|
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
L
Lease
A Contract under which the owner of a property (lessor or
landlord) grants to another person (lessee or tenant) the
right to exclusive possession of the property for an agreed
period, usually in return for rent.
Legal scrutiny report
They are the documents pertaining to your property needs
which are to be scrutinized by legal personnel of the HFC
to ensure that you are buying a property that is clear and
marketable. It can be considered as the first criteria to
be taken care of, so that the transaction is proper and
the property can be passed onto your legal heirs.
License for construction
This is a permission to construct or an authorization in
writing issued along with the sanctioned plan.
Loan Agreement
The Contract between the lender and the Borrower that sets
out the loan terms and conditions. These will include Principal
amount, repayment obligations, Interest rate and the security
required. It is important to read the Loan Agreement carefully,
and get legal and financial advice, before it is entered
into.
Loan to Value Ratio (LVR)
The ratio obtained by dividing the amount of the loan by
the value of that property which is charged as security
for the loan. For example, if Rs160, 000 is borrowed and
the security property is valued at Rs$200,000, the LVR would
be 80%. |
