For a common man this seems to be attractive that he feels that taking home loan is very easy for him. But actually when the person goes to banks and apply for the loan his application gets rejected. Let us consider the case of Home Loan rejected. We will discuss what are the various points for which home loan gets rejected.

1. Banks or housing finance companies rejects the home loan application if the land or the building for which loan is applied, the legal documents are not clear from the builder side or there is any technical discrepancy as per the technical review of the bank or financial company offering the loan.

2. Sometime banks or housing finance companies have norms, with respect to a minimum are of the flat to be purchased. So before applying for loan check with the lender about the criterion of minimum area requirement. If it is not then change the lender and reapply.

3. Lender also checks the financial ability of the person applying for loan. To be eligible for applying make sure that your monthly income meets minimum income requirement and also try to keep clean credit background. If you have your source of income fixed then your loan approval is very high.

4. Family dependents is also one of the factor that banks and financial institutions considers apart from the fixed source of income. This plays a huge role in an applicants repayment capability. Means larger dependents reveals lower repayment capacity. Based on the past six months banks Savings Account and Credit Card Statement banks easily understands the spending and savings habit of an individual. So keep your Banks accounts clear and credit card outstandings to minimum.

5. The next factor is age of the person applying for loan. The higher the age lesser the chances of approving the loan. As age goes high the tenure of the loan becomes small and hence higher EMIs which a person may not be able to pay. In this case due to higher age group the home loan gets disapproved.

6. Some banks or housing financial companies have restrictions of location. If person applying for home loan is not within its geographical limit then also your application gets rejected. Ask before you apply for the loan.

7. If you are planning to buy a resale property then if the property is less more than 30 Years then also your application rejects. Number of years of restriction for resale property varies from banks to banks. So clarify this before you apply.

Finally above all criteria are all in your favour but banks does not provide a 100% finance for the home loan so you should have atleast 25% of the property value amount available with you so that you can pay this first and then balance amount will get approved for your home loan.

So members, before you apply for the home loan please check all above points to get through the appoved loan in first attempt.

Purpose

• For construction of residential house on land already owned.
• For purchase of plot (Plot must be located in developed / developing residential locality and properly demarcated) and construction of residential house thereon.
• For purchase of house/flat.
• For renovation / extension / repair of residential house already owned.
• For taking over of housing loans from other financial institutions / banks.

Target Group:

1. Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly.
2. Close relative of NRI / PIO like – Spouse, Father, Mother, Son and daughter can be the joint borrower even if they are the resident of INDIA having future interest in the property.

Loan Amount

• Minimum loan amount: Rs. 5 lacs
• Maximum loan amount : Rs 500.00 lacs

Eligibility

• Must be employed/self-employed or having a business unit and staying abroad at least for 1 years

Repayment Period

• Up to attainment of 60 years of age, Maximum 10 years.

Moratorium Period

• In respect of construction of new house/flat – 18 months from the date of first disbursement or 1 months after completion, whichever is earlier
• In other cases – 3 months after last disbursement
• Interest for the pre EMI period will be recovered as and when debited.

Prepayment Penalty

• 2% of Outstanding Balance only in case of takeover

Mode of Repayment

• Remittances from abroad through normal banking channels
• Out of funds in NRE/FCNR/NRO accounts
• Remittance out of local funds by close relatives
• From the rent received from letting out the house / flat purchased from bank loan

Security

• Equitable / Registered Mortgage of the property
• Personal Guarantee of spouse (if not made co-borrower and residing in INDIA) and one other person of means and standing and residing in INDIA acceptable to the Bank.
• In case the loan is sanctioned / disbursed on the basis of Power of attorney personal guarantee of power of attorney holder.

Purpose:

• For construction of residential house on land already owned.
• For purchase of plot by salaried persons from Govt. Agency / Development Authority or any Govt. recognized agency (viz., HUDA, HOUSEFED) and construction of residential house thereon.
• For purchase of house/flat to be used for residential purpose.
• For renovation / extension / repair of residential house already owned.
• For purchase of unfinished / old house(maximum 20 year old) and
• Renovation /extension / repair of the same.
• For taking over of housing loans from other finance companies / financial institutions / banks.

