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<div class="faq-area ptb-100"> <div class="container"> <div class="section-title"> <h2>Let’s Answer Some Of Your Questions Or Frequently Asked Questions</h2> </div> <div class="row align-items-center"> <div class="col-lg-12 col-md-12"> <div class="faq-content"> <h3>Personal loan FAQ's</h3> </div> <div class="faq-accordion mb-25"> <div class="accordion" id="FaqAccordion"> <div class="accordion-item"> <button class="accordion-button" type="button" data-bs-toggle="collapse" data-bs-target="#collapseOne" aria-expanded="true" aria-controls="collapseOne"> Personal loan: Key Highlights </button> <div id="collapseOne" class="accordion-collapse collapse show" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Current lowest personal loan interest rates start from 9.9% p.a.</li> <li>Compare 100+ personal loan banks at Ashirbad Fintech Solution and choose the best one.</li> <li>Check fees &amp; charges of all top banks offering personal loans in India.</li> <li>Get flexible tenure of 36 to 84 months to repay the loan.</li> <li>Submit online loan application and get instant loan approval</li> <li>Personal Loan amount can be used for any personal purpose, including marriage, education, medical emergency, shopping, travel, etc.</li> <li>No collateral or security required as personal loans are unsecured loans.</li> <li>You can get a personal loan through the best instant loan app in India or through online lending marketplaces.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwo" aria-expanded="false" aria-controls="collapseTwo"> Personal loan overview </button> <div id="collapseTwo" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>A personal loan is the best option to get access to funds in case of an emergency. Once you fulfill the necessary personal eligibility criteria, you can meet any expense like medical emergency, travel needs, education fees, etc. with this simple, unsecured loan.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThree" aria-expanded="false" aria-controls="collapseThree"> Types of Personal loan </button> <div id="collapseThree" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p><i><strong>Here are different types of personal loans available in India:</strong></i> </p><ul> <li><strong>Travel Loan:</strong> These personal loan schemes are for people who love travelling. This loan is called by many names, including travel loan, vacation loan, and holiday loan. You can avail this loan to travel around the world, and pay the bills latrine affordable EMIs. You can also get travel insurance as an added benefit with this loan.</li> <li><strong>Wedding Loan: </strong>Weddings in India come with a long list of expenses. It's once in a lifetime experience for everyone and to make it more memorable many people often need financial support. Therefore, many lenders have started providing Personal Loans for Weddings These loans are availed by the would-be brides and grooms or their family members to pay for the wedding related expenses like venue booking, catering, honeymoon vacation, etc.</li> <li><strong>Festival Loan:</strong> These loans are offered for celebrating festivals, parties, and functions. Festival loans help you in preparing for the festivities and hosting parties.</li> <li><strong>Consumer Durable Loan: </strong>As the name suggests, this personal loan variant is availed for the purchase of appliances or consumer durables.</li> <li><strong>Pension Loan: </strong>Pension loans can be availed by retired personnel to fulfil their financial needs like paying medical bills, meeting daily expenses, etc. Under pension loans, banks provide a few times the amount of pension the pensioner has drawn in previous months before submitting the loan application.</li> <li><strong>Home Renovation Loan: </strong>These loans are provided for the purpose of renovation, repair, purchase of new material, and other house-related expenses.</li> <li><strong>Education Loan:</strong> You can use these loans for paying the tuition fees of your child, or any other big academic requirements like going abroad.</li> <li><strong>Computers and Mobile Phones Loan:</strong> Many lenders nowadays are offering computer loans and mobile phone loans for the purchase of computers, laptops, and smartphones. Some lenders even offer insurance with the loan.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapsefor" aria-expanded="false" aria-controls="collapsefor"> Features &amp; benefits of Personal loan </button> <div id="collapsefor" class="accordion-colla pse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li><strong>The rate of Interest:</strong> The Rate of Interest on Personal Loans starts with 9.99% depending on your credit score, income and so forth.</li> <li><strong>Loan amount:</strong> You can get a loan online for as low as 50,000 and as high as 50 Lakhs depending on your requirement and eligibility.</li> <li><strong>Loan tenure:</strong> Personal loans are available for periods as short as 12 months. The average tenure for a Personal Loan is between 12 and 60 months, depending on the loan amount.</li> <li><strong>Security:</strong> Due to its unsecured nature, collateral is not required.</li> <li><strong>Loan turnaround time:</strong> A Personal Loan typically has the fastest turnaround time in the industry. Many banks personal loans online approval within 48 hours after submission of the online application.</li> <li><strong>Processing fees:</strong> It depends on the individual bank. It usually ranges between 0.50%- 2% of the loan amount.</li> <li><strong>Prepayment penalty: </strong>Banks charge prepayment penalty if you repay your Personal Loan before the determined period. The charges range between 1-2% of the outstanding amount on the date of closure.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapsefive" aria-expanded="false" aria-controls="collapsefive"> Eligibility required for Personal loan </button> <div id="collapsefive" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li><strong> Occupation:</strong>Salaried employees, self-employed professionals, self-employed non professionals, and business owners</li> <li><strong> Age:</strong> Minimum 21 years at loan application and maximum 55 years at loan maturity</li> <li><strong> Monthly income:</strong>20,000</li> <li><strong>Job/business continuity:</strong>2 years continuous job or 3 years continuity in business</li> <li><strong>ITR:</strong>Last 2 years IT returns</li> <li><strong>Credit score:</strong>720 &amp; above</li> <strong>*Personal loan eligibility criteria may differ from bank to bank.</strong> <ul> <p></p> </ul></ul></div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSix" aria-expanded="false" aria-controls="collapseSix"> Factors affecting the Eligibility of a Personal loan </button> <div id="collapseSix" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li><strong>Credit score:</strong> This is the most crucial eligibility factor. A credit score of 700 or above is typically considered a good score for personal loans. The better your credit score, the higher are your chances to get a loan online.</li> <li><strong>Income:</strong>People with higher income are more eligible for a higher loan amount than those who have low income.</li> <li><strong>Employment:</strong>Employees of listed companies, Central and State Governments, and public sector undertakings are eligible for a higher amount.</li> <li><strong>Work continuity:</strong> You should be a long-term employee of your current organisation. In case you are self-employed, the continuity of business and income is the most critical</li> <li><strong>Age of the borrower:</strong>The minimum age requirement is 21 years. Banks have their criteria for deciding the maximum age limit. In most cases, your age at the end of the repayment period should not exceed 65 years.</li> <li><strong>Loan amount:</strong>Applying for a loan amount that you can service comfortably makes you more eligible for a personal loan and improves your chances of approval.