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Step into your home, with IIFL Home Loans

Fulfill your dream of owning a home with IIFL Home Loans.

735 views  29 Nov 2017

GHAR AAPKA LOAN HUMARA

"A man travels the world over in a search of what he needs and returns home to find it" - George A. Moore.

A house is the most coveted possession for all. With easy availability of housing loan and with interest rates so low, this dream has become a reality for several people.

The market for large home loans may be limping, but the affordable housing segment is booming and loans below Rs 10 lakh have surged 43% in the last fiscal. The rise in utilization of Rural Housing Fund and Urban Housing Fund is expected to further bolster the trend.

Overall housing loans grew by 23% while home loans above Rs 25 lakh saw a marginal decline of 1% during the last financial year, industry estimates show.

NHB has received Rs 9,000 crore under rural and urban housing fund from RBI, which will go towards building affordable housing.

Under PMAY, it is proposed to build 2 crore houses for urban poor including EWS and LIG in urban areas by 2022.

Moreover, the government has laid a strong foundation for affordable housing and has acknowledged the need for India to respond to the huge demand of affordable housing.

Central Government's announcement of new public private partnerships (PPP) model is also a great positive signal that Government wishes to promote private investments in affordable housing, in line with its vision Housing for All by 2022. This policy envisages eight PPP models including six for promoting affordable housing with private investments using government lands (which will have central assistance per house as CLSS on HL) and two involving private investment using private land (which will have central assistance of Rs 1.5 lakh per house). This is a great step to bring all stakeholders - Government, Developers and Lending Institution at one platform to increase the supply of affordable as well as incentivize the proposed owner of these homes.

As per a report of Cushman & Wakefield, there has been an increase of 10% in the number of units launched for affordable housing sector in year 2017.

Most Indians face a tough time in buying a house due to the vast gap between the demand and supply of houses in affordable sector. In spite of good income and affordability, they don’t get home loans and face rejection.

To help such unreached masses, we, at "IIFL Home Loans" bring forth "Swaraj Home Loans" a scheme which gives freedom from strict income documentation.

Under the government’s Credit Linked Subsidy Scheme for Middle Income Groups, beneficiaries may avail an upfront, maximum interest subsidy of Rs 267,000, Rs 235,000 and Rs 230,000 if household incomes are up to Rs 0.6 million, Rs 1.2 million and Rs 1.8 million per annum respectively. This is for first-time homebuyers and for loans disbursed for a period of one year with effect from January 1, 2017.

With the introduction of The RERA Act, 2017, an increase in demand is expected due to assured accountability and transparency. Under this Act, builders and developers cannot advertise or promote their project without mentioning a RERA registration number. The builders have to provide a 5-year warranty for any defect in the building and he is responsible for any defect in the house.

RERA, once stabilizes, will bring in great relief and support for all falling in its ambit, especially the organized lenders. The cost incurred while approving the project and then further monitoring it would be positively influenced because of the sector formalization.

If we talk about the supply side within the housing industry, the implementation of RERA will not only bring in more transparency and trust amongst the consumers but also streamline the sector in the long run. This will have an impact so deep that the real estate industry will undergo a massive transformation in coming days.

Buying a house on a home loan comes with multiple tax benefits that significantly reduce the tax outgo.

Here are the deductions that can be claimed for home loan:

Deductions Section Maximum Deduction Conditions
Principal 80c 1.5 Lakh house property should not be sold within 5 years of possession
Interest 24b 2 Lakh loan must be taken for purchase/construction of the new house and the construction must be completed within 5 years from the end of financial year in which loan was taken
Interest 80E 50,000 amount of loan taken should be Rs 35 lakh or less and the value of property does not exceed Rs 50 lakh
Stamp Duty 80C 1.5 Lakhs can be claimed only in the year in which these expenses are paid

Hence, with such positive changes, now is the perfect time to apply for home loan.

Speaker's Profile

Monu Ratra

Monu Ratra

Mr. Monu Ratra is the CEO of India Infoline Housing Finance Ltd. Mr Ratra is a veteran in the mortgages industry with nearly two decades of experience. Mr Ratra has been associated with brands like HDFC Ltd., ICICI Bank and Indiabulls Housing. Prior to joining India Infoline Housing Finance Ltd., his last assignment was with Indiabulls HFC as National Business Manager. Mr. Ratra has been a part of the pioneering teams leading various functions to provide excellence through process and quality initiatives, contributing to industry-leading growth. While with the last company, his efforts and vision led to building of a growth sales structure, starting from a scratch, in a start up like environment.

At IIFL Home Loans, Mr. Ratra brings strong focus on developing and delivering customer satisfaction with ease and low turnaround time. Mr Ratra is passionate about building stronger businesses, adapting and aligning company with new technology and digital era, and maintaining everlasting culture of customer centricity.

Ask an Expert

FAQs

How can we approach IIFL for a Home Loan?

