Apart from the processing fee and interest rate, there are other few factors/ charges which needs to be considered before taking a home loan. Therefore, for someone planning to take a housing loan in India, it is always wise to get a knack of home loan rules and regulations first and then proceed with loan application. Accordingly, below are some rules related to housing loans you must be aware of.
Waiver of prepayment charges: Home loans offered in India or any other part of world are offered for a very long tenor. Thus, home buyers shoulder on an obligation for a very long time, which they might or might not be comfortable with. Hence, housing loans in India always come with prepayment facility which allows borrowers to part-prepay their loan balance and reduce their obligations slowly and steadily. This facility, if considering any other loan, would require you to pay small fee as prepayment charges. But, prepayment charges for home loans are zero.
Zero charges on balance transfer: Balance transfer is a process wherein a borrower forecloses his loan from existing lender and gets his/her purchased property refinanced. This facility can be used without paying additional charges apart from foreclosure charges. Though you might have to pay processing fee to your new lender since you’ll be taking a loan again.
Loan to value ratio: As per the RBI guidelines, a person can borrow up to 90% of property’s cost from housing loan if the property is valued less than Rs 30 lakhs. For property valued between Rs.30 lakh and Rs.75 lakh, the loan-to-value ratio is 80%. For property valued in excess of Rs.75 lakh, the loan-to-value ratio is 75%.
Last but not least, home loan insurance is not mandatory but having one in place ensures your family members aren’t bothered for repayment once you’re no longer capable of paying the EMIs.
Waiver of prepayment charges: Home loans offered in India or any other part of world are offered for a very long tenor. Thus, home buyers shoulder on an obligation for a very long time, which they might or might not be comfortable with. Hence, housing loans in India always come with prepayment facility which allows borrowers to part-prepay their loan balance and reduce their obligations slowly and steadily. This facility, if considering any other loan, would require you to pay small fee as prepayment charges. But, prepayment charges for home loans are zero.
Zero charges on balance transfer: Balance transfer is a process wherein a borrower forecloses his loan from existing lender and gets his/her purchased property refinanced. This facility can be used without paying additional charges apart from foreclosure charges. Though you might have to pay processing fee to your new lender since you’ll be taking a loan again.
Loan to value ratio: As per the RBI guidelines, a person can borrow up to 90% of property’s cost from housing loan if the property is valued less than Rs 30 lakhs. For property valued between Rs.30 lakh and Rs.75 lakh, the loan-to-value ratio is 80%. For property valued in excess of Rs.75 lakh, the loan-to-value ratio is 75%.
Last but not least, home loan insurance is not mandatory but having one in place ensures your family members aren’t bothered for repayment once you’re no longer capable of paying the EMIs.
Read Also: Complete Guide to Home Loan Rules and Regulations in India
%20(1).png)
No comments:
Post a Comment