Allahabad Bank Housing Loan Eligibility Criteria:

Housing Loan may be sanctioned to those who have regular income sufficient enough to liquidate the loan alongwith interest within stipulated period of repayment.The employees who have availed of housing loan from their own organisations may also avail of loan from the Bank under this scheme if they are having regular income sufficient to liquidate the loan within the stipulated period and are able to comply with other stipulations of the scheme.

Nature of Loan: Term Loan

Loan amount:

1. In case of salaried persons: The loan amount will be restricted to 60 times of monthly gross salary last drawn subject to the condition that it is within the project cost less stipulated margin and Total deductions including EMI of proposed loan should not exceed 40% of the Gross monthly salary of the applicant.
2. In case of others: The loan will be restricted up to 4 times of gross Income average shown in last 3 years Income Tax Assessment Order/ acknowledged copy of income tax return subject to the condition that it is within the project cost less stipulated margin and Total deductions including EMI of proposed loan should not exceed 40% of the Gross monthly income of the applicant as per IT Returns.

Margin:

• 25 % of project cost and
• in case of repairing / furnishing 25% in all categories (including salaried class)

Project cost will consist of :

• Purchase price of land/ house/ Flat, plus
• Cost of construction/ renovation/ extension (if applicable) plus
• Stamp duty and registrations charges, as applicable plus Accrued Interest amount of moratorium period, if proposed to be capitalized
• It will be ensured that margin at all stages has been contributed by the borrower upfront where disbursement is to be made in phases.

Repayment Period:

1. For construction of House &/ or Purchase of House/ Flat/Residential Plot: For salaried Persons– Maximum 25 years or length of remaining service, whichever is less. For Others — Maximum 20 years or remaining period in attaining an age of 65, which ever is earlier.
2. For Repairing/ Furnishing of House/ Flat: For salaried Persons– Maximum 7 years or length of remaining service, whichever is less. For Others — Maximum 7 years or remaining period in attaining an age of 65, which ever is earlier.

Prepayment Penalty:

• If liquidated within 1 year: 2% of outstanding balance·
• If liquidated after 1 year: 1.50% of outstanding in case of takeover.

Many years ago, this has become a usual transaction among business owners or land owners and creditors. And as time passed by, it has gone through a lot of modifications and several financial institutions have adopted the scheme and added interest rates into the picture.

When we say secured loans, it means that an individual can borrow money provided that he or she has collateral. The collateral serves as a security for the financial institution in exchange for the loan they have extended to individuals in case of failure to pay. People who avail of such loans are given certain terms with regards to the repayment of their loans and on the interest rates.

Secured loans are intended for people who are in need of a huge amount of money and it can easily be availed as long as there is acceptable and valuable collateral. The only risk in this kind of loan is found on the side of borrowers for if they won’t be able to repay the lending institution, their assets that were presented as collateral shall be foreclosed.

There are two ways to obtain a secured loan. One is through the traditional way where one has to personally transact with the lending institution, while the other is through the Internet wherein a person can apply for a loan virtually. The latter is the most convenient way to get a loan because the traditional processes are simplified and that it can be done right in the comfort of one’s home.

The collateral of a secured loans are also categorized into two. When you avail of a housing loan, the collateral that may be presented is the home itself. In the event that there is lapse on your repayments, the lending institution shall redeem your property. Such property will then be offered for sale and the money produced out of the sold property will serve as your payment. On the other hand, the collateral may only be in the form of a claim or security because it doesn’t really involve a great amount of money. For instance, down payment for a car. Although no property is risked in this second category, it doesn’t mean that no repossession will take place in case you can’t repay your loan.

As there are several study loan lenders in pakistan it had became very hard for the pakistani students in choosing the right bank for getting the loan, To help the pakistani students in selecting the right bank we have listed the list of top 5 banks in pakistan below.

1. National Bank of Pakistan
2. Habib Bank Limited
3. Muslim Commercial Bank
4. United BANK
5. Meezan Bank

All these banks are providing study loans for the students in pakistan very quickly at attractive interest rates with very less documentation in a simple, easy and also hassle free process.

Various banks offer home loan with their own terms and conditions. The interest rate, eligibility criteria, documents required, etc, all differ depending on the bank offering the loan. Many banks may be having some fine print or “conditions apply” that need to be carefully looked into. It is better to verify the facts properly before deciding to go for a loan offered by a certain bank. It may also happen that you may qualify for the loan of a certain bank only as it may differ depending on the bank.

