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Taking you a step
closer to your
dream home.
A home brings warmth, security, happiness, and helps create joyful memories of the time that you spend with your family. All homeowners speak about their homes with pride and a sense of identity. You, too, can experience the pride of being a homeowner with some planning. While owning a home is an aspiration for most of us, one may want to compare home-ownership with living in a rented home. Read on to find out whether it makes sense to buy a home or live in a rented house.
01. Advantages of owning a house
Your home is a symbol of your success and accomplishments. Your home gives you a sense of emotional security; it’s your very own space where you can simply be yourself. You have the security and permanency of your own home; you don’t need to deal with a landlord and the hassles that may come along with it. Your home is an asset with the potential to appreciate in value over time. It makes sense not to delay your home purchase since this may result in higher cash outlays due to value appreciation of property.
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Home loan providers tailor your home loan repayment to suit your present and future income patterns. Interest rate levied on this loan is very affordable and repayment is done in the form of Equated Monthly Instalments (EMIs). EMI is a fixed amount payable every month and is made up of part principal repayment and part interest payment. Home loans are available for long tenures spanning up to 30 years. Home ownership has become even more affordable with the introduction of the interest subsidy scheme called the Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (URBAN)-Housing for All. This scheme primarily caters to two income segments:
- Economical Weaker Section (EWS)/Lower Income Group (LIG)
- Middle Income Group (MIG). First time home buyers can get interest subsidy up to Rs.2.67 lakh on their home loan.
The amount of PMAY subsidy under the scheme depends on the category of income that a customer belongs to and the size of the property unit being financed. In addition to the above, first-time home buyers can enjoy several tax benefits on availing home loans.
Becoming a homeowner requires sufficient funds which can take years to save. However, you don’t need to wait this long. You can simply take a home loan to purchase your house. This way, you can enjoy your own space today instead of waiting for years. A housing loan is offered by lenders on the property/home of the customer. The interest rate levied on this loan is very affordable. Repayment is done in the form of Equated Monthly Instalments (EMIs).
Home loans are available for long tenures spanning up to 30 years. Taking a home loan also makes you eligible for a number of tax benefits (as may be applicable subject to the provisions of the Income Tax Act, 1961 (“ITA”) amended from time to time). Hence, availing home loans is one of the most convenient ways to make your home purchase.
- EMI (Equated Monthly Instalment), is the amount you pay each month to the lender. Each EMI comprises of interest payable on your home loan and the principal repayment. Although the EMI remains a fixed sum throughout the loan tenure, during the initial years, the interest component of the EMI is higher compared to the principal component.
- When you are closer to completing your home loan repayment, the situation reverses, i.e., the principal component of your EMI is higher while the interest component becomes lower.
- HOME LOAN – To be eligible for a home loan, the applicant must be at least 21 years of age with a regular source of income from employment or self-employment. The loan must terminate before or when the applicant turns 65 years of age.
- COMMERCIAL LOAN – To be eligible for a commercial loan, the applicant must be at least 21 years of age with a regular source of income from employment or self-employment. The loan must terminate before or when the applicant turns 65 years of age. The loan can be for the purchase/construction/extension of a non-residential property. A loan for renovation will only be given at the time when the property has been acquired. Professionally qualified and self-employed individuals can apply but a minimum of 3 year’s work experience is a necessary.
- Once you decide to take a home loan to purchase your home, the next question that could come to mind is the loan amount you are eligible for. Your housing loan eligibility depends on a number of factors such as: your present age and retirement age, your financial position, CIBIL score, savings, investments, employment status, etc. You can increase your home loan eligibility by adding an immediate family member with an independent income source as a co-applicant.
- Your co-applicant can be salaried or self-employed. The co-applicant needn’t be a co-owner of the property. However, all co-owners must be co-applicants.
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Home Loan Procedure Documentation
and Process Schedule
Most frequent questions and answers
File To be maintained with ITR and other Essential Documents:
- Pan card.
- Ration card of present address.
- Form 16/ITR of last 3 years.
- Last 3 months salary slip.
- Bank A/C statements of 6 month.
- Copies of payment receipt made to builder.
- KYC Document – provide by bank.
- Photograph passport size 2 No’s.
- Processing documents will be shared by Aakar Builders and Developers.
- A Booking or Token Receipt from Builder.
- Letter of intended amount.
- Payment Demand Letter.
- Project search report.
- Sanction approved Building Plan.
- A copy of Loan Sanction Letter of same Bank for reference.
Loan Sanctioning and Loan Amount Processing Offer by chosen Banker:
- Minimum Amount
- Maximum Amount
Agreement – Registration of Flat Booking
- Sale Agreement of Flat
Search report of Flat (by Banker Advanced if required).
- Sale Agreement of Flat
Issuance of NOC Letter from Builder
- NOC / Permission mortgage the requested Flat in the Apartment.
- Issuance of Pay order letter from builder with account details.
Inspection Report or Site Visit by Bank Authority ( Banker)
Final Loan Agreement signed by Client and Banker
Final Loan Agreement signed by Client and Banker