The maximum amount of loan depends on a number of factors, like
customer's profile, his financial status and repaying capacity, tenure of the
loan etc.
Buying a property
necessitates in depth knowledge of real estate and choosing the right kind of
loans. Several banks are stepping up their exposure to real estate. These banks
are entering into agreements with builders for real estate loans. The scheme mainly
caters to builders / promoters developers of real estate. According to RBI
figures loans to builders, along with retail credit (like home loans, credit
cards and personal loans) constitute a big chunk of banks total loan portfolio.
Banks normally give real estate loans to builders / real estate
developers of repute. Experience of3-4 years is a must to avail the loan. The
quantum of loan is decided after scrutinising the financial statements and cash
flow statement of the applicant. The maximum amount of loan varies from case to
case and from bank to bank. Repayment is done in lump sum installment after the
completion of project/selling of the flats. The number of installments is
restricted to 3 to 4.
The interest rate is
normally determined and charged according to the prime lending rate of the
bank. Builders can either opt for a fixed or floating rate of interest.
Builders / real estate
developers can fill up the loan application either in person or utilise online
facilities and apply for loan. A nominal processing fee is charged by the
banks.
1. Application form with photograph affixed thereto.
2. Copies of certificates Educational qualifications.
3. Residence proof
4. Proof for existence of business and business profile with last
three years income tax return.
5. Last 3 years income and expenditure statement and balance
sheet.
6. Last 3 months personal and business bank statements.
Terms and conditions of loan may vary from bank to bank.
Banks provide loans
against mortgage of property. Businessmen, self employed professionals,
salaried persons are all eligible to apply for the loan. It enables the
borrower to apply for loan against a fixed asset.
The maximum amount of
loan depends on a number of factors, like customer's profile, his financial
status and repaying capacity, tenure of the loan etc. The repayment tenure
increase or decreases with the quantum of loan. Repayment of loan shall be made
through Equated Monthly Installments or EML
Interest is charged at
the predetermined rate as per the terms and conditions. Interest can be either
on fixed or floating rate basis. Interest rate can be discounted for existing clients
and in special cases according to the policies of the bank.
Customers can apply for
mortgage loans by filling an online form. They can also visit the nearest
branch of a particular bank. Normally, banks charge 1-2% of the actual loan
amount as processing fee.
1. Proof of identity
(passport copy I voters ID card I driving
license)
2. Address proof (ration
card Tel I Elect. Bill, passport copy)
3. Bank statements
(latest 6 months bank statement I passbook)
4. Latest salary slip of
current dated salary certificate with latest form 16 under Income tax Act,
1961.
5. Proof of ownership of
fixed asset being mortgaged.
1. Address proof (ration
card Tel I Elect. Bill I passport copy)
2. Bank statements
(latest 6 months bank statement I passbook)
3. Latest IT return
along with computation of income, B/S & P & Lalc
for the last 2 years duly certified by a chartered accountant.
4. Qualification proof
of the highest professional degree.
5. Proof of continuation
of business(Trade license I establishment I sales
tax certificate)
6. Other mandatory
documents (sole proprietorship. Declaration. Or certificate, copy of
partnership deed, Cert. copy of MOA, AOA & Board resolution.)
7. Proof of ownership of
fixed asset being mortgaged.
The word low cost
housing seems to have lost its relevance in metro cities in the country. The
population explosion and the resultant need for the housing is acutely felt for
decades. In the earlier Five Year Plans, there was no separate mention of urban
development and it was clubbed together with housing for the allocation of
plans provision.
However, the planning
documents expressed the need to take remedial measures for arresting the
deterioration in housing conditions in the urban areas, and to address the
problems of congestion and slums. One of the earliest efforts by the Union
Government was the introduction of social housing schemes for industrial
labourers and economically weaker sections. It provided 50 percent loan and 50
percent subsidy to the State Governments for constructing rental tenements.
This was in 1970-85 period.
While the demand for the
housing units is skyrocketing, the national 'Housing and Habitat' policy does
not say how to acquire land for the social housing. The housing boards created
to provide housing for the poor, started building high priced flats, which were
clearly out of the reach of the poor specifically in metro cities. Since most
of the land in metros cities is in the hands of private builders demanding
astronomical prices.
It remains out of the
reach of the middle class people. Land values are the basic factor affecting
the housing for the masses. Presently the slow down in the real estate sectors
have seen a number of schemes for the affordable housing. But they are far away
from the city centers and transportation to the work place takes 3 to 4 hours
or more in most distressing conditions. Because of the out dated rent acts,
rental housing is no more available. The Government should come out with
rational rental housing laws to promote the houses on rent with the provision
to purchase them on hire purchase basis. It should be remembered that not all
the persons can purchase houses on ownership basis and hence the rented housing
units comprising of around 300 sq. ft. area should be promoted. In fact if we
have to house the millions, rental housing is the only solutions for the
housing problem.
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