When can you apply for a home loan?
The moment you decide to buy a home, you can put in your application for a Home Loan with SmartLoan. You can apply for a Home Loan even before you have selected the property. The loan amount would be sanctioned or approved, based on your repayment capability.
What are the loan tenure options?
SmartLoan offers loans upto 20 years, provided term does not extend beyond 65 years of age or the retirement age, whichever is earlier.
How is the interest charged/ calculated?
Interest will be calculated on monthly basis.
Who can be the co-applicants for the loan?
Your spouse can be a co-applicant for the loan. Co-owners need to be co-applicants too. You can consult your Home Loan counselor for any other approved co-applicants for the loan.
What are the securities/ collaterals you need to provide?
Security for the loan is a first and exclusive charge of the property to be financed, by way of deposit of title deeds and/ or such other collateral security as may be necessary. The title to the property should be clear, marketable and free from any encumbrances.
What are the stages involved in taking a loan?
Application - Submit a completely filled application with all the necessary documents.
Sanction - You get an approval for a specific loan amount based on your requirement, repayment capability and the value of the property.
Disbursement – Transfer of loan amount.
Disbursement – Disbursement will be made as per stage of construction.
What are the various types of loans that SmartLoan provides?
- Home Loan
- Business Loan
- Loan Against Property
- Institutional Loan
What is a Monthly Reducing Balance?
An Equated Monthly Installment (EMI) has 2 components: interest and principal. When the interest is calculated on monthly rests, the principal on which the interest is charged goes down every month. This results in significant savings for the customer over the tenure of the loan.
What is an Annual Reducing Balance?
An Equated Monthly Installment (EMI) has 2 components: interest and principal. When the interest is calculated on annual rests, the principal reduces only at the end of the year. Therefore, you continue to pay interest on a portion of the principal that you have already actually paid back to the lending company.
How does SmartLoan help you in selecting a property of your choice?
Through SmartLoan, you can identify a property that fulfills your requirements from a vast database of properties. We arrange for site visits to the properties shortlisted by you, and also assist you with the legal documentation. This service comes to you free of cost for first sale properties. This facility is available in select cities only.
What is an amortization schedule?
An amortization schedule is a table giving the reduction of your loan amount by monthly installments. The amortization schedule gives the breakup of every EMI towards repayment interest and outstanding principal of your loan.
Can you get IT certificates in the name of both the applicant and co-applicant separately?
As per IT rules, only one certificate can be issued for a Loan in the name of both the applicant and co applicant.
When is the IT certificate issued?
You can request for a provisional IT certificate that can be issued any time during the course of the year. The final IT certificate will be issued at the end of a financial year. You can expect to receive your copy in the month of April or May.
What kind of Tax Benefit does an individual get while applying for a Home Loan?
Many of us have taken home loans / mortgages to buy our house. One of the most important motivators for availing a housing loan is the income-tax benefit that it provides.
If you have availed of a home loan, you can claim tax benefits on both the principal and interest components of the home loan as per the Income Tax Act. These benefits are in the form of deductions available to assess who have taken a loan to either buy a house or build one. You can reduce your tax liability by a maximum of Rs. 6,250 per month (Rs. 75000 p.a.)
Under section 80 (c), repayment of principal of up to Rs. 1 lac is deductible in full from your income which means you can save tax up to a maximum of Rs. 30,000 p.a. on principal. Similarly, under section 24 of the Income Tax Act, interest is deductible up to a maximum of Rs. 1.5 lac. Thus, this leads to an additional saving of a maximum of Rs. 45,000 p.a.