Benefits of Applying Online
When Banks Compete, you win.
Apply for a Home Loan at ApnaPaisa and we will match your requirements with the best offers from our network of over 400 service providers. We will get a maximum of five providers to compete for your business. WHEN BANKS COMPETE YOU WIN. You can then decide which home loan is best for you based on:
- Lowest Interest Rate
- Lowest EMI
- No Pre-payment charges
- Lowest Processing Fees
- Maximum Eligible Loan Amount
- Mandatory Documents Required
- Lowest Processing Fees
Or any other factor that is important to you.
Negotiating Tips
1) If you have a good credit record and your income is sufficient to justify the loan you can negotiate on interest rates. You can also try and get Processing fees or legal or valuation fees reduced or completely waived.
2) If you go for a floating rate loan then pre-payment charges are not payable.
3) When interest rates are high and are expected to go down you should go in for a floating rate loan as it makes no sense to lock into high fixed rates or the so called Dual rate loans where rates remain fixed for a couple of years before shifting to regular floating rate loans. Please review this decision at least once every 6 months
4) Take term insurance and critical illness and accidental disability policy for the full loan amount to make sure you or your loved ones don't have to worry about loan repayment should you die or are disabled due to a critical illness or accident. You cannot be forced to buy this policy from the insurance company chosen by the lender - you should choose your own insurer.
Joint loan to enhance home loan eligibility
Almost all banks allow loan co-applicants for a home loan to cluster incomes and thus help increase the loan amount one is eligible for.Pooja Gawde
21 May 2008
The Indian society has already accepted home loans as a means to purchase a house.
However, the banking community is also assailed by issues such as an increase in their bad loans as well as RBI intervention on the issue of loan recovery and the methods used. Where banks were readily offering up to 90 per cent of the cost of property as a home loan, now the finance percentage has been dropped to 80-85 per cent.
The issue discussed above set off against the increasing property rates might make the \'dream home\' a distant reality. But, such does not have to be the case. For one, whether it is the public-sector or the private sector, pay packages seem to be on a hike. So, this is one of the options of translating dream into reality. There is another option which could be an easier way out. The option is that of taking a joint loan with a \'blood relative\' to enhance the home loan eligibility.
Almost all banks allow loan co-applicants for a home loan to cluster incomes and thus help increase the loan amount one is eligible for.
The co-applicants can actually combine their income and take care of all the expenses (including the home loan installment).
The definition of who can be a loan co-borrower or a co-applicant differs from banks to banks. What is uniform is the concept of \'blood relatives\' being home loan co-borrowers.
Most banks allow spouses (husband/wife) and parents as home loan co-borrowers. However, there are certain relationships which do not qualify as home loan co-borrowers.
This cautious approach is to safeguard the interests of the self ie. the bank against loan default in case a dispute arises between the joint borrowers. Under such circumstances, the income may not be pooled collectively, impact the repayment.
This is not to say that disputes may not/will not arise between spouses or between children and parents. Differences may arise between spouses too. Banks factor in these risks while computing the cost of doing business.
Most banks allow parents and children to be joint borrowers, while a smaller number of banks allow brothers to be joint borrowers.
Banks do not allow friends to be home loan co-borrowers for the same reason as above. Another community that gets impact by such a measure is that of the same-sex couples or those living-in without marriage.
Given India\'s social structure, most banks provide home loans to parents-daughters or siblings (sister-sister/brother-sister) as they fear that the marriage of the female co-borrower will mean that she can no longer pool her income with her parents or siblings.
To sum it up, folks and spouses are those who qualify to be co-borrowers unconditionally. So, be together, borrower together.
Banks and their options of who can be considered a home loan co-borrower
|
Bank |
Relatives considered as loan co-applicants |
|
ICICI Bank |
Blood-relations, Spouse |
|
State Bank of India |
Spouse/ Son/ Daughter living with loan applicant |
|
Allahabad Bank
|
Blood-relations, Spouse |
|
Axis Bank |
Mother, Father, Spouse |
|
Bank of Baroda |
Spouse/ Blood Relations |
|
LIC Housing Finance |
Blood-relations, Spouse |
|
IDBI |
Spouse/Parents/Brother/Sister , Fiance/Fiancee |