Home Loan Primers
What are the eligibility criteria      
The eligibility criteria for personal loan differ from one bank to another. This is because the different lenders have different perceptions of risk. Also, the ability of different banks to keep track of the loan and recovery in case of defaults vary. For example, the eligibility criteria employed by public sector banks is more stringent than that followed by private sector banks.
 
Do you need to show proof of income for Loan Against Property      
Property is generally among the first assets people acquire. But, compared to other assets like say, stocks, it?s relatively illiquid, and poses a bit of a problem when you need quick cash. However, many financial institutions now offer loans against property. So, when Anant Kumar, an engineer with a well-known company, needed Rs. 10 lakh urgently, he decided to mortgage his flat for a bank loan. But to his surprise, the bank asked him for proof of income. ?If I am mortgaging my house worth Rs 65 lakh, why am I being asked for income proof for a loan of Rs. 10 lakh only?? was his perplexed query.
 
Loan Against Property Should you go for overdraft or EMI      
Here, you have two choices ? you can take the entire loan amount as a lump sum and repay in equated monthly installments (EMIs), or as an overdraft account. An overdraft is a facility that allows you to withdraw more money than what you have in your bank account, subject to certain limits. The advantage of taking a loan against property using the overdraft option is that you have to pay interest only on the money you withdraw, till the time you repay it. But if you opt for a lump sum and choose to repay in EMIs, you will have to pay the interest on the entire amount throughout the tenure of the loan.
 
Mortgage work      
Let us take the example of Suresh Menon, who used to work in an automobiles company and retired recently. He has two married sons with well-paid jobs, but the last thing Menon wants is, to be dependent on them. Menon owns a house in a decent locality in Bangalore, worth about Rs 75 lakh. But he has savings of only Rs 10 lakh (mostly in fixed deposits), not enough to ensure him an adequate post-retirement income.
 
Reverse mortgage FAQs      
The National Housing Bank (NHB), a subsidiary of the Reserve Bank of = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />India and the facilitator of housing finance in India, has set some guidelines for reverse mortgages. They include:
 
How to get a plot loan      
You will need to submit an estimate of the total cost of construction, certified by a registered architect. The cost of the plot to you or the current market value, whichever is lower, will also be taken into account to work out the total cost of the project.
 
How to generate down payment for your home loan      
Banks do not provide the entire amount you need to buy your home. You need to put up a certain part of the purchase cost from your side as well. Here is how to put together your initial down payment.
 
Basis of home loan eligibility      
The cost of the property you are planning to buy has a direct impact on your loan eligibility. Read on to find out how. The bank which finances your house purchase naturally wants you to put in a contribution towards the cost of the house so that you have a stake in its continued maintenance.
 
Loan Amount Eligibility      
The loan amount sanctioned depends on a host of factors. Primarily, it depends on your income and repayment track records. But besides that, the cost of the property to be purchased is also a deciding factor. So, while you are looking for a home loan lender, simultaneously make concrete efforts to identify a property.
 
Joint loan to enhance eligibility      
Home loan eligibility is calculated by clubbing your income with your relatives. All banks allow clubbing of the spouses income to work out loan eligibility. In such cases, they insist on making the spouse a joint borrower (or co-borrower). The basic premise behind using pooled incomes for calculating loan eligibility is that both parties will actually combine their income and pay off all expenses (including the home loan installment).
 
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