The general factors taken into account while determining the eligibility of Home Loan are listed below:

1. Age (Min. 21 Year)

2. Maximum 58 age at time of closure of the loan for the salaried

3. Maximum 65 age at time of closure of the loan for the self employed

4. Total work / business Experience 3 yrs

5. Indian resident

The process involved in availing the Home Loan is as follows:

• Application

• Processing

• Documentation

• Property Valuation

• Personal discussion

• Sanctioning of the Loan

• Disbursement

Following are the list of the documents for Home Loan:

For Salaried

• Application form with photograph

• Identity Proof and Address Proof

• Latest Salary Slips (Latest 3 months)

• Form 16 / appointment letter

• Bank Statements (Last 12 months)

• All Loan Sanction Letter(if any)

• Processing fee cheque

• Spouse income(if required)

For Self-Employed:

Application form with photograph

Identity proof and Address Proof

Proof of business existence

Last 3 years ITR

Last 3 years P&L and Balance Sheet with Audit Report

Bank Statements (Last 12months)

All Loan Sanction Letter (if any)

Processing fee cheque

Spouse income

The Thumb rule for calculating eligibility in Home Loan:

• Net salary per month is calculated after tax deductions then 40% to 65% of that amount is taken as loan servicing capability.

• If one has additional income like Incentives, Overtime, LTA, Medical Reimbursements, Car Allowance, it is averaged out to per month income and then it is added to income.

• If you have any ongoing EMI then it is deducted from the income, this amount is then divided by EMI per lac for the considered term, The arrived figure is the eligibility in lacs.

• Every bank has its own method for calculating eligibility so Creative Finserve team will work on the basis of the details provided by you to get the best deal.

• Yes in Home Loan the banks also add-up the co-applicants income to determine the eligibility.

• The eligibility is based on the years remaining for retirement & the income.

• The banks readily add-up Spouse & parents income.

Most of the Lenders sanction Home Loan for salaried customer in 7 working days; for Self Employed the time taken for sanctioning a case can be longer as various verification and calculations are involved & there is also "Personal Discussion" done at the place of customer office.

"EMI" is Equated Monthly Installment.

The installment paid while servicing the loan is equal for the whole tenure.

The composition of EMI = Principal Amt + Interest.

In Home Loan Rate of interest will remain same throughout the tenure is fixed interest rate.

Yes, the loan amount can be decreased by the Bank if the customer's requirement is lesser than the sanctioned amount.

Yes in few conditions you can get the loan amount enhanced / revised.

For E.g

If the income eligibility is there and you have applied for lesser loan amount or,

If you have not added co-applicants income while applying the loan or,

If your salary has increased after your Home Loan sanctioned than with the revised salary slip you can ask bank to increase the loan amount.

Where you have availed only a part of Home Loan, you would be required to pay Banks/NBFC only the interest on the amount disbursed till the full loan is availed. This interest is called pre-EMI interest and is payable monthly till the final disbursement of Home Loan is made, after which the EMIs would commence.

Pre Approved property Home Loan is also called as APF [Approved Project Finance]. This means that the developer had got the legal aspect of the property approved form various banks and NBFC's, Under such circumstances banks need not required to do technical verification if the customer has selected the property in the said project.

Carpet Area is the area enclosed within the walls, actual area to lay the carpet. This area does not include the thickness of the inner walls. It is the actual useable area of an apartment, office, unit, showroom etc.

Built up Area consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.

Super Built Up Area is the built up area plus proportionate area of common facilities such as the lobby, lifts, shaft, stairs, etc. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.

The building plan made by the developer which is approved by the Municipal Corporation or the concerned authority is approved plan.

CC means Commencement Certificate. A commencement certificate is issued by the local authorities to allow the builder to begin construction once all norms have been met. Unless the commencement certificate is granted, the construction is illegal. It is subsequent to the approved plan. During Home Loan CC is very much important document required for sanctioning your loan specially when it is under construction project.

OC means Occupation Certificate. This certificate issued by the local municipal body to the builder /developer once the said building is complete in all respects and fit for occupation. During Home Loan OC is very important document required for sanctioning your loan.

