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  • Category: Banking

    What are the best options of Home Loans for self-employed married couple?


    Are you looking for the best options for availing home loans? Would it be easier to avail a loan if both, the husband and wife, are employed? Check out the details by following this thread.

    If a married couple, both of whom are employed, want to apply for home loans, what would be the best options for them to procure one? As far as we know, employed people get home loans more easily. Please share your knowledge on the different plans available and the procedure they should follow to avail a home loan.
  • Answers

    7 Answers found.
  • Home loans are now a days easily available from the banks in very reasonable interest rates which are hovering around 8.5%.

    Employed persons can get the loan easily based on their pay slips, IT returns and other credentials.

    Depending upon your repayment tenure the EMI will be calculated by the banks.

    As both of you are employed so your loan approval will be quick as your repaying capacity is adjudged by that.

    You can find out from a few banks about the interest rate, processing fee or any other charge and then compare and decide from which one you want to take the loan.

    Thoughts exchanged is knowledge gained.

  • Today, there is a lot of activity in the house construction sector and banks are aggressively marketing their home loan products to the eligible customers. So getting a home loan is not a difficult thing.

    The banks will calculate the loan amount based on your age and monthly salary. There is a chart for it which they follow. For younger people loan sanctioned will be more than that of older people having same salaries. For example the approximate maximum loan amount, for a 40 year old person having salary of Rs 50000 per month, comes to Rs 60 lakhs. But you have to take loan only for that amount which you can comfortably repay. You can choose a repayment period also.

    Please note that in case you repay the loan earlier some banks charge a pre payment penalty. So one has to choose the repayment period judiciously.

    Next thing is what type of house you are going to buy. Is it ready for occupation or it is still under construction or construction is yet to start. So depending upon that the instalment of loan will be released by the bank.

    Please note that banks are very particular for the documentation part and you will have to produce your papers like Aadhar card, PAN card, proof of residence, bank account and if possible your credit rating from your bank and things like that.

    Bank will ask for the original documents given to you by the builder or property owner and be alert on that part and keep a copy of everything for records with you.

    The age eligibity for the salaried people for getting a loan from banks is from 24 to 60 years.

    Presently many banks are giving home loans but some of them are being referred as better ones based on the interest rates and their reputation in the market.

    Some of the good ones are LIC Housing, ICICI Bank, Axis Bank, IDBI Bank and SBI Home loans. The interest rates are in the range 8.85% to 9.90%.

    As both of you are employed you can consider taking a joint loan also and in that case you can go for a higher sum also as income of both will be considered for loan. In that case both of you can claim the proportionate Income tax benefits also which are applicable on home loan principle and interest amount.

    Knowledge is power.

  • Most of the Banks provide Housing loans. There are certain conditions and restrictions. First of all sufficient landed property must be in possession. The tax and other necessary dues must have paid up to date. House plan of the proposed building, certified by authorised Engineer and detailed estimate for the construction must be attached while applying for the loan. The sanction of the local self government (Panchayath/ Municipality) must also be attached with the application. The Bank or other agencies to whom the loan application is submitted will visit the site and verify the details. Once they satisfy they will process the application and the attached documents. If everything is ok, they will sanction the first instalment of the loan amount.
    After completing the part of the work based on the first instalment the Bank will inspect the site to see whether the amount is used for which it was sanctioned. If satisfied the second instalment will be sanctioned. Like this the work can be completed. The repayment of the loan with interest will start after that and the same will be in monthly instalments. The interest rates for loans may vary from bank to bank. Generally the Service Cooperative Banks will have lower rates. Their formalities also be slightly simple.

    tmsankaran

  • Home loans are being targeted to the young salaried class of people and the reason for the same being is probably the safe return of the principal money coupled with interest and hence any loan advanced to a married couple where both are the employees of reputed organisations is a safe process. The banks would like to earn money by way of interest but that too in a safe manner.
    In the case of a married couples both being the employees, loan amount will be calculated taking into consideration a number of factors such as their annual earnings, capacity to pay EMI timely, a guaranter in the event of failure in making payment etc.
    All you need to do is to furnish a bond indicating that the property for which loan amount is being sanctioned can be attached by the bank in the event of failure of making payments. They would examine your credit - ratings and the papers connected with the building being purchased by the builder. Valuation of the property has to be certified by a qualified chartered accountants. After all the formalities are over, the Bank will offer you a loan not more than 85 percent of the loan already applied for the purpose.
    The rate of interest varies from Bank to Bank and hence it would be better to gauge the rate of interest of each Bank so that you may save substantially on interst component by approaching an appropriate Bank.

