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Frequently Asked Questions

Personal and Home Loan

1. What are the minimum and maximum loan amounts?

These loans range from Rs. 3 Lacs to 20 Lacs. The Loan Amount is based on your Income and Repayment capacity.

2. What are the loan tenure options?

You can avail funding from 12 to 60 Months.

3. How many days does it take to process the loan?

On submission of your entire documents in accordance with the Bank requirements, it takes 3 Working Days. All loan approvals are at the discretion of the Bank.

4. Do I have to offer any security for my Personal Loan?

To obtain the Personal Loans there is no need to provide any security or collateral.

5. In how many years can I repay the loan amount?

You can opt for a loan period of up to 30 years, which can vary depending on your profile.

6. Who can be my co-applicant?

If you are an individual – your spouse, your parents, or even your major children can be your co-applicants. The co-owner of a property has to be a co-applicant, but a co-applicant need not be the co-owner of the property.

7. Can I make Part-Prepayment?

Yes. You can make part prepayments with complete flexibility without any charge

8. What is Foreclosure Charges?

If the Housing loan is under Variable/Floating Rate loan and the loan is prepaid through any source, no prepayment charges shall apply If the Housing loan is under fixed rate, the pre-payment charges shall apply.

9. What is the difference between Fixed and Floating Home Loan Rate?

Fixed Home Loan rates: The rate of interest applicable for the Home Laon is fixed throughout the term of repayment of Loan. Floating Home Loan rates: The rate of interest applicable to the Home Loan changes with change in the Bank’s Base rate.

10. Do I get a tax benefit on my Home Loan?

Yes, resident Indians are eligible for tax benefits on both the principal and the interest of a Home Loan under the Income Tax Act.

11. What is the process of Home Loan?

Once we receive a completed application form along with the necessary supporting documents two things happen:
Determination of your eligibility for the Loan: For this, the Bank / Financial Institution consider their internal policy guidelines and also examine all the documents submitted by you. If you are deemed eligible, you will get an approval for a specific loan amount based on your requirement, repayment capability and the value of the property.
Legal and Technical verification: Lawyers and property valuers impaneled by the Bank / Financial Institution will verify your title documents; conduct a technical evaluation of the property.
After completion of the above process, the Bank / Financial Institution will process the sanction and disbursement of your Loan.

12. What are the different types of Repayment Options?

• Equated Monthly Instalment – The Instalment amount is fixed throughout the tenure at a particular rate of Interest
• Step Up Repayment Facility – It offers an option where the repayment schedule is linked to the expected growth in your income. You can avail a higher amount of loan and pay lower EMIs in the initial years. Subsequently, the repayment is accelerated proportionately with the assumed increase in your income.
• Flexible Loan Installments Plan – It offers a customized solution to suit your repayment capacity which is likely to alter during the term of the loan. The loan is structured in such a way that the EMI is higher during the initial years and subsequently decreases in proportion to the income.
• Tranche Based EMI – If you purchase an under-construction property you are generally required to service only the interest on the loan amount drawn till the final disbursement of the loan and pay EMIs thereafter. In case you wish to start principal repayment immediately you may opt to tranche the loan and start paying EMIs on the cumulative amounts disbursed.

13. What kind of security is required?

In most cases, the property itself becomes the security until the entire loan is repaid.