The main security for a home loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and /or such other collateral security as may be necessary. In addition, interim security may be required, if the property is under construction. The documents of title will be kept […]
4. What is the difference between monthly rest and annual rest?
Monthly rent the interest is calculated on the outstanding principal loan at the beginning of every month. Annual rest: the interest is calculated on the outstanding principal loan at the beginning of every year.
3. What are the types of loans available depending on the interest charged?
Most Housing Finance Companies offer the fixed rate as well as the adjustable rate (Variable – Floating rate) home loan to customers ·Fixed rate: where the rate of interest charged by the HFC on the loan is constant over the tenure of the loan. Variable rate: Commonly known as Floating Rate, where the rate of […]
2. On what basis is the amount of the home loan decided? or on what basis a capacity of a person to repay the loan is evaluated ?
The amount of the loan for each individual depends on the following factors:- An Indian resident or NRI The income of the family applying for the loan. Above 21 years of the age at the commencement of the loan. Below 65 years when the loan matures. Number of dependants. Qualifications. Assets and liabilities. Either salaried […]
1. Can I repay the loan ahead of schedule?
Yes, you can repay a loan ahead of schedule. Some HFCs charge a pre-payment penalty.