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A Home Loan is an amount of money that a person borrows from a financial institution at a certain rate of interest for a particular number of years (tenure), which is to be paid back in equated monthly instalments (EMI). To cover the risk of the financial institution, the property for which the loan is taken as a security.
There are different types of Home Loans. At Godrej Housing Finance, we provide
If you are looking for a home loan, Apply Now and get closer to your dream home.
Godrej Housing Finance Home Loans are designed to enable you to buy your dream home. At every step, we keep our customers’ needs at the centre. This speaks for itself in our home loan features
With EMI Break, take a pause and prioritize your expenditures. We are here to share your burden by giving you an EMI break when your monthly expenses are impacted for factors and events like festivals, holidays, insurance premiums, taxes, school fees of your children, to name a few
Relaxed Down-Payments, with Parallel Funding
The first step is often the most difficult part and we are here to make it easy for you. Don’t worry about arranging huge down payments for owning a property. At Godrej Housing Finance, we bring you closer to your dream home. Pay your part on a pro-rata basis and as per the stage of the construction of the property, rather than paying all at once.
Watch this space for more innovative home loan features.
If you are looking for a home loan, Apply Now and get closer to your dream home.
Disclosure that there are specific T&C for product variants
An under construction property refers to a house which is in the process of being constructed and where the home would be handed over to the buyer subsequently by the developer.
Step 1: Submit your Application
The loan application you submit will consist of duly filled loan application form, proof of income, proof of identity and address.
Step 2: Application Evaluation and Loan Sanction
Our internal team immediately gets to work for the evaluating the application and processing it further for the sanctioning of the loan.
Step 3: Property valuation
Once the property papers are shared, technical valuation of the property is done to see if all is in order and approve the disbursal of the loan. Of course, this step gets much easier when you’re buying a home from Godrej Properties.
Step 4: Loan Disbursal
Post these approvals, signing the loan agreement takes place, leading to disbursal of the loan
A financial institution undertakes certain risk while lending money to borrowers, so for prudent lending, the institution checks the repayment capacity of the borrower through his/her savings, income, age, qualifications, nature of work, any loans currently served etc. This is called as Credit Evaluation and determines the loan eligibility comprising of the loan amount, tenure of the loan and the rate of interest.
A financial institution empanels agencies for objective valuation of the property it takes against the loan as a security. The valuation is based on its age, usage, legal documentation, condition as well as its geographical location. Market conditions also come into play, including whether there is a high demand for that particular type of property in the area in which it is located.
Registration of a property includes necessary stamping and paying of registration charges (may vary from state to state) for a sale deed and getting it recorded at the sub-registrar's office of the concerned jurisdictional area.
If a property is purchased from a developer directly, getting it registered amounts to an act of legal conveyance. In case the purchased property is a second or third transaction, it involves a duly stamped and registered transfer deed.
To apply for a home loan, it is mandatory to have a co-applicant. If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant for the home loan. In case of sole ownership of the property, any member of your immediate family can be a co-applicant. If joint income is considered to arrive at eligibility, then the second person needs to come in as a co-applicant.
National Automated Clearing House (NACH) is a centralized structure created to make payments more accessible and cost-effective; NACH offers a fast and efficient clearing platform. The NACH debit mandate is used by GHF to automatically deduct monthly instalments from your bank account for the loan availed.
Two ways to cancel your NACH mandate are:
You need to mention the Loan Account Number (LAN) in the request, and our team will connect with you within 48 hrs.
Processing fee is a one-time charge to be paid by the borrower to the financial institution to covers the cost incurred to process a loan application.
Loan sanction letter is issued by a financial institution post evaluation of an applicant’s creditworthiness and other details like KYC etc. This letter is a proof of eligibility of a loan from the financial institution and mentions the main loan details like maximum loan amount, maximum tenure, type of rate of interest EMI amount and special conditions if any. A sanction letter with this conditions is valid for a specified period of time.
A Power of Attorney allows a person to grant another person the right to make decisions regarding the person's assets, finances and real estate properties.
There are two types of power of attorney.
First, the 'General Power of Attorney'where a property owner confers 'general'rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the 'Special Power of Attorney'wherein only a specific right is given by the owner to the chosen person.
The EMI is the amount of money a borrower pays back to a financial institution on a monthly basis towards the loan availed. It comprises of 2 components – the principal and the interest. So with every EMI, the borrower pays back a portion of the loan amount as principle and a certain amount of interest. The EMI amount remains constant and by the end of the tenure, the borrower has paid back both principal and interest amount in full.
At Godrej Housing Finance, you can avail product variants where we give you a break from your EMI when you need it the most. Read more here.
Pre-EMI is the interest paid by the borrower when the final disbursement is pending. It is the interest on the portion of the loan disbursed already and is payable every month from the date of each disbursement up to the date of commencement of the EMI, which is after the loan is disbursed in full. Pre-EMI is mostly applicable in an Under Construction property being purchased on loan
The time period (in months or years) for which a financial institution lends the money to a borrower. The tenure is basis arrived at the credit worthiness of the borrower and may be different from borrower to borrower.
At Godrej Housing Finance, Home Loans come for long tenures up to 30 years.
The rate of interest is the percentage of principal charged by a financial institution from its borrower for the money lent. It is paid over and above the principal amount borrowed.
There are 2 types of rate of interests
GHPLR is the benchmark interest rate set by Godrej Housing Finance for giving out loans. The floating rate changes in line with the changes in the GHPLR.
Collateral is an asset (the property, for home loans) a financial institution accepts and keep as a security for a loan it extends till the loan is fully repaid. This helps the financial institution to cover its risks.
