1. Can I get a personal loan for holiday at foreign destination?
Yes, you can use the funds from personal loan for you dream vacation also.
2. Does my CIBIL score has any implication on my loan eligibility?
CIBIL is the most important deciding factor for determining eligibility of all kinds of loans.
3. How much is the processing fee?
Processing fee varies from one financial institution to another. Normally it ranges between 2-3 % of loan amount.
4. What are the pre closure charges ?
Pre closure charges are the charges which need to be paid if you are closing the loan before completion of tenure. It also varies from one financial institution to another.Normally it is 2-3 % of principal outstanding.
5. I am staying in a bachelor accommodation on sharing basis, my family resided in home town . Is this going to be a hindrance for my personal loan ?
Normally personal loan is not given to people staying in bachelor accommodation. But exceptions are always possible based on profile and credit history of the customer.
6. Can income of spouse be clubbed for increasing the eligibility ?
Yes, income of spouse can be clubbed to increse the eligibility of personal loan.
7. Do I get a tax benefit on Home Loan ?
Yes, you are eligible for tax benefits on the principal and interest components of the loan under the Income Tax Act, 1961. However ,as the benefits could vary each year, do check out the current benefits available.
8. I am self employed, income revealed in my ITR is quite less in comparison to my actual earnings, is this going to affect my loan eligibility?
Loan eligibility is decided on the basis of declared income, however financial institutions have started considering bank balances and turnover also to determine the eligibility.
9. What are the bases of interest rate calculation?
The interest on Home Loans is usually calculated on Monthly Reducing. On Monthly Reducing Balance, the principal on which you pay interest reduces every month as you pay your EMI.
10. Is it mandatory to take insurance on loan as well as property?
No, it is not mandatory but we would advise to do so keeping in view uncertainties of the future.
11. Are my property documents safe with the lending institution?
Yes the financial institution are custodian of property documents and they handle it very professionally and carefully.
12. How many days after closing the loan can I get back my property documents ?
It takes around 15-20 days.
13. Can I take a Home Loan for construction in one city while working in another city ?
Yes, you can take a loan for construction in one city while working in another. The banks usually service this loan after getting details of the plot legally verified.
14. Can I Simultaneously take loan on two different properties?
Yes, you can do so provided you fulfill the income criteria of the lending institution.
15. How long does it take to get my application processed and the loan sanctioned?
It takes around two weeks for processing of one's application if all the necessary documents are in order and takes another week for the bank to inspect the property papers and make the disbursement.
16. What are the basic documents required for disbursal ?
Basic documents required for disbursal are allotment letters,photocopies of title deeds,encumbrance certificate,agreement to sell,approved plans and clearance certificates (for self construction).
17. Can I transfer my housing loan from one financial institution to another?
Yes, you can always transfer your loan from one financial institution to another. In this case you can get an additional amount over the outstanding of previous lender ,which you can use for any purpose.
18. What are the basic property documents required for loan against property ?
Basic documents required are title documents and Map.
19. What should be the minimum value of property against which LAP(loan against property ) can be taken ?
Minimum value of property is Rs.10 lacs.
20. Can I get loan against commercial property also ?
Yes you can get loan against commercial property also but the minimum area should be 150 sq ft.
21. I am 58 yrs in age and running my business, for how many years can I get loan against property ?
You can get loan against property for seven years , as the maximum age limit is 65 years.
22. What is the maximum value of loan that I can get on commercial property worth Rs.10000000 ?
You can get maximum 45% of property value as loan amount, in your case maximum loan amount can be Rs.45,00,000.
23. My father is retired but our house is on his name . Can I take a loan on this property by becoming a co-applicant with him since I am in employment right now ?
Yes, you can do so . Close blood relatives can become co-applicant.
24. Can I get any tax benefit on loan against property ?
Yes, you can claim the entire amount of interest paid as business expenses, if used purely for Business purpose.
25. What is the difference between LAP and Personal loan ?
LAP is a secured loan which is secured against your property where as personal loan is unsecured loan. LAP is for long tenure whereas personal loan is for short tenure.Interest rates are comparatively higher in personal loans.