This loan is provided to construct the residential property . Property In this architect estimate is required and on the basis of estimate, loan is released according to stage of construction.
Tenure - 1 to 15 years .
Interest rate - As applicable . The interest rate keeps on changing.
Max funding - 80% of market value . Market value is assessed by bank
Age limit - max 60 years for salaried and 70 years for self employed.
Income tax benefit - principal repayment upto 1 lac under section 80(c) and interest repayment upto 1.5 lacs under sec 24.
Loan foreclosure penalty - Means paying off the complete loan at one go. Usually bank charges 2 to 3% of principal outstanding which depends on bank to bank part payment - menas paying some part of loan. No penalty is charged by most banks, but there are certain banks which charges.
3 documents are required for a loan to get disburse .
Sanction letter: - Loan sanctioning is based on the financial documents,personal documents and past credit history of the borrower. Based on the information provided banks calculates the eligibility and decides on the loan amount.
Legal report: - In this complete chain of property documents , starting from allotment of the property till the last transaction , are required . Based on these documents legal report is made.
Technical report: - In this approved map by municipal authority is required and based on it physical verification of the property happens. Certain things are checked like area of property , usage of property(Residential or commercial) and based on it report is made .
Based on these documents , disbursement documents are signed and cheaque is made in name of seller .
This complete process takes 15 to 18 days , subject to complete documents are provided by borrower .