1. What is a home loan? A home of your own gives you the proud feeling of ownership and also a sense of belonging. The prior aim of all aims at building their own dream house. It is a kind of major investment which has become a need for a man and will remain only a dream without a Home Loan or Housing Loan. It is a type of loan which enables you to purchase a house, a land or a plot, extend or improve your house when you do not have enough cash in your account or hand. This loan allows you to take a house and pay the loan within a certain period in installments. However, you have to meet certain criteria’s to get the loan. The bank is not concerned with the end use of the loan, but you need to furnish enough proof to show your capability to repay the loan.2. Is housing loan and home loan, the same? Yes, both terms mean the same and have the similar function.3. What are the purposes of a home loan? We can take a Home Loan for all kinds of housing purposes. There are no limitations for the same. You can make use of the loan money to invest in anything from your buying your house to a renovating a single room of your present house. Extension of your house, buying a plot, conversion of a house, etc. can be the purpose of home loans.4. What is the minimum age to avail a home loan? The minimum age in which one can avail a home loan is approximately 25-30 years.5.How do I avail for a home loan? You can avail a home loan from a bank of your choice only after thorough reading of the best interest rates that several banks offer. You should also check with the bank in which you have your salary account, for special discounts. You can negotiate the rate with your bank. Also, check out the eligibility criteria and the necessary documents required before applying for the home loan.6.How do I know my loan eligibility? You should go through the brochures and give special attention to the home loan section offered by the banks. Go through the rules and regulations of the particular bank to know your eligibility or you can ask by calling in the customer care of the bank.

7.What would be the maximum tenure to repay the home loan?   The loan tenure is quite flexible and long for home loans. Nearly all banks offer a tenure of 1 to 30 years so that the customer can repay the loan at ease. 8.What is the maximum amount of home loan can I avail? You can avail a maximum home loan of up to 1 crore also. Most of the banks offer a home loan 60-65 lakhs. Moreover, the maximum amount depends on your capacity to repay the loan. 9.Are there any hidden charges charged along with the loan amount? Sometimes some hidden charges are charged by the bankers. However, many banks do not have any hidden charge. But there is some processing fee of 1-3% on the loan amount which is charged. 10.What would be the rate of interest on home loans? The rate of interest differs from one bank to another. Generally, it ranges from 9%-14% according to your profile, kind of job and place of work and city you live in. The most important factor is your repayment capacity. 11.What are the most important documents required for a home loan? Generally, documents needed for availing home loans is almost similar in all banks or NBFCs.The fundamental or basic documents required are: (You need to submit any one document from each of the following categories)

• Age Proof: Passport, Driving License, Life Insurance Policy, Birth Certificate, PAN Card, School Leaving Certificate.
• Identity Proof: Passport, Driving License, PAN Card, Voter’s ID.
• Residence Address Proof: Utility Bill, Bank Statements, Property Registration Documents, Property Tax Receipt, Voter’s ID.
• Office Address Proof: Employee ID Card/Appointment Letter/Letter from employer on official letterhead.
• Income Proof for Salaried Individuals: Last three months salary slip and appointment letter/yearly increment letter and certified a true copy of Form 16.
• Income Proof for Self-employed Individuals: Last 2 years of IT returns with supportive documents, the business profile on letterhead, a registration certificate for business commencement.
• Income Proof for NRIs: Pay slips of last 6 months along with employment stability documents such as appointment letter/previous employment history.
• Bank Statements for Salaried Individuals: Bank statement for the last 6 months from the salary A/C.
• Bank Statements for Self-employed Individuals: Operative current account statement for 6 months, also, if any, CC/OD facilities taken corresponding bank statements for 6 months to be submitted.
• Bank Statements for NRI Applicants: Overseas salary account for 6 months and Indian NRE/ NRO account statements for 6 months to be provided.
• Credit Report for NRI: NRI applicants have to submit Credit Report of their current country of residence where ever it is applicable as per Tata Capital norms.
• Details of Existing Loan: Existing loan details should be provided through bank statements.
• Processing Fee Cheque: To be issued from the salary account for a salaried customer or the business Account in case of Self Employed customer.
• Only Aadhaar card is an added one for KYC document

