The Bank assess the customer's repayment capacity based on income, age, qualifications, number of dependents, spouse's income, assets, liabilities, stability and continuity of occupation, and savings history.
Repayment tenure is the tenure for the number of years for which the loan gets sanctioned. The Bank offers you a wide range of options for the tenure of the loan. You can take a home loan for up to 30 years (dependent on the bank) provided you do not reach the age of 65 years or retire within that period.
An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.
All loan repayments are done via equated monthly installments (EMI).
EMI payments start from the month following the month in which the full disbursement has been made.
The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month.
In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days.
The security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to the bank of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to the bank Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation, which is likely to affect the title to the property adversely.