A common answer is 35-40% of the net take home salary. If you search on the internet, you will get an answer in a similar range. The banks may also have internal guidelines where they may not let your loan EMIs exceed a certain percentage of your net salary. When it comes to financial planning,… Continue Reading
Bajaj Housing Finance has extended the tenure of its home loan products for new borrowers up to a maximum of 40 years. We are not used to seeing home loans of 40-year tenure. Before this, the maximum I had heard was 30 years. So, that’s a sharp jump. I don’t want to go into specifics… Continue Reading
Why do we have to make down payments for home purchases? Why can’t the banks lend the full amount for the purchase? Two reasons. Firstly, the banks get a wider security cushion while lending. So, if the bank lends Rs 80 lacs for purchase of Rs 1 crore house, in the event of default, the… Continue Reading
Standard Chartered Bank recently introduced an interest-only home loan product. Well, no loan gets repaid if you just keep paying the interest. Therefore, in this product, you do not need to repay any principal for a few years. The regular EMI starts on the completion of principal moratorium period. In this post, let us discuss… Continue Reading
You have applied for a home loan but you are worried that you may not get the requisite amount. In an earlier post, I had discussed aspects that the banks consider while calculating your loan eligibility. In this post, let’s use the findings of the aforesaid post and see how you can increase your loan… Continue Reading
Even when you plan to purchase a house through a loan, you still must make the down-payment from your own pocket. Your home loan wouldn’t fund the complete purchase amount. You must fund some percentage of the purchase from own pocket. What if you didn’t plan well and you do not have funds to make… Continue Reading
We get several queries from readers about if they can get a loan or how much loan will they get. Some queries have details about the income or security too. It is not easy to answer such queries. The banks look at many more things before they sign off your loan application. By the way,… Continue Reading
With how much it costs to purchase a house these days, it is not easy for most people to purchase a house outright. Many of us have to take a home loan if we want to purchase our dream house. On our website, we have discussed interesting home loan products. One of those products is… Continue Reading
If you fancy making asset purchases on credit, you would want to be aware how much loan amount you can get. I am not talking about minor purchases where you can simply swipe your credit card. Once the credit card is approved, you can use your card, subject to credit limit, wherever you want. The bank… Continue Reading
In an earlier post, I had talked about ICICI Bank Step-up Home Loan, where the applicants could get higher loan eligibility than regular home loans due to moratorium on principal repayment for a few years. However, the limitation with Step-up loan was that the maximum age was capped at 40 years, the loan tenure was… Continue Reading