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 acquired 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 Loans:
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 Loans 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 Loans:
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
Processing fee cheque.
List of Some of Banks Providing Farm Equipment Loans:
* Terms and conditions may vary from bank to bank.
View Comments
By Abhijeet Kumar (on Aug 21, 2011 12:54 PM)
Iam looking for a home equity loan in india. I have a 3 bhk house in bangalore. the market value has seemed to go up. Kindly let me know the procedure for the same.
thanks & regards
Abhijeet Kumar
00919845430189
00971507825798