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeven" aria-expanded="false" aria-controls="collapseSeven"> Documents required for Personal loan </button> <div id="collapseSeven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <table class="table"> <tbody> <tr> <td><strong>KYC Documents</strong></td> <td> <ul> <li>PAN Card</li> <li>Aadhar Card</li> <li>Driving Licence</li> <li>Voter ID</li> <li>Passport</li> <li>Registered Rent Agreement</li> </ul> </td> </tr> <tr> <td><strong>Income Documents - Salaried</strong></td> <td> <ul> <li>Salary slips for the last 6 months</li> <li>IT Return along with Form 16 for the past 2 years</li> <li>Bank account statements of previous 3 months that reflects your salary credits and other income</li> <li>Employment certificate from current employer</li> </ul> </td> </tr> <tr> <td><strong>Income Documents - Self-employed</strong></td> <td> <ul> <li>Financial statements that include Balance Sheet and Profit and Loss Statement</li> <li>IT Returns for the last 2 years</li> <li>Proof of continuity of business income such as Bank Account Statement</li> <li>Evidence of doing business like GST Registration</li> </ul> </td> </tr> <tr> <td><strong>Other Documents</strong></td> <td> <ul> <li>Personal loan application form</li> <li>Recent passport-sized photographs</li> <li>Processing fee cheque</li> </ul> </td> </tr> </tbody> </table> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseEight" aria-expanded="false" aria-controls="collapseEight"> When should i consider taking a Personal loan? </button> <div id="collapseEight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You can consider applying for a personal loan for a marriage in your family, to bear educational expenses, for vacation abroad, debt consolidation, home renovation, or any other purposes.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseNine" aria-expanded="false" aria-controls="collapseNine"> Do i need a co-applicant for a Personal loan? </button> <div id="collapseNine" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <table class="table"> <tbody> <tr> <td><strong> Occupation</strong></td> <td>Salaried employees, self-employed professionals, self-employed non professionals, and business owners</td> </tr> <tr> <td><strong> Age</strong></td> <td>Minimum 23 years at loan application and maximum 55 years at loan maturity</td> </tr> <tr> <td><strong> Monthly income</strong></td> <td>20,000</td> </tr> <tr> <td><strong>Job/business continuity</strong></td> <td>2 years continuous job or 3 years continuity in business</td> </tr> <tr> <td><strong>ITR</strong></td> <td> Last 2 years IT returns</td> </tr> <tr> <td><strong>Credit score</strong></td> <td>720 &amp; above</td> </tr> </tbody> </table> <strong>*Personal loan eligibility criteria may differ from bank to bank.</strong><p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTen" aria-expanded="false" aria-controls="collapseTen"> I have a decent salary package. however, The Bank rejected my Personal loan Application. What can I do now? </button> <div id="collapseTen" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Approving any loan is the prerogative of the bank. There are various reasons for rejection of the Personal Loans. </p><ul> <li>You might be having many loans outstanding. The possible solution is to bring in a co-borrower. Your working spouse can join as a co-borrower. You can also try to reduce your existing liabilities by closing some of your loans.</li> <li>You might have an adverse credit score. Check your credit report and go through it in detail. There can be errors in your report. Dispute them if necessary and take the steps needed to rectify your credit report. Remember, you need a minimum credit score of 720 to 800 to be eligible for a Personal Loan.</li> </ul> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseEleven" aria-expanded="false" aria-controls="collapseEleven"> What is the difference between foreclosure and part-prepayment? </button> <div id="collapseEleven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Foreclosure is the situation where the borrower wishes to close the entire principal outstanding before the completion of the tenure of the loan. Part-prepayment is when the customer does not close the entire loan but attempts to repay a portion of the outstanding amount.</li> <li>Many banks charge a prepayment penalty ranging from 2% to 5% of the loan outstanding when you try to prepay your loan liability. Some banks have a lock-in period when you cannot foreclose the loan.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwelve" aria-expanded="false" aria-controls="collapseTwelve"> What are the minimum and maximum loan amounts offered by Banks? </button> <div id="collapseTwelve" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Generally, the minimum loan amount is around 50,000,and the maximum amount can go up to 50 Lakhs depending on your eligibility. The Banks like to have a personal discussion with borrowers before approving higher Personal Loan limits.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirteen" aria-expanded="false" aria-controls="collapseThirteen"> How does the credit score affect the Personal loan approvals? </button> <div id="collapseThirteen" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>A credit score is a 3-digit number varying between 300-900. It represents a borrower's creditworthiness. A higher credit score signifies a good credit history and responsible repayment behaviour. It also increases the borrower's chances for loan approval as lenders believe that you have the ability to repay your loan.</p> </div> </div> </div> </div> </div> </div> <div class="col-lg-12 col-md-12"> <div class="faq-item" data-aos="fade-right" data-aos-delay="50" data-aos-duration="500" data-aos-once="true"> <div class="faq-content"> <h3>Business loan FAQ's</h3> </div> <div class="faq-accordion"> <div class="accordion" id="FaqAccordion"> <div class="accordion-item"> <button class="accordion-button" type="button" data-bs-toggle="collapse" data-bs-target="#collapseNineteen" aria-expanded="true" aria-controls="collapseNineteen"> Business loan Details </button> <div id="collapseNineteen" class="accordion-collapse collapse show" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <table class="table"> <tbody> <tr> <td><strong>Rate of interest</strong></td> <td>Competitive interest rates</td> </tr> <tr> <td><strong>Loan amount</strong></td> <td>Up to Rs. 500 Crores</td> </tr> <tr> <td><strong>Repayment tenure</strong></td> <td>Up to 20 years</td> </tr> <tr> <td><strong>Processing fee</strong></td> <td>Up to 3.5% of the loan amount</td> </tr> <tr> <td><strong>Minimum business vintage </strong></td> <td>3 years</td> </tr> <tr> <td><strong>Prepayment charges</strong></td> <td>Up to 6%</td> </tr> <tr> <td><strong>Age required</strong></td> <td>21 to 65 years</td> </tr> </tbody> </table> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty" aria-expanded="false" aria-controls="collapseTwenty"> Key features of the Business loan </button> <div id="collapseTwenty" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Following are the key features of Business Loan: </p><ul> <li><strong>Purpose: </strong>To meet the financial requirements of the business, including the purchase of new plant and machinery, to replace the existing plant and machinery, building infrastructure, expanding the business, etc. required to take the business to a greater level. Also, working capital finance is extended to provide for the day to day operational cost of the business.</li> <li><strong>Loan amount: </strong>The loan limit depends on the project for which the finance is required. The assessment is based on the vision of the business through the projected financial statements for years up to which the repayment is fixed, the profile of the promoters, expected cash flow from the business, and other factors.</li> For projects where the loan required is above 2 Crores, the project appraisal will be done by a team of skilled persons from the Project Finance Department (PFD) of the bank/financial institution. Based on PFD, liquidity ratio, Debt Service Coverage Ratio (DSCR), Fixed Asset Ratio, and various other factors, the quantum will be decided. <li><strong>Interest: </strong>The rate of interest varies from lender to lender., depending on the loan quantum, the project for which the finance is sought, line of activity, the business sector, and the customer's profile.</li> <li> <strong>Security: </strong>The security depends on the quantum of loan and also the business sector. <ul> <li>Usually, for a loan up to Rs. 2 Crores to MSME Sector, no collateral security is insisted. The loan will be covered by the Credit Guarantee Scheme.</li> <li>Normally the primary security will be by way of hypothecation of the stocks and receivables if the finance is for working capital.</li> <li>Hypothecation of the assets created out of the bank finance if the loan is for capital investment.</li> <li>Collateral security by way of residential/commercial property will be required.</li> <li>The agricultural property will not be accepted unless the finance is for agricultural and allied activities.</li> </ul> </li> <li><strong>Repayment: </strong>The working capital finance is short-term finance provided for a period of 6 to 12 months, which will be renewed on an annual review. The repayment period for term loans ranges from 3 years to 8 years and even up to 20 years if the construction of business premises is involved.