12.What is the correct time to avail a home loan? There is no right or correct time for taking a loan. A loan is taken according to the emergency of the situation and the same goes for the home loan. However, there is an age limit. The minimum age limit for availing a home loan is 25-30 years. But you need to finance your budget very skilfully and smartly. 13.If you have opted for online banking, do you have to visit the bank which is lending you the home loan? Yes, you have to visit the lending bank branch at least once in your loan tenure. This might be before closing the loan to check the formalities and sign where it is needed. However, most banks and financial institutes are giving door-step service to avoid standing in long queues. 14.Shall I get the entire cost of the property as loan amount that I want to buy from the bank? No, you would not get the total cost as loan amount. A bank might offer you as much as 80-90% of the total cost of the property but would not give you the full amount. However, it differs from one bank to another. Moreover, your loan amount will depend on your capacity to repay the loan. 15.When can a borrower start his procedure for repayment? The borrower can start his repayment once the whole loan amount is paid by the bank. If there is a property which is undergoing construction then the bank allows repayment of the partially paid loan amount. 16.Can anyone pay back the loan on a prior basis? Yes, almost all the banks offer the pre-payment facility. The only difference is that some banks do not charge any prepayment fee while many banks charge a prepayment fee. 17.What is the time was taken to get a home loan application be passed? This generally depends on the banks in which you are availing a home loan. However, generally, after you have filled the application form and submitted the necessary documents, your loan would be passed. It takes around 20-30 days. 18.Can I change my fixed interest rate to floating interest rate during the tenure of my home loan? Yes, you can surely switch anytime from your fixed interest rate to floating rate of interest and vice-versa anytime you want during your loan amount tenure or period. 19.Can I give a joint application for my home loan? Yes, you can apply for your home loan jointly with your spouse or any family member. Moreover, both of your incomes would be considered for lending the loan. 20.Is there a need of any guarantor for availing a home loan? This depends on the banks mostly. There are several banks like SBI, in HDFC Ltd., Indiabulls, ICICI bank, AXIS bank, etc. who do not require a guarantor for lending a home loan but some banks do require a guarantor. So, you choose your bank carefully and accordingly. 21.How can I repay my home loan amount? You can pay back your loan in EMI’s, through post-dated cheques (PDC) or by signing an ECS (Electronic clearing system) with your account. Mostly these ECS are submitted on the 1st day of every month, so it is advised to confirm the same with the bank. If you have an account with the bank then you can mandate the bank to directly debit the same. You can also pay online through net-banking, credit or debit card. 22.What is an EMI? EMI stands for Equated Monthly Installments. This installment comprises both principal and interest components. You can pay your home loan with EMIs, so you have to choose a bank which offers low EMI. 23.How can I make my EMI payments? EMIs can be paid in offline mode through cash or cheques. Through online, you can pay through net banking or by using your debit or credit card. 24.Do I need a bank account in the bank which is lending me a home loan? No, having or rather opening an account with the lending bank is not mandatory. You can apply for the loan from any bank according to your requirements. However, you can avail special interest rates if you already have a relationship with the bank. 25.What are the necessary things which I need to know about the home loan?

• Eligibility Criteria
• Loan amount provided
• No security/guarantor required
• Documents Required
• Interest rates and Charges Applicable
• Prepayment or Repayment options

26.Can I avail home loans for business purposes? No, you cannot avail home loans for business purposes as it is based totally on housing and property deals. However, you can purchase a plot for your business purpose. 27.When do I get back my original property documents which I have submitted to the bank as security? Any kind of documents submitted to the bank as security would be given back to you only once you have repaid the whole loan amount.

28. Can I make part prepayments on my home loan account? A-You can make a prepayment of up to 25% of your loan amount, without incurring any prepayment charges.

B-If the prepayment amount exceeds 25% of your total loan amount, then you’ll be charged 2% of the outstanding loan amount.

29. How to claim tax deductions on home loans?

• The amount of deduction you can claim depends on the ownership share you have on the property.
• The home loan must also be in your name. A co-borrower can claim these deductions too.
• The home loan deduction can only be claimed from the financial year in which the construction is completed.

• Submit your home loan interest certificate to your employer for him to adjust tax deductions at source accordingly. This document contains information on your ownership share, borrower details and EMI payments split into interest and principal.
• Otherwise, you may have to calculate the taxes on your own and claim the refund, if any, at the time of tax filing. It’s also possible that you may have to deposit the dues on your own if there is a tax payable.

If you are self-employed or a freelancer, you don’t have to submit these documents anywhere, not even to the I-T Department. You’ll need them to calculate your advance tax liability for every quarter. You must keep them safely to answer queries that may arise from the I-T Department and for your own records.