It is advisable to do proper research before going for any loan. Ask the people who have opted for a personal loan for their views on what bank offers the best loan. Many a times it happens that you go for a loan offered by a bank and later repent about your decision.

Do proper study of the banks’ eligibility criteria. You need to have certain qualifications for getting a home loan. The eligibility criteria are related to your age, income, past repayment history and the cost of the property. It also considers your work experience, number of dependents, spouse’s income, stability of income and employment, assets, liabilities, etc. Banks normally lend up to 3-4 times the annual gross income as a home loan. Every bank has its own set of eligibility criteria that may differ slightly.

There are many financial institutions like credit unions, mortgage centers to provide necessary loan amount for buying mobile homes. Some mobile homes are financed with mortgages, but most are financed by personal property loans, or chattel loans.

Mortgages are typically reserved for mobile homes that are permanently attached to the land. In these cases, both the home and land secure the loan. Many people take mobile home refinancing loan at lower interest rates for repaying their earlier loans

Financial institutions who offer traditional mortgage loans for mobile homes usually require very specific features in the loan. These features allow the loan to be guaranteed by the federal government.

All Businessmen, self employed professionals, salaried customers are eligible to apply for the  Mortgage loan in india. Banks in india enables the borrower to apply for a loan against a fixed asset.

Mortgage Loans in india are provided for the purpose of repayment of the previous loans and for undertaking renovation and repair works of the residential property.

Maximum Amount of Mortgage Loans Offered in india-

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.

Mortgage Loans Approval Process in india -

Customers can apply for mortgage loans in india 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.

Services offered under the Mortgage loans in India -

•  Home equity loans
• Mortgage refinancing
• Real estate lending
• New home loans
• Debt consolidation 

Documents Required for Approval of Mortgage Loans in india -

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card/ Tel or elect. Bill/ / Passport copy).
3. Bank Statements(latest 6 months bank statement /passbook).
4. Proof of ownership of fixed asset being mortgaged.

In order to ask for the right type of Loan you need to define what your budget is. Keep in mind that the average price for a house is approximately 170.000$ – although during a financial crisis prices are much lower, like rates are. The interest rate in mortgages is lower in comparison with other types of loans. Terms and regulations for credit union loans are monitored by the Servicing Act and the Mortgage Lending, ensuring the legal and reliable character of the transaction. Once the lender and borrower agree on the terms and the loan procedure starts, no fees are allowed. The lender is obliged to provide the borrower a series of information, such as the balance of the escrow account, the unpaid sum, the due dates and the overall credit.

If your credit history and score are bad, you don’t need to worry. If you contact the credit union, you will acquire the loan you want. There are many institutions that offer mortgages to people with bad credit. Rates might be a little lower, or the terms might not be that loose or friendly as in other cases, but you can still do it. Some lenders require you to submit a full application with your social security number in advance, so that they can check your credit score. Once the evaluation process is done, you will be notified whether you qualify for a loan or not.

Finding the right lender could be a daunting task. You can ask for recommendations or hire a broker; however it is recommended to do some research online. Most institutions publish the terms and regulations regarding mortgages online, therefore it will be easy for you to browse through the available loans and mortgages. A thorough research can help you find the most suitable type of mortgage and lender.

For a fact, the interest rate you get charged for a loan varies with the level of risk, and the fact that you are applying for an online loan only makes it a bit more fuzzy because then, you have never met with the lender before, and they are considerably more sensitive.

You can improve your chances of securing an online loan with bad credit by actually offering a high priced piece of property as collateral, as with a home for a mortgage. However, you must realize that the lender is not as interested in foreclosing on your property as they are in getting their money out of you.

As a result, they could still turn you down in spite of your collateral if they feel like the property does not mean that much to you or that you have no intention of actually paying back the money you are borrowing from them. So, ensure that the property is a good and valuable one.

But getting a bad credit online loan is really not as hard as a lot of people make it out to be. This is because there is keen competition in the credit industry, and lenders may offer you better terms just to make sure you are indebted to them, and that they want your money. So, checking as many of the financial institutions as possible is a good bet. You will be sure to get one that will give you the loan, in spite of your bad credit.