No
matter whether you are going to do ‘Griha Pravesh’ in your first home or buying
another home for investment purpose, it becomes elementary to choose the right
loan that best fits your needs at an honest cost. It is always beneficial to
get some knowledge about the service that you would be availing.
Objective of Home Loan
Banks
generally finance for-
·
Purchase of under
construction or new or resale residential property
·
Purchasing the
plot
·
Construction of
house
·
Renovation and
extension of existing unit
·
Refinance of
existing home loan
Amount of Loan
Financial
institutes and banks normally finance 80% of the market value of the property
and 90% amount in case of loan amount below Rupees 20 Lakhs. According to the
notification of RBI, stamp duty and registration charges are not funded by
banks. It implies that cash down payment is 1—20% of agreement value of the
property and stamp duty, registration charges are additional cost.
Disbursement
of loan amount depends on the various factors such as income, monthly
outgoings, existing loans, track record of repayment and property valuation by
the bank etc. To increase the eligibility amount, you are suggested to add
earning member of your family as co-borrowers such as your parents, spouse, and
children and in some cases you can add earning brothers too.
Interest Rate Calculator
Interest
rate for banks is calculated certain above the base rate whereas housing
finance institutes calculate rate of interest above or below the Prime Lending
Rate (PLR). This difference is called Spread. Further interest rates are
available in two types- fixed and floating. It all depends what you want to
choose.
As
a prospective borrower you should do proper research and comparison. With
special offers for women, ICICI bank has large network all over India to
provide best services to its customers. Loan is the game of number and
calculations. Right calculations help you to achieve the best. In this number
game ICICI Loan Calculator is your
perfect guide.