</li> <li><strong>Processing fee: </strong>Processing fee also depends on the nature of the activity and the business sector but generally will be up to 3.5% depending on the bank/financial institution.</li> <li><strong>Prepayment charges: </strong>Some of the lenders do not collect any prepayment charges while others charge Nil to 6% on the outstanding balance.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-one" aria-expanded="false" aria-controls="collapseTwenty-one"> Types of Business loans </button> <div id="collapseTwenty-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The various types of Business Loans are as follows:</p> <h5><strong>Working Capital Finance</strong></h5> <p>Any businessman who is in the service/manufacturing business or retail/wholesale trading, imports/exports can make use of this facility. This facility is generally opted for when there is a liquidity crunch in the business due to irregular cash flow and funds are required for meeting the day-to-day operational expenses of the business or when there is a sudden increase in the volume of the business. Working Capital finance can be by way of a line of credit, overdraft, packing credit, post-shipment credit or even by way of non-fund based limits like Bank Guarantees and Letter of Credit. This facility will be a revolving credit and can be used as and when required. The utilised amount can be replenished by depositing the amount when the cash flow of the business improves. The biggest advantage in this type of finance is that interest is levied only to the extent of the amount utilised and for the period utilised. Rate of interest is mainly based on the credit appraisal of the business. The working capital finance will be for a period of 6 to 12 months and will be renewed after an annual review. The prime security for working capital finance will be the stocks and receivables of the firm/Company. Collateral security may also be insisted by way of a mortgage of residential/commercial property. It depends on the lender and the quantum of finance. </p> <h5><strong>Term Loans</strong></h5> <p>These loans are given mainly for capital investment, which will be of long-term in nature. It could be for building the factory premises, improving the infrastructure, modernisation of the existing structure, etc. The quantum of loan involved in this facility will be high and will be disbursed in a lump-sum. The repayment period also will be longer and can range between 7 years to 20 years. The rate of interest will be based on the profile of the Company, Credit Rating, the quantum and period of the loan. &nbsp; The prime security will be the assets created out of the finance and collateral security will be a mortgage of residential/commercial property. To apply for this type of finance, you should have a detailed project ready along with a business charter as to how the loan amount will be utilised. </p> <h5><strong>Invoice Financing</strong></h5> <p>This is a very lucrative way of arranging finance for a firm/company. The time gap between raising an invoice and the final payment can be anywhere between 60 to 90 days. During this time, the firm/company may face a liquidity crunch and might need funds for the day to day operations of the business. Banks/financial institutions do provide finance against such invoices for customers who have a long-standing relationship and have been availing credit facilities which have been conducted satisfactorily. Up to 80% of the value of the invoice will be provided as working capital funds and the remaining 20% will be provided when the final payment is received. Invoice financing will attract processing charges and interest as per the guidelines of the lender. </p><h5><strong>Equipment Financing</strong></h5> <p>Equipment financing is popular in the manufacturing sector. Any manufacturing business will require some mandatory equipment for manufacturing the product. Such equipment will be financed by banks/financial institutions. Funding will be done for office equipment, healthcare equipment, medical equipment, construction equipment, etc. The quantum of finance can be more than 100 Crores in some cases. The funding will be project-based. The rate of interest will be very competitive as the quantum involved will generally be high. The repayment period will be anywhere between 3 years to 7 years. Security of the assets created out of the finance will be taken and collateral of residential/commercial property will be insisted on a case to case basis. </p><h5><strong>PMMY</strong></h5> <p>PMMY, i.e., Pradhan Mantri Mudra Yojana, has been introduced to encourage entrepreneurship under the MSME Sector and to create employment for the youth of the country. A loan is provided both for service and manufacturing units. The quantum of loan will be between Rs. 50,000 to Rs. 10 Lakhs based upon the line of activity. </p><h5><strong>Stand-up India</strong></h5> <p>Stand-up-India was introduced to encourage setting up of new ventures by candidates who belong to Scheduled Caste/Scheduled Tribe and to encourage women entrepreneurs. Entrepreneurs belonging to Scheduled Caste/Scheduled Tribe or the women entrepreneurs should have the major shareholding in the firm/Company to be eligible for funding under the scheme.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-two" aria-expanded="false" aria-controls="collapseTwenty-two"> Business loan Eligibility criteria </button> <div id="collapseTwenty-two" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The following are the common eligibility criteria for a Business Loan: </p><ul> <li>The applicant or the promoters of the business should be in the age group between 21 years to 65 years.</li> <li>Proprietorship/ partnership firms and Pvt Ltd companies, self-employed individuals/ professionals engaged either in manufacturing, services or trading.</li> <li>A business vintage of a minimum of 3 years.</li> <li>A minimum business turnover and a minimum annual turnover as per the ITR will be required. The quantum of the requirement will vary from lender to lender.</li> <li>The firm/company should be profit-making for at least a period of 1 year.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-three" aria-expanded="false" aria-controls="collapseTwenty-three"> Documents required for Business loan application </button> <div id="collapseTwenty-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The following are the common documents required for a Business Loan: </p><ul> <li><strong>Proof of address of the promoters: </strong>Aadhaar Card, Voter's ID Card, Driving Licence, Utility Bills, etc.</li> <li><strong>Photo ID proof of the promoters: </strong>PAN Card, Passport, Voter's ID Card, Driving Licence, etc.</li> <li><strong>Proof of business: </strong>GST Registration, Trade Licence, Registration under Shop Act, Drug Licence, etc.</li> <li><strong>Income proof: </strong>Balance Sheet and Profit &amp; Loss Account audited by an Auditor with Auditor's report.</li> <li> <strong>Other documents:</strong> <ul> <li>Partnership Deed in the case of Partnership Firm.</li> <li>Articles of Association, Memorandum of Association, and Board Resolution as per the format provided by the lender in the case of a Company.</li> <li>PAN Card of Partnership Firm/Company.</li> <li>National and State Permit if finance is availed for a commercial vehicle.</li> </ul> </li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-four" aria-expanded="false" aria-controls="collapseTwenty-four"> What are the Business loan fees and charges? </button> <div id="collapseTwenty-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Business loans involve various types of charges, like documentation charges, cheque dishonour charges, repayment mode swap charges, charges for duplicate NOC, cancellation charges, and so on. Following are three main charges types that are common for each lender: </p><ul> <li>Processing charges: Up to 3.5% of the loan amount + GST.</li> <li>Foreclosure charges: Up to 6% of the outstanding loan amount.</li> </ul> Delayed payment penalty: 2% onwards over &amp; above the normal rate of interest on the overdue amount for the overdue period.<p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-five" aria-expanded="false" aria-controls="collapseTwenty-five"> How to get a high Business loan Eligibility? </button> <div id="collapseTwenty-five" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Prepare a business charter containing the details of your business plans for the next few years.</li> <li>Be aware of the credit score of the promoters as well as the company before approaching the lender.</li> <li>Decide the quantum as knowing the right quantum of loan is also a mandatory requirement.</li> <li>Do a bit of market research to understand the various options available for Business Loans in the market.