Home Loan

Terms and Conditions:

1. Loan Nature & Eligibility:
   • A Home Loan is a secured loan provided for the purchase, construction, or renovation of residential property.
   • Eligibility is based on:
     • Income and repayment capacity
     • Credit score and financial history
     • Age and employment/business stability
   • The institution reserves the right to approve or reject any application as per internal credit policies.
2. Loan-to-Value (LTV) & Margin:
   • The loan amount is sanctioned based on the Loan-to-Value (LTV) ratio, i.e., a percentage of the property value.
   • Typically, banks finance 75% to 90% of the property cost, and the remaining amount must be paid by the borrower as margin/down payment.
3. Documentation & Verification:
   • Applicants must submit valid:
     • KYC documents (Aadhaar, PAN, etc.)
     • Income proof (salary slips / ITR)
     • Property documents (title, approvals, etc.)
   • The property will be subject to legal and technical verification before loan approval.
4. Interest Rate:
   • Interest rates may be fixed or floating, as per the borrower's choice.
   • Floating rates are linked to benchmark rates and may change over time.
   • The lender must inform borrowers about changes in interest rates and their impact on EMI or tenure.
5. Loan Tenure & Repayment:
   • Loan tenure generally ranges from 10 to 30 years, depending on eligibility and policy.
   • Repayment is made through Equated Monthly Instalments (EMIs) consisting of principal and interest.
   • Borrowers may choose to:
     • Increase EMI
     • Extend tenure
     • Or both, in case of interest rate changes
6. Prepayment & Foreclosure:
   • Borrowers may prepay or foreclose the loan partially or fully.
   • As per RBI guidelines:
     • No prepayment/foreclosure charges are applicable on floating rate home loans for individuals.
   • Terms for fixed-rate loans will be disclosed in the loan agreement.
7. Charges & Fees:
   • The borrower shall pay applicable charges, including:
     • Processing fees
     • Legal & valuation charges
     • Documentation charges
     • Late payment / penal charges
   • All charges will be clearly disclosed before loan sanction.
8. Insurance (Optional but Recommended):
   • Home loan insurance is not mandatory but is recommended to protect the borrower's family in case of unforeseen events.
9. Default & Recovery:
   • Delay or non-payment of EMIs may result in:
     • Penal charges
     • Negative impact on credit score
     • Loan classification as Non-Performing Asset (NPA)
   • In case of continued default, recovery proceedings may be initiated as per applicable laws.
10. Transparency & Borrower Rights:
    • The lender shall provide a loan agreement and Key Facts Statement (KFS) detailing:
      • Interest rate
      • EMI schedule
      • Total repayment amount
    • Borrowers must be informed periodically about:
      • Outstanding balance
      • Interest paid
      • Remaining tenure
11. Property Ownership & Security:
    • The property financed will be mortgaged to the lender until full repayment of the loan.
    • Original property documents will be retained by the lender as security.
12. Amendments & Regulatory Compliance:
    • All Home Loans are governed by RBI guidelines and applicable laws in India.
    • Terms and conditions may be revised from time to time in line with regulatory changes.