Introduction

General Home Finance AwarenessHome Loans

By Samir Pujara

Few important points for home loan1) Rate of interest selection- Fix or floatinga) Fix rate is pure fix or not?b) Floating rate- How much spread and it is fix for through out the

tenure or not?Example: Rate is depend on RPLR - (spread) = rate`16.50% - 6.00% = 10.50% (Floating)

16.50% -6.50% =10.00%c) Part fix and part floating facilities

2) Any charges ona) Part payments.b) Fore closerc) Balance transferd) Switch floating to fix and fix to floatinge) Any hidden charges at the time of disbursement like legal,

technical.

3) Prepayment Benefits and immediate effects

4) Part EMI facilities in under construction property

5) Online A/C

6) Service braches in different cities.

Sanction Eligibility

It depends on monthly income.

Formula:

Loan Amount =Monthly Fixed Income*50% / Per Lac EMI

Disbursement Eligibility

• Financial Institute disburse the amount against 80% of Cost of Property.

Cost of Property =

Agreement Cost (Area x Rate) + SD+REG +MSEB+ PARKING+ STAX+VAT

List of Documents required for loan

• Application form duly filled and sign. • PF cheque in favor of (‘HDFC LTD".)• Photograph duly signed. (Appl & co.app)• ID Proof (Appl & co.app) Duly signed (Passport or pan card copy)• Residence proof duly signed Appl & co.app (electricity

bill/telephone bill/passport/letter from employer/org bank statement)

• Latest 3 months salary slips• Latest 2 years form 16 (income tax returns)• Appointment letter / Relieving letter of previous employment • Latest 6 months original bank stat. of salary a/c and saving a/c• Statement of all existing loan a/c (if any) • Higher qualification certificate.

Summary

• Few Important points for Home Loan

• Sanction Eligibility

• Rate of Interest Factor Disbursement Eligibility

• List of Documents required for loan

Open House