Home Equity Loans

Home Loans

Housing is the fastest growing sector in the current times. Banks are cashing on this phenomenon by offering easy home loans at attractive rates. Home loans products is offered by almost all banks; right from loans for purchasing real estate to buying a flat, from home improvement to home extension loans. The EMI and rate of interest is arrived at, keeping a number of factors like, the loan amount, market value of the the land or building, tenure of loans etc.

Types Of Home Loans Available:

Home Equity Loans

Home equity loans helps the customer to mortgage his existing property to the bank for taking loan for some other purpose. Banks assess the current market value of the property to give loans to customers. Customers can use the money so acquire for marriage, education, medical purpose. Residential/Non-residential properties are considered for approval of loan. They are only given to legal title holders, also the land should be free from any kind of dispute.

Maximum Amount of Home Equity Loans:

Banks offer around 60-65% of the actual value of the property as loan. The Loan amount can go up to 10-15 lakhs for commercial and residential properties. Repayment is done through Equated Monthly Installments or EMI. The repayment period can range from 10-15 years depending on the bank's policies.

Interest Charged by Banks for Home Equity Loans:

Rate of interest can both be fixed as well as fluctuating, according to the requirement of the customer. Rate of interest charged is also fixed according to the prevailing market conditions.

Home Equity Loans Application Process:

An individual/company/professional can apply for home equity loan in different home loan corporations/ banks by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loan.

Documents Required for Approval of Home Equity Loans:

Businessman/ Self employed professional:

1. Application form with photograph
2. Educational qualification
3. Identity and residence proof
4. Proof of business existence with business profile and last three years income tax return
5. Last 3 years income statement and balance sheet.
6. Last 3 month's personal and business bank statements.
7. Processing fee check

Salaried customers:

1. Application form with photograph
2. Identity and Residence proof
3. Latest salary slip
4. Form16
5. Last 6 months bank's statement
6. 6.Processing fee cheque.

List of Some of Banks Providing Home Equity Loans:

HDFC Bank - HDFC Home Equity Scheme

ICICI Bank - Adjustable Rate Home Scheme

Bank of India - Star Home Scheme

Standard Chartered - HomeAssist

IDBI Bank - IDBI Hassle Free Home Loan

State Bank of India - SBI Unique Housing Scheme

Union Bank of India - Union Home Plus

UCO Bank - UCO Shelter

Bank of Baroda - Baroda Housing Scheme

Citibank - Home Credit

Development Credit Bank - Home Vantage Products

Who Can Get a Home Equity Loan?

Not everyone one can just go out and get a home equity loan. There is a process and requirements in which you must follow to ensure your reception of a home equity loan.

First of all you will have to meet these requirements:

• You must have a home that is mortgaged in which you acquire equity
• You must be of 18 years of age or older
• You must have a good credit standing
• You must have a regular source of income

What Are the Advantages of a Home Equity Loan?

You can use your home equity in multiple ways. It is a diverse loan and also a relatively safe loan. A home equity loan is a secured loan, which is guaranteed by your house's equity. It offers you lower rates that most other loans and very flexible terms such as the ability to choose between adjustable or fixed rates of interest.

The amount of money that you receive from your lender can be used any thing you wish. There are no restrictions on what you can spend your home equity on or how you spend it. You can even buy your dream car with it!

A common way to send your home equity loan is to use it for paying off, if not all, previous debts and help stabilize your finical situation. You can even invest some of your home equity loan into other products as well.

Home equity loans have great tax benefits along with low interest rates.

The home loan application process is hassle free and fast since a home equity loan is secured and provided by your home's equity.

Home Extension Loans

Banks provide customers with home extension loans to extend their houses, add more rooms etc. Such loans fall under the category of home loans.

Maximum Amount of Home Extension Loans:

Banks normally offer 70-85% of the total amount of home extension as loan. The amount of loan sanctioned also depends on a number of factors such as the age of the applicant at the time of loan, tenure of the loan, repayment capacity of the borrower etc.

