My Cibil score is 764 and I have an annual income of ` 8 lakh. Will I be eligible for a home loan of ` 20 lakh?
—Sahil Kaul Generally a CIBIL score of over 750 is considered to be good enough to be eligible for any loan. Apart from a CIBIL score, the lender will determine your loan eligibility based on your age, your income, your regular household expenses and your existing loans, if any. Normally lenders grant home loans up to maximum of 90% of the agreement value of the property as a home loan.
This means that your down payment will have to be at least 10% of the agreement value. Moreover, as per RBI guidelines, the bank will not take into account stamp duty and registration cost, while calculating the cost of the property. Therefore, in addition to 10% you will have to fully fund the cost of stamp duty and registration charges.
Based on your income you should be able to get the required loan of ` 20 lakh easily if you have no other loan to service and assuming you are not more than 40 years old. I want to take a loan of ` 20 lakh to reconstruct our old house. The house is in father’s name. What shall I do and which bank will give me a loan.
—Mangal Singh If your father owns the house you will be able to get a loan only if your father joins you as joint borrower. The lenders will treat this as a self-construction loan. You will need to submit the approved plans and detailed cost estimates from an architect or a civil engineer and the loan will be provided on that basis.
Please note that as you are not an owner or co-owner in the property you will not be eligible for any tax benefits on the loan repayments even if the loan is sanctioned based on your income and you actually service this loan. The lender will also need to be reassured about the fact that the title will pass on to you after your father so that they are reassured that you will continue making the payment to them in the event of his demise.
Alternatively you can pur- chase a part of the land on which the property is to be constructed from your father to become a joint owner of the property. This will also help you in availing tax benefits. Since not all lenders are comfortable in providing selfconstruction loans your choices will be limited.
You will need documentary proof of your income. In case of a salaried person, apart from the ITR and Form 16, it can be in the form of salary certificate backed by monthly credit entry in a bank account, PF deduction proof, etc. I want to purchase a flat worth ` 50 lakh. My monthly income is ` 40,000. How much loan can I get from a bank? The down payment for flat is around ` 10 lakh.
—Rakesh Jha For a flat that costs ` 50 lakh you will need a down payment of at least ` 13 lakh to ` 14 lakh as banks will finance only up to 80% of the agreement value. You will have to pay the stamp duty and registration charges yourself, as the banks no longer fund these charges. Based on your income of ` 40,000 pm, you will be eligible for home loan of approx. ` 18 lakh @ 10.25% pa for a tenure of 20 years. Harsh Roongta is CEO, Apna Paisa. He can be reached at email@example.com