  • The lenders see whether the prospective borrowers will have a steady and consistent income sufficient to their normal life and also to repay the loan. If on a job they usually require that the job is confirmed and the service is about more than 2 years at least . Many lenders require a minimum of twenty five thousand as monthly income. For self employed they may need proof of income like income tax return etc.

    The general norms is to consider a maximum fifty percent of salary as amount available to pay the EMI. So the loan quantum also will be restricted in that relation. But the income of both husband and wife can be taken together for considering eligibility, provided both are Joint applicants of the loan.
    For example if your (combined) income is one lakh and there are no other liabilities, then the lenders consider that you can pay a loan with an EMI of Rs 50,000/-. Just for an example if one lakh of loan for say 20 yrs period at a particular rate of interest has an EMI of 1000/- then you are eligible for a loan of fifty lakhs as you can pay an EMI of fifty thousand.

    But the lenders consider many other factors like age, residual service, family needs etc to arrive at a realistic value.

    Housing loans are given for outright purchase of house with land, flat or construction of house on land already owned by the borrowers. Own contribution of a minimum of 20% by borrowers is generally needed and only the remaining 80% of the cost will be given as housing loan.

    Banks as well as experienced housing loan lenders like HDFC are giving housing loans. You may compare the main features of two or three shortlisted lenders and then select the one whom you find favourable to you in terms of rate of interest, formalities, convenience and easiness, charges, prepayment charges etc.
    I suggest, first you approach the bank where you are having your main dealings. They know you better. Discuss with them. Then you may know if you will get the HL and if so what will be the maximum etc. Accordingly you can go ahead. In case you feel that the terms are not favourable, you may approach some other lender where you get better terms. You can search the web sites of such lenders and find the main terms and eligibility.

  • These days getting home loans are very easy. Many banks and other lending organisations are giving home loans. As you both are employed, you can take a loan by applying both of you together. Number 1 applicant can be you and Number 2 applicant can be your wife. Based on your salary and the property you are going to buy, the amount of loan will be decided. Generally, we can manage up to 80% of the cost can be taken as a loan. The organisation will scrutinize your application and all the relevant documents regarding the property will be scrutinized by the bank law officers and if there is no risk or any other doubts they will not go forwards. Otherwise, they will forward the application to the sanctioning authority and the authority will see the cost of the property, your repaying capacity and then they will decide on the amount of loan that can be sanctioned. There are many banks and their lending riles is almost the same but there may be some variation in the rate of interest and processing fee. The variation may be about 0.5 to 1.0%. Presently Citi bank is offering loans with 8.75% rate of interest without any processing fee. LIC housing finance is offering loan at 8.7% rate of interest but the processing fee is 0.5%. DHFL is offering also at 8.7% ROI but the processing fee is 0.5%. Indian overseas bank is offering at 8.7% rate of interest but the processing fee is about 0.53%. PNB is offering at the rate of interest at 8.65% with a processing fee of 0.5%. But the rate of interest in Indian bank is low and presently it is at 8.6% and the processing fee is also less and it is 0.23%. These are the agencies who are giving at a lesser rate of interest than other banks. The SBI is also offering the loan at 8.75% and processing charges of 0.5%. The maximum rate of interest is with 10.45% and processing fee is between 5000 to 15000. I feel you can go for the organisation which is offering loan at the lowest rate of interest.
    Loan tenure can be up to 30 years and the EMI for every one lakh of the loan at the minimum rate of interest will work out to be about Rs. 780 if it is for 30 years.
    The rate of interest will be fixed or it can be floating also. You can talk to the concerned person in the organisation and decide on the mode.

    drrao
    always confident

  • Question title says self-employed and question description did not mention about it. So I am answering this both ways.
    1. If Self employed -
    Usually it is difficult to get home loan for self employed People but not difficult if you have stable income that can be produced through bank statement. Also you might need to produce license of your self employment e.g. store license etc.
    2. If employed outside -
    It totally depends on your salary what loan you are eligible. Usually bank gives 80% of home price as loan and can be paid in 20 or 30 years. You just need to take salary slip and show it in bank they will tell you how much you are eligible.
    Note original papers of home bank retains until you pay entire loan amount.

    Avi
    Life Is Beautiful


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