What is an EMI?
An EMI (Equated Monthly Installment) refers to an amount payable to a lender by a borrower, consisting of the principal and interest.
What is Pre-EMI?
The term "pre-equated monthly interest installment" refers to interest on part disbursements of loan from the date of disbursement until the date of EMI commencement
Why should I get a home loan insurance?
In case the borrower is unable to make the EMI payments due to unfortunate circumstances such as death, critical illness, partial or permanent disability or job loss, a home loan insurance covers the borrower and ensures home loan repayment.
Is it necessary to insure the property?
It is necessary that your property is properly insured for fire and other hazards during the term of the loan. Truhome Finance will also require you to provide evidence of compliance every year and/or whenever requested. Truhome Finance should be the beneficiary of the insurance policy.
What does ‘own contribution’ mean?
The term ‘own contribution’ typically refers to the down payment that a homebuyer makes from their own funds when purchasing or constructing a property. It is the portion of the property’s price that is paid upfront by the borrower for a home purchase loan or home construction loan. In simpler terms, the portion paid by the customer during construction is also known as ‘own contribution’.
What does the term 'market value' of a property mean?
The market value of a property is the price at which the property can be sold to the buyer.
Do I get tax benefit for Home loan availed?
Yes. The Income Tax Act of 1961 provides tax benefits on the principal and interest components of your home loan.
What security will I have to provide for a home loan?
The sale deed of the property, being financed by Truhome Finance would generally serve as security interest and/or any other collateral as may be required by us. Kindly ensure that the title to the property is clear, marketable, and free of encumbrances.
When do I start repaying the principal amount?
As soon as the loan is fully disbursed, the principal must be repaid. Any amount you pay over and above interest goes toward principal repayment, thereby allowing you to repay the loan faster.
What does ‘Agreement to Sale’ mean?
The 'Agreement to Sale' in a property transaction is a legal document containing the understanding between buyer and seller as well as all the details of the property, including the area, possession date, and price.
What does encumbrance refer to?
The term ‘encumbrance’ refers to a claim against a property by a party that