Home Loan FAQs
Owning a home of own is a dream for every person. Lots of people go for any bank loan in the case they can not afford to pay the full price of a house. Banks and other financial institutions offer home loans to people who meet the required eligibility.
Due to the booming Indian economy, there is a lot of competition among banks to offer various kinds of retail loans to people. They keep cutting interest rates and keep offering attractive terms and conditions to lure customers towards the banks.
However banks do no offer loans to everyone. You need to have certain qualifications for getting a home loan. The eligibility criteria are related to your age, income, past repayment history and the cost of the property. It also considers your work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc. Banks normally lend up to 3-4 times the annual gross income as a home loan. Every bank has its own set of eligibility criteria that may differ slightly.
Banks need certain documents at the time of applying for a home loan. The types of documents may vary, though normally these include proof of age, proof of identity, proof of residence, salary slip of last three months along with salary certificate, proof of continuity in job for last two years or Form 16, bank statement for last six months, proof of business address in respect of businessmen, etc.
There are eligibility criteria that have to be met for getting a home loan. You can not get any amount of home loan irrespective of your income. The amount of loan given by financial institutions depend on lots of factors, including your income, age, qualifications, work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc. Normally banks like to lend up to 3-4 times the annual gross income as a home loan.
Yes, but most banks allow only immediate relatives to co-own a property. This means that only a parents-son combination and a husband-wife combination are allowed. The reason for this restriction is that if some dispute arises between the joint borrowers, their incomes might not be pooled any longer and there might be a problem in repaying the loan to the bank.
No, currently no financial institution provides loan for purchasing a house abroad.