What is meant by Carpet Area, Built-Up Area & Super Built-Up Area?
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Carpet Area is the area enclosed within the walls where you can actually lay a carpet in the flat which does not include the thickness of the inner walls. It is the actual used area of an apartment/office unit/showroom etc
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Built up Area is the carpet area plus the thickness of outer walls and the balcony.
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Super Built up Area is the built up area plus proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners makes up the Super Built-up area. Sometimes it may also include the common areas such, swimming pool, garden, clubhouse, etc. This term is therefore only applicable in the case of multi-dwelling units.
What are the types of loans available depending on the interest charged?
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Most Housing Finance Companies (HFC) offer the fixed rate as well as the adjustable rate (Variable) home loan to customers.
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Fixed rate: where the rate of interest charged by the HFC on the loan is constant over the tenure of the loan
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Variable rate: where the rate of interest charged by the HFC on the loan keeps changing with respect to the rates in the market over the tenure of the loan.
On what basis is the amount of the home loan decided? or on what basis a capacity of a person to repay the loan is evaluated ?
The amount of home loans granted by various financial institutions generally is between 2 lakhs to one crore and between 70% to 100% (under special schemes) of the purchase price. The amount of the loan for each individual depends on the following factors:-
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The income of the family applying for the loan.
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Age of the applicant for retirement or years left for completing 65 years.
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Number of dependants
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Qualifications
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Assets and liabilities
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Stability/ continuity of the employment/ business of person applying for a loan.
Can I repay the loan ahead of schedule?
What is the security required against the home loan?
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The main security for a home loan is the first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary. In addition interim security may be required, if the property is under construction. The documents of title will be kept in the safe custody of the finance institution until repayment of the loan
What is an EMI?
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Home loan repayment is by Equated Monthly Installments (EMI) comprising of both principal and interest. EMI is to be paid every month through post dated cheques or through direct deductions from the salary. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement upto the date of commencement of EMI.