[Ans] Any Indian Resident, Non-resident Indian or Person of Indian Origin can apply for a home loan if they are 21 years of age at the origin of the loan and 65 years or below at loan maturity. Housing Finance Companies usually give home loans for properties located in India to people who are employed or self-employed, with a regular source of income.

[Ans]An individual can apply for a home loan even before the property has been selected. The loan amount is sanctioned based on the ability to repay. This helps in planning a budget while purchasing the house.

[Ans]Loan eligibility is calculated based on the ability to repay. Factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration.

[Ans]You can repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by EMIs commences from the month following the month in which you take full disbursement. Till then, you only need to pay the interest on the amount disbursed.

[Ans]Before final disbursement, you may have to pay interest on the portion of the loan disbursed. This is called pre-EMI interest. Pre-EMI interest is payable every month from the date of each disbursement up to the date of EMI commencement.

[Ans]Most Housing Finance Companies offer the fixed rate as well as the variable rate options to customers.

[Ans]A rate of interest that is constant throughout the duration of the loan is known as a fixed rate loan.

[Ans]A floating rate is when the interest rate on the loan changes according to the rates in the market during the period of the loan.

[Ans]If interest rates are falling, a floating rate loan is a better option. But when interest rates are rising, opt for a fixed rate loan, because you will then know in advance what your EMIs will be.

[Ans]Processing and administrative fees, pre-payment charges and delayed payment charges, legal fees, technical fees, stamp duty and registration of mortgage deed are all likely areas of expenditure.

[Ans]A guarantor is insisted on by the Housing Finance Company so as to ensure that the loan is paid back in full and in time. The guarantor is responsible for the repayment of the loan if the borrower is unable to do so.

[Ans]You could do this, but some Housing Finance Companies require a pre-payment fee to be paid. Check with your Housing Finance Company.

[Ans]You could do this. After discussing the reasons with the current Housing Finance Company, they may even reconsider the interest rate.

[Ans]Most Housing Finance Companies follow the yearly reducing balance method, which accounts for your principal repayments only at the end of their financial year. Thus you pay interest on the principal that you have already returned to the Housing Finance Company during the year. The effective interest rate is thus higher than the quoted interest rate by around 0.7 per cent. Banks and some Housing Finance Companies, in contrast follow the daily or monthly reducing balance method, which results in a lower interest burden.

[Ans]It will take around 15 days for the processing of your application if your documents are in order. Make an application only if you are eligible for the loan since the Housing Finance Company will not return the application-processing fee. It will take another week for the company to check out your property papers and make the disbursement.

[Ans]Yes, these loans are available from some Housing Finance Companies . However the loan terms may be different from the usual housing loans.