</li> <li>Shortlist the options that suit your requirement and also check for the interest rates and other associated charges for the loan.</li> <li>Look for the lender which does not have elaborate approval procedures.</li> <li>Be aware of the documents required and keep them ready before applying for the Business Loan.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-six" aria-expanded="false" aria-controls="collapseTwenty-six"> What is the Importance of credit score in availing a Business loan? </button> <div id="collapseTwenty-six" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>It is important to be aware of the credit score of the promoters as well as the company before approaching the lender. Credit scores indicate your repayment history. If both the company and the promoters have a good credit history, it will be that much easier to get approval for a business loan.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-seven" aria-expanded="false" aria-controls="collapseTwenty-seven"> What is the method adopted to calculate the Eligibility for a Business loan? </button> <div id="collapseTwenty-seven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The eligibility check for a Business Loan depends on the following variants: </p><ul> <li>The credit score of the company/promoters is mandatory. Good credit score depicts the financial discipline of the company/promoters, which goes a long way in the credit decision.</li> <li>The financial statements of the company, which consists of the balance sheet and profit &amp; loss account of the company. Financial statements of the company for the last 3 years and projected financial statements for the next year will give a brief idea about the income generation and performance of the company.</li> <li>The DSCR indicates the repayment capacity of the company. The ideal DSCR should be between 1 and 1.5.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-eight" aria-expanded="false" aria-controls="collapseTwenty-eight"> Will the Business loans be given with the part-payment facility? </button> <div id="collapseTwenty-eight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Yes. Part-payment facility after a certain lock-in period will be permitted. However, the number of times a part-payment can be made will depend on the lender. Also, part-payment charges ranging from 2% to 4% will be charged on the part-paid amount.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseTwenty-nine" aria-expanded="false" aria-controls="collapseTwenty-nine"> What are the modes of repayment of Business loans? </button> <div id="collapseTwenty-nine" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Business Loans should be paid in Equated Monthly Instalments (EMIs) for which auto-debit instructions have to be given.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty" aria-expanded="false" aria-controls="collapseThirty"> Will an overdraft facility be given against the security of immovable Property? </button> <div id="collapseThirty" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Yes. Some banks do provide a dropline overdraft facility against the security of the immovable property.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-one" aria-expanded="false" aria-controls="collapseThirty-one"> What is the maximum repayment period for Business loans? </button> <div id="collapseThirty-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>For working capital finance, the repayment will be on demand. It is normally for a period of 6 to 12 months with a further renewal facility on an annual review. For term loans, the repayment period will vary from 3 years to 20 years depending on the project for which the finance is availed.</p> </div> </div> </div> </div> </div> </div> <div class="col-lg-12 col-md-12"> <div class="faq-item" data-aos="fade-right" data-aos-delay="50" data-aos-duration="500" data-aos-once="true"> <div class="faq-content"> <h3> Home loan FAQ's</h3> </div> <div class="faq-accordion"> <div class="accordion" id="FaqAccordion"> <div class="accordion-item"> <button class="accordion-button" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-two" aria-expanded="true" aria-controls="collapseThirty-two"> Home loan Overview </button> <div id="collapseThirty-two" class="accordion-collapse collapse show" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> Planning to invest in your dream home? Choose from the best home loan offers for easy financing. Whether you want to buy a home or construct it from scratch, you can get access to funds that can make it a reality. </p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-three" aria-expanded="false" aria-controls="collapseThirty-three"> Types of Home loan available in India </button> <div id="collapseThirty-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <i><strong>There are various home loan products that you can choose from based on your requirements: </strong></i> <table class="table"> <thead> <tr> <th><strong>Type of Loan </strong></th> <th><strong>Details</strong></th> </tr> </thead> <tbody> <tr> <td><strong>Purchase of apartment </strong></td> <td>You can get a home loan for a residential apartment complex that is under construction or already ready to move in.</td> </tr> <tr> <td><strong>Purchase of bungalow/independent house</strong></td> <td>Get a home loan to purchase a ready-to-move-in or under construction bungalow or independent house.</td> </tr> <tr> <td><strong>Purchase of land/plot </strong></td> <td>You can buy a vacant plot for construction. Some banks insist that you must begin constructing your property within one year of purchasing the land.</td> </tr> <tr> <td><strong>Home renovation</strong></td> <td>These loans are for the improvement or renovation of an existing house or apartment.</td> </tr> <tr> <td><strong>Construction of house </strong></td> <td>You can avail of a loan for the construction of property if you have permission from the municipal corporation and an approved building plan.</td> </tr> <tr> <td><strong>Balance transfer</strong></td> <td>Transfer an existing home loan to another bank or NBFC that gives you better home loan eligibility criteria and interest rates.</td> </tr> </tbody> </table> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-four" aria-expanded="false" aria-controls="collapseThirty-four"> Features &amp; benefits of Home loan </button> <div id="collapseThirty-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Capital appreciation</li> <li>Sense of accomplishment</li> <li>Tax benefits on interest and principal components</li> <li>Zero prepayment charges</li> <li>Home loan top up<strong> </strong>and balance transfer facility</li> <li>Long repayment tenure of up to 30 years</li> <li>High loan amount of up to 5 Crores (can be more in some cases)</li> <li>Makes it easy to purchase a new or resale house/apartment/plot, house construction, or even renovation of an existing house.</li> <li>Repayment holiday facility</li> <li>Loan available as term loan and overdraft</li> <li>Fixed, floating, and hybrid rates of interest available</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-five" aria-expanded="false" aria-controls="collapseThirty-five"> Types of Home loan </button> <div id="collapseThirty-five" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p><strong>Some common types of home loans available in India are:</strong> </p><ul> <li><strong>Home loan for purchase of a flat in an apartment complex:</strong> Banks finance their customers to buy flats in residential complexes. Here you have the concept of an Undivided Share (UDS) in the land.</li> <li><strong>Home loan for purchase of an individual house:</strong> This is similar to the type of Home Loan described above however there is no concept of ownership of UDS. The entire land belongs to the borrower. Naturally, such houses have a better resale value.</li> <li><strong>Home loan for purchase of land/plot:</strong> Banks finance their customers for the purchase of vacant plot or land for subsequent construction of house. Usually, banks stipulate that the construction of the house should begin within one year of purchase of land for the loan to be treated as a home loan.</li> <li><strong>Home loan for construction of a house on own land/land:</strong> You can avail a loan for constructing your house on your land. Banks have their methods of determining the cost of construction. Naturally, you need to obtain the requisite permission from the local municipal authorities for constructing your house on the land. You need to have an approved plan as well.</li> <li><strong>Home loan for home improvement/extension:</strong> You can approach a bank for financing home improvement or for extending the house. In the latter case, you need to have the requisite approvals and plans in place.