There are various modes of approaching IIFL. One can use the app, call the Toll free number, visit the branches or visit the website.

What is the maximum amount of loan that I can get?

There is no upper limit on the amount of loan.

What is the tenure of a normal Home Loan?

IIFL provides Home Loans from the tenure of 5 years to 30 years.

How many Home Loans can a single person take?

A single person can take a maximum of 2 Home Loans from IIFL.

How is the rate of interest for a Home Loan decided?

The rate of interest is subject to applicant profile, type of property, industry standards and various other parameters.

If I am constructing my house and take a Home Loan, when will the EMIs start?

EMI will start after the full disbursal only. The Pre-EMI, however, starts after first disbursal. Pre-EMI is the payment of only interest portion.

What is the procedure for a Home Loan?

For taking a Home Loan, a customer has to fill up the application form, provide the various documents and provide various proofs to justify the income level. IIFL provides INSTA facility where the loan is instantly sanctioned using the tablet.

What is the time taken for one Home Loan?

The earliest time for a Home Loan sanction is 4 hours. But usually a Home Loan takes a minimum of 48 hours.

What are the tax benefits of a Home Loan?

The amount paid as principal is allowed as deduction up to Rs 150,000 under 80C.
Also, the interest component is eligible for deduction up to Rs 200,000 under Section 24.

What is the right time to apply for a Home Loan?

Loans can be applied for before or after selection of property. The loan amounts are sanctioned in principle to let buyers know what amounts they can avail of. This helps them decide their budgets and purchasing power. Actual disbursements are made after satisfactory verification of all necessary documents and completion of specific procedures.

What are the areas in which IIFL provides Home Loans?

IIFL provides Home Loans across India.

Can we take a Home Loan for a property outside India?

IIFL doesn’t provide loans for properties outside India.

Can I switch my ROI during the loan tenure?

Yes, we offer the facility to switch ROI of the loan.

What are the various types of Home Loans that IIFL offers?

There are a variety of Home Loans you can benefit from:

  1. Home Purchase Loan: Common loan for purchasing a home
  2. Home Improvement Loan: Loan given for implementing repair works and renovations to your home
  3. Home Construction Loan: Loan available for the construction of a new home
  4. Home Extension Loan: Given for expanding or extending an existing home – eg. Addition of an extra room, etc.
  5. Land Purchase Loan: Sanctioned for purchase of land, for both home construction or investment purposes
  6. Home Loans for Self Employed: Specially tailored Home Loans for Self employed Professionals and Non-Professionals such as Small retailers, Doctors, Architects etc.
  7. Plot Loans: Loan for Purchase of Non Agriculture Plot Loans across India
  8. Home Loan Transfer: Transfer of Home Loans from other Housing finance companies or Banks

What does an EMI mean?

EMI refers to the ‘Equated Monthly Installment’ which is the amount you will pay to us on a specific date each month till the loan is repaid in full. The EMI comprises of the principal and interest components.

What does the market value of a property mean?

Market value refers to the estimated amount that is expected to be fetched on the property as per the prevailing market conditions.

Is there any CIBIL impact if I foreclose my loan?

No, foreclosure of your loan will have no impact on your CIBIL score. Once the loan is foreclosed the same will be reported to CIBIL as ‘Closed’ along with ’0 (nil) outstanding’.

What security will I have to provide?

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.
It is extremely important for you to ensure that the title to the property is clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation, which is likely to adversely affect the title to the property.

What does ‘agreement to sell’ mean? Does it have to be registered?

The ‘Agreement to Sell’ in a property transaction is a legal document executed on a stamp paper that records in writing the understanding between the buyer and the seller and all the details of the property such as area, possession date, price etc.
In many Indian states, the Agreement to Sell is required to be registered by law. We suggest that in your own interest you should register the Agreement

Can I repay my loan ahead of my schedule?

Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges.

Does the property has to be insured?

It is in your own interest to get the property insured. It is not mandatory.

What is Pre-EMI?

Pre EMI is the Interest paid on the Loan Amount availed in part and before the start of the actual EMI. This generally occurs in Self Construction or Construction Stage Linked Disbursals. The EMI doesn't get started till the loan is disbursed in full and hence interest is charged on partially disbursed loan amount only which is Pre-EMI.

Am I eligible for Home Loan if my majority earnings are in cash?

The Eligibility of a customer is decided on various parameters. These parameters include Income reported to Income Tax Department, Type of property, Age of the applicant and various others.
Also, we have a program called swaraj where we provide loans to the segment of borrowers whose prime income is in cash.

Can I apply for a joint loan with my friend?

No. We would only allow you to apply for a joint home loan if the application is co-signed by one or more members of your immediate family. Thus, your friend does not qualify.

Do I require a guarantor to get a Home Loan?

Guarantors are required in some specific cases of Home Loans. Thus, it is not mandatory.