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Posted on Monday August 19th, 2019

People can avail house building loan from bank, financial institutions or private financiers. But the home loan may be sanctioned depending on some criteria. People can achieve loan from banks depending upon eligibility criteria. Home loan can range from 20 lacs to 200 lacs. But, it may depend upon source of income and repayment capacity. People may apply for home loan to the banks with detailed documents of sanctioned plan for the house or flats to be bought. The maximum period of loan repayment is twenty years.

Apply Home Loan To Different Banks
People can avail home loan from different banks, if the conditions meet Home Loan Eligibility criteria. The intended buyers have to apply to the banks or any other private financier institute. The buyers of houses or flats have to furnish salary slips or source of income with repayment capacity. The repayment may be activated through EMI. Home Loan will meet the criteria, if it meets the salary minimum 20,000/- per month. If the eligibility criteria meet, then only the buyers have to furnish all detailed documents of the flats or house. If all the papers related to building are approved, then bank will move at the next step.

Release Of Sanctioned Amount Of Loan
If all other eligibility criteria are met, then the buyers have to submit a part amount to the bank to release the amount of the house building loan. After releasing the sanctioned loan amount, the buyers can pay the same to the builder to get the handover of the flat. The deed of the flat has to be kept at bank custody till the whole repayment of loan is cleared. As soon as the loan amount is paid, the calculation of EMI is started..

Interest Rates Of Loan Amount
The buyers have to pay an interest on the loan amount on calculative way. It may vary from 8.55 % to 9 %.As the loan amount is reduced after some EMIs; the amount of interest is also reduced. Home Loan Interest Rates may vary on the principal amount and also on the different banks. The fluctuations by RBI may also affect the loan interest rates. From time to time, RBI may change the loan rates and fixed deposit rates. This change may affect the home loan interest rates. The buyers have to pay some loan processing fee during transfer of amount. These processing fees may also vary from bank to bank.

Home Loan Against Property Mortgage
Real estate property may also be bought by availing loan from bank in lieu of mortgage of property. So, by keeping mortgage of any property home loan can be availed. If you don’t have any salary sheet to submit, you can show any property for mortgage and can avail loan. So, by judging all the conditions, you can move forward the home loan to buy new flat or house. You have to move step by step towards availing loan from bank as home loan.