House is one of the most preliminary needs for humans apart from food and clothing. Owning a house provides a great pleasure and emotional satisfaction so it is the dream of almost all of us and therefore, we want to buy our own house as soon as we can. Currently property rates are too high and it is not possible for everyone to purchase it through his/ her personal financial resources.
To resolve this problem, banks and other financial institutions have started financing through home loan to buy a house property at attractive interest rates to the people based on their eligibility criteria. With the availability of several banks and competitive interest rates, the home buying has become an easy for the people. Buying a home is very big decision and involves a huge sum of money. It is advisable that for buying a house, you should apply for a home loan rather than depleting all the resources at once.
Below table will show you the list of all Cooperative Banks who are extending home loans with their interest rates and tenure. This table will be offering you a chance to pick a bank of your choice under one roof:
|Ahmedabad Mercantile Cooperative Bank||8.40% - 8.50%||20 Years|
|Kalupur Commercial Cooperative Bank||8.25% - 8.50%||20 Years|
|The Mehsana Urban Cooperative Bank||9.50%||Flexible|
|Nutan Sahakari Bank Ltd||8.25% - 8.50%||Flexible|
|Rajkot Nagrik Sahakari Bank||Contact your branch||15 Years|
|Sardar Bhiladwala Pardi Pepls Co Bk||9.00% - 10.25%||15 Years|
|The Surath Peoples Cooperative Bank||9.00% - 9.50%||15 Years|
|Amanath Cooperative Bank Ltd. Bangalore||12% - 14%||Flexible|
|The A.p. Mahesh Cooperative Urban Bank||11% - 15%||15 Years|
|Abhyudaya Cooperative Bank||8.40 % - 8.50%||20 Years|
|Apna Sahakari Bank||9.50% - 9.75%||20 Years|
|Bassein Catholic Cooperative Bank||8.95%||20 Years|
|Bharat Cooperative Bank (mumbai) Ltd., Mumbai||8.50% - 10.00%||20 Years|
|Bharati Sahakari Bank||10% - 10.50%||15 Years|
|Bombay Mercantile Co Op Bank Ltd||8.90% - 9%||10 Years|
Outlined below is the stepwise process of availing a Home Loan:
Decide on How Much You Can Afford: You have to consider all your incomes and expenses along with future obligations before deciding how much EMI can you afford to pay. You must always remember that total EMIs should not be more than 40% of your income.
Calculate the Amount you can pay as Down-Payment: You should accumulate maximum resources that you can bring to secure amount for down payment for home. Larger the down payment, lesser you need to take home loan which will lower your financial burden.
Perform thorough Research: Go through the details provided on lender's websites, check the types of loan, do interest rate analysis by taking help of any advisor. One of the best ways is to take the help of online mortgage aggregators to compare the interest rates and other charges associated with home loan. After that select the lender from whom you want to take home loan.
Meet the Lender you Selected: Visit the lender's office, collect all the relevant information & negotiate with the lender on interest rate and other terms based on your credit score & repayment capacity. Get your home loan eligibility checked.
Arrange for Required Documents: Keep ready with all the necessary documents that are required to be submitted along with home loan application.
Apply for Home Loan: Submit home loan application along with necessary documents. Check your application completely before submitting it.
Get Loan Approval & Read the Fine Print in depth: Get sanction letter from the lender. Read the loan agreement very carefully and sign it.
A pre-approved home loan is usually offered by banks to their customers who have a good track record of timely repayment of their dues or debt obligation. It is often offered at lower interest rates.
A pre-approved home loan is:
Benefits of Pre-approved Home Loan:
PMAY is an affordable housing scheme for providing houses to all the eligible beneficiaries by 2022. "Housing for All" Mission for urban area will be implemented during 2015-2022. Credit linked subsidy (CLSS) will be provided on home loans taken by eligible urban beneficiaries for acquisition or construction of house.
It is provided in 2 categories:
(1) Credit Linked Subsidy Scheme (CLSS) EWS / LIG
Credit linked interest subsidy at 6.50% will be provided to the eligible borrowers in EWS/LIG category for 20 years or actual tenure of the home loan, whichever is lower, as per the guidelines of Government of India.
(2) Credit Linked Subsidy Scheme (CLSS) - MIG
Credit linked interest subsidy at 4% or 3% will be provided to the eligible borrowers in MIG-I/ MIG-II category up to 31.03.2019, as per the guidelines of Government of India. CLSS-MIG had been implemented initially for a period of one year i.e. from 01.01.2017 up to 31.12.2017, but has now been extended up to 31.03.2019.
Home loan is one of the most important decisions that a person takes and it has its effects on his financial planning for the next 15 to 20 years. That is why, one must perform proper research and analysis & best of the home work before availing a home loan.
At the end, it is to be mentioned here that for first time home buyers, tax deduction upto maximum of Rs.50,000 is available under section 80EE of Income Tax Act, 1961 (subject to certain conditions). This is over and above the above 2 deductions of Rs 1.5 lakhs under Section 80C and Rs 2 lakhs under Section 24 of the Income Tax Act 1961.
It is observed that many banks offer pre-approve home loans to their existing account holders. They do so on considering a few important parameters such as the cash and other transactions in their salary accounts, their repayment history, if they have taken any loan or they are credit card holders.
The process of applying for a Pre-Approved Home Loan is just same as that of a regular home loan. The applicant needs to go through following step by step process for applying for Pre-Approved Home Loan: