Easy Steps To Avail Home Loans
Enquiry stage :
We will explain the types of loans available, the interest rates, the amount of loan eligible by the customer(for eligibility see LCR) and the amount of installment payable(for eligiblity see IIR) and the requirements for the loan.
The loan quantum that you would be eligible will depend on the your repayment capacity as determined by Can Fin Homes. Repayment capacity will be considered after assessing your income, age, qualifications, work experience, number of dependents, spouse's income, stability of income and employment, assets, liabilities, etc.
Interest calculation
The interest is debited to the account at the end of each month and interest calculation is made on daily products basis taking into consideration the EMI credited and any other remittances made in the account during the month. The liability gets reduced on the day when EMI is remitted or any other remittance is made.
Submission of loan application form :
The loan application form asks for information of the borrower, his family, details of his income and expenditure and his financial history, cost of the property, availability of resources, details of personal finances including bank account numbers, details of property to be developed or purchased, etc.
The required fee is also to be paid while submitting your application form.
You will have to be thorough and precise in your answers and should submit all papers asked for in the list of documents.
Legal scrutiny report:
The documents pertaining to the property needs to be scrutinised by our legal personnel to verify for our satisfaction that the property proposed to be mortgaged in our favour is valid and marketable. The same is not an approval from CFHL regarding title. You will be buying the property at your own risk.
Pre-sanction inspection of the property:
Immediately on receipt of the application for loan, the loan officer will conduct an inspection of the property to ascertain the location of the property, verify the technical details of the house like structural stability etc. and stage of construction if the loan is for construction.
Credit appraisal:
The loan officer will then process your application by taking the proof of income and other relevant particulars will then be verified by the loan officer for the approval of the loan.
The applicants will also be called to the branch for a credit interview where he is expected to give a frank submission to the questions asked.
Sanction letter:
On approval of the loan, a sanction letter communicating the sanction terms and conditions will be issued to the party.
Acceptance letter:
The applicant will then, on reading the terms of the loan will communicate his willingness to accept the loan by way of an acceptance letter within one month from the date of the sanction letter and also pay the requisite administrative fee.
Inspection of property:
Post sanction inspection of the property will be done at each stage of disbursement to ensure that the margin money is invested by the borrower and the progress of work is as per schedule.
Investment of margin money:
The margin money being the difference between the cost of the property and the loan amount sanctioned to the borrower has to be invested by the borrower on the property prior to release of the loan amount in case of construction of a house. In case it is for purchase of a house then the loan amount will be released on the day of registration of the property and the margin money has to be invested by the borrower prior to the release. In case of purchase of flats also the release will be made only on investment of the margin money by the borrower.
Submission of documents and signing of loan papers:
All the original title deeds and related documents as listed above and additional documents, if any, as required by the Company shall be submitted for creation of mortgage. Necessary stamp duty for creation of mortgage as per the respective State Stamp Act requirements shall be borne by the borrower. All the loan papers to be signed by the borrowers and the guarantors will be kept ready by the branch. On the appointed day the loan papers is to be signed by the borrowers and the guarantors.
Disbursements
Depending on the purpose of the loan the disbursement will be made either in stages if it happens to be for construction or in full on the day of registration if it is for purchase of a house.
On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by CFHL.
The disbursement will be in favour of the builder/seller in case of purchase of flat or ready built house.
List of documents for disbursement
Standard documents:
Disbursement Requests
Post-dated cheques
Personal guarantor's documents, as the case may be
Payment of installments :
The repayment of the loan which is also a very important aspect from the point of view of the borrower as well as the financier is to be arranged by the borrower as per the terms specified, either through salary deduction or through post-dated cheques.
Prepayment
- Prepayment of loan is permitted for any amount.
- We will not charge any penalty for part payments on any time.
- However if the borrower closes the loan completely a nominal fee will be charged.
Tax benefits You can save significant part of your tax liability if you have taken a home loan.
Interest paid on the home loan
Resident Indians are eligible for tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1,50,000 p.a. will give a tax saving approximately Rs. 47,000 p.a.
Principal repayment of the home loan
An added tax benefits under Sec 88 on repayment of principal amount upto Rs. 20,000 p.a. which can further reduce your tax liability by Rs. 4,000 p.a.