|
Confused in the Home Loan jargon? Our glossary
will help you in understanding the basic loan related terms.
Browse through the glossary or serach for a term through the
menu to resolve any doubts.
Glossary of Home Loan terms
C
Carpet areas
The area of a room measured inside wall to inside wall including
door jams. Column projections inside the rooms are not deductible
while arriving at the carpet area; i.e. areas useable at any
floor level as worked out in the plinth area minus the area
occupied by the walls.
The official document of title, showing ownership of the
land described in it. The Certificate of Title describes
the area and location of the land; it shows the registered
proprietor (land owner) and all charges and other interest
affecting the land.
It is a property title which is free from any reasonable
doubt and also free from all encumbrances.
A close relative according to Section 6 of the Companies
Act is acceptable as guarantor. They may include any of
the following:
- Father, mother (including step mother);
- Son (including step son), son's wife, son's son, son's
son's wife, son's daughter, son's daughter's husband;
- Daughter (including step daughter), daughter's husband,
daughter's son, daughter's son's wife; daughter's daughter,
daughter's daughter's husband,
- Brother (including step brother), brother's wife;
- Sister (including step sister), wife/husband and sister's
husband
However for consideration of these relatives as guarantors
for the loan they should comply with the age and other norms
of the home loan provider.
It is actually the covered area of the common spaces and
areas meant for use by the occupants of the property. These
areas may include staircase, lifts, ducts for sanitation,
electrical and air conditioning areas etc. This area is
generally divided proportionately in relation to the size
of the apartment/property and charged accordingly.
The process of legally transferring ownership of interest
in land.
A legally binding agreement between two or more people.
Contracts may be written, oral, partly written or partly
oral or implied by a person's behavior. Contracts relating
to land must be in writing.
Every Housing Finance Company (HFC) has its own panel of
credit appraisal officers who process your applications.
Various factors are taken into account like income of the
applicants, number of dependents, monthly expenditure, repayment
capacity, employment history, number of years of service
left over and other such factors, which affect the credit
rating of the borrower. Proof of income is also verified
for the purpose of loan approval. The time taken for receipt
of such information is crucial since it will affects the
duration required for a loan approval.
The loan officer will also request applicants to the branch
for a credit interview.
The maximum credit allowed to a Borrower on an account.
A report prepared by a credit reporting agency which sets
out the credit history of a person. A Satisfactory Credit
reference is often required by a lender before approving
a loan.
Commitment fee is an interest, which is charged if you do
not draw the sanctioned loan amount within a period of 6-7
months. The interest rate is usually about 1-2%.
|
