BUYING HOME and HOME LOAN

Buying a house with self money is one of the most outstanding achievements of life. Still, it is an investment of a significant amount that may or may not possible without having comprehensive financial planning. 

Starting an investment with a vision of creating a corpus to meet a specific financial goal at the beginning of a job or the early age of 25 is an excellent idea. Buying a home must be one of the objectives. The early started Investment is more advantageous due to the compounding interest effect of a long holding period. Compounding interest applies to the interest of interest. A small contribution of regular investment stands at a more excellent value if the holding period is extended; therefore, the longer the investment period, the more excellent value of the investment. Investors must set a financial goal and start investing patiently until the time of achievement of the goal is met.  

Financial Industry is an ocean of schemes, options, investment objectives, holding tenor, nature of procedures, tax treatment etc. which may pose a challenge to the investors; below is a model that may help you make decisions. 

• SELECTION OF RIGHT SCHEMES: A selected plan should grow ahead of the inflation rate. If the investible amount is limited, the investor must consider tax savings while investing and liquidity to have more funds for utilization. 
• SCHEMES: A Diversified and Asset allocated investment portfolio from the collection of plans from MUTUAL FUNDS, POST OFFICE, INSURANCE, EQUITY etc. Managed by different institutions and experts, it can perform stable growth. 

Arrival into the right amount of investment is based on the corpus required to achieve the investor's goal, Economic, Risk appetite, and General profile of the investor.  

Here are a few advantages of having a corpus for buying a dream home: 

• PEACE OF MIND: Buying a house with self money is an outstanding achievement of life that investors enjoy. 
• BETTER AFFORDABILITY: Having a corpus for purchasing a home can enable you to buy or construct a better quality house.
• DOWN PAYMENT ON FINANCE: Having own corpus supports in availing a home loan as a down payment. It also enables an investor to buy a better quality house with a higher amount of downpayment with the support of a home loan.
• LESS LIABILITY: Significant downpayment reduces the liability of paying monthly instalments. 

Goal-based investment planning entirely based on the Economic, Social, General, Age, Risk, Tax etc., in the investors profile. These days have commonly seen that many media platforms present different types of schemes, growing significantly faster, etc. basically, these platforms unaware of investors profile and not accountable and traceless. Therefore we strongly recommend investors create a comprehensive financial plan, choose the desired schemes with the help of a local professional and stick to the plan. Having a review meeting concerning the investment objectives will lead to a better direction. 

Our comprehensive financial service distribution portfolio considers every aspect of the investors and serves GUWAHATI and SHILLONG with a physical office and virtual presence. 

A home loan is a typical way of buying a home in the present days. A home loan helps to buy a home in the middle of the ages if supported by the job or income profile and margin money. An NRI also can apply for a home loan.  

There are several Banks and Non-banking institutions which provides the home loan. Some of them are SBI, LIC, HDFC etc. The availability of home loan providers is based on geographical area. A home loan is a very long term contract; therefore, selecting a reliable home loan provider is mantel peace.  

STATE BANK OF INDIA serves the primary area of the Northeast. 

• Age: Minimum 18 years, Maximum: 70 years.                            
• Income: Minimum120000/ (Anual) for salaried and 200000 for business.

List of papers/ documents applicable to all applicants:

• Employer Identity Card (For salaried)
• Loan Application: Completed loan application form duly filled in affixed with 3 Passport size photographs
• Proof of Identity (Anyone): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Anyone): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

Property Papers:

• Permission for construction (where applicable)
• Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
• Occupancy Certificate (in case of ready to move property)
• Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
• Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
• Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Account Statement:

• Last six months Bank Account Statements for all Bank Accounts held by the applicant/s
• If any previous loan from other Banks/Lenders, then Loan A/C statement for the last year

Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate of last three months
• Copy of Form 16 for last two years or copy of IT Returns for last two financial years, acknowledged by IT Dept.

Income Proof for Non-Salaried Applicant/ Co-applicant/ Guarantor:

• Business address proof
• IT returns for last three years
• Balance Sheet & Profit & Loss A/c for last three years
• Business License Details(or equivalent)
• TDS Certificate (Form 16A, if applicable)
• Certificate of qualification (for C.A./ Doctor and other professionals)

There are  few advantages of a home loan are;

• INSURANCE: The financer insures the property purchase and account holder in a loan, which prevents loss due to unexpected natural calamities and fire perils and ensures that the family does not repay the balance loan in the pre-mature death of the account holder. 

• TAX BENEFIT: Interest paid for a home loan is exempted under Income tax section 80EE before the arrival of taxable income. For more details, click here.   
• LONGER IN TENOR: Based on account holder age and income profile, a home loan can have a maximum tenor of 30 years. 

• INTEREST: Home loans are available at a significantly lower interest rate and keep changing per RBI Guidelines. 

• QUALITY HOUSE: Home loans are available for longer in tenor, lower in interest, flexible in pre-closer etc., which encourages buying a better quality house.  
• EARLY ACHIEVEMENT: A home loan helps to own a house before buying it with his own money. 
• GOVERNMENT SUBSIDY: Govt. scheme on interest and women empowerment such as PMAY (PRADHAN MANTRI AWAS YOJANA ) is possible only with a home loan. 

The features of Pradhan Mantri Awas Yojana are that the government will provide an interest subsidy of 6.5% (for EWS and LIG), 4% for MIG-I and 3% for MIG-II on housing loans availed by the beneficiaries for 20 years under the credit link subsidy scheme (CLSS) from the start of a loan. The houses under Pradhan Mantri Awas Yojana would be constructed through eco-friendly technology while allotting ground floors in any housing scheme under PMAY; preference will be given to differently-abled and older persons. 

ELIGIBILITY:

• Beneficiary max-age 70 years, 
• EWS (Economical Weaker Section) family income limit is ₹ three lakhs per annum. For LIG (Lower Income Group), Family Income limit is ₹6 Lakhs per annum, and Middle Income Group -(MIG-I) income between ₹ six lakhs to ₹12 lakhs per annum, (MIG-II) income between ₹12 lakhs to ₹18 lakhs PA. 
• The beneficiary should not have their dwelling unit in the name of any family member in any part of India.
• The loan applicant should not have availed any central/state government subsidy or benefit for buying a home under the PMAY scheme. 
• Currently, the loan applicant should not own any property under their name and any family members (including the dependents). 
• The home renovation or improvement loans, self-construction loans will be allocated only for EWS and LIG categories.

The houses given under this scheme will be owned by females or jointly with males.

The above information is the standard formats. The procedures may vary with a person with a different profile. We recommend Home loan seekers know their eligibility from the financer approached. 

Being an SBI (State Bank of India) home loan counsellor, we make it easy in applying and processing further for availing a HOME LOAN. In addition, our other service vertical may help to prepare financial supporting documents if needed to support a home loan application. 

Contact us for more details.