Banks are a type of financial intermediary whose principal service among many others is to provide loans to its customers who could be individuals/ corporations/ self-employed Professionals/ public/ private companies etc. The loans are in turn funded by the deposits of its existing customers.


Types of Loans Available

AUTO LOANS
-Two Wheeler Loans
-Car Loan
-Commercial loans

Cash Rental Loans


Commercial / Business Loans

-Professional Loans
-Trade Loans


Equipment Loans

-Construction Equipment Loans
-Farm Equipment Loans
-Medical Equipment Loans
-Office Equipment Loans


Home Loans

-Home Equity Loans
-Home Extension Loans
-Home Improvement Loans
-Home Purchase Loans
-Land Purchase Loans
-Top Up Loans


Mortgage Loans


Personal Loans

-Consumer Durable Loans
-Festival Loans
-Marriage Loans
-Pension Loans
-Personal Computer Loans


Real Estate Loans


Student Loans

-Education Loans
-Scholar Loans


Travel Loans


With the opening of the banking sector and strict competition, both private and public sector players are coming out with new and innovative loan plans to increase the customer base. A number of loans such as mortgage loans, personal computer loans, personal loans, home loans, equity loans, equipment loans,education loans, car loans are becoming increasingly popular.

A loan is a kind of debt, which the bank provides for a particular period of time. Banks normally charge interest on the amount of debt as a cost for providing the loan service. The rate of interest is determined on the basis of prime lending rate (PLR)- A rate of interest which banks generally charge from their steady and credit worthy customers.

The repayment is generally done through what is known as Equated Monthly Instalments (EMI). EMI includes not only the amount of loan but also the rate of interest for taking the loan. Usually a longer term loan is more expensive overall, than a shorter loan, this is because a lending institution has a higher risk over a longer period of time. EMI remains constant over the entire tenure of the loan. In the beginning, the interest rate component is higher than the principal amount in the EMI. Towards the end of the loan tenure, the principal amount becomes higher than the interest rate. EMI is calculated on a daily/monthly/quarterly/half yearly reducing balance as the case may be.

Depending on the kind of loan, banks usually ask for a security, which may be a tangible collateral security such a s land, building or in form of intangible security. A bank may also ask for your NSC certificates and other investments to reduce their risk.

Planning a vacation with family and friends has never been more easy. Procurement of sufficient funds to bear travel expenses has been made smooth with quite a few banks offering easy travel loans. The loan meets any kind of travel expense such as cost of ticket, hotel stay, visa, airport tax, purchase of basic travel quota, etc.


Maximum Loan offered by Banks for Travel Loans:
Your personal loan limit will be determined by your income and repayment capacity. Starting from as low as Rs.20000, the travel loans can stretch up to as high as Rs. 1000000, depending on the income of the customers, his repayment capacity, tenure of loan. The repayment can be extended to as long as four years.


Interest Charged by Bank on Travel Loans:
The rate of interest varies from bank to bank, depending on the current market conditions and their policies. It is generally between 14-16%. Normally banks charge interest on a reducing balance.


Process of Travel Loans Application:
Travel loans can be obtained by simply filling a form at the bank premises and providing the necessary documents. A nominal processing fee is charged by banks, which can sometimes be waived off.


Documents Required for Travel Loans:
Copy of Passport (for overseas travellers)
Copies of Rail-tickets/Bus tickets/Air tickets and visas(for overseas travellers)
Copy of consolidated invoice containing ticket charges, insurance charges, other sundry charges, etc.
Passport size photograph
For salaried individuals Latest salary slip and Form 16
Self-employed individuals and Professionals IT returns for the last two financial years.
Proof of Residential address
This can include home and establishment certificate/Lease deed/Telephone Bill.

Banks are are coming out with innovative loans products to cater emerging segment of customers. One such loans product is 'Scholar Loans'. This loan is provided by banks to students on the basis of their academic performance/merit. Students enrolled in top engineering/ medical/B schools are eligible to apply for such loans.


Maximum Loan offered by Banks for Scholar Loans:
The amount of loans provided varies in different banks. It can range from Rs. 2 lakh to Rs.15 lakhs. The loan can be repaid by Equated Monthly Instalments or EMI.


Interest Charged by Bank on Scholar Loans:
The interest on scholar loan varies from bank to bank and also the prevailing market rate. The rate of interest can increase or decrease with respect to the amount of loans required.