</li> <li><strong>Home loan balance transfer:</strong> This facility allows you to switch over your Home Loan from one bank to the other. If you have a high-interest Home Loan, availing this facility can be useful. You could transfer your outstanding loan amount to another lender at low interest rate, thus saving on interest cost.</li> </ul> &nbsp;<p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-six" aria-expanded="false" aria-controls="collapseThirty-six"> Home loan Eligibility </button> <div id="collapseThirty-six" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Various factors go into the determination of your <strong>Home loan Eligibility</strong>. The basic rules for salaried people and self-employed people are the same. Some banks stipulate a higher take-home pay percentage for self-employed persons. </p><ul> <li><strong>Your current income: </strong>Salaried employees can submit salary slips for the last three months and furnish a bank statement for the past six months where their salary is credited. Self-employed professionals should submit the statement of accounts for one year where they receive the credits for the services rendered by them.</li> <li><strong>Continuity of employment/business: </strong>Salaried employees can rely on their income tax returns, Form 16, Form 26AS, etc to display their continuity of employment. They can also show a statement of the Provident Fund account to establish the links. Self-employed businessmen and professionals can furnish the income tax returns along with other financial statements like balance sheet and profit and loss statements. They can also furnish copies of invoices raised by their clients.</li> <li><strong>Current obligations: </strong>It is possible that an applicant might have pre-existing personal loans, vehicle loans, and other loans for which they might be paying instalments. You have to account for these instalments as well while calculating Home Loan eligibility.</li> <li><strong>Credit history: </strong>The repayment track record of the applicant is of utmost importance. Every bank or financial institution is a member of CIBIL or another credit bureau. These bureaus keep track of the loan activities of every borrower. Based on this information, they generate your credit history profile and quantify the same by generating your credit score. This is a number ranging between 300 and 900. The higher your score, the better are your chances of getting a loan. Naturally, it goes without saying that defaults, frequent requests for loans or missing payments can pull down your credit score. A score of 700 and above is considered fair for determining HL eligibility.</li> <li><strong>Value of the property: </strong>The value of the property you purchase is important. The financing bank needs to determine the cost of the project it is going to finance. Banks usually finance up to 75% - 90% of the value of the property (also known as LTV or Loan to Value Ratio) with the balance being your contribution or margin as they call it.</li> <li><strong>Legal position: </strong>The prime security for any home loan is a mortgage of the land and building they have financed. You have to create the mortgage and register the same with the respective registering authorities. In order to do so, you must be legally empowered to create the mortgage. Hence, banks and financial institutions insist on a legal scrutiny report from their panel of advocates who carry out a search for the previous 30 years to establish the ownership chain.</li> <li><strong>Age of the borrower: </strong>The minimum age of the borrower at the time of home loan application should be 21. The age at the time of maturity should generally be 65 years. Some banks stretch this limit to 65 years.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-seven" aria-expanded="false" aria-controls="collapseThirty-seven"> Home loan Documents required </button> <div id="collapseThirty-seven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Every customer has to satisfy the Know Your Customer (KYC) norms stipulated by RBI. You have to provide the documents relating to your KYC, employment, business, and income. <strong>Identity Proof</strong> </p><ul> <li>PAN Card</li> <li>Aadhar Card</li> <li>Voter ID</li> <li>Driving Licence</li> <li>Passport</li> </ul> <strong>Address Proof</strong> <ul> <li>Registered Rent agreement</li> <li>Aadhar Card</li> <li>Driving License</li> <li>Lease agreement</li> <li>Passport</li> <li>Latest Gas or electricity bill</li> </ul> <strong>Other documents:</strong> <ul> <li>Loan application form duly filled in</li> <li>Photographs</li> <li>Signature Proof</li> </ul> <strong>Property documents:</strong> <ul> <li>Copies of all property documents that can establish the chain of ownership for the past 30 years.</li> <li>Encumbrance certificate for 30 years</li> <li>Property tax paid receipt in case you reside in the property being mortgaged (usually when you apply for Home Loan Balance Transfer).</li> </ul> <strong>Income Proof Documents: </strong> <ul> <li>Salary slips for the last 6 months in case you are a salaried employee (In addition, you can provide IT returns for the past 3 years along with Form 16).</li> <li>IT returns for the past 3 years in case you are self-employed (Some banks accept 2 years IT returns as well).</li> <li>Statement of A/c for the past 1 year where your salary is credited (in case of salaried people).</li> <li>Profit and Loss statement and Balance sheet for the last 2 years in case of self-employed persons.</li> <li>Sales tax, GST registration certificates, if applicable.</li> <li>Partnership deed in case of partnership firms (if the applicant is one of the partners).</li> <li>Certificate of Incorporation in case of limited companies(if the applicant is one of the directors).</li> </ul> <strong>Documents Required from Non-Resident Indians (NRIs) Applicants</strong> <ul> <li>Employer identity card</li> <li>Valid passport and visa (attested copy)</li> <li>Address proof with the current overseas address</li> <li>Copy of Continuous Discharge Certificate (CDC) for merchant navy employees.</li> <li>PIO card issued by Government of India (for PIOs)</li> <li>Documents must be attested by FOs/Rep. Offices or Overseas Notary Public or Indian Embassy/Consulate or officials of Branch/Sourcing outfits based in India.</li> <li>Home loan application - completed and duly filled</li> <li>3 passport size photographs</li> <li>Identity proof (any one): PAN/ Passport/Driving License/Voter ID Card</li> <li>Residence proof (any one): Recent copy of Utility Bills/Piped Gas Bill/Passport/Driving License/Aadhar Card.</li> </ul> <strong>Income Proof Documents for NRI</strong> <ul> <li> <strong>For Salaried</strong> <ul> <li>Valid work permit</li> <li>Employment contract with an English translation (if it’s in another language) duly attested by employer/consulate/Indian foreign office/Embassy.</li> <li>Last 3 months’ salary certificate or salary slips</li> <li>Last 6 months’ bank statements showing salary credit</li> <li>Latest salary certificate or salary slip in original</li> <li>Last year’s Individual Tax Return (duly acknowledged copy) except for NRIs/PIOs located in Middle East countries &amp; Merchant Navy employees.</li> </ul> </li> <li> <strong>For Self-employed</strong> <ul> <li>Business address proof</li> <li>Income proof in case of self-employed professionals/businessmen.</li> <li>Last 2 years’ balance sheet and P&amp;L accounts (audited/C.A. certified).</li> <li>Last 2 years’ Individual Tax Return except for NRIs/PIOs located in Middle East countries</li> <li>Last 6 months’ bank statements of overseas account(s) in the name of individual as well as company/unit.</li> </ul> </li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseThirty-eight" aria-expanded="false" aria-controls="collapseThirty-eight"> How to use Home loan effectively (Tips &amp; Advice) </button> <div id="collapseThirty-eight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>To make the most of the home loan offers, here are few tips that can help you: </p><ul> <li>Choose a lower repayment tenure to avoid paying exuberant amounts towards your interest rate.</li> <li>Make sure you repay your EMI on or before the due date to prevent late payment charges and lower credit scores.</li> <li>If you have the option to transfer the balance to a bank that offers a lower rate of interest, opt for it.</li> <li>Take a loan quantum that you need even if you are eligible for a higher LTV.