If you do not have that kind of funds for an outright purchase or for the down payment, then you should consider a joint home loan, where you can combine a family member’s income to be eligible for a higher loan amount that would suit your fund requirements for the purchase. Also remember, banks generally fund a maximum of 85 per cent of the cost of the property you plan to buy. Hence it is essential to have at least 15 per cent of the cost of the property as down payment.
Q:
I am a Mechanical Engineer. I work for a mutlinational company as Manager-Sales. My cost to company including all benefits is Rs 6 lakh per annum and monthly take home is approximately Rs 30,000.
I plan to buy a builder floor in Indrspuram (Delhi NCR), which costs Rs 32 lakh (Rs 30 lakh for home and Rs 2 lakh for registration). How much loan I should take from a bank?
– Pushpam Kumar
A:
Loan Eligibility
The maximum home loan amount you are eligible for is approximately Rs 13 lakh assuming a 20 year loan tenure, which is the maximum tenure given by most banks. The EMI for this amount would be Rs 15,000 per month at an interest rate prevalent in the market today. Hence, you need to arrange for funds to make a down payment of Rs 19 lakhs to purchase the property you have identified.
Consider a joint home loan
If you do not have that kind of funds for an outright purchase or for the down payment, then you should consider a joint home loan, where you can combine a family member’s income to be eligible for a higher loan amount that would suit your fund requirements for the purchase.
Percentage of minimum down payment
Also remember, banks generally fund a maximum of 85 per cent of the cost of the property you plan to buy. Hence it is essential to have at least 15 per cent of the cost of the property as down payment.
Credit Profile
To a large extent a person’s credit profile or previous track record for loan repayment has a lot to do with his loan eligibility as well. If you already have loans that are in the process of being repaid, your loan eligibility may increase. At such instances a joint loan will really help you out to increase the amount of loan you can avail. On the other hand if your repayment history is impeccable and you have no liabilities you may be eligible for a higher loan amount and a lower interest rate as well!
Source: Bank Bazar |