Process of Scholar Loans Application:
Scholar loans forms are available at bank premises. Online forms are also available for ease of the clients. Generally no processing fee is charged. A deposit can however required sometimes, which is adjusted later on.


Documents Required for Scholar Loans:
Completed Education Loans Application Form
Original mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Prospectus of the institute containing schedule of expenses for the specified course
Passport size photographs
Borrower's Bank account statement for the last six months
In case the borrower in an income tax payee, Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower , if any
Proof of Income (i.e. Salary slips/ Form 16 etc) , if any

Education loans are term loans offered to deserving students pursuing higher education either in India or abroad. All employment generating courses are eligible for education loans.


Eligible Courses:
Graduation/ Post graduation/Professional course in any stream Any other course approved by Government.


Maximum Amount of Student Education Loans:
The amount of educational loans varies in different banks. Generally the maximum educational loans granted is Rs. 10 lacs for studying in India and a maximum of Rs. 20 Lakhs for studying abroad.


Expenses Of Education Loans:
Banks and other institutions may have different criteria for selecting as to what constitutes the education expenses. A few common expenses covered under education loans are as follows :

Tuition fee payable to college/school
Examination/library/hostel charges
Travel expenses
Purchase of books/equipment/uniform
Cost of two wheeler (Optional)
Repayment of the loans can be done by Equated Monthly Installments EMI. It generally commences after one year of the completion of course or six months after securing the job. The time period can vary depending on the policies of individual banks.


Interest on Education Loans:
The interest on education loans varies from bank to bank and also the prevailing market rate. The rate of interest can increase or decrease with respect to the amount of loans required.


Process Of Obtaining Education Loans:
Education loans forms are available at bank premises. Online forms are also available for ease of the clients. Generally no processing fee is charged. A deposit can however required sometimes, which is adjusted later on.


Documents Required for Education Loans:
Completed Education Loans Application Form
Original mark sheets of last qualifying examination
Proof of admission scholarship, studentship etc
Prospectus of the institute containing schedule of expenses for the specified course
Passport size photographs
Borrower's Bank account statement for the last six months
In case the borrower in an income tax payee, Income tax assessment order, of last 2 years
Brief statement of assets and liabilities, of the Co-borrower , if any
Proof of Income (i.e. Salary slips/ Form 16 etc) , if any

Students loans is one of the fastest growing retail banking product. Almost all public and private sector banks are offering student loans at attractive rates for meritorious and needy students for studying both in India as well as abroad. Loans are available for graduate/postgraduate/technical courses; banks are increasing the flexibility of this loan in terms of payback period to attract more students. Students loans cover the tuition fee, hostel fee, library charges, administrative charges etc.


Types Of Student Loans Available:
Education Loans
Scholar Loans





* Terms and conditions may vary from bank to bank.

India is witnessing immense technological advancement. With the IT boom, computers are replacing manual work in every organisation. Computers help in more efficient management of work. Banks are coming up with new loan products like computer loans to meet the needs of their customers.


Maximum Loan Offered by Banks for Personal Computer Loans:
Generally banks provide a loan up to Rs 100000 for computer hardware and software. Some banks provide a separate software loan to a maximum of Rs. 20000.


Interest Charged by Banks on Personal Computer Loans:
Banks generally charge according to the prime lending rate. An extra 2% is sometimes charged by banks. The actual Rate of interest also depends on the amount of loan taken, tenure of loan.


Process of Personal Computer Loans Application:
All Salaried, professional, self-employed, businessmen or farmers can apply for the loan by filling a form at the bank or filling an online form. A service charge of 1% of the entire loan amount is levied.


Documents Required by Banks for Personal Computer Loans:
Application Form
Photographs
Proof of income of last two years
Proof of Residence

Banks are taking care of economical independence of retired individuals . This is done by offering the unique pension loan- A term loan to meet your personal expenses. The loan is available to pensioners till the age of 70.


Maximum Amount of Pension Loans:
The Maximum amount of loan sanctioned is generally 7-10 times the amount of last pension received. The amount can vary from individual to individual depending upon his repayment capacity. Repayment is normally done through Equated Monthly Installments or EMI. The repayment period can vary from 1-3 years.


Interest Charged by Banks on Pension Loans:
Banks generally charge according to the prime lending rate prevalent at the time of taking the loan. The Interest rate can either be fixed or floating. Sometimes a discounted interest rate is also provided by banks.


