What is the maximum amount of housing loan available?
What is the amount I can borrow and what are the criteria? Generally, you can borrow up to 2.5 times your gross annual income. But, your equated monthly installments (EMIs) usually should not exceed 35% of your gross monthly income. The actual amount of loan will vary across the individual companies. Housing Finance Companies (HFCs) primarily look at your capacity to repay the loan installments on time. They assess the repayment capacity of you and co-applicants (spouse or parent), if any, based on annual income, assets and liabilities, savings history, financial and occupational stability, age and the number of dependants. What is the period in which I will have to repay the loan? The loan will generally have to be repaid in a period of between 5 to 15 years, but definitely before you retire. A few HFCs also offer a 20-year repayment period, usually at a higher interest rate. How do I apply for a loan? Step 1 : Approach a HFC with the latest salary slip and TDS Form 16 of the last two
A. The maximum amount is 85% of the cost of the property, including the cost of land, subject to a maximum amount of Rs 1 crore. 17. What is the amount I can borrow and what are the criteria? A. Generally, the amount is up to 2.5 times your gross annual income. But your equated monthly installments usually should not exceed 35 per cent of your gross monthly income. Besides this, HFCs will assess your eligibility based on your ability to repay. 18. What is the period in which I will have to repay the loan? A. Usually in a period of between 5 to 15 years, but definitely before you retire. A few HFCs also offer a 20-year repayment period, usually at a higher interest rate. 19. How is the interest calculated on my loan? A. Most HFCs follow the yearly reducing balance method, which accounts for your principal repayments only at the end of their financial year. Thus you pay interest on the principal that you have already returned to the HFC during the year. The effective interest rate is thu
