Home equity loans helps the
customer to mortgage his existing property to the bank for taking loan
for some other purpose. Banks assess the current market value of the
property to give loans to customers. Customers can use the money so
acquire for marriage, education, medical purpose.
Residential/Non-residential properties are considered for approval of
loan. They are only given to legal title holders, also the land should
be free from any kind of dispute.
Maximum Amount of Home Equity Loan:
Banks offer around 60-65%
of the actual value of the property as loan. The Loan amount can go up
to 10-15 lakhs for commercial and residential properties. Repayment is
done through Equated Monthly Installments or EMI. The repayment period
can range from 10-15 years depending on the bank's policies.
Interest Charged by Banks for Home Equity Loans:
Rate of
interest can both be fixed as well as fluctuating, according to the
requirement of the customer. Rate of interest charged is also fixed
according to the prevailing market conditions.
Home Equity Loan Application Process:
An
individual/company/professional can apply for home equity loan in
different home loan corporations/ banks by filling the application form.
These days companies provide online forms for customer convenience.
There is certain information that one must furnish in order to qualify
to approval of home loan.
Documents Required for Approval of Home Equity Loan:
Businessman/ Self employed professional:
- Application form with photograph
- Educational qualification
- Identity and residence proof
- Proof of business existence with business profile and last three
years income tax return
- Last 3 years income statement and balance sheet.
- Last 3 month's personal and business bank statements.
- Processing fee check
Salaried customers:
- Application form with photograph
- Identity and Residence proof
- Latest salary slip
- Form16
- Last 6 months bank's statement
- 6.Processing fee cheque.
List of Leading Banks providing Home Equity Loans:
