What banks check before giving home loan?

Banks assess a borrower’s income, other loans and living expenses to calculate how much money can be put towards home loan repayments. In the current market, lenders are looking much harder at borrowers’ expenses by analysing credit card statements, transaction accounts and any recurring spending patterns.

How much loan can a bank employee get?

Benefit on loan amount: Home loans for bank employees can range from Rs. 30 lakh up to Rs. 10 crore depending on salary and other eligibility criteria. Benefit on loan tenure: Housing loans for bank employees often have longer loan tenures of up to 25 years.

How many times we can take home loan?

The good news is, a borrower can have as many home loans in India as he or she wants, and there is no law barring them from servicing only one home loan at a time. Therefore, if a borrower wants to purchase say 25 properties at a time, he or she can take different home loans for all of them from 25 different lenders.

Will I lose the subsidy under PMAY if I prepay the loan?

The PMAY subsidy that you have availed of, is applicable only if the loan is active for the entire period and hence, if you prepay some amount, the subsidy amount will be reversed and you will miss out on some part of the benefit.

Do banks call employers for home loans?

Most lenders like to see that you’ve been in your current job for at least three months, and at a minimum, completed any probationary period. The bank may contact your boss to confirm your employment status.

How much home loan can I get if my salary is 25000?

25,000, you can avail as much as Rs. 18.64 lakh as a loan to purchase a home worth Rs. 40 lakh (provided you have no existing financial obligations.)

Can I close my home loan after PMAY subsidy?

Yes, the PMAY subsidy availed is subject to keeping the loan alive for the entire period. In case the loan is prepaid the subsidy amount is reversed and you will lose part of the benefit.

Can I repay home loan early after PMAY subsidy?

Yes, you can pre-pay your housing loan after receiving PMAY subsidy based on the terms and conditions for pre-payment of your lending institution.

How do banks do employment verification?

Mortgage lenders verify employment by contacting employers directly and requesting income information and related documentation. Most lenders only require verbal confirmation, but some will seek email or fax verification. Lenders can verify self-employment income by obtaining tax return transcripts from the IRS.

What is the rate of interest for a staff housing loan?

The staff housing loan in any bank is given at a concessional rate and the interest applicable is simple interest. The quantum of loans and the interest rates vary from bank to bank and is different for different designation (i.e sub staffs , clerks and officers).

Do government sector banks provide housing loans to their employees?

Yes, government sector bank employees provide housing loans to their employees at a much cheaper interest rate. The bank I work in provides it at simple interest and repayment of principal for 2/3rd period of the loan and the interest paid for the 1/3rd of the loan tenure!!

What are the benefits of bank loans to bank staff?

First & most important benefit that bank staff gets is that they pay Simple interest on the loan amount instead of Compound Interest. 6.75\% Simple Interest! First & most important benefit that bank staff gets is that they pay Simple interest on the loan amount instead of Compound Interest.

How is the principal & interest recovered on staff housing loan?

Banks usually fix a ratio, say 2:1 as per the scheme governing the staff housing loans, in which the principal & interest to be recovered Suppose a loan of Rs 900000 is sanctioned to an employee for a period of 240 months. Then principal of Rs 9.00 lakhs will be recovered in 180 installments of Rs 5000/- each.