Obtaining home loans is a crucial matter wherein the applicant has to take the decision carefully before taking a loan. Thus the home loan applicant may have lots of queries related to the home loans. The applicant should always list the questions to be asked to the bank employee before signing the home loan agreement. The borrower should ensure that whatever is said by the borrower is mentioned in the home loan agreement. Also, the home loan applicant should read the agreement carefully, and if there is any doubt in the agreement, it should be clarified by asking the bank executive questions and getting the doubts cleared. The installments, if not paid on time, the bank charges a penalty to the borrower. Thus the loan installments should be paid on time to avoid getting penalized by the bank. The conditions written in small letters should be carefully be read as the chances of getting mislead high wherever the conditions are written in micro-font. Also, the set of documents be kept ready before applying for the loans. The borrower can see complete information on the internet related to the terms & conditions, the interest charged to the borrower & the EMI calculator can help check the monthly installments being applicable on a particular amount of loan and a particular tenure.
Following is the list of FAQs to help the borrower clarify the doubts about the home loans:
Qs 1: What is a usual tenure for which the borrower can approve the home loans?
Ans: The usual tenure for the loans is 30 years; however, the actual tenure to be approved depends on the borrower’s age. The tenure can be extended for salaries employees is up to the age of 60 years or until retirement, whichever is early. While as for the self-employed persons, the tenure can be extended for a maximum of 30 years and until the age of 75 years. Also, the pensioners amongst the government employees who are salaried class and the ones who draw considerable pension can avail loans for a period of the maximum age of 75 years.
Qs 2: If a home loan is taken in the name of a female person, then how can the bank give many rebates? What are the other benefits of booking the property in a female’s name?
Ans: A female applicant bank provides a rebate of 0.50% on interest rates as a rebate to the borrower. Also, a reduction of 1% on stamp duty can be provided by certain state governments to register property in a female’s name.
Qs 3: How to calculate the interest on home loans?
Ans: The formulae for calculating the home loans on a compounded annual basis are very complex. So thus, the simple way to calculate error-free interest amounts on home loans is by using the EMI calculator, which is available on every bank’s official website or an NBFC. By entering the basic details like the income, interest rates charged, and tenure, the EMI calculator, can help the applicant know the exact EMI to be charged every month, the total repayment value of the loans, and interest.
Qs 4: How much is the CIBIL score being required for the approval of loans?
Ans: The bank requires a minimum credit score of 700 points for the approval of loans, and having a score below 700 points is considered an average or poor score which can cause rejection of loans.
Qs 5: My CIBIL score is low? How can I avail of loans?
Ans: The applicant should either try to improve the credit ratings by paying the existing EMI’s on time or paying credit card bills on time. The alternate option to avail of home loans in case of emergency is that the applicant should identify the NBFC’s or the co-operative banks which charge higher interest rates to the borrowers. Such banks or NBFC’s can help avail loans even in case of a low CIBIL score.
Qs 6: What is the minimum salary required to avail of home loans? And what to do if my salary is too low?
Ans: The applicant should have a minimum salary of Rs.25,000 in case of the approval of loans from the bank. However, the actual loan amount, if required, is high, then, in that case, the borrower can take joint loans along with another family member who is earning in the family. Taking joint home loans can help an individual avail higher credit limits on the loans.
Thus in the above questions, many of the doubts have been cleared in the article. However, to get cleared more doubts, the home loan applicant should check out the bank’s official website and read all the conditions for the loans. The applicant can also contact the customer care support of the bank or an NBFC to clarify doubts if required.