This loan is provided against residential property (flat,bunglow) which should be approved by municipal authorities .The loan could be used for meeting any personal requirements of the borrower such as business expansion,marriage,child education
Max funding- 60% to 70% of market value
Tenure – 1 to 15 years
Interest rate – As applicable . Interest rate keeps on changing .
Age limit - max 65 years for salaried or retirement age , whichever is earlier and 70 years for self employed.
Loan foreclosure penalty - Means paying off the complete loan at one go.Mostly bank charges 2 to 3% of principal outstanding as penalty.
No income tax benefit is there
part payment - means paying some part of loan.Most banks don't charge any penalty .
Co-applicant - Most of the banks ask for co-applicant .Co-applicant can be -
Individual - spouse,parents
Director - spouse , parents , pvt ltd company , other directors .
Partner - spouse , parents , other partners .
Co-owners of property need to be co-applicants in loan .
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 through these documents banks calculates the loan 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.
3) Technical report : - In this approved map by municipal authority is required .On map provided , physical verification of the property happens .While verification certain things are checked like area of property , usage of property(Residential or commercial) . Based on this report is made .
If all 3 documents are approved by the bank ,than disbursement documents are signed and cheaque is made in name of borrower .
This complete process takes 15 to 18 days , subject to complete documents are provided by the borrower .