The home loan interior loan is extended for making up the interiors of the house and is available at almost all banks which offer home loans. ICICI/HDFC/Axis all these banks have this facility. The name under which this loan is given by different banks may vary from Home Extension loans or Home Improvement loans. There are some conditions to be met before you can apply for a interior loan Firstly we need to understand the items that will be covered under this loan and the Items that will not be Most customers mistake interior loan for the loan extended to buy interior furniture for their apartments, unfortunately this is not covered under this loan, so if you are planning to buy white goods and furniture like sofa and dining tables these items will not be covered by the banks, only expenses involving extensions to the existing properties or fittings done to the existing properties will be covered, Some of the home improvements that you could undertake with home improvement loans are external repairs, waterproofing and roofing, internal and external painting, plumbing and electrical work, tiling and flooring, grills and aluminium windows, waterproofing on the terrace, construction of underground/overhead water tank, paving of compound wall and wood work for wardrobe and bathrooms etc, So any movable item that can be transported out of the residence will not be covered under this loan. The quotation for the work to be done has to be taken from a approved architect and submitted to the bank along with the loan application form, the bank will verify the quotation and approve 80 to 85% of the expenses quoted basis the eligibility of the customer. You can get a loan from Rs 50,000 to a maximum of Rs 10 lakh under this head with a maximum repayment period of 15 years. Just like in the home loan you can opt for Fixed or floating Rate of Interest.The home loan interior loan is extended for making up the interiors of the house and is available at almost all banks which offer home loans. ICICI/HDFC/Axis all these banks have this facility. The name under which this loan is given by different banks may vary from Home Extension loans or Home Improvement loans. There are some conditions to be met before you can apply for a interior loan Firstly we need to understand the items that will be covered under this loan and the Items that will not be Most customers mistake interior loan for the loan extended to buy interior furniture for their apartments, unfortunately this is not covered under this loan, so if you are planning to buy white goods and furniture like sofa and dining tables these items will not be covered by the banks, only expenses involving extensions to the existing properties or fittings done to the existing properties will be covered, Some of the home improvements that you could undertake with home improvement loans are external repairs, waterproofing and roofing, internal and external painting, plumbing and electrical work, tiling and flooring, grills and aluminium windows, waterproofing on the terrace, construction of underground/overhead water tank, paving of compound wall and wood work for wardrobe and bathrooms etc, So any movable item that can be transported out of the residence will not be covered under this loan. The quotation for the work to be done has to be taken from a approved architect and submitted to the bank along with the loan application form, the bank will verify the quotation and approve 80 to 85% of the expenses quoted basis the eligibility of the customer. You can get a loan from Rs 50,000 to a maximum of Rs 10 lakh under this head with a maximum repayment period of 15 years. Just like in the home loan you can opt for Fixed or floating Rate of Interest.

The process of changing your home loan from one bank to another is called a Balance transfer. Before finalising on the new bank there are a few things that you may have to note Rate of interest difference: Is the new bank offering you a cheaper rate of interest? If it is then what is the difference? You have to be very clear about this to begin with Tenor: If you have taken a loan for 20 years previously are changing to a new bank after paying your loan in your current bank for 3 to 4 years then are you taking a fresh tenor of 16 years or are you again opting for a 20 year tenor? If so please remember you will pay a very high interest outflow for the first 2 to 3 years all over again. So you may have to decide on this factor as well Top up: If the home loan has been paid for more than 1 year then you can avail a top up basis the revaluation of the property, this top up will be available to you at the same rate as the home loan. Documents transfer: Once the loan is taken over to a new bank please remember to apply for a LOD ( List of documents) from the new bank and keep it in your procession, this is the proof of acknowledgement that the new bank has received all your original documents from the old bank) Please also remember there are no foreclosure or pre closure charges and the current bank cannot charge you any of these charges for transferring your loan.The process of changing your home loan from one bank to another is called a Balance transfer. Before finalising on the new bank there are a few things that you may have to note Rate of interest difference: Is the new bank offering you a cheaper rate of interest? If it is then what is the difference? You have to be very clear about this to begin with Tenor: If you have taken a loan for 20 years previously are changing to a new bank after paying your loan in your current bank for 3 to 4 years then are you taking a fresh tenor of 16 years or are you again opting for a 20 year tenor? If so please remember you will pay a very high interest outflow for the first 2 to 3 years all over again. So you may have to decide on this factor as well Top up: If the home loan has been paid for more than 1 year then you can avail a top up basis the revaluation of the property, this top up will be available to you at the same rate as the home loan. Documents transfer: Once the loan is taken over to a new bank please remember to apply for a LOD ( List of documents) from the new bank and keep it in your procession, this is the proof of acknowledgement that the new bank has received all your original documents from the old bank) Please also remember there are no foreclosure or pre closure charges and the current bank cannot charge you any of these charges for transferring your loan.

