Home loan is generally taken either to buy flat/house, construction of house or renovation.
Eligibility generally depend on the repayment capacity and property price
Generally builders sell projects under time linked plans (TLP), construction linked plan (CLP), subvention schemes. Most banks fund projects only under CLP. Some housing finance companies fund projects under TLP and subvention schemes as well
Home loans are usually sanctioned for the maximum long tenure of 30 years.
It is observed that the average period people take to pay off their home mortgage fully is around 8 years.
As per RBI circulars, banks are not allowed to charge prepayment penalty or charges on floating rate home loans. However, banks may charge penalty on prepayment of fixed-rate loans. Charges may vary from 1 % to up to 3% of the loan amount.
