Carpet Area refers to the net saleable area or wall to wall area that can be covered by a carpet. It is the net usable area, that is, Built Up Area minus area of the wall.
Built Up Area refers to the gross area of the villa which includes the Carpet Area , the thickness of the walls , balcony, exterior staircase and corridor. The Build Up Area can be 15% – 25% more than the Carpet Area and constitutes 70% – 80% of the Super Built Up Area.
Super built up area is the total saleable area. It comprises build up area as well as the common usable area that includes the corridor, lobby, security cabin, elevator, swimming pool, garden, clubhouse etc.
Financial institutions offer various Housing Loans. Prominent among these are:
- Home Loans – This is the basic Housing Loan for the purchase of a new home which covers cost of the flat or villa and parking space ,deposits and charges, stamp duty and registration charges.
- Home Improvement Loans – For implementing repair works and renovations in a home that has already been purchased by you. It is also called as “Top-up Loans” by certain banks and home Finance Companies.
- Home Construction Loans – For the construction of a new house.
- Home Extension Loans: For expanding or extending an existing house
Land Purchase Loans -For both home construction or investment purposes. - Bridge Loans – For people who wish to sell the existing house and purchase another and need finance for the new house, until a buyer is found for the old house.
- Balance Transfer – To pay off an existing Housing Loan and avail of the option of a loan with a lower rate of interest.
- Refinance Loans – To pay off the debt you have incurred from private sources such as relatives and friends, for the purchase of your present house.
- Loans To NRI’s – As per requirements of NRI’s who want to buy a house in India
Any person, including Non Resident Indians, with a steady source of income can borrow funds for financing the cost of a flat or villa from housing finance companies and banks.
Loans are generally disbursed up to a maximum of 85% of the cost of the flat or villa. The balance 15% cost of the flat or villa is to be funded by the flat or villa purchaser from his own contribution. Some banks can fund upto 90% of the cost of flat or villa.
All projects at Neamath Realty are pre-approved for grant of home loans by leading housing finance companies and banks. The Neamath Realty sales team liaise with the all leading Housing Finance Institutions/ Banks for processing the loan, documentation and disbursement of loans.
Home Loan Calculator
Monthly Installment (“EMI”) is the amount comprising a portion of the interest and the principal loan amount which is payable by a borrower to the lender every month.
Interest rates vary from time to time and from institution to institution. The interest is calculated either on a daily or monthly reducing or yearly reducing balances.
A fixed-rate Housing Loan is a loan where the rate of interest is constant through the entire term of the loan period.
floating interest rate loan is a loan where the interest rate payable is linked to the market conditions such as the bank’s retail prime-lending rate (PLR) it rises and falls with the bank rate varies. Hence a borrower bears the risk of interest rate fluctuations. Floating interest rates offered are usually lower than the fixed interest rates.
In a monthly reducing interest system the principal on which interest is paid reduces every month as EMI is paid. In the annual reducing system the principal is reduced at the end of the year, and the borrower pays interest on a certain portion of the principal, which is actually paid back to the lender. The EMI for the monthly reducing system is effectively lesser than the yearly reducing system of calculating interest
Repayment period options range generally from 5 to 20 years
Financial institutions offer various Housing Loans. Prominent among these are:
- Fees – payable to the lender on applying for a loan and is either a fixed amount not linked to the loan or may also be a percentage of the loan amount.
- Commitment Fees – in case the loan is not availed of within a stipulated period of time after it is processed and sanctioned then some institutions levy a commitment fee.
- Prepayment Penalty -between 1% and 2% of the amount being pre paid is charged by some institutions when a loan is paid back before the end of the agreed duration.
- Stamp duty and registration fee on a deed of mortgage
- Miscellaneous costs – such as administrative costs, legal documentation charges, technical consultant charges.
- Bank statements for the previous six months
The flat or villa purchased is the primary security and is mortgaged to the lending institution till the entire loan is repaid. Additional security such as life insurance policies, shares, bonds, fixed deposit receipts, national savings certificates can also be offered, as per the requirements of the institution
Yes. Many lending companies require 1 guarantor. But it may not be mandatory.
Usually loans are disbursed within 5-7 days after completion of verification by the institution, documentation (such as handing over of the original agreement for sale / lodging receipt to the lender) and completion of all relevant procedures and only after proof that the borrower’s own contribution has been paid by him to the Vendor / Developers / Developer.
Sometimes lending institutions offer special schemes / incentives/offers for a specified period or under a special scheme. Incentives could be any of the following:
- Free accident insurance
- Waiver of pre payment penalty
- Waiver of processing fee
- Property insurance
A loan for purchasing a flat can be availed of from the following sources:
- Housing Finance Companies
- Banks
- Employer
- Insurance company
- Against Provident Fund Account , Fixed Deposits, Post office Savings
- Against Shares and Debentures of listed companies, government bonds and securities.
- Private parties such as relatives, friends
