What Is Home Loan ?

A home loan is an amount of money that an individual borrows from a bank or money lending company at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the Home Loan..

How do home loans work ?

A home loan or housing loan is the amount borrowed by the individuals from financial institutions or banks to construct, buy or repair a residential property. Lenders provide the loan for a fixed tenure and charge interest on the amount borrowed, which has to be paid by the borrowers along with the principal amount..

What are the types of home loan ?

The various types of property loans that are generally available are: 1) Land-purchase loan. ... 2) Home-purchase loan. ... 3) Home-construction loan. ... 4) Home-extension loans. ... 5) Home-improvement loans. ... 6) NRI-home loans. ... 7) Home-conversion loans..

Aabout Pradhan Mantri Awas Yojana ?

Pradhan Mantri Awas Yojana is a programme by Government of India to ensure “Housing for all by 2022’’. Under this, there is a Credit Linked Subsidy Scheme on home loans for properties in urban market belonging to Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group 1 & 2 (MIG). It can be availed for new or resale purchase of home, construction, or for extension or improvement of rooms, kitchen, toilet etc. Who is Eligible for this Scheme? Income Group (EWS - Up to Rs. 3 Lacs), (LIG - Rs. 3.01 to Rs. 6 Lacs), (MIG 1 - Rs. 6.01 to Rs. 12 Lacs), (MIG 2 - Rs. 12.01 to Rs. 18 Lacs), Benefits and Subsidy offered in This Yojana? The subsidy offered is dependent upon the loan amount and the income group you fall in. Applicants with income up to Rs. 6 Lacs, can avail a maximum subsidy of Rs.2.67 Lacs. Applicants with income up to Rs.12 Lacs, can avail a maximum subsidy of Rs.2.35 Lacs. Applicants with income up to Rs.18 Lacs, can avail a maximum subsidy of Rs.2.30 Lacs What are the Documents Required for this Scheme ? • KYC Documents & Photograph • Aadhar Card is mandatory • Salary slip or Certificate & updated bank statement for salaried applicants • Income Tax Returns of last two years and bank statement for self employed applicants • Self-certificate/affidavit as proof of income • Customer declaration undertaking • Additional Application form .