Process of Pension Loans Approval:
A retired individual can apply for loan by simply filling the form. Generally banks don't charge a processing fee.


Documents Required by Banks for Pension Loans:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
Bank Statements(latest 6 months bank statement /passbook)
Proof of retirement and the organisation last worked for, including the pension slip.

Weddings are a time for family jubilation. No stone is left unturned to make wedding functions complete success. Marriage loans are gaining popularity in both rural as well as urban areas. Such a loan can also be availed under the personal loans category.


Maximum Amount of Marriage Loans Provided:
The maximum amount of loan varies form customer to customer,depending on a number of factors like, security/collateral offered by the customer, repayment capacity of the borrower, age of the borrower. Repayment can be done through monthly/quarterly/half yearly installments or under Equated Monthly Installments or EMI.


Interest Charged by Banks on Marriage loan:
The rate of interest is governed by the prevailing market rate at the time of loan taken. Fixed interest rates are generally preferred by customers.


Process of Marriage Loans Application:
Anyone can apply for a marriage loans by filing a form at the bank outlet. The banks charge a nominal amount as processing fee, this can vary in banks.


Documents Required for Marriage Loans Approval:
Salaried Individuals:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
Bank Statements(latest 6 months bank statement /passbook)
Latest salary slip or current dated salary certificate with latest Form 16


Self Employed Professionals and Businessmen:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/electricity Bill/ Passport )
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
Qualification proof of the highest professional degree
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents(Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)

Leading Banks in both public and private sectors cash on the festive season by offering loans at cheaper or discounted rate. There is a surge in consumer spending during festivals. Banks attract more customers by offering lower rates of interest. Festival loans are however, a variant of personal loans. It is extremely convenient for people who want a small loan, can repay early but do not want to pay interest at the exorbitant rates levied by most banks


Maximum Loan offered by Banks for Festival Loans:
Festival loans are given for amounts as low as Rs 5,000 and the maximum amount is limited to Rs 50,000. Festival loans are generally restricted to 12 months. Repayment can be done by Equated Monthly Installments or EMI. The loan size is smaller and the repayment period is shorter than that for personal loans.


Interest Charged by Bank on Festival Loans:
Rates of interest charged will be as per Bank's policy on the date of disbursement of loan. Rate of Interest is discounted during the festive season. Thus it is lower than the normal days.


Process of Festival Loans Application:
Borrowers can fill a form at the bank and apply for the loan. The processing fee is also lower than personal and other loans. Banks generally charge Rs.100 as processing fee irrespective of the quantum of loan


Documents Required for Festival Loans:


Salaried Individuals:
Passport size photograph.
Residence Proof.
Salary Certificate / Slip from employer.
Form No.16 (Latest).
Form No.135 of the bank, duly filed in by borrower and guarantor.
Application forms meant for personal loans ( festival loans )


Self Employed Professionals:
Passport size photograph.
Proof of official / Business address, which may include establishment certificate telephone bill etc.
IT returns & financial statement for the last two financial years.
Copy of registration / License / Govt. approval required to pursue the profession, if any.
Proof of qualification (Certificate issued by the Concern University / Collage / Institute, Dept as the case may be).

Banks are coming out with unique loans to attract more customers. Right from Refrigerator, to music system to washing machine, you can buy anything. The demand for such loans witness a sharp rise during the festive season. 0% loans schemes are popular during this time. This loan is however available only with nationalised banks.


Maximum Amount of Consumer Durable Loans Offered:
The quantum of the loans varies from one bank to another. However, most banks offer loans between Rs 10,000 and Rs 100,000. For instance, Punjab National Bank offers up to 90 per cent of the cost of the article, subject to a maximum of Rs 100,000.

The minimum amount of loan offered is Rs 5,000. Syndicate Bank offers up to 80 per cent of the invoice value of the products purchased or 10 months gross salary, whichever is less, subject to a maximum of Rs 200,000.

The maximum limit is Rs 100,000 for pensioners. Then there is UTI Bank, where the minimum amount is Rs 25,000 and the maximum is Rs 200,000, provided it does not exceed 85 per cent of the cost of the product.

A loan can be taken for a maximum period of 60 months. UTI Bank, however, offers it for a maximum period of 36 months. Under SBI's 'Festival Loans' scheme, money is offered for only up to 12 months.


