What is Home Loan?
Home Loan is a Secured Loan. Home Finance is offered against the security of a house / property which is funded by the bank's loan, the property could be a personal property or belonging to a firm. In this type of loan the borrower gives the banker a conditional ownership over the property i.e. if the borrower fails to repay the loan, the banker can retrieve the lent money by selling the property.
Who is eligible for Home Loan?
A person with stable monthly income is eligible for Home loan
* Salaried person.
* Business Person with stable income & business.
* A partnership or a Pvt. Ltd. company.
* Professionals with stable income & business.
Home Loan Charges:
* Processing Fees
* Fees are the prerogative of the banks it is usually collected from the customer by cheque.
* This fee is charged on the sanctioned loan amount.
* Fee normally ranges from 0.5% to 1% + applicable service tax on the fee.
* As of now the service tax is 10.30% to 12.36%
* This charge needs to be checked with the respective bank.
Part Payment Charges:
* In Home Loans most of the banks allow part payment at NIL charges.
* There may be a lock in period for part payment.
* This condition needs to be clarified with the respective banks.