Yes. The rates are lower for women.

No.

PMAY subsidy is calculated taking the entire loan period into account. This subsidy amount is credited upfront to the account. If the loan is prepaid, the subsidy amount would be reversed and the subsidy benefits would be lost. 

Yes. The loan will be sanctioned, based on the repayment capacity.

Home loan is eligible only for construction of residential property.

Yes, you can get home improvement loans based on your eligibility.

Yes, NRI can get home loan to buy property in India. The documentations are different from Resident individuals.

A land loan is often treated as part of the home loan options provided by a bank and is treated in the same way as that of a home loan.

The process and requirements such as the bank’s due diligence process, EMI options, documentation, need for co-applicants, rate of interest, etc are the same for both home loans as well as land loans.

Top-up is a provision that helps you adding a certain amount or topping up some amount in your existing home loan amount.

Those who already have a home loan, home improvement loan or a home extension loan can apply for it.

You can claim deduction under Sec 24 only if you are co-owner of the house and co-borrower in the loan.

Yes, loans are available against Sovereign Gold Bond.

They are generally no charges for making a part payment towards your loan. However, it could depend from bank to bank.

Yes, you can pay more than the EMI towards your loan.

There would be no prepayment charges on floating rate home loans taken by individuals, either on part prepayment or full prepayment.

On fixed rate home loan taken by individuals, there would be no charges if the borrower makes the repayment from his own sources and not by borrowing from another bank or finance company. There would be a penalty or charge applicable if you prepay the loan from sources other than your own.

Check the agreement documents carefully for pre payments charges on your loan.

It is better to reduce tenure of loan if you can continue to pay the same EMI.

You’ve chosen a property that’s yet under construction. So the lender makes the disbursement in parts based on the progress of the construction of your property. However till the housing loan is fully disbursed you have to pay simple interest at the rate you have agreed upon with the lender. This is known as the Pre EMI. And from the month following in which the full disbursement is made you will start paying your EMI.

Marginal Cost of Funds based lending rate is the minimum interest rate that a bank can lend at. MCLR is a tenor-linked internal benchmark, which means the rate is determined internally by the bank depending on the period left for the repayment of a loan.

Home loans, like floating rate retail loans, taken between April 1, 2016 and October 1, 2019 are linked to MCLR. Loans taken post 1^st Oct 2019 would be linked to other external benchmarks.

RBI has offered banks the options to choose from 4 external benchmarking mechanisms: the RBI repo rate, the 91-day T-bill yield, the 182-day T-bill yield, or any other benchmark market interest rate as developed by the Financial Benchmarks India Pvt. Ltd.

To ensure complete transparency and standardization, banks are mandated to adopt a uniform external benchmark within a loan category.

It is highly recommended to write to your bank and move from marginal cost of funds-based lending rate (MCLR) to repo-linked lending rate-based loans. RLLR-based pricing is more transparent and will help realise the impact of policy rates from the immediately following month.

The MCLR for home loans is pegged at an annual reset by most banks, leading to a kind of fixed rate for a year and this is not in the interest of the consumer in a reducing rate scenario.

Floating rate is when interest rate on the home loan varies over the tenure of the loan. When the rates change, the EMI or tenure would increase or decrease.

Fixed rate is when interest rate on the home loan is constant over the tenure of the loan.

Yes, its possible to change from floating rate to fixed rate and also from fixed to floating rate. Some banks charge a small fee to change the rate.

It’s a plan which covers the borrower’s liability in case of death during the loan repayment period. In case of the full repayment or demise of the policy holder or if the loan is transfer of loan to another bank, the home loan policy would lapse.

Purchasing an insurance plan is the sole discretion of the buyer and borrowers cannot be forced to buy insurance along with the loan. It is essential for the buyer to buy the home loan insurance, as in case of demise of the borrower, the home loan is used to hedge the risk of loss.

Only the home loan is protected and not the home under home loan insurance.

It is possible claim deductions under section 80C if the premium is paid by the borrower. If the premium is part of the loan is paid by the lender, then it’s not possible to claim under section 80C.

Yes, one can increase or decrease the loan amount before the loan is disbursed.

It is possible to change from one service provider to another. But please keep in mind that the new lender might charge processing fees and the existing lender might charge prepayment cost for pre closure of the loan.

It is better to reduce the tenure of loan if you can afford it as it will reduce the interest cost.

Presuming you are in the highest tax bracket, you save about Rs 33,000 income tax across these 30 months under Section 24B (I am also assuming Section 80C is covered by your EPF and insurance premium). You pay interest to the tune of just above Rs 1 lakh to the bank in this period. Therefore, your net interest outflow, because of the loan, is about Rs 77,000. This works out to a net cost of 6.5% on this Rs 9 lakh loan. Now comes the decision-making part. If you can invest the spare Rs 9 lakh in an instrument for 2.5 years, earning an interest of more than 6.5% in a relatively safe investment, without taking high risk, you should go for it and not prepay. However, if you are near retirement, and would like to get loan-free, then paying off the loan is better.

Theoretically, it is possible. However, the bank financing the car will foresee a problem if you stop paying the EMI and they need to take possession of the car (which on paper will be in your daughter’s name). The bank may, therefore, insist on adding your daughter as a co-owner to the loan. In case you avail financing from the car dealer, the paperwork may be simpler.

In gold loan, just like in normal loan you pay EMI on the loan amount disbursed. In overdraft facility, you are sanctioned a limit and you can choose how much and when to utilize from that amount.

Interest paid on amount taken as loan for renovation would qualify for tax benefit under Sec 24. Maximum amount that can be claimed is Rs 30,000/-.

Yes, one can get land loan to buy a plot. However one could opt for a home loan in case they are planning to build a house on the bought land. Or you could opt for composite loan for buying land and building house on the same.

Lenders will also look at other factors while approving the loan, if there is no credit score.

Paying just minimum amount due on credit card instead of full amount would not impact credit score, but it would first increase the burden because interest at the rate of 2-3% per month needs to be paid on the remaining amount.

Pay credit card and all other bills on time. Don’t take too many unsecured loans.

Paying the credit card bill any time before the due date would have the same effect on credit score. Paying credit card bills after due date would lower the credit score.

Term insurance is cover on your life. The amount received by the nominee on death of policyholder could be used for any purpose – including repaying the home loan. Separate insurance on home loan also could be taken.

You can start prepayment. Check with lender once before starting the prepayment.

Yes, prepayment could start before possession. However, check with lender once before starting the prepayment.

Most financial institutions and banks give education loans.

One can avail a loan up to Rs 10 lakh for studies in India and Rs 20 lakh for studies abroad.

• Proof of admission. An educational loan cannot be applied without proof that admission has been secured in the selected institution.
• Schedule of fees from the institution
• Mark sheet of the last qualifying examination
• Photographs

Yes, you can.

A moratorium period is a time during the loan term when the borrower is not required to make any repayment. It is a waiting period before which repayment by way of EMIs begins.

In education loans, repayment begins only after completion of the course.

During the moratorium period, on an education loan the bank will calculate interest on your loan on simple interest basis. Interest calculations will start as and when amounts are disbursed to you and not on the entire loan amount at once.

This interest will be accumulated until the end of the moratorium period. There are some banks that offer a concessional interest rate if you take the loan and arrange to pay the interest portion of the loan during the moratorium period.

Yes.

Yes, but spouse also has to be co-owner in the property to be able to claim tax benefits of the loan.

The liability is in dual name. Hence, in case the chid is unable to secure a job after the course, the payment liability falls on the joint holder, typically the parent, to pay the EMI’s.