Interest Charged by Banks on Consumer Durable Loans:
The rate of interest on consumer durable loan is lower than the interest on a personal loan. So, taking this loan makes more sense. The rate of interest varies between banks and also depends on the prevailing market conditions.


Consumer Durable Loans Application Process:
Customers can obtain application form either in person from the bank or apply online. Banks charge a nominal 1% fee on the loan amount as processing charge. The processing takes 3-5 days.


Documents Required for Approval of Consumer Durable Loans:
Proof of identity such as driving license or passport.
Proof of income such as your latest salary slip or a copy of Form 16.
Proof of residence such as your ration card, passport or latest electricity bill.
Bank statement for the last six months. The loan takes between three to five working days to be processed.

Personal loans are a unique retail loans product offered by a number of banks to cater to distinct and diverse needs of the customers. Secured and unsecured loans are provided by banks to its esteemed customers. The main purpose of such a loan is to meet any kind of personal need or expense. A number of personal loans like marriage loans, consumer durable loans, festival loans are increasingly becoming popular. Easy loans are provided at attractive rate of interest for widening the existing customer base.

Types Of Personal Loans Available:
Consumer Durable Loans
Festival Loans
Marriage Loans
Pension Loans
Personal Computer Loans

Buying a property necessitates in depth knowledge of real estate and choosing the right kind of loans. Several banks are stepping up their exposure to real estate. These banks are entering into agreements with builders for provision of real estate loans. The Scheme mainly caters to builders / promoters / developers of real estate. According to RBI figures loans to builders, along with retail credit (like home loans, credit cards and personal loans) constitute a chunk of banks' total loan portfolio.


Maximum Amount of Real Estate Loans Offered:
Banks normally give real estate loans to builders/real estate developers of repute. Experience of 3-4 years is a must to avail the loan. The quantum of loan is decided after looking at the financial statements and cash flow statement of the applicant. The maximum amount varies subject to individual policies in different banks. Repayment is done in lump sum installment after the completion of project/ selling of the flats. The number of installments is restricted to 3 or 4.


Interest Charged by Banks on Real Estate Loans:
The interest rate is normally determined and charged according to the prime lending rate of the individual bank. Builders can either opt for a fixed or floating rate of interest.


Process of Real Estate Loans Approval:
Builders / real estate developers can fill the loan form either in person or online and apply for the loan. A nominal processing fee is charged by banks.

Documents Required for Approval of Real Estate Loans:

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

Banks provide loan against mortgage of property on an attractive rate of interest. Businessmen, self employed professionals, salaried customers are all eligible to apply for the loan. It enables the borrower to apply for loan against a fixed asset.


Maximum Amount of Mortgage Loans Offered:
The maximum amount of loan depends on a number of factors, like customer's profile, his financial standing and repayment capacity, tenure of the loan. The repayment tenure increases or decreases with the amount of loan. Repayment is done through Equated Monthly Installments or EMI.


Interest Charged by Banks on Mortgage Loans:
Interest can be paid either on fixed or floating basis. Banks charge prime lending rate as their interest. Interest rate can be discounted for existing clients or in special cases according to the policies of the bank.


Process of Mortgage Loans Approval:
Customers can apply for mortgage loans by filling an online form. They can also visit the nearest branch of a particular bank. Normally, banks charge 1-2% of the actual loan amount as processing fee.


Documents Required for Approval of Mortgage Loans:
Salaried Individuals:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
Bank Statements(latest 6 months bank statement /passbook)
Latest salary slip or current dated salary certificate with latest Form 16
Proof of ownership of fixed asset being mortgaged


Self Employed Professionals and Businessmen:
Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
Address Proof (Ration card Tel/electricity Bill/ Passport )
Bank Statements(latest 6 months bank statement /passbook)
Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
Qualification proof of the highest professional degree
Proof of continuation (Trade license /Establishment /Sales Tax certificate)
Other Mandatory Documents(Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)
Proof of ownership of fixed asset being mortgaged

This unique retail loan products offers a customer, a loan by mortgaging an existing house. A person can take a loan for his personal needs which can be for purchase of furniture, trade and business requirement, higher education etc. by mortgaging his home. A person can also take a top up loans, on an existing home loans; while paying for the loans, bank can grant a customer, a top up loans to meet his other needs, this in turn depends on his repaying capacity.


