There
are different types of housing loans available these days
depending upon the needs of individual/Companies.One
can get loan for purchasing a property, renovations, and
extensions, Bridge Loans etc.
Different type of schemes is offered by Banks/Financial
Institutions for different needs. Duration of
Loan repayment is a choice of Individual/Companies.One can
pay according to his repayment capacity. Loans are
given to Individual/Companies depending upon the value
of the property and need of the Individual/Company and above
all the repayment ability of the Individual/ Company
desiring to take loan. It automatically gets linked to
the Income of the Individual/Company and that only can decide
what could be the limit of loan to be offered by the
Bank/Finance Institutions.
To avail loans some documents which may be asked by
the Bank/Finance Institutions, which satisfy the criteria
of sanction of loans.
Normally
the under mentioned documents are asked to process the Loan
Application :
1. Proof of income ( Salary Slips/Income Tax Returns
etc )
2. Photographs
3. Proof of age/Identity papers
4. Proof of residence
5. Property Papers to establish the title of the property.
Different
institutions offer different schemes and rates of interest
for different durations. It is essential to cross-examine
which is the best-suited option. One should not rush to
opt for a scheme. It is further recommended to ask
in detail all aspects of Loan conditions. Like early repayment,
advance installments, rate of interest etc. etc. There are
few incentives for timely payments, which you must
ask for. Don't sign any document or pay any processing fee
etc. till you have gone through the documents thoroughly
and especially the fine print. Some institutions do
offer some special incentives ask for them.
There are taxation benefits available if you take
loans. You should check this aspect as well with your
Chartered Accountant who can throw light on the subject
depending upon your income and needs of Loans.
Finally, Buying a property is a Life Time decision,
so please don't buy any property just because Loan
is available against the property. First select the best-suited
property and then only look for Finance Options. We
do not advocate or recommend any institution, its is your
right to choose the best scheme and institution.