Either can apply for Home Loans-individually or jointly. Any person, including Non Resident Indians, with a steady source of income can borrow funds from housing finance companies and banks.

You should be

• Above 21 years of age at the commencement of the loan
• Below 65 when the loan matures
• Either salaried or self employed

Yes. Repayment of loan should be made within a period not exceeding 20 years out of inward remittances or out of funds held in the borrower's NRE/FCNR/NRO accounts.

Loans can be availed up to a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends up to a maximum of Rs.1, 00,00,000 on a Home Loan to an individual. The balance 15% cost of the flat is to be funded by the flat purchaser from his own contribution.

In most cases, the property to be purchased it self becomes the security and is mortgaged to the lending institution till the entire loan is repaid. As per the requirements some institutions may ask for additional security such as life insurance policies, shares, bonds, fixed deposit receipts, national savings certificates.

Yes. Many lending companies require 1 guarantor.

• If you are Employed - Latest salary slip/salary certificate showing all deductions.
• If you are Self Employed - Balance Sheets and Profit & Loss Accounts of the business/profession along with copies of Individual Income Tax Returns for the last three years certified by a Chartered Accountant and a note giving information on the nature of your business/profession, form of organization, clients, suppliers, etc.

About 0- 20 days.

Usually loans are disbursed within 3-15 days after completion of verification by the institution, documentation (such as handing over of the original agreement for sale / lodging receipt to the lender) and completion of all relevant procedures including proof that 15% of the cost has been paid upfront to the seller of the property.

Yes. You can repay the loan ahead of schedule. An early redemption charge is payable, which varies from time to time. Currently, the early redemption charge is 2% and is payable on the amount being prepaid in case you decide to repay the loan in part or full.

Yes. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. You can save tax up to Rs. 47,250 p.a., on an interest repayment of Rs. 1,50,000 p.a. Under Sec 88, you can get added tax benefits on repayment of principal amount up to Rs. 20,000 p.a. This further reduces your tax liability by Rs. 4,000 p.a.

12.50% (Annual Reduction) on the amount.

EMI-Equated Monthly Installment is the amount payable by a borrower to the lender every month, comprising a portion of the interest and the principal loan amount. EMI commences from the month following the month in which you take full disbursement.

EMI Formula: l x r [(1+r) n /(1+r) n-1] x 1/12
l = loan amount
r = rate of interest
n = term of the loan

A loan for purchasing a flat can be availed of from the following sources:

• Housing Finance Companies.
• Banks.
• Employer.
• Insurance company.
• Against Provident Fund Account, Fixed Deposits, Post office Savings.
• Against Shares and Debentures of listed companies, government bonds and securities.
• Private parties such as relatives, friends.