|
 |
Who can apply
for a housing loan? |
|
|
Ans: |
Financial institutions offer various housing loans. Prominent among these are : |
|
|
 |
Home Loans : This is the basic housing loan for the purchase of a new home which covers cost of the flat and parking space, deposits and charges, stamp duty and registration charges |
|
|
|
Home Improvement Loans :
For implementing repair works and renovations in a home that has
already been purchased by you. |
|
|
|
Home Construction Loans :
For the construction of a new house. |
|
|
|
Home Extension Loans :
For expanding or extending an existing house. |
|
|
|
Home Conversion Loans :
The existing loan on a house is transferred to a new house,
including the extra amount required, eliminating the need for
pre-payment of the previous loan. |
|
|
|
Land Purchase Loans : For
both home construction or investment purposes. |
|
|
|
Bridge Loans : For people
who wish to sell the existing house and purchase another and need
finance for the new house, until a buyer is found for the old house. |
|
|
|
Balance Transfer : To pay
off an existing housing loan and avail of the option of a loan with
a lower rate of interest. |
|
|
|
Refinance Loans : To pay
off the debt you have incurred from private sources such as
relatives and friends, for the purchase of your present house. |
|
|
|
Loans To NRIs : As per
requirements of NRIs who want to buy a house in India. |
|
|
|
|
|
|
|
Who can apply
for a housing loan? |
|
Ans: |
Any person, including Non Resident Indians, with a steady source of income
can borrow funds for financing the cost of a flat from housing finance
companies and banks. |
|
|
|
|
|
Can a Non
Resident Indian avail of housing loans? |
|
|
Ans: |
Yes. Repayment of loan should
be made within a period not exceeding 20 years out of inward remittances
or out of funds held in the borrower's NRE/ FCNR/ NRO accounts. |
|
|
|
|
|
How much can a
person borrow? |
|
Ans: |
Loans are generally disbursed
up to a maximum of 85% of the cost of the flat. The balance 15% cost of the
flat is to be funded by the flat purchaser from his own contribution. |
|
|
|
|
|
How does Raunak
Group assist a flat purchaser for procuring Housing Finance? |
|
Ans: |
All projects of Raunak Group
are pre approved for grant of home loans by leading housing finance
companies and banks.
The Raunak Group sales team liase with the all
leading Housing Finance Institutions for processing the loan,
documentation
and disbursement of loans. |
|
|
|
|
|
|
What is an EMI? |
|
|
Ans: |
Equated Monthly Installment
("EMI") is the amount comprising a portion of the interest and the
principal loan amount which is payable by a borrower to the lender every
month. |
|
|
|
|
|
|
How is the rate
of interest calculated in India?
|
|
|
Ans: |
Interest rates vary from time
to time and from institution to institution. The current trend ranges from
about 9% to 11% pa.
The interest calculated either on a daily or monthly
reducing or yearly reducing balance |
|
|
|
|
|
|
What is a
fixed-rate housing loan? |
|
|
Ans: |
A fixed-rate housing loan is a
loan where the rate of interest is constant through the entire term of the
loan period. |
|
|
|
|
|
|
What is a
floating interest rate-housing loan? |
|
|
Ans: |
A floating interest rate loan
is a loan where the interest rate payable is linked to the market
conditions such as the bank retail prime lending rate and rises and falls
with the bank rate varies. Hence a borrower bears the risk of interest
rate fluctuations. Floating interest rates offered are usually lower than
the fixed interest rates. |
|
|
|
|
|
|
What is the
difference between monthly reducing interest rate and yearly reducing
interest rate?
|
|
Ans: |
In a monthly reducing interest
system the principal on which interest is paid reduces every month as EMI
is paid. In the annual reducing system the principal is reduced at the end
of the year, and the borrower pays interest on a certain portion of the
principal, which is actually paid back to the lender. The EMI for the
monthly reducing system is effectively lesser than the yearly reducing
system of calculating interest. |
|
|
|
|
|
|
What are the
repayment period options?
|
|
|
Ans: |
Repayment period options range
generally from 5 to 20 years. |
|
|
|
|
|
|
|
What are the
charges for availing a housing loan? |
|
|
Ans: |
|
Processing Fees : payable to
the lender on applying for a loan and is either a fixed amount not linked
to the loan or may also be a percentage of the loan amount.
|
|
|
|
Commitment Fees : in case the
loan is not availed of within a stipulated period of time after it is
processed and sanctioned then some institutions levy a commitment fee.
|
|
|
|
Prepayment Penalty : between 1%
and 2% of the amount being pre paid is charged by some institutions when a
loan is paid back before the end of the agreed duration.
|
|
|
|
Stamp duty and registration fee
on a deed of mortgage.
|
|
|
|
Miscellaneous costs : such as
administrative costs, legal documentation charges, technical consultant
charges.
|