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty" aria-expanded="false" aria-controls="collapseForty"> Home loan EMI Calculator </button> <div id="collapseForty" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>When you decide to apply for a Home Loan, you need to assess your repayment capability so that you don't end up in any financial problems and can find the cheapest home loan. Home Loan EMI Calculator is a useful tool in this regard for calculating the EMI (equated monthly instalment) of a Housing Loan. It is a free of cost user-friendly tool that can be used anytime and from anywhere to calculate the monthly instalments you will have to pay. The Home Loan EMI Calculator requires you to enter a few home loan details to give you an accurate result, such as loan amount, interest rate, and repayment tenure.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-one" aria-expanded="false" aria-controls="collapseForty-one"> How does the MCLR affect your Home loan Interest rate? </button> <div id="collapseForty-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>MCLR (marginal cost of funds based lending rate) is associated only to floating interest rate home loans. So, if your home loan comes with a fixed rate of interest, the MCLR will not affect the home loan.</li> <li>Any change in repo rate will decide whether you gain or lose with the MCLR.</li> <li>When a bank changes its MCLR, there will be a change in your floating rate home loan as well.</li> <li>Banks usually adjust the change in floating rate, by changing the tenure of the loan and keeping the EMI constant.</li> <li>For instance, if you take a home loan at a floating rate of 8% and after one year, your bank reduces its MCLR by 50 bps. Hence, your home loan interest rate associated with MCLR rate will also be reduced by 50 bps at a rate of 8.00%.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-two" aria-expanded="false" aria-controls="collapseForty-two"> What to do if your Home loan application is rejected? </button> <div id="collapseForty-two" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Your home loan application can be rejected due to many reasons, such as poor credit score, error in credit report, delay in loan repayment, changing job frequently, employer not falling in the lender’s lending category, incomplete documentation, issues with the property, high level of debt, borrower’s age, not obtaining No Dues Certificate from previous lenders, and so on. To avoid home loan application rejection make sure that: </p><ul> <li>Your job or business is stable (at least from the last 2 years).</li> <li>You have a good credit score (720 or above).</li> <li>Your documentation is complete and accurate.</li> <li>The property to be purchased is in the lender’s approved list.</li> <li>You obtain ‘No Dues Certificate’ from your previous lenders.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-three" aria-expanded="false" aria-controls="collapseForty-three"> Factors to consider before Taking Home loan in India </button> <div id="collapseForty-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Do a thorough research on home loan options available in the market before applying.</li> <li>Calculate all the charges (interest rate, processing fee, etc.) associated with the home loan and aim for the affordability before the beginning of the home loan process. Make sure you are able to afford EMIs without hampering your cost of living.</li> <li>Check your home loan eligibility before applying for the loan. You can use a Home Loan eligibility calculator for this purpose.</li> <li>Keep all the required documents (KYC, income, property, and other documents) ready when applying for a loan.</li> <li>Choose EMIs that are suitable to you. Also, making a bigger down payment will reduce your loan burden. It is best to choose an EMI amount that does not exceed 45% of your total income.</li> <li>Choose accurate tenure. While opting for a long tenure might result in a small EMI amount, it will adversely increase the interest cost, resulting in making your loan more costly. Choose a short repayment tenure and higher EMIs if your income and budget allows.</li> <li>Follow a strict budget and spend cautiously as you have a home loan EMI to repay every month for a long period.</li> <li>Maintain a good CIBIL score by making timely credit card payment or a loan repayment. It will improve your chances of home loan approval.</li> <li>Know the foreclosure terms and charges of the lender. It will be useful when you will be planning to foreclose your home loan.</li> <li>Go through the home loan agreement documentation carefully before signing it.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-four" aria-expanded="false" aria-controls="collapseForty-four"> Which Bank is best for Home loans? </button> <div id="collapseForty-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>HDFC, ICICI, Yes Bank and Kotak Mahindra are some of the best banks for home loans in terms of their services and rates.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-five" aria-expanded="false" aria-controls="collapseForty-five"> How to Calculate Home loan EMI? </button> <div id="collapseForty-five" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You can calculate home loan EMI by using Home Loan EMI Calculator available on our website.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-six" aria-expanded="false" aria-controls="collapseForty-six"> How much Home loan can i get? </button> <div id="collapseForty-six" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You can get a maximum of 90% of the cost of the property as a home loan, depending on your eligibility, creditworthiness, property’s value, and other factors. </p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-seven" aria-expanded="false" aria-controls="collapseForty-seven"> How much Home loan can i get on 40000 salary? </button> <div id="collapseForty-seven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Your eligibility for home loan amount is dependent on various factors, such as income, age, employer, CIBIL score, location of the property, property’s cost, etc. Every bank has its own eligibility criteria.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-eight" aria-expanded="false" aria-controls="collapseForty-eight"> What is the Interest rate on Home loans? </button> <div id="collapseForty-eight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>EMI for a loan amount of Rs. 20 lakhs depend on the repayment tenure and interest rate applicable on the loan. For example if you pay 8.45% p.a. rate of interest for Rs. 20 lakhs loan amount for a tenure of 30 years, your EMI will be Rs. 15,307 You can use our Home Loan EMI Calculator to calculate your loan EMI.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseForty-nine" aria-expanded="false" aria-controls="collapseForty-nine"> What is the EMI for 20 lakhs Home loan? </button> <div id="collapseForty-nine" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>EMI for a loan amount of Rs. 20 lakhs depend on the repayment tenure and interest rate applicable on the loan. For example if you pay 8.45% p.a. rate of interest for Rs. 20 lakhs loan amount for a tenure of 30 years, your EMI will be Rs. 15,307 You can use our Home Loan EMI Calculator to calculate your loan EMI.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty" aria-expanded="false" aria-controls="collapseFifty"> Can i get a 100% Home loan? </button> <div id="collapseFifty" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>No, you cannot get a 100% home loan from any bank, housing finance company, non-banking financial company, or other lenders. Lenders usually finance around 75% to 90% of the property’s cost as home loan amount and the remaining 10% to 25% has to be borne by you.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-one" aria-expanded="false" aria-controls="collapseFifty-one"> How much CIBIL score is required for a Home loan? </button> <div id="collapseFifty-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You must have a CIBIL score of 720 or above to be eligible for a home loan.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-two" aria-expanded="false" aria-controls="collapseFifty-two"> How much ITR is required for a Home loan? </button> <div id="collapseFifty-two" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>When you apply for a home loan, most banks require you to have an ITR of at least the last two years.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-three" aria-expanded="false" aria-controls="collapseFifty-three"> Which Bank Home loan is best? </button> <div id="collapseFifty-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>There are several home loan offers that you can choose from. Currently, HDFC Bank offers very low-interest rates comparatively. However, you need to assess all the features of the loan and compare different banks before choosing a plan for yourself.