Most important questions and answers related to taking home loan.

Loan can be availed up to 90% of property value and 60 times of income.

Taking a home loan to buy a house has become common these days. Better infrastructure and awareness among people are the main reasons for this. But before starting the home loan process, it is important to keep some things in mind. This includes everything from a person's income to CIBIL score. Actually, the ability to take a home loan depends on the ability to repay it. It depends on issues like your monthly earnings, expenses, family income, assets, liabilities, stability in income. Usually, a bank or loan company checks whether you will be able to pay 50 percent of your monthly income as home loan installment or not. The loan amount also depends on the tenure and interest rate of the home loan. Apart from this, banks also fix the upper age limit for home loan.

Home Loan Guide: From eligibility to required documents

Q. How many loans can I take?

A. Down payment of 10-20 percent of the price of a house or flat has to be made. This is your own contribution. After this, loan is available up to 80-90 percent of the value of the property. It also includes charges like registration, transfer and stamp duty. Even if the lending institution gives you a large amount as home loan, it is not necessary that you take the entire amount as loan. While buying a property, maximum down payment should be made. It should be kept in mind that the home loan lender charges interest from you in the long term.

Q. Relationship between income and loan?

A. Loan can be availed 60 times of the total income of the month. If the second loan (car or personal loan etc.) is running then the bank will consider the home loan amount after deducting its monthly installment from the income. If the credit score is not correct or there has been a default in the payment of any previous loan, then the bank can also refuse to give the loan. Banks consider 40% of the total monthly income as necessary for personal expenses. Home loan is given according to the remaining amount. Let the monthly income be Rs.60,000. 25000, then the bank assumes that the personal expenses are Rs. It will be a month. If there is no other loan then Rs 35 - 40 lakh at 9% per annum interest rate for 20 years. Can get loan of Rs.

Q. Eligibility for Home Loan?

A. Banks and loan institutions prefer to give home loans to applicants with a credit score of 750 or more. Having a high credit score can help you get a home loan at a lower interest rate. Although many banks/loan institutions also give loans to those with credit score less than 750 but the interest rate is higher.

Q. Take insurance or not ?

A. It is always better to cover the risk of taking a home loan. This can be a great relief for the family in case you are not there due to some reason. For this you can take term plan or mortgage insurance plan. Both single and regular premium options are available in this type of plan.

Q. Required documents?

A. density and Address (PAN/Aadhaar/Passport/DL/Utility Bill), Proof of Age (Birth Certificate, 10th Certificate, Aadhaar, PAN, Passport), Proof of Income (Bank Statement, Income Tax Return, etc.).