|
What are Home Equity Loans?
Home equity loans helps customer to encash the market value
of the commodity by taking a loan by mortgaging the property.
So, Home equity loans are availed by customers, who wish to
mortgage his/her property to the bank for taking some loan
for some other purpose. Then, it's up to the bank's discretion
to consider the market value of the property and accordingly
decide how much to pay to the customer.
Both the residential as well as non residential property
can be considered for the approval of the loan, provided the
mortgager is a licensed title holder and the land is free
form any kind of dispute.
Home equity loans don't restrict
one to use the loan money in specific investments. It might
also be used in marriage, higher education, medical expenses,
etc. However it should not be used in any illegal or speculation
purposes.
Conditions of Home
Equity Loans:
- Applicants: An individual or someone with joint account can
apply for the Home equity loans. However the co-applicants
need not be co owners of the property.
- Amount of Loan: About 60-65% of the actual value of the
property can be had had from the bank in the form of loan,
which may go as higher as 10-lacs for commercial and residential
property and it's repayment period may range from 10 to 15
years, depending on individual bank policies.
- Types of Interest: The rate of interest in the Home equity
loans can both be fixed as well as fluctuating, according
to the requirement of the customer.
Home Equity Loans Application:
Nowadays an individual, a professional or a company can apply
for home equity loan by filling in the application form available
in as online forms for customer convenience. There is certain
information that one must furnish in order to qualify to approval
of home loan.
Documents Required by Banks for the approval of Home Equity
loans:
Salaried customers:
1. Application form with photograph
2. Identification and Residence proof
3. Latest salary slip
4. Form16
5. Last 6 months bank's statement
6. Processing fee cheque.
Businessman/ Self employed professional:
1. Application form with photograph
2. Educational qualification
3. Identity and residence proof
4. Proof of business existence with business profile and last
three years income tax return
5. Last 3 years income statement and balance sheet.
6. Last 3 month's personal and business bank statements.
7. Processing fee check
|
