1. How much time does it take for an application to be processed and the loan sanctioned?
It takes around fifteen days for the application to be processed provided the documents are in order. It takes another week for the company to check out the property papers and make the disbursement.
2. Is it possible to take a loan for construction in one city while working in another?
Yes, it is possible for one to avail a loan for construction in one city while working in another. The HFC's generally service this loan after getting details of the plot legally verified.
3. What do you mean by fixed rate of interest?
Some HFC's have fixed rate of interest which means that the interest rates remain unchanged for the entire duration the loan. This basically means that you do not benefit, even if the rates of interest drop in the market.
4. What do you mean by floating rate of interest?
This is the rate of interest that fluctuates according to the market lending rate.
5. Who can be a co-applicant?
Co-Applicants are the co-Owners of the property for which the financial assistance has been sought. Usually joint applications are from : husband-wife, father-son or mother-son.
6.?What is an EMI?
EMI or Equated Monthly Installments refers to the fixed sum of money that you will be paying to the housing finance company every month. The EMI comprises both interest and principal repayment. The size of the EMI depends on the quantum of loan, interest rate applicable and the term of the loan.
7.?Is it possible to pay my loan ahead of schedule?
Yes, it is possible to pay your loan ahead of schedule. However, it must be noted that housing finance companies charge a fee for early redemption of loan. This fee can vary between 1-2% of the loan amount being prepaid.
8. Do I need to insure the property?
Yes, you will have to ensure that the property is duly and properly insured for fire and other appropriate hazards, as required by the HFC during the period of the loan and will have to produce evidence each year and/or whenever required by the HFC. The HFC will be the beneficiary of the insurance policy
9 .Do I need to insure the My self?
Yes, if any type of death happaen in loan tear the insurance company will pay of all loan amount and your co-applicant will get the property without paying any loan