If we are considering your Dad’s income for Loan eligibility calculation then the maximum tenor that you can avail will be limited to the retirement age of your Dad. So you will get a Max of 8 year tenor for your home loan. Some banks can give you a tenor extension of 2 years and make the total tenor to 10 years, cases like these are subject to deviation and basis the profile of the customer the banks will be willing to look at a higher tenor as well. For ex If your percentage contribution to 12Lks is more than 50% then we can always negotiate basis future increments that will happen in your salary over the next 8 years which will be substantial enough for you to handle the EMI independently even after your fathers retirement. But as we have specified since this is a deviation the case has to be presented to the credit officer separately for consideration or else as per the standard policy you can only get 8 to 10 years MaxIf we are considering your Dad’s income for Loan eligibility calculation then the maximum tenor that you can avail will be limited to the retirement age of your Dad. So you will get a Max of 8 year tenor for your home loan. Some banks can give you a tenor extension of 2 years and make the total tenor to 10 years, cases like these are subject to deviation and basis the profile of the customer the banks will be willing to look at a higher tenor as well. For ex If your percentage contribution to 12Lks is more than 50% then we can always negotiate basis future increments that will happen in your salary over the next 8 years which will be substantial enough for you to handle the EMI independently even after your fathers retirement. But as we have specified since this is a deviation the case has to be presented to the credit officer separately for consideration or else as per the standard policy you can only get 8 to 10 years Max

Home loan prepayment at all banks has been made free, a customer can prepay his loan at any time without paying any additional charges. There are 2 ways of prepaying a Home Loan. · Reduce the principle Outstanding · Reduce the tenor For example if you were to take a 20 year tenor on your home loan and plan to prepay 5Lks that you have in surplus cash, you can pay it against reducing your principal to 65Lks from 70Lks or reduce your tenor from 20 years to 19 years (Approximately) If you foresee that you will have a steady inflow of cash its always advisable to explore the Home Credit/Home Saver products that are offered by Citi/StanC/HSBC and SBI where in the bank will open a current account and link it to you home loan account and any surplus cash that you maintain in the current account will be adjusted against the interest of your home loan. the interest earned through FD is taxable unlike the interest adjusted against the Home Loan in this product which not only ensures a higher Return on investment but also reduces the interest outflow on your home loan ensuring that the loan is foreclosed faster. You can check out the calculator from Citi Bank online. http://www.online.citibank.co.in/products-services/loans/pop-up/mortgages-calc.htm?eOfferCode=INHLHLNAVHCFHome loan prepayment at all banks has been made free, a customer can prepay his loan at any time without paying any additional charges. There are 2 ways of prepaying a Home Loan. · Reduce the principle Outstanding · Reduce the tenor For example if you were to take a 20 year tenor on your home loan and plan to prepay 5Lks that you have in surplus cash, you can pay it against reducing your principal to 65Lks from 70Lks or reduce your tenor from 20 years to 19 years (Approximately) If you foresee that you will have a steady inflow of cash its always advisable to explore the Home Credit/Home Saver products that are offered by Citi/StanC/HSBC and SBI where in the bank will open a current account and link it to you home loan account and any surplus cash that you maintain in the current account will be adjusted against the interest of your home loan. the interest earned through FD is taxable unlike the interest adjusted against the Home Loan in this product which not only ensures a higher Return on investment but also reduces the interest outflow on your home loan ensuring that the loan is foreclosed faster. You can check out the calculator from Citi Bank online. http://www.online.citibank.co.in/products-services/loans/pop-up/mortgages-calc.htm?eOfferCode=INHLHLNAVHCF

No, two unrelated people cannot apply for a loan on the same property, you have to have absolute ownership of the title to apply for the home loan, You have to mortgage the original title deed with the bank to avail for a home loan and since one property will have only 1 copy of the title deed there is no question of availing the 2nd loan on the same property. Parents, wife and children can be co applicants on a property for loan purpose. Some banks approve of 2 brothers jointly taking a loan on the same property but even in that case there will be just one loan disbursed.No, two unrelated people cannot apply for a loan on the same property, you have to have absolute ownership of the title to apply for the home loan, You have to mortgage the original title deed with the bank to avail for a home loan and since one property will have only 1 copy of the title deed there is no question of availing the 2nd loan on the same property. Parents, wife and children can be co applicants on a property for loan purpose. Some banks approve of 2 brothers jointly taking a loan on the same property but even in that case there will be just one loan disbursed.

