rediff.com: 'How much money can I avail of for a home loan?'

Have a query regarding your home loan? Maybe we can help.
Drop us a line and our expert, Harsh Roongta, will answer it.

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I had taken a mortgage loan of Rs 40 lakh for a term of 5 years @ 15.25 percent and I am paying Rs 95,160 (EMI) every month. Its been two years now and I still have an outstanding of approximately Rs 28 lakh. Can I switch over the loan to another bank at lesser rate of interest? Will it be beneficial or can you suggest me an alternate solution?

Prasad Reddy

Yes, you can explore the option of changing your home loan lender based on your income and repayment track record. You can check the Should I transfer my loan calculator to assess whether it makes sense to transfer the loan.

You may want to consider the prepayment penalty payable to the existing lender and the processing fee payable to the new lender. Check the home loan comparator to compare offers from various banks.

I have taken a home loan from ICICI Bank @ 8.25 percent fixed interest, I want to know if the rate of interest will be the same for the entire tenure (240 months). I have taken the home loan in 2005.

Please suggest what will be good for me.

Nitin

Most banks do not offer 'pure' fixed interest rate home loans, which remains constant throughout the loan tenure. This means that the interest rate has a reset clause and can be changed after a certain time-period. Check the home loan comparator to compare offers from various banks. You should also check your home loan agreement to ascertain whether the interest rate is purely 'fixed' or is accompanied by a reset clause.

Hi, I have taken a housing loan for Rs 19,25,000 at SBI in November 2008 for 10.5 percent floating interest, for the term of 15 years. Every month I end up paying 22,000 as EMI.

With the existing lower interest rates in the market, I feel I can reduce the amount of EMI. I am not quite sure whether the lower interest rates are applicable to me as well. Is there anything else I can do to reduce my EMI? Or can you please suggest me the best lender to switch over my existing loan?

Praveen

You may want to consider the prepayment penalty payable to the existing lender and the processing fee payable to the new lender. Check the home loan comparator to compare offers from various banks.

I have to take housing loan of Rs 20 lakh for 20 years. With eligibility of Rs 20 lakh loan, which bank would you suggest is good for a home loan? Taking care of the recent and future rate of interest.

Sumit Aggarwal

There is nothing like a 'best bank', whether private or nationalised. The actual rates at which an individual will be able to get a home loan depend on the individual's financial profile and negotiating ability.

Secondly, nobody can predict the future interest rates of a specific bank where the bank has the ability of changing the interest rate in future. Check the home loan comparator to compare offers from various banks.

My name is Ram (28), I got married recently. I am looking to buy a new flat. My CTC is around 4 lakh per annum. Can you let me know what will be the maximum loan which I can get, also giving me the details of the EMI? Also can you guide me as to which bank I should approach for a loan without much interest rate?

Ram

One can get up to 3.5 times the annual gross income as a home loan at an interest rate of 10.50 percent. For 20 years, you can get a loan of Rs 12-16 lakh and up to 85 percent of the cost of the property as a home loan. You can check the home loan eligibility calculator on Apnaloan.com to calculate the loan amount you are eligible for.

Harsh Roongta is CEO apnaloan.com, a price comparison site that allows consumers in India the ability to compare the EMI, interest rates and other fees for home loans, car loans, personal loans, business loans and credit cards.