits available?
18 Q. Who can be a Co-Applicant?
19 Q. What is the EMI?
20 Q. Can I repay my loan ahead of schedule?
21 Q. Does the property have to be insured?
22 Q. What is the difference between a Monthly Reducing EMI and a Yearly Reducing EMI?