Home loan application to a bank attracts the following charges. Processing Fee: Unlike all other loans Home Loan processing fee is paid along with the application for Home Loan. This is because the bank spends the fee in getting the Legal and Valuation done on the property that you are proposing to purchase and hence the money is charged upfront. The PF varies from bank to bank and may be a flat fee or a Percentage of the loan amount. Most banks like ICICI/HDFC/Axis charge a flat fee of 10K plus service tax for all salaried customers regardless of the loan amount and charge 0.5% of the loan amount as PF for Self Employed customers. So you have to check as to what is the PF that has to be paid upfront. Franking Charges: the Loan agreement that you sign with the bank has to be franked for anywhere between 200Rs to 900Rs max, sometimes it needs to be notorised as well and that will cost you a extra Rs 200. But in total this charge cannot be more than a 1000Rs in total, some banks will get you to sign a pre franked agreement and some will charge you for the franking so its better to account for a rough 500Rs to 100Rs on franking of the loan agreement MOD charges: Almost all Indian banks charge 0.1% of the loan amount as MOD charges, this is either deducted out of your loan amount or you may have to buy a E Stamp paper for an equivalent amount and submit it to the bank CERSAI charges: Banks charge you 500Rs plus Service tax as CERSAI charges as well. Beyond this Ideally there should not be any other charges at the time of taking a home loan.Home loan application to a bank attracts the following charges. Processing Fee: Unlike all other loans Home Loan processing fee is paid along with the application for Home Loan. This is because the bank spends the fee in getting the Legal and Valuation done on the property that you are proposing to purchase and hence the money is charged upfront. The PF varies from bank to bank and may be a flat fee or a Percentage of the loan amount. Most banks like ICICI/HDFC/Axis charge a flat fee of 10K plus service tax for all salaried customers regardless of the loan amount and charge 0.5% of the loan amount as PF for Self Employed customers. So you have to check as to what is the PF that has to be paid upfront. Franking Charges: the Loan agreement that you sign with the bank has to be franked for anywhere between 200Rs to 900Rs max, sometimes it needs to be notorised as well and that will cost you a extra Rs 200. But in total this charge cannot be more than a 1000Rs in total, some banks will get you to sign a pre franked agreement and some will charge you for the franking so its better to account for a rough 500Rs to 100Rs on franking of the loan agreement MOD charges: Almost all Indian banks charge 0.1% of the loan amount as MOD charges, this is either deducted out of your loan amount or you may have to buy a E Stamp paper for an equivalent amount and submit it to the bank CERSAI charges: Banks charge you 500Rs plus Service tax as CERSAI charges as well. Beyond this Ideally there should not be any other charges at the time of taking a home loan.

As per the home loan policy the banks will only fund 80% of the project cost and the balance 20% has to be borne by the customer, and if it’s a under-construction property many banks insist that the customer pay up his 20% of the cost to the builder and only then apply for a home loan. There are some banks which give a unique facility called parallel funding where the customer can avail his home loan after paying just 10% of the project cost instead of 20%, the balance 10% has to be then paid by the customer as and when the demand is made from the builder over the next 1 or 2 years that the project may take to complete. At any point of time the percentage of payments made to the builder from a customer and the bank has to be the same, if by any chance the customer fails to pay the balance 10% in proportion to the disbursement requested from the bank the banks may refuse to release the payments until the customer clears his part of the payment to the builder. This facility may not be available to all builders and most of the time is limited to only those builders who have a reputation of finishing their projects on time.As per the home loan policy the banks will only fund 80% of the project cost and the balance 20% has to be borne by the customer, and if it’s a under-construction property many banks insist that the customer pay up his 20% of the cost to the builder and only then apply for a home loan. There are some banks which give a unique facility called parallel funding where the customer can avail his home loan after paying just 10% of the project cost instead of 20%, the balance 10% has to be then paid by the customer as and when the demand is made from the builder over the next 1 or 2 years that the project may take to complete. At any point of time the percentage of payments made to the builder from a customer and the bank has to be the same, if by any chance the customer fails to pay the balance 10% in proportion to the disbursement requested from the bank the banks may refuse to release the payments until the customer clears his part of the payment to the builder. This facility may not be available to all builders and most of the time is limited to only those builders who have a reputation of finishing their projects on time.