APF stands for Approved Project Funding.
Godrej Housing Finance, identifies projects by certain developers and builders, and evaluates basis the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Godrej Housing Finance.
The TAT(turn around time) for a loan disbursal, is lesser, where a project is already an APF and the loan processing is much simpler.
Loan to Value (LTV) is the amount of loan divided by the total value of the property and is represented in %. Loan value of INR 75 lakhs for a property worth INR 1 Crore would mean 75% LTV.
Own Contribution or OCR is the same as down payment. It is the difference between the loan amount Godrej Housing Finance (or any financial institution) will provide and the total value of the property.
At Godrej Housing Finance, we make OCR a breeze with Easy Down payment options we call Parallel Funding, where a borrower doesn’t get burdened and pays the down payment in parts on pro-rata basis. This enables the borrower to buy his/her dream home sooner than he/she normally would.
OCR and down payment are also referred to as ‘Margin’ money.
The documents relating to transfer, sale, lease or any other form of disposal of an immovable property. Registration is compulsory by law for all properties under Section 17 of the Indian Registrations Act, 1908. Once a property has been registered lawfully, it means that the person in whose favour the property has been registered, is the lawful owner of the premises and is fully responsible for it in all respects.
Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under construction properties) and the terms agreed between the financial institution and the borrower.
Welcome letter is sent by a financial institution once a customer is fully on boarded. The welcome letter consists of the most important terms and conditions (MITC), Repayment Schedule, Schedule of Charges and all important loan details.
A loan account statement details out all the transactions completed in a particular loan account date by date. It also shows the outstanding balance due, the interest rate charged on that outstanding balance and any fees/charges incurred. However, the outstanding balance as reflected in SOA may not be the amount which you have to pay to close the account. To know the foreclosure / pre-closure amount contact +91 22 68815555.
Most Important Terms and Conditions details out the Loan details, repayment schedule, schedule of charges and any other relevant details of a loan account which a borrower must know. It is available on both website as well as on customer portal.
A repayment schedule is a table of detailed loan payments for every period, showing the amount of principal and the interest that comprise each payment until the loan is fully paid off.
An Interest Certificate is a document issued by the lender which details out the bifurcation of the Principal and Interest Amount paid towards a home loan account in a particular financial year.
The NOC, or No Objection Certificate, is a document that states that you have paid all the EMIs and cleared all other outstanding loan dues and is issued by the company post the closure of the loan account. Please note that till the time NOC is not issued you may have liability towards GHF.
As per Section 80C of the Income Tax Act, you can avail deductions up to Rs.1.50 lakh on the principal amount repaid annually. Under Section 24 of the IT Act, taxpayers are also eligible for benefits up to Rs.2 lakh on the interest repaid against a home loan annually.
Under section 80EE, first time home buyers can claim addition deduction of Rs. 50,000 for value of property up to Rs. 50 lakh and loan taken up to Rs. 35 lakh.
The income tax law provides for the claim of pre-EMI interest also, called the pre-construction interest, as a deduction in five equal instalments starting from the year in which the property is acquired or construction is completed, over and above the deduction you are otherwise eligible to claim from your house property income. However, the maximum eligibility remains capped at Rs. 2 lakh.
Yes, these expenses can be claimed as well, under section 80C but only in the year in which the expenses are incurred and within the overall limit of Rs. 1.5 lakhs.
Bounce charges are incurred if the EMI is not paid by the borrower on the due date.
For more detail and updated information refer Schedule of Charges.
Late Payment charges, also referred to as ‘Penal charges’ are the charges incurred on the late payment of the outstanding dues in case of EMI bounce, by the borrower.
For more detail and updated information refer Schedule of Charges.
Swap charges are incurred by the borrower for changing the repayment instrument or change in the bank account for NACH Mandates.
For more detail and updated information refer Schedule of Charges.
Recovery charges are levied by the Company for any expenses incurred on collection of overdue from the borrowers
For more detail and updated information refer Schedule of Charges.
Foreclosure or prepayment charges are the charges a borrower incurs for partly paying / closing the loan ahead of its full loan term.
For more detail and updated information refer Schedule of Charges.
Charges paid by customer as per State laws to register Finance Documents.
For more detail and updated information refer Schedule of Charges.
Charges for registering charge on the property submitted as collateral and for uploading KYC details on CKYC.
For more detail and updated information refer Schedule of Charges.
Charges incurred by the Company for any legal actions against the Borrower/s in case of default.
For more detail and updated information refer Schedule of Charges.
No, it is not mandatory to obtain Insurance. However, Insurance is a voluntary risk mitigation device that helps customers in multiple ways, such as securing the asset, helping in paying off the loan liability in an unlikely event.
The insurance contract is between the Insurer and the customers. The company plays a limited role in facilitating the insurance contract between customers and Insurers. It will be the Insurer's responsibility to provide details and benefits to the customers.
Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.
Credit-Life Insurance provides death cover for natural, accidental, and unnatural cause deaths. It also includes coverage for death due to Covid-19 and can be extended to co-borrowers. Customers can also avail the benefit of Section 80-C Income Tax deduction.
Survival-Benefit Plan is for critical illness insurance and provides additional cover for medical emergencies like heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short. These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.
Health insurance aims to provide a defence against the hardship caused due to lack of income because of (a) Disease, (b) Accident, (c) Surgery and (d) hospitalization.
Property Insurance secures the property for which the loan has been availed; ensures the security of valuables within the house. It is applicable for entirely constructed property wherein the customer has possession of the property. The Claim amount is the reinstatement value of the property.