Luxury apartments in Pune are definitely expensive. It is difficult to look for flats in Pune for sale without taking a home loan. Most of the home buyers are not very aware of the loan procedures and are always in double mind whether the loan will help them or not. Knowledge about some banking terms, before you apply for a loan, will always help. Following are some of these terms.
The first step for a home loan is your eligibility. Apply for a loan in any bank, they will check your repayment capacity and if it is suitable to their terms then and only then your loan will be approved. Repayment capacity depends on your monthly income including bonus and surplus. The major concern of your bank is how much you can afford to pay per month in the form of a monthly instalment.
Loan amount and EMI
Depending upon your repayment capacity and the tenure of the loan, your loan amount is decided. Loan tenure particularly depends on your age. Your EMIs (Equated Monthly Instalments) are then decided by the bank. It is usually up to 50-60% of your monthly income.
Documents and legal processes of banking
Basic documents required for a home loan are identity and residence proof. You need to submit latest salary sleep authorised by the employer or form 16 for self- employed and business persons. Balance sheet, last six months bank statements must be attached with the home loan form of the respective bank.
Life insurance policy documents, tax waiver documents and no objection certificate for eligibility of home loan are also required.
Interest rates and floating rate
The interest rate on your home loan is determined by the bank according to the guidelines of Reserve Bank of India. Usually bank offers two types of interest rates to the customers- floating rate or a fixed rate.
In the fixed rate home loans, an interest rate is fixed for the complete tenure of the loan or for the certain period. When fixed rate is applied, EMI remains constant throughout. In the floating rate system, the interest rate on your loan changes according to the market rates. It affects your repayments/ EMI. If the market rate increases your EMI will also increase and vice- versa.
Taking a home loan may sound like a risk but if you are looking for a luxury apartment in Pune then along with the right bank choose the right developer as well. Goel Ganga Developers offers great luxury apartments in Pune and Puneites have trusted them since many decades.
GOEL GANGA DEVELOPMENTS, Pune