Interest Charged by Bank for Home Extension Loans:

Rates of interest charged will be as per Bank's policy on the date of disbursement of loan. Interest rates can be either on fixed or floating basis.

Process of Home Extension Loans Application:

Customers can fill online application forms or personally visit the bank for approval of loan. A nominal fee of 1-2% is charged as processing by the banks.

Documents Required by Banks for Home Extension Approval:

Businessman/ Self employed professional:

1. Application form with photograph
2. Educational qualification
3. Identity and residence proof
4. Proof of business existence with business profile and last three years income tax return
5. Last 3 years income statement and balance sheet.
6. Last 3 month's personal and business bank statements.
7. Processing fee check

Salaried customers:

1. Application form with photograph
2. Identity and Residence proof
3. Latest salary slip
4. Form16
5. Last 6 months bank's statement
6. Processing fee cheque.

List of Some of Banks Providing Home Extension Loans:

HDFC Bank - Loan For Extension of Home

ICICI Bank - Attractive Extension Loan

Bank of India - Addition To House

Standard Chartered - HomeAssist

IDBI Bank - IDBI Sweet Home

State Bank of India - Amount For Extension of Home

Union Bank of India - Union Home Plus

UCO Bank - UCO Shelter

Bank of Baroda - Baroda Housing Plan

Citibank - Renovate Home

Development Credit Bank - DCB Home Vantage Products

Home Improvement Loans

Maintaining homes is a costly affair. Banks are coming out with new products to suit the needs of the customers. Home improvement loans have been introduced by quite a few banks.

Purpose of Home Improvement Loans Include:

Internal and external repairing
Waterproofing and roofing
Complete interior renovation
Tiling and flooring etc.

Interest on Home Improvement Loans:

Home improvement loans interest rates depend on a number of factors :

• The tenure for which the loan is taken
• Loan amount
• Type of housing improvement loans taken
• Type of customer and his repayment capacity
• Loan policy of different companies. Interest rates will be different for private sector and public sector players. Companies lower the interest rates during festive seasons.

Rates of interest charged will be as per Bank's policy on the date of disbursement of loan.

Maximum Amount of Home Improvement Loans:

An old customer is sometimes given 100% cost of improvement. Generally all the new customers are sanctioned 85% of the cost of improvement. The maximum loan amount can vary from bank to bank, it also depends on the amount of loan taken and the repayment capacity of the customer.
The amount of loan is however subject to the market value of property. The maximum term of home improvement loan varies from bank to bank, depending on the age of the applicant at the time of loan application. The loan payment is made by equated monthly installments (EMI).

Number Of Loans Applicants:

A loan can be taken either on an individual or joint basis. Some companies necessitate that proposed owners be co-applicants, however, co-applicants need not be co-owners. Minimum age of a person applying for loan should not be less than 21.

Home Improvement Loans Application Process:

An individual/company/professional can apply for home improvement loans in different home loans corporations/ banks by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loans.

Documents Required for Approval of Home Improvement Loans:

Businessman/ Self employed professional:

1. Application form with photograph
2. Educational qualification
3. Identity and residence proof
4. Proof of business existence with business profile and last three years income tax return
5. Last 3 years income statement and balance sheet.
6. Last 3 month's personal and business bank statements.
7. Processing fee check

Salaried customers:

1. Application form with photograph
2. Identity and Residence proof
3. Latest salary slip
4. Form16
5. Last 6 months bank's statement
6. Processing fee cheque.

List of Some of Banks Providing Home Improvement Loans:

HDFC Bank - Internal & External Reparing

ICICI Bank - Attractive Repairing Interest Rate

Bank of India - Repair of House

Standard Chartered - Home Repairing Assist

IDBI Bank - Refinance For House Reparing

State Bank of India - Repair of Existing House

Union Bank of India - Union Home Plus

UCO Bank - UCO Shelter

Bank of Baroda - Financing An Old House

Citibank - Home Renovation Scheme

Development Credit Bank - DCB Home Vantage