Ghar4u ~ Careers & Franchise

Careers & Franchise

Frequently Asked Questions
Common (for salaried as well as self-employed borrowers)

Proof of Age
Proof of Residence
Photograph
Bank Statements for the past six months

For salaried borrowers

Latest salary slip or statement
Form 16

For self-employed borrowers

I-T returns for the last 3 years
Balance sheet for the last 3 years
P&L accounts for the last 3 years
Tax challan for the last 3 years

Who can apply for a home loan?

Any individual who has the capacity to service a loan, as assessed by the HFC, can apply for a loan.

What is the maximum loan that I can avail?

The maximum loan that you can avail normally is: for Home Loans and Home Extension Loans 85% of the cost of property, or your loan eligibility as assessed by the HFC, whichever is less

How is my loan eligibility assessed?

Your loan eligibility is assessed taking into consideration factors like your monthly income, monthly commitments, assets, age, qualification, employment, and savings background.

What is the maximum term of repayment?

The loan is repayable over a maximum term of 20 years or retirement age whichever is earlier. (65 years of age in case of self-employed.)

Who is a Co-applicant?

If your spouse is an earning member, The HFC will consider him/her as a Co-applicant. However, all Co-owners of the property financed should join as Co-applicants.

How long is a loan offer open ? Is there any commitment charge? ( General )

There is no validity for a loan offer. However, SHFL reserves the right to re-assess your repayment capacity if there is a considerable lapse of time between loan sanction and acceptance. No commitment charge is payable on the undrawn loan amount.

What is the security for the loan? ( General )

The loan will be secured by an equitable mortgage of the property. Equitable Mortgage of property is created by way of deposit of title documents of the property financed.

What Is Monthly Reducing Loan?

Under this scheme, the principal on which you pay interest reduces every month as you pay your EMI.

What Is Annual Reducing Loan?

Under this scheme, the principal reduces only at the end of the year. Hence the consumer continues to pay interest on a portion of the principal which he/she has actually paid back to the lender.
In effect, the consumer has to pay more under the Annual Reducing Loan as compared to a Monthly Reducing Loan.

What Is Fixed Rate Of Interest?

A fixed rate of interest means that the rate of interest on the loan amount remains unchanged for the entire duration of the loan agreement, irrespective of the change in the interest rates in the economy. Hence if the consumer opts for a fixed rate of interest he will not be able to benefit if the interest rates are falling.

What Is Floating Rate?

A floating rate of interest is one that fluctuates according to the market lending rate. Hence, in an environment were the interest rates are rising, your budgeted expenditure on the house loan also goes up.

What Are The Other Incidental Costs Associated With A Housing Loan?

The following are some of the extra costs associated with a housing loan:

Interest Tax: This is the tax payable on the interest paid on a home loan and not on the principal. This tax is sometimes included in the interest rate of the loan, or may be charged separately as interest tax.
Processing Charge: This is a fee payable to the lender on applying for a loan. It is either a fixed amount or a percentage of the loan amount. The loan amount received by you could be net of this fee.
Pre-payment Penalties: When a consumer opts to pre-pay his loan, housing finance companies charge a pre-payment fee of between 1% and 2%. The reason for this is that the lender has to adjust his cash flows and match his asset-liability structure.

Will someone assist me in identifying a property?

Yes, Please register with www.ghar4u.com for details on properties in many locations in Hyderabad and Secunderabad and the offline team of consultants will be glad to be of assistance.