The maximum amount of loan depends on a number of factors, like
customer's profile, his financial status and repaying capacity, tenure of the
loan etc.
Buying a property necessitates in depth knowledge of real estate
and choosing the right kind of loans. Several banks are stepping up their
exposure to real estate. These banks are entering into agreements with builders
for real estate loans. The scheme mainly caters to builders / promoters
developers of real estate. According to RBI figures loans to builders, along
with retail credit (like home loans, credit cards and personal loans)
constitute a big chunk of banks total loan portfolio.
Banks normally give real estate loans to
builders / real estate developers of repute. Experience of3-4 years is a must
to avail the loan. The quantum of loan is decided after scrutinising the
financial statements and cash flow statement of the applicant. The maximum
amount of loan varies from case to case and from bank to bank. Repayment is
done in lump sum installment after the completion of project/selling of the
flats. The number of installments is restricted to 3 to 4.
The interest rate is normally determined and charged according to
the prime lending rate of the bank. Builders can either opt for a fixed or
floating rate of interest.
Builders / real estate developers can fill up the loan application
either in person or utilise online facilities and apply for loan. A nominal
processing fee is charged by the banks.
1. Application form with photograph
affixed thereto.
2. Copies of certificates Educational
qualifications.
3. Residence proof
4. Proof for existence of business and
business profile with last three years income tax return.
5. Last 3 years income and
expenditure statement and balance sheet.
6. Last 3 months personal and business
bank statements.
Terms and conditions of loan may vary from
bank to bank.
Banks provide loans against mortgage of property. Businessmen,
self employed professionals, salaried persons are all eligible to apply for the
loan. It enables the borrower to apply for loan against a fixed asset.
The maximum amount of loan depends on a number of factors, like
customer's profile, his financial status and repaying capacity, tenure of the
loan etc. The repayment tenure increase or decreases with the quantum of loan.
Repayment of loan shall be made through Equated Monthly Installments or EML
Interest is charged at the predetermined rate as per the terms and
conditions. Interest can be either on fixed or floating rate basis. Interest
rate can be discounted for existing clients and in special cases according to
the policies of the bank.
Customers can apply for mortgage loans by filling an online form.
They can also visit the nearest branch of a particular bank. Normally, banks
charge 1-2% of the actual loan amount as processing fee.
1. Proof of identity (passport copy I voters ID
card I driving license)
2. Address proof (ration card Tel I Elect. Bill,
passport copy)
3. Bank statements (latest 6 months bank statement I passbook)
4. Latest salary slip of current dated salary certificate with
latest form 16 under Income tax Act, 1961.
5. Proof of ownership of fixed asset being mortgaged.
1. Address proof (ration card Tel I Elect.
Bill I passport copy)
2. Bank statements (latest 6 months bank statement I passbook)
3. Latest IT return along with computation of income, B/S & P & Lalc
for the last 2 years duly certified by a chartered accountant.
4. Qualification proof of the highest professional degree.
5. Proof of continuation of business(Trade license I establishment I sales
tax certificate)
6. Other mandatory documents (sole proprietorship. Declaration. Or
certificate, copy of partnership deed, Cert. copy of MOA,
AOA & Board resolution.)
7. Proof of ownership of fixed asset being mortgaged.
The word low cost housing seems to have lost its relevance in
metro cities in the country. The population explosion and the resultant need
for the housing is acutely felt for decades. In the earlier Five Year Plans,
there was no separate mention of urban development and it was clubbed together
with housing for the allocation of plans provision.
However, the planning documents expressed the need to take
remedial measures for arresting the deterioration in housing conditions in the
urban areas, and to address the problems of congestion and slums. One of the
earliest efforts by the Union Government was the introduction of social housing
schemes for industrial labourers and economically weaker sections. It provided
50 percent loan and 50 percent subsidy to the State Governments for
constructing rental tenements. This was in 1970-85 period.
While the demand for the housing units is skyrocketing, the
national 'Housing and Habitat' policy does not say how to acquire land for the
social housing. The housing boards created to provide housing for the poor,
started building high priced flats, which were clearly out of the reach of the
poor specifically in metro cities. Since most of the land in metros cities is
in the hands of private builders demanding astronomical prices.
It remains out of the reach of the middle class people. Land
values are the basic factor affecting the housing for the masses. Presently the
slow down in the real estate sectors have seen a number of schemes for the
affordable housing. But they are far away from the city centers and
transportation to the work place takes 3 to 4 hours or more in most distressing
conditions. Because of the out dated rent acts, rental housing is no more
available. The Government should come out with rational rental housing laws to
promote the houses on rent with the provision to purchase them on hire purchase
basis. It should be remembered that not all the persons can purchase houses on
ownership basis and hence the rented housing units comprising of around 300 sq.
ft. area should be promoted. In fact if we have to house the millions, rental
housing is the only solutions for the housing problem.
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