• Capital appreciation
• Sense of accomplishment
• Tax benefits on interest and principal components
• Zero prepayment charges
• Home loan top up and balance transfer facility
• Long repayment tenure of up to 30 years
• High loan amount of up to 5 Crores (can be more in some cases)
• Makes it easy to purchase a new or resale house/apartment/plot, house construction, or even renovation of an existing house.
• Repayment holiday facility
• Loan available as term loan and overdraft
• Fixed, floating, and hybrid rates of interest available

Some common types of home loans available in India are:

• Home loan for purchase of a flat in an apartment complex: Banks finance their customers to buy flats in residential complexes. Here you have the concept of an Undivided Share (UDS) in the land.
• Home loan for purchase of an individual house: This is similar to the type of Home Loan described above however there is no concept of ownership of UDS. The entire land belongs to the borrower. Naturally, such houses have a better resale value.
• Home loan for purchase of land/plot: Banks finance their customers for the purchase of vacant plot or land for subsequent construction of house. Usually, banks stipulate that the construction of the house should begin within one year of purchase of land for the loan to be treated as a home loan.
• Home loan for construction of a house on own land/land: You can avail a loan for constructing your house on your land. Banks have their methods of determining the cost of construction. Naturally, you need to obtain the requisite permission from the local municipal authorities for constructing your house on the land. You need to have an approved plan as well.
• Home loan for home improvement/extension: You can approach a bank for financing home improvement or for extending the house. In the latter case, you need to have the requisite approvals and plans in place.
• Home loan balance transfer: This facility allows you to switch over your Home Loan from one bank to the other. If you have a high-interest Home Loan, availing this facility can be useful. You could transfer your outstanding loan amount to another lender at low interest rate, thus saving on interest cost.

We have made the procedure of applying for a housing loan very simple. 

• Access the official website of Fincapitevo.
• Choose your gender and proceed further.
• Choose your city of residence.
• Opt for the purpose of the loan. This entails making a choice between purchasing residential ready property, residential plot, residential plot + construction, residential under construction or home extension loan. Each of these loans has a separate procedure.
• Choose the city where you intend to purchase the property.
• Enter the approximate market value of the property.
• Choose your employment type.
• Enter your annual income.
• Enter the required loan amount.
• Enter a few personal details.
• Enter your email address and phone number.
• Accept the conditions and proceed further.
• We will send you an OTP to your mobile number.
• Enter the OTP.

After completing the above process, you can zero in on the loan provider. Keep all your documentation along with the home loan application form ready and our team will contact you and assist you in the application process. This service comes at no cost to you!

The lender will verify all your documents. The next step is the valuation and legal scrutiny. Banks have their panel of evaluators and advocates to do this for them.

A personal discussion between the lender and the borrower is the next step on the agenda. The lender usually meets the borrower at their residence to get first-hand information about the borrower’s income, property, investments, and also the source of funds to meet the margin requirements. This is a sort of a pre-sanction inspection carried out by the bank.

Once the verification and processing are over, banks provide you with a loan offer letter which contains the terms and conditions of the sanction. In case you choose to accept them, you need to sign one copy and deliver it to them followed by execution of the home loan documents. Fincapitevo teams a big role in this regard and our experts will assist you every step of the way.

• You should be ready to pay the processing fees for your housing loan. Some banks charge less processing fees, but may make up for that somewhere else. On the other hand, some banks and financial institutions consolidate their charges and include them in the processing fees. Let us look at some common charges you will most likely incur when you apply for home loan.

  • Upfront fee for processing: Many banks charge an upfront fee for processing your application. This is usually in the range of Rs. 3,000 to Rs. 5,000. This is a non-refundable fee, even in case the bank rejects your loan application. In case they sanction your loan, they adjust this fee in their regular processing fees.
  • Processing fee: This amount ranges from 0.20% to a maximum of 2% depending on your employment status. Salaried employees incur a smaller fee whereas self-employed professionals and business persons have to pay more. Some banks do have a uniform rate. Note that you have to pay GST @ 18% on this processing fee.
  • Valuation charges: Many banks charge for the valuation of the property. They have independent evaluators on their panel. These banks have a fixed structure of payment. Some banks insist that the customer pays to the bank whereas some of them include this amount in their processing fee structure.
  • Legal scrutiny charges: Legal scrutiny of the property is mandatory. The financing bank has to ensure that you get a clear title to the property so that the mortgage holds well in law. Therefore, they have a panel of legal experts who carry out the search for a period of 30 years. You need to supply the property documents to these advocates to allow them to do the needful. Some banks ask the customer to pay the advocates separately whereas many banks include these charges in their processing fees.
  • Mortgage registration charges: The prime security for the home loan is an equitable Most of the states in India require you to register the equitable mortgage in the bank’s favour. Under such circumstances, you incur stamp duty and registration charges. The equitable mortgage does not attract stamp duty in some states like Rajasthan. However, in states like Tamil Nadu, there is a stamp duty of 1% of the loan amount subject to a maximum of 25,000. In addition, you have to pay 5,100 as registration charges. Be aware of these additional expenses when you avail Home Loan.
  • Pre-EMI charges: Some banks have the system of charging pre-EMI charges. Ascertain these charges beforehand.
  • Insurance: Taking out insurance for the property is mandatory. At the same time, many banks and financing companies bunch a lot of their products like loan insurance, Mediclaim family floater policies, accident insurance, and critical illness cover, etc along with the loan. They provide the financing for the premium as well. Of course, you have to repay the same in your EMI. In a way, it is good to have these insurance policies because life is uncertain. In case something happens to the breadwinner and the principal borrower, the insurance can take care of the liability. However, other than the property insurance, all the other policies are optional. You can refuse to take them.

You can now apply for a home loan online using a few simple steps: 

• Click on the ‘Apply’ option. 
• Fill in the necessary details and get all the latest home loan details. 
• Fill up the online submission form for a home loan that you are eligible for and upload the home loan document required. 
• Once the application has been received by the bank, you will get a sanction letter if it is approved. 
• The loan is disbursed into your account based on the terms in the sanction letter. 

• Various factors go into the determination of your Home Loan eligibility. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons.

  • Your current income: Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months where their salary is credited. Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them.
  • Continuity of employment/business: Salaried employees can rely on their income tax returns, Form 16, Form 26AS, etc to display their continuity of employment. They can also show a statement of the Provident Fund account to establish the links. Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients.
  • Current obligations: It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Home Loan eligibility.
  • Credit history: The repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 600 and above is considered fair for determining HL eligibility.
  • Value of the property: The value of the property you purchase is important. The financing bank needs to determine the cost of the project it is going to finance. Banks usually finance up to 75% – 90% of the value of the property (also known as LTV or Loan to Value Ratio) with the balance being your contribution or margin as they call it.
  • Legal position: The prime security for any home loan is a mortgage of the land and building they have financed. You have to create the mortgage and register the same with the respective registering authorities. In order to do so, you must be legally empowered to create the mortgage. Hence, banks and financial institutions insist on a legal scrutiny report from their panel of advocates who carry out a search for the previous 30 years to establish the ownership chain.
  • Age of the borrower: The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 70 years.

• To make the most of the home loan offers, here are few tips that can help you:

  • Choose a lower repayment tenure to avoid paying exuberant amounts towards your interest rate. 
  • Make sure you repay your EMI on or before the due date to prevent late payment charges and lower credit scores. 
  • If you have the option to transfer the balance to a bank that offers a lower rate of interest, opt for it. 
  • Take a loan quantum that you need even if you are eligible for a higher LTV.