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What is the tenure of a home loan?

Asked 2018-06-14 17:44:22 by Anonymous -

Answered by NewsBytes

Home loans are long-term borrowing instruments with a minimum tenure of 5 years and a maximum tenure of 30 years. The tenure offered to you for your home loan depends on the loan amount that is sanctioned to you by the lender along with many other factors.

What are the tax benefits in case of joint borrowers of home loans?

Asked 2018-06-14 17:43:37 by Anonymous -

Answered by NewsBytes

In case of joint home loans, each of the co-borrowers is eligible to receive a total of Rs. 3.5 lakhs (1.5 lakhs under section 80C + 2 lakhs under section 24) as tax exemption. Hence, if a married couple co-signs for a home loan, they can claim a total tax exemption of Rs. 7 lakhs on their home loan.

I don't have a good credit score, what are my options for a home loan?

Asked 2018-06-14 17:42:22 by Anonymous -

Answered by NewsBytes

In case of a poor credit score, it becomes difficult to get a home loan. However, you can improve your chances by getting a co-borrower. The co-borrower needs to be an immediate family member like your spouse, parents, etc. Ideally, you should choose a co-borrower who has a regular source of income and good credit history to improve your chances of a successful application.

What are the various types of home loans available?

Asked 2018-06-14 17:41:39 by Anonymous -

Answered by NewsBytes

There are various types of home loans available depending upon your specific requirements. Some of the key ones are- Land purchase loans, Home purchase loans, Home construction loans, Home Expansion/Extension Loans, Home Improvement Loans, Home conversion loans, NRI Home Loans, among others.

I currently have a home loan on me but I want to shift to a new house. What option do I have?

Asked 2018-06-14 17:39:11 by Anonymous -

Answered by NewsBytes

Your best option in such a case is to apply for a home conversion loan. Using this type of loan, you can add to your existing home loan and purchase the new one without having to opt for a second home loan.

What kind of costs are not covered by a home loan?

Asked 2018-06-14 17:37:29 by Anonymous -

Answered by NewsBytes

Apart from the margin on a home loan, some other costs will have to borne by the borrower. Some of the key expenses with respect to this include the initial down payment, stamp duty costs, registration costs and transfer charges among others.

Can I prepay my home loan?

Asked 2018-06-14 17:36:45 by Anonymous -

Answered by NewsBytes

Yes, you can repay your loan amount before completion of the scheduled loan tenure by making a lump sum payment towards paying off the loan. In such cases, the banks may decide to apply some penalties in the range 2-3% of the principal amount outstanding. Some banks and NMFC (non-banking financial companies) do not charge any penalty for making the prepayment of a home loan.

How can I repay my home loan?

Asked 2018-06-14 17:36:09 by Anonymous -

Answered by NewsBytes

There are many ways in which you can pay off your home loan, these include- issuing post-dated cheques for the tenure of the home loan, getting the amount deducted automatically from your salary or by issuing standard instructions to the lender for ECS (Electronic Clearing System) wherein the EMI is automatically deducted from your bank every month.

What is floating rate home loan?

Asked 2018-06-14 17:35:47 by Anonymous -

Answered by NewsBytes

If the interest rate on a home loan varies periodically over the loan tenure, then such a loan is called a floating rate home loan.

Can I apply for a joint home loan with my friend?

Asked 2018-06-14 17:35:14 by Anonymous -

Answered by NewsBytes

Immediate family members like your parents, spouse and children are allowed to be joint borrowers in case of a home loan. So, your friend does not qualify for this.

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