As per the home loan policy the banks will only fund 80% of the project cost and the balance 20% has to be borne by the customer, and if it’s a under-construction property many banks insist that the customer pay up his 20% of the cost to the builder and only then apply for a home loan. There are some banks which give a unique facility called parallel funding where the customer can avail his home loan after paying just 10% of the project cost instead of 20%, the balance 10% has to be then paid by the customer as and when the demand is made from the builder over the next 1 or 2 years that the project may take to complete. At any point of time the percentage of payments made to the builder from a customer and the bank has to be the same, if by any chance the customer fails to pay the balance 10% in proportion to the disbursement requested from the bank the banks may refuse to release the payments until the customer clears his part of the payment to the builder.As per the home loan policy the banks will only fund 80% of the project cost and the balance 20% has to be borne by the customer, and if it’s a under-construction property many banks insist that the customer pay up his 20% of the cost to the builder and only then apply for a home loan. There are some banks which give a unique facility called parallel funding where the customer can avail his home loan after paying just 10% of the project cost instead of 20%, the balance 10% has to be then paid by the customer as and when the demand is made from the builder over the next 1 or 2 years that the project may take to complete. At any point of time the percentage of payments made to the builder from a customer and the bank has to be the same, if by any chance the customer fails to pay the balance 10% in proportion to the disbursement requested from the bank the banks may refuse to release the payments until the customer clears his part of the payment to the builder.

Most nationalised banks stick to funding only A Khata properties and hence it is advisable to check with them individually. You can check with LICHFL as they do fund purchase of DC converted plots.Most nationalised banks stick to funding only A Khata properties and hence it is advisable to check with them individually. You can check with LICHFL as they do fund purchase of DC converted plots.

Most banks do not provide loans for purchasing B Khata Property, you can check with NBFC's like DHFL and India BullsMost banks do not provide loans for purchasing B Khata Property, you can check with NBFC's like DHFL and India Bulls

On a monthly Income of 20k you can avail a home loan of upto 10 to 12Lks Max. if you have any other income like Incentives and Bonus and if you are receiving it consistently for the past 2 years then you can request for a slightly higher loan amount as well.On a monthly Income of 20k you can avail a home loan of upto 10 to 12Lks Max. if you have any other income like Incentives and Bonus and if you are receiving it consistently for the past 2 years then you can request for a slightly higher loan amount as well.

Over the last 2 years there has not been much of a difference between a public sector and a private sector when it come to a Housing Loan. One of the main complaints against private banks has been that it is more expensive but currently the Rate of Interest at both Public and Private banks are the same. ( Except for SBI which is 0.10% cheaper) When it comes to ease and speed of processing Private banks are much better and also they have a much better customer support unit which may be lacking in most public sectors banks as of now. The RBI has also made it clear that the banks cannot charge any foreclosure or pre-closure charges which has ensured that there are no hidden charges which can be passed on to the customer. I would definitely suggest a HDFC or a ICICI bank to address your home loan requirement today than a Public sector bank taking into consideration that the rates being the same I am getting a much better service and facilities.Over the last 2 years there has not been much of a difference between a public sector and a private sector when it come to a Housing Loan. One of the main complaints against private banks has been that it is more expensive but currently the Rate of Interest at both Public and Private banks are the same. ( Except for SBI which is 0.10% cheaper) When it comes to ease and speed of processing Private banks are much better and also they have a much better customer support unit which may be lacking in most public sectors banks as of now. The RBI has also made it clear that the banks cannot charge any foreclosure or pre-closure charges which has ensured that there are no hidden charges which can be passed on to the customer. I would definitely suggest a HDFC or a ICICI bank to address your home loan requirement today than a Public sector bank taking into consideration that the rates being the same I am getting a much better service and facilities.