Maximum Loan offered by Banks for Top up Loans:
The maximum amount of loan offered by banks generally does not exceed 70% of the market value of the property. A number of factors are also kept in mind while granting top up loans. They are:

Amount of loan outstanding
Current market value of the property
Repayment Capacity


Interest Charged by Bank on Top up Loans:
The rate of interest charged is same as the prevailing home loans rates.


Process Of Top up Loans Application:
Customers can contact the bank representative and apply for a top up loans. They can also fill online forms. A minimal processing fee is charged by banks, which may also be waived off in case of existing customers, or those who have an excellent repayment record.

Various private and public sector banks are coming out with attractive loan plans for its customers for purchase of land, purchase or construction of house/flat. The loan can be taken for both land purchase as well as construction on the land.


Eligibility for Land Purchase Loans:
Any individual aged 21 years or above having regular income is generally eligible to apply for land Purchase loan.


Maximum Amount of Loans:
The quantum of loan sanctioned, depends on a number of factors like the cost of house/flat, person's age while applying for loan, income, repayment capacity etc. Loans of higher amount may be considered on the basis of merit of the case. The loan can then be repaid through Equated Monthly Installments or EMI. The loan is payable maximum in years.


Margin for purchase or construction of new house/flat:
Minimum 15% of the project cost for individual
Minimum 10% of the project cost in case wife joins as co-borrower


Margin for purchase of old house/flat/land:
Minimum 30% of Purchasing value. This value may vary from bank to bank.


Interest on Land Purchase Loans:
Interest on both fixed as well fluctuating rates are available. The actual interest rate is governed by prevailing market conditions at the time of taking loan. Special reductions in interest rates may sometimes be allowed for women and in other special conditions. A nominal processing fee of 1% of amount of loan taken is generally charged by banks.


Documents Required for Approval of Land Purchase Loans:

Businessman/ Self employed professional:
Application form with photograph
Educational qualification
Identity and residence proof
Proof of business existence with business profile and last three years income tax return
Last 3 years income statement and balance sheet.
Last 3 month's personal and business bank statements.
Processing fee check


Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.

Owning a home is perhaps the biggest and most important dream of an average family therefore ownership of a home goes beyond pure financial considerations. Home loans purchase has witnessed an increase owing to competition between a number of public and private players. The cut in the loan interest rate has also fuelled the demand for this product.


Kind of Home Purchase Loans Interest Rates:
Fluctuating Home Purchase Loans Interest rates: Keep changing with change in the prevailing market rate or the prime lending rate.
Fixed Loans Interest Rate: As the name suggests, do not change during the entire loan period, irrespective of the prevailing market rate. generally fixed loan interest rates are higher than the fluctuating loan rate.
The current scenario in India is that of declining interest rate, so a fluctuating interest rate makes more sense. The loan is repayable in the form of equated monthly installments (EMI). The EMI should not exceed 50 per cent of your monthly household income.


Interest Rate on Home Purchase Loans:
Home Purchase Loans interest rates depend on a number of factors :
The tenure for which the loan is taken
Loan amount
Type of housing 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.


Maximum Home Purchase Loans Given Depends On:
Individual loan policy of different companies. The maximum amount of loans given is however 85% of the value of the property (inclusive of cost of land)
Repayment capacity of the customer
Maximum term of home purchase loans
The term of home purchase loans offered is maximum 25 years. This again depends on the repayment capacity of the individual


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.

Other Home Purchase Loans Costs:
Besides the interest rate, customers also have to bear the processing and administrative charges which increase with the cost of the loan. If two housing finance corporations give you the same amount of loan but at different interest rates, calculate what works out better for you.


Home Purchase Loans Application Process:
An individual/company/professional can apply for home purchase loans in different home loans corporations 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 Purchase Loans:

Businessman/ Self employed professional:
Application form with photograph
Educational qualification
Identity and residence proof
Proof of business existence with business profile and last three years income tax return
Last 3 years income statement and balance sheet.
Last 3 month's personal and business bank statements.
Processing fee check


Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.

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


Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.

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


Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.

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


Salaried customers:
Application form with photograph
Identity and Residence proof
Latest salary slip
Form16
Last 6 months bank's statement
Processing fee cheque.

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 Extension Loans
Home Improvement Loans
Home Purchase Loans
Land Purchase Loans
Top Up Loans