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-four" aria-expanded="false" aria-controls="collapseFifty-four"> What is the maximum Home loan you are Eligible for? </button> <div id="collapseFifty-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You can get loans up to Rs.10 crores. However, the maximum loan quantum varies from one bank to the other and also depends upon the eligibility criteria that the applicant fulfills.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-five" aria-expanded="false" aria-controls="collapseFifty-five"> Do i need to provide any security or collateral to obtain a Home loan? </button> <div id="collapseFifty-five" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The property that you purchase, construct or renovate is used as the collateral against the loan. So you do not have to provide any additional security or collateral. </p> </div> </div> </div> </div> </div> </div> </div> <div class="col-lg-12 col-md-12"> <div class="faq-item" data-aos="fade-right" data-aos-delay="50" data-aos-duration="500" data-aos-once="true"> <div class="faq-content"> <h3> Loan against Property FAQ's</h3> </div> <div class="faq-accordion"> <div class="accordion" id="FaqAccordion"> <div class="accordion-item"> <button class="accordion-button" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-six" aria-expanded="true" aria-controls="collapseFifty-six"> Loan against Property Details </button> <div id="collapseFifty-six" class="accordion-collapse collapse show" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> Loan against Property (LAP) can be availed against the mortgage of a self-owned property for any personal or business purposes. The property acts as a collateral to support the finance provided by the lender. The margin for Loan against Property usually ranges from 50-90% of the value of the property (also known as LTV or Loan-to-Value). </p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-seven" aria-expanded="false" aria-controls="collapseFifty-seven"> Features and benefits of Loan against property </button> <div id="collapseFifty-seven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li><strong>Easy to get</strong>: LAP is a secured loan making it easier for lenders to offer money to the borrower as it is backed by collateral.</li> <li><strong>Longer tenure</strong>: Usually banks sanction a LAP between Rs. 3 Lakhs to Rs. 100 Crores. It is the only loan facility other than the Housing Loan that allows banks to stipulate repayment period of up to 20 years.</li> <li><strong>Lower interest rate</strong>: In comparison to Personal Loans, a LAP loan has a lower rate of interest. The reason is the security offered to the banks.</li> <li><strong>Lower EMI</strong>: When you have longer tenure and a lower interest rate, the EMIs are bound to be lower.</li> <li><strong>Flexibility</strong>: Various banks have flexible loan products in this category, including term loans, overdraft facilities, reverse mortgage, etc.</li> <li><strong>Types: </strong>LAP can have various types, such as loan against residential/commercial property, loan against rent receivables, reverse mortgage, and so on.</li> <li><strong>Tax benefits</strong>: You get benefits tax benefits if you avail a loan against property for home renovation purposes. Usually, customers go for home renovation loans if they have to carry out repairs to the same property to be mortgaged to the bank. You might carry out repairs to your home but avail a mortgage loan by mortgaging another property. Under such circumstances, you have to prove that the end use of the loan is for carrying out renovations to the property you reside in.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-eight" aria-expanded="false" aria-controls="collapseFifty-eight"> Loan against property Eligibility </button> <div id="collapseFifty-eight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Each lender has their own eligibility criteria for availing LAP. Below are some common criteria to be eligible for a mortgage loan: </p><ul> <li><strong>Age:</strong> Minimum 21 years and maximum 65 years.</li> <li><strong>Profession:</strong> Both self-employed individuals and salaried persons with a regular source of income are eligible for a Loan Against Property.</li> <li><strong>Joint applications:</strong> Co-applicants are permissible. Lenders can accept the income of the co-applicants for arriving at the eligibility.</li> <li> <strong>Ownership:</strong> <ul> <li>The applicant should have unencumbered property in their name. The property can be residential, commercial, or industrial.</li> <li>Agricultural land is not acceptable as security for the loan.</li> <li>Many banks stipulate that the property should either be vacant or self-occupied.</li> <li>Some of the banks do not consider a property that is let out on rent or lease to third parties.</li> <li>Some lending institutions sanction loan against vacant residential plots</li> </ul> </li> <li><strong>Margin:</strong> The margin requirement for Loan Against Property can be 10% to 50% of the market value of the property.</li> <li><strong>Current obligations:</strong> The take-home pay norms come into effect. Usually, one should have a take-home pay of 50% after accounting for all the EMIs including the proposed one for the Loan against Property. Hence, it is imperative for the borrowers to declare their current obligations.</li> <li><strong>Credit history:</strong> The lending banks are members of CIBIL (Credit Information Bureau (India) Limited). They can pull out the records from CIBIL to determine your credit score. Usually, a credit score in the range of 600 and above is acceptable.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseFifty-nine" aria-expanded="false" aria-controls="collapseFifty-nine"> How to get the best Mortgage loan? </button> <div id="collapseFifty-nine" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Do a thorough market research about the best mortgage loan providers in India.</li> <li>Compare interest rates, fees &amp; charges, features, documentation requirement, eligibility and other factors of the top lenders.</li> <li>Check your eligibility, CIBIL score, and repayment capacity.</li> <li>Opt for a reputed lender who can offer the best loan against property deal that suits your finances.</li> <li>Approach the lender to apply for loan against property.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty" aria-expanded="false" aria-controls="collapseSixty"> Types of Loan against property </button> <div id="collapseSixty" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p><strong>Types of loan against property</strong> can be classified based on the purpose for which you avail the loan. </p><ul> <li><strong>Business Expansion Loans</strong>: Business entities can avail this facility for acquiring new machinery, purchase of plant, meeting working capital requirements, and invest in new technology or business. The lending banks require collateral in the form of property, residential, commercial, or industrial. Depending on the nature of the property available as collateral, the lending banks calculate the loan eligibility. For commercial properties, the LTV is around 55- 65%. In the case of industrial properties, the LTV reduces to 40-55% whereas the LTV in the case of residential property is in the range of 65-70%.</li> <li> <strong>Working Capital Overdraft Facility</strong>: Banks sanction overdraft facilities against the property for meeting the day-to-day working capital requirements. Under such circumstances, the property is accepted as collateral. Lending banks estimate the amount of finance required based on the following figures: <ul> <li>Property value and nature of the property</li> <li>Actual working capital requirement calculated as per the internal policies of the bank, usually the Projected Annual Turnover method.</li> </ul> </li> <li><strong>Personal Expenses:</strong> Individuals can also avail Loan against the Property for personal expenses such as medical expenses, educational expenses, marriages, travel, as well as for purchasing consumer durables.</li> <li><strong>Home Renovation:</strong> Usually, people do not avail this loan for renovating homes as there are separate schemes available at comparatively lower LAP interest rates. However, there can be circumstances when the borrower might have to resort to avail a Loan against Property for home renovation.