F.A.Q

You can generally seek a first time home loan for buying a house or a flat, renovation, extension and repairs to your existing house. Most banks have a separate policy for those who are going for a second house.

Applicable banks will assess your repayment capacity while deciding the home loan eligibility. Repayment capacity is based on your monthly disposable/surplus income, (which in turn is based on factors such as total monthly income/surplus less monthly expenses) and other factors like spouses income, assets, liabilities, stability of income etc. The main concern of the bank is to make sure that you comfortably repay the loan on time and ensure end use.  The higher the monthly disposable income, higher will be the amount you will be you will be eligible for loan. Typically a bank assumes that about 55-70% of your monthly disposable/surplus income is available for repayment of loan. however some banks calculate the income available for EMI payments based on an individuals gross income and not on his disposable income.
The amount of the loan depends on the tenure of the loan and the rate of interest.

You repay the loan in Equated Monthly Instalments (EMIs) comprising both principal and interest Repayment by way of EMi starts from the month  following the month in which you take full disbursement.

In addition to all legal documents relating to the house being bought, banks will also ask to submit identity and residence proof, latest salary slip (authenticated by the employer and self attested for employees) and form 16 (for business persons/Self employed) and last 1 year bank statements/ income tax returns for 3 years as applicable. You also need to submit the completed application form alongwith your photograph. Loan Applications form would give a checklist of documents to be attached with the application.

This is a table that gives details of the periodic principal and interest payments on a loan and the amount outstanding at any point of time. It also shows the gradual decrease of the loan balance until it reaches zero.