Conveyance is the act of transferring ownership rights of the property (plot of land where the building is built) from the developer / builder / development authority to the society.

In a society share certificate is issued to its members (flat owners); it is a legal document that certifies ownership of a specific distinctive number of shares in a society. Share certificate will bear the seal of the society & will be signed by the Chairman, and the Secretary. During Home Loan Share Certificate is very much important document required for sanctioning your loan.

It is a duty collected by the state government. It is paid as per the true market value as assessed by the Stamp Office. Stamp duty is decided by the respective State and hence would vary from state to state. When an agreement is to be franked, it needs to be unsigned and undated.

The agreement should be registered with the Sub-Registrar of assurances under the provisions of the Indian Registration Act. Stamp duty is to be paid prior to the Registration.

In Home Loan chain Agreements is chain of all the agreement right from its first purchase from the builder to the present owner. During Home Loan process we need to submit the chain of agreements to the banks/NBFC to do technical and valuation of the said property.

The minimum area required in Home Loan is 400sqft.It may vary from bank to bank.

In Home Loan legal verification is a process where all the agreements & documents related to the concerned property are given to a lawyer to verify the legal and title of the concerned property. It is done by panel of qualified lawyers appointed by the Banks/NBFC.

In Home Loan technical is a process where the valuator assigned by the BANK/NBFC evaluate the cost of the property, checks its permissions and the condition of the building. It also checks whether the property is mortgagable and free from all legal issues.

OCR means Own Contribution Receipt. It is the amount paid by the purchaser to his seller and a receipt acquired for the same. It is advisable for the purchaser to pay his own contribution to the builder / seller by cheque and obtain receipts for the same.

NOC means No Objection Certificate. It is asked by the lenders from builders/society on their letter head. In this letter the builder / society mentions that they have noted in their books the charge created by them on the said property. All Banks/NBFC have their own format which builders/society need to oblige. To obtain this all the dues & transfer charges of the society need to be cleared. It is mandatory to the committee to issue the NOC in the prescribed banks format under Maharashtra Co-operative Society Act, 1960 u/s 79(2)(a).

MV is called as Market Value. It is the actual cost of the property in a particular area at that point of time.

LTV - Loan to Value Ratio It is the percentage of Loan amount that can be provided with respect to the Value of the property.

The case is disbursed & the cheque is given when all process is complete i.e. Loan agreement is signed, PDC's, ECS, NOC is given. The original documents of the property is mortgaged and submitted & all the pre-disburse conditions is complete.

An equitable mortgage is the transfer of an interest in property to a lender as a security for a loan of money on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. Bank/NBFC give this loan by deposit of title deeds of the property (interest) with the lender.

In this case property is registered with sub-registrar and charge is created against the property in Government records.

Yes ! This process is called as switching (from fixed to floating & vice versa. Firstly to switch the Bank/NBFC must have attractive fixed / floating rate options. Lenders charge switching charges. This clause is generally mentioned in the loan agreement which is signed before disbursement.

NO! One cannot get Home Loan from banks to purchase property overseas.

Once the case is sanctioned the banks charge the customers Processing / Administrative charges. There is also certain validity of the sanction letter. After that time the bank may or may not revalidate the sanction letter on the charges paid earlier. Even if one dose not avail disbursement banks rarely return charges taken from the customer which they have already collected.

Home Loan balance transfer is a process where the customer transfers the existing Home Loan from present banker to a new one. This is done either to get a rate benefit or if a customer has a service issue with the bank.

The 'Agreement to Sell' in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.
In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement within four months of the date of the Agreement at the office of the Sub-Registrar appointed by the State Government, under the Indian Registration Act, 1908.

Encumbrance on a property refers to claims or charges on the property due to liabilities such as unpaid loans and bills. It is critical that during your home search you consider properties which are free of encumbrances of any sort.

An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.

In case of an under construction property, Banks/NBFC will disburse your Home Loan in installments based on the progress of construction, as assessed by Banks/NBFC and not necessarily according to the developer's agreement. You are advised in your own interest to enter into an agreement with the developer wherein the payments are linked to the construction work and not pre-defined on a time-based schedule.