</li> <li><strong>Lease Rental Discounting:</strong> Some banks offer loans against the future rent receivables, especially in metropolitan and urban areas. One should note that the property that fetches the rent should also be mortgaged in favour of the bank. Banks usually finance in the range of 75% to 90% of the future lease/rent receivables. The tenure of such loans is shorter and should end before the expiry of the lease or the rental</li> </ul> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-one" aria-expanded="false" aria-controls="collapseSixty-one"> Documents required for Mortgage loan </button> <div id="collapseSixty-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> Following are the documents required for mortgage loan: <figure class="table"> <table class="table"> <tbody> <tr> <td><strong> Document Type</strong></td> <td><strong>Documents Acceptable </strong></td> </tr> <tr> <td><strong>Identity Proof</strong></td> <td> <ul> <li>PAN Card</li> <li>Aadhaar Card</li> <li>Voter ID</li> <li>Passport</li> <li>Driving Licence</li> </ul> </td> </tr> <tr> <td><strong> Address Proof</strong></td> <td> <ul> <li>Registered Rent agreement</li> <li>Aadhaar Card</li> <li>Driving Licence</li> <li>Lease agreement</li> <li>Passport</li> <li>Latest gas/Electricity bill</li> </ul> </td> </tr> <tr> <td><strong>Income/Financial Documents</strong></td> <td>&nbsp; <ul> <li>Salary slips for the last 6 months for salaried employees (In addition, IT returns for the previous 3 years along with Form 16).</li> <li>IT returns for the past 3 years for self-employed persons (Some banks accept 2 years IT returns as well).</li> <li>Statement of A/c for the past 1 year where your salary is credited (in the case of salaried people).</li> <li>Profit and Loss statement and Balance sheet for the last 2 years in the case of self-employed persons.</li> <li>Sales tax, GST registration certificates, if applicable.</li> <li>Partnership deed in case of partnership firms (if the applicant is one of the partners or the firm itself).</li> <li>Certificate of Incorporation for limited companies(if the applicant is one of the directors or the company itself).</li> </ul> </td> </tr> <tr> <td><strong>Property Documents</strong></td> <td> <ul> <li>Copies of all property documents that can establish the chain of ownership for the past 30 years</li> <li>Encumbrance certificate for 30 years</li> <li>Property tax paid receipt</li> </ul> </td> </tr> <tr> <td><strong>Other</strong> <strong>Documents</strong></td> <td> <ul> <li>Loan application form</li> <li>Processing fee cheque</li> </ul> </td> </tr> </tbody> </table> </figure> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-two" aria-expanded="false" aria-controls="collapseSixty-two"> Prepayment of Loan against property </button> <div id="collapseSixty-two" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>The best part about loan against property is that you can prepay your loan before the end of the repayment tenure if you wish to. As per the RBI’s rules, this facility does not involve any prepayment charges if the loan is based on floating mortgage interest rates. For other variants, lenders may charge prepayment charges to the tune of 2% to 5% of the outstanding loan. It depends from bank to bank.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-three" aria-expanded="false" aria-controls="collapseSixty-three"> What types of properties are accepted by lenders to provide Loan Against Property (LAP)? </button> <div id="collapseSixty-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Industrial properties, including factories, warehouses, and processing units.</li> <li>Commercial properties, including malls, complexes, shops, office buildings, and hotel buildings.</li> <li>Residential properties, including residential homes, apartments, flats, and individual houses.</li> <li>Schools, hospitals, cinema halls and other properties .</li> <li>It can also be provided against non-agricultural land.</li> <li>LAP is also offered against unbuilt/under construction property if it falls under the list of approved builders of banks/ NBFCs.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-four" aria-expanded="false" aria-controls="collapseSixty-four"> Which Bank is best for Loan against property? </button> <div id="collapseSixty-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>ICICI, IDFC Bank, Kotak Bank, HDFC are some of the banks which are offering great deals on loan against property.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-five" aria-expanded="false" aria-controls="collapseSixty-five"> What is a Mortgage loan? </button> <div id="collapseSixty-five" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>A mortgage loan is a loan provided by banks and other financial institutions against the mortgage of property or other assets for personal as well as business purposes.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-six" aria-expanded="false" aria-controls="collapseSixty-six"> What is a reverse Mortgage loan? </button> <div id="collapseSixty-six" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>A Reverse Mortgage Loan is a credit facility which provides an additional income source to senior citizens of India, who have a self-owned or self-occupied home in India. It is a financial arrangement designed for senior citizens to fulfil their funding needs.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-seven" aria-expanded="false" aria-controls="collapseSixty-seven"> What is the maximum loan tenure available under LAP? </button> <div id="collapseSixty-seven" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Most lenders a maximum repayment tenure of 15 to 20 years for LAP.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-eight" aria-expanded="false" aria-controls="collapseSixty-eight"> How much loan we can get Against property? </button> <div id="collapseSixty-eight" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>You can get as much as 90% of property’s market value as a loan against your property, depending on your property’s value.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSixty-nine" aria-expanded="false" aria-controls="collapseSixty-nine"> Can NRIs avail Loans against property? </button> <div id="collapseSixty-nine" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Yes, NRIs as well as PIOs can get LAP in India if they are salaried, work for a reputed organization in selected countries and own a residential/commercial property in India.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeventy" aria-expanded="false" aria-controls="collapseSeventy"> What is the difference between Home loan and Loan against property? </button> <div id="collapseSeventy" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>A home loan is availed for the purchase/construction/renovation/repair of a residential house property whereas LAP is availed to fulfill any personal or business requirement just like a personal loan.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeventy-one" aria-expanded="false" aria-controls="collapseSeventy-one"> How much CIBIL score is required for Loan against property? </button> <div id="collapseSeventy-one" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Individuals with a minimum CIBIL score of 720 or above acain avail LAP.</p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeventy-two" aria-expanded="false" aria-controls="collapseSeventy-two"> How to get a loan against property without income proof? </button> <div id="collapseSeventy-two" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Elaborate your income to the lender.</li> <li>Maintain a high average monthly balance in your savings bank account.</li> <li>Opt for a lower loan-to-value (LTV).</li> <li>You can also consider Peer-to-Peer lending alternatives.</li> <li>Apply with a co-applicant.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeventy-three" aria-expanded="false" aria-controls="collapseSeventy-three"> What is the process of Mortgage loan? </button> <div id="collapseSeventy-three" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p> </p><ul> <li>Fill in the application form and submit it along with the required documents.</li> <li>Lenders will verify all the details.</li> <li>The property to be mortgaged will be evaluated by the lender.</li> <li>After evaluation and your eligibility check, your application will be approved if you are eligible.</li> <li>You will receive the loan agreement.</li> <li>If you agree with all the terms and sign the document, the loan amount will be transferred to your account within a few days.</li> </ul> <p></p> </div> </div> </div> <div class="accordion-item"> <button class="accordion-button collapsed" type="button" data-bs-toggle="collapse" data-bs-target="#collapseSeventy-four" aria-expanded="false" aria-controls="collapseSeventy-four"> Can i get a Mortgage loan with bad Credit? </button> <div id="collapseSeventy-four" class="accordion-collapse collapse" data-bs-parent="#FaqAccordion"> <div class="accordion-body"> <p>Yes. Being a secured loan, your application can be approved with a low credit score as well. You can also co-apply for the loan with your earning spouse or other co-applicants.</p> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <!-- End FAQ Area --></div>