Wednesday, March 5, 2014

Housing Loans In kerala

Every Bank in India has its own policies and standards to evaluate the amount of home loan you are eligible for. It is known as credit appraisal process. Using this process a bank can decide on your loan eligibility. You repayment of home loan installments depends on the following criteria :

  • Your Income
  • Your Age
  • Qualification
  • Job Experience
  • Employer
  • Nature of Business (if you are self employed)
  • Tenure of Loan
  • History of yor tax payment
  • Assets owned by you
  • Your other sources of income
  • Any outstanding loans
  • Your investments

Building a house is the greatest investment for any one especially Keralites. While venturing into the greatest investment of life, most of them do not plan it properly, do not collect information and study about how to go about building your house. Many simply think it is like buying a commodity from the market and hence simply go on enquiring from contractor to contractor looking for that contractor who will quote lowest rate without bothering much about small writing in the bottom of the offer-Conditions apply
As i have written many times earlier, once you decide to build your house or even feel the need to build your house, you should straight away go for it with careful study and preparations. You need a true professional who has not only qualifications in designing and building houses, but a wealth of experience in designing and building houses with an open eye for acquiring knowledge on new developments in the field as technology developments come faster in this area.
Cost of construction even with professional Engineering Estimates can only give approximate indications as all input costs for building a house keep increasing in Kerala conditions. You need professional guidance to avoid unwanted expenses and to choose right material and workmen to get best appropriate and most economical results.
In my opinion even if you have sufficient funds with you,it will be better to avail house loan which give you repayment period from five to twenty years depending on your age when you apply for housing loan. The simple reason is that you get money now to build your house at cost prevailing today. Tomorrow cost will definitely reach unreachable levels for you if you simply postpone your house construction. When you avail housing loan you will have to make installments of payments after few years when real value for money used by you for construction has come down much in terms of the purchase capability of the money. So when you avail of Housing loan you get higher value money and as years pass you repay money with much lower value.
There is no point in searching for that bank which offers 0.5 or 0.25% fewer rates for loan. Whatever may be the rate of interest banks tend to collect over a period of years almost double the money you have taken as loan of course with lesser and lesser value for repayment money as years pass.
Let us see what all the documents bank will ask for processing your housing loan in Kerala
1. Original deed which shows that you have absolute ownership for the land
2. Encumbrance certificate to be obtained from concerned Registrar office where you registered your land purchase deed for the past 13 or 14 years(it may vary from bank to bank).This will show history of ownership of your land for the past 14 years and will show if there is any liabilities on the land duly registered with concerned Registrar office.
3. Land tax receipt in your name clearly showing you as the possessor of the land as per the deed issued by concerned Village office paid up to date.
4. Possession certificate in your name issued by Village office for the land
5. Location certificate for the land issued by Village office
6. Original or copies of all previous land deeds for the land at least for the past 14 years
7. Copy of Building permit issued for construction of building by the concerned Panchayath.
8. Copy of approved Plan duly approved and sealed by concerned Panchayath prepared and signed by your Architect or licensed Engineer and you.
9. Original of Estimate for construction of the building preferably signed by a Chartered Engineer.( Banks will pay only 70 to 80% of the cost indicated in this Estimate. So you have to give suitably prepared Estimate in consultation with bank officials)
10. Building tax paid receipt (up to date) if the land has any other existing building .

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