Loan eligibility is calculated on the basis of your income and valuation of property. Banks/Financial institutions take into account your repayment capacity. Generally, loans are given to the extent of 75-85% of the property valuation, depending on the loan amount applied and the final sanction is subject to the repayment capacity.

Yes, your spouse’s income does come under the umbrella and shall also be included while calculating your loan eligibility. Also, you can club your parents’ income or brother’s income for loan enhancement. In case of self employed applicants’, partner’s income may also be clubbed for loan enhancement.

No, you cannot get a home loan on a property which is already owned by you. However, if you have purchased a property and within 6 months itself, you want to avail a home loan, the same property would be considered by the bank. Post 6 months, you would only be eligible for a loan against the property, and the interest rates for this loan are generally higher than that on a home loan and also, the tenor of such loans are shorter. Moreover, you will not be able to avail income tax benefits on it like you can on a home loan.

Yes, you can avail home loans from different banks (only for sanction purpose). However, the property can be mortgaged to only one bank and hence, you need to finalize one bank for completion of formalities.

Yes, you can avail multiple home loans on different properties. The banks are primarily interested in the repayment capacity of a person. If they have assurance and are comfortable with it, you will not face any problem getting home loans for different properties at a time.

Yes, if the land comes under non-agricultural usage category, then you certainly can get a home loan for residential construction purpose. As a pre-requisite, you need to provide an architect’s estimate for the construction plan. Tax benefits for such loans starts only after completion of the house.

Yes, non-resident Indians can avail a special NRI home loan to buy a property in India. However, it is at the discretion of the bank to sanction such loans. Most of the banks fund NRIs for a shorter tenor and charge a higher interest.

Many banks have their panel lawyers to conduct title search for properties. Banks sanction loan only after they receive a report that there are no encumbrances and that the property has a clear and marketable title. In many cases, builders get their projects pre-approved by banks. These lenders thoroughly examine the legal documents of the title associated to that project, the stage of construction, and the builder’s track record to complete a project in time. The time taken to sanction loans from approved projects are comparatively lower.

Many a times, a borrower will opt for an under construction property and hence, the bank shall make disbursements in parts, depending on the progress in construction. However, up until the full loan is disbursed, you pay a simple interest at the rate you already agreed upon with the lender. This is known as Pre-EMI. Once the full disbursement is made, you start paying your actual EMI from the next month.

In fixed rate home loan, the interest rate remains the same throughout the tenor of your home loan. In floating rate home loan, the interest rate charged by a lender keeps changing with respect to the movements in Prime Lending Rates (PLRs) of the bank. Whenever there is a hike in the PLR, floating rate customers’ EMI would go up. Alternatively, the tenor of the loan goes up.

You will be eligible to claim tax benefits on both the interest and principal components of your repayment during that financial year. Under Section 24, you can claim up to Rs. 2,00,000 or the actual interest repaid, whichever is lower. Note that you can claim this interest only when you are in complete possession of the house.

Yes, you can get tax benefits under Section 80C and Section 24 on both housing loans. However, the total amount on which you can get tax benefits will be Rs. 1,50,000 and Rs. 2,00,000 respectively, across both loans.

Yes, the EMI amount or the tenor of the loan could get altered if one has availed a floating rate of interest.

No, it is not mandatory to buy property insurance when you are availing a home loan. But it is in the interest of the borrower to insure property as it shall eliminate the risk of loss of property.

Yes, you can sell the house even when the home loan is active. However, you need to inform the lender and get a consent from them to sell. The title deeds shall be released to the borrower only when all the dues to the bank are fully paid off.