COMPLETEFINANCIAL SOLUTION
- CUSTOMER CARE +91 95940 30690
- EMAIL customercare@ofs.net.in
COMPLETEA Home Loan is a secured loan product where the lender provides the loans for purchasing or constructing of a residential/commercial property. This type of loan is taken against the property/security to be bought by the borrower and is done by letting the banker a have a conditional ownership over the property i.e. failure to payback the loan, allows the bank to retrieve the lent amount by selling the property.
Home loans in Indian Banks are provided up to maximum of 80% (90% for loan amount below INR 20 lakhs) of the value of the house. Home loans are repaid using Equated Monthly Installments (EMIs) spread over a fixed tenure.
Home Loan eligibility is based on the following things:
Your income fixes the amount of home loan you are eligible for. The EMI to income ratio is generally kept at 0.45 to 0.50 by Indian Banks.
Home loan eligibility depends on the duration you are opting for. Less duration indicates lesser EMI.
Age is also a factor that determines your home loan tenure and your eligibility
Banks generally offer Fixed and Floating rates of interest. And a lower rate improves your loan eligibility.
It is better to have a score of 750 plus to get attractive rate of interest on your Home loan. Low Cibil score can reject your Home loan application or you may have to pay a higher interest rate.
Home Loan in India is primarily classified into two, based on interest rates: fixed rate and floating rate of interest.
The repayment of home loans in fixed equal installments over the entire period of the loan is known as fixed interest rate. In this case, the interest rate doesn’t change with market fluctuations.
During the early part of the loan tenure, the monthly payments are used to calculate the interest and in the later part principal is used. A fixed-rate home loan is suitable for those who are good at budgeting and want a fixed monthly repayment schedule. They are generally 1-2.5% higher than floating interest rates, so not very preferable.
Floating interest rate is a type in which the rate of interest varies with market conditions. Home loans on floating interest rates come with a base rate plus a floating element which vary simultaneously.
Floating rate home loans have the advantage of being cheaper. Even if the rate goes up by certain points, it certainly falls in the long run.
The drawback with floating interest rates is the uneven nature of monthly installments. However, it is the most preferred of the two types.
Home Loan lenders while sanctioning the loan, levy some charges. Makes sure you know all the types before you invest:
A non-refundable fee, charged by the bank for processing the home loan. In case you back out from taking the loan, the entire amount is forfeited. The amount varies in the range of 0.5 to 1% of the total home loan amount.
Payment of processing fees does not guarantee your loan sanctioning. Due to several other reasons, your loan might be rejected. Therefore, it is advisable to bargain on the amount with the bank and get a confirmation in writing.
Prepayment fee comes into picture when the person wants to prepay the entire loan before the end of the tenure. Most of the banks charge a fee in the range of 1% to 2% of the outstanding loan amount.
As per this loan, the property is 100% complete in construction, ready for possession, and for sale. The loan would be sanctioned in the name of the third party i.e. the Builder.
In this type of loan, the owner is willing to resell the already occupied property. Here the loan is sanctioned in the name of the third party i.e. the current occupying owner.
In this type of loan, the property has not been 100% constructed and would be occupied later. So the loan is sanctioned in the name of the third party i.e. the Builder.