FAQs - Home Loans | NRI Lobby | Stamp Duty & Registration | Why Navi Mumbai

"Owning a home is a keystone of wealth.. both financial affluence and emotional security" – Suze Orman


Purchasing a Kesar home is probably one of the most simplified processes in the industry. Efforts have been made to create customer-friendly systems and procedures that go a long way in offering a stress-free and effortless atmosphere to all our esteemed clientele. The following FAQ aims at lending clarity to all your queries.

 

Home Loans
Who can apply for a housing loan?
Any person, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat from housing finance companies and banks.

How much can a person borrow?
Loans are generally disbursed upto a maximum of 85% of the cost of the flat. The balance 15% cost of the flat is to be funded by the flat owner.

How do I apply for a Home Loan?
Approach a Housing Finance Company with the latest salary slip and TDS Form 16 of the last two financial years of yourself and your co-applicant. The loan officer will informally tell you the amount of loan you are eligible for, the areas in which they finance flats and the terms of the same. Collect a loan application form and confirm the needed documents (mainly proof of income). Visit more than one company since you are likely to get better terms/ larger loan amount if you shop for the best deal.

Can a Non Resident Indian avail of housing loans?
Yes. Repayment of loan should be made within a period not exceeding 20 years out of inward remittances or out of funds held in the borrower's NRE/FCNR/NRO accounts.
 
How much housing loan can one get?
It depends on a persons repaying capacity based on your income. You can add your spouse's income to increase the amount of loan.

What is the installment scheme in the event of Bank Finance?
The bank finances the customer at the time of booking and makes the payment on your behalf. The payments are linked to the progress of the building. The customer repays the bank over a longer period of approx. 20 years.

What is the installment scheme in the event of the customer self financing?
The customer pays approx. 20% as down payment on booking,
10% on the construction of the first floor,
10% on the construction of the third floor
Basically 10% on the construction of each floor. In other words payments are linked to the progress of the building, financed by the customer.

What is the Advance Disbursement Facility (ADF)
The Kesar Group, under this scheme receives the entire value of the flat from the bank on behalf of the customer. The return we discount all the future payments due from the customer at an interest rate that is higher than the rate of the interest of the home loan.  

What tax benefits are available in regards to the housing loans?
Tax benefits are available to consumers of house loans for the interest component as well as principal component of the housing loans. The current budget has left the upper limit of the interest payment deduction at Rs 150,000 per annum. The section 88 also allows tax benefits on principal repayments.

What is the reducing balance method of interest payment?
In reducing balance you reduce the amount of principal payment already paid by you from the initial loan amount. You pay interest only on principal unpaid till that point of time and not the entire loan amount.

What is floating interest rate?

In a floating interest rate, your interest payment will vary according to the market lending rate. If interest rates rise your interest payments will rise and vice-versa. You bear the risk of interest fluctuations in the market. Floating rates are slightly cheaper than fixed interest rates.

What is fixed interest rate?
In a fixed interest rate, your interest rate is fixed over the entire tenure of loan. For your loan requirements please contact:


What are the types of housing loans available?
Various housing loans are offered by financial institutions. Prominent among these are:
a)Home Loans - This is the basic housing loan for the purchase of a new home which covers cost of the flat and parking space, deposits and charges, stamp duty and registration charges.

b)Home Improvement Loans - For implementing repair works and renovations in a home that has already been purchased by you.

c)Home Construction Loans - For the construction of a new house.

d)Home Extension Loans - For expanding or extending an existing house.

e)Home Conversion Loans - The existing loan on a house is transferred to a new house, including the extra amount required, eliminating the need for pre-payment of the previous loan.

f)Land Purchase Loans - For both home construction or investment purposes.

g)Bridge Loans - For people who wish to sell the existing house and purchase another and need finance for the new house, until a buyer is found for the old house.

h)Balance Transfer - To pay off an existing housing loan and avail of the option of a loan with a lower rate of interest.

i)Refinance Loans - To pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present house.

j)Loans To NRIs - As per requirements of NRIs who want to buy a house in India.
   
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