What are the things that you should keep in mind when taking a home loan?

Generally, you take a home loan for buying a house / flat, plot, or construction/renovation. Sometimes home loan is also taken to increase or repair the house. We are giving you all the necessary information about the home loan here.

How much loan can you take?

Before starting the home loan process, assess how much your income is and how much the banks can lend accordingly. Your ability to take a home loan depends on the capacity to repay it. It depends on your monthly earnings, expenses, and family's earnings, assets, liabilities, income stability.

At Shubham, they first see if you will be able to repay the home loan on time. The more money you get in your hands every month, the more your home loan amount will increase. Usually, a bank or lending company sees whether you will be able to give 50 percent of the monthly income as a home loan installment.

The loan amount also depends on the term and interest rate of the home loan. Apart from this, banks also fix the upper age limit for home loans.

What papers are required for approval of loan against property?

There is a checklist of documents to be applied along with the application form for the loan against the property. With this, you have to put a photo.

From the legal documents of buying a house, the bank has to give you a salary slip (verified from office and attested manually) along with identity and residence proof and the last six months' statement of the bank.

What is a home loan sanctioned and issued?

According to the papers given by you, the banks decide to give you a loan or not. The amount of a home loan also depends on it.

If the bank has accepted your application and has decided to give a home loan accordingly, then the statement letter contains -

• Information about the amount, duration, and interest rates of the home loan. It contains information about the condition of the loan.
• When the loan amount actually arrives in your hand, it is called disbursement. This actually happens after the technical, legal, and valuation procedures are completed.
• You can decide to take a loan less than the amount that is available in the selection letter. While getting the loan, you have to provide an allotment letter, photocopy of the title deed, cell agreement, and certificate of acceptance.
• From the day the loan amount came in your hand, interest is charged on it.

How will the loan against property amount come into your hands?

Loan against property is given to you in lump sum or installment. It can have a maximum of three installments.

• In the case of construction property inside, the loan amount is given according to the progress of construction.
• In the case of such a property, you can make this agreement with the lending bank where the amount of the home loan will be given to the builder according to the construction.
• In the case of ready-to-move property, the loan amount can be obtained in a lump sum.

What is the monthly installment of a home loan?

The amount you pay to the bank every month has both interest and principal, it is called Equal Monthly Installment or home loan EMI.

Need insurance for a home loan?

It is always better that you cover the risk of this home loan. For some reason, it can be a big relief for your family if you are not there. You can take a pure term plan or a mortgage insurance plan for this. Both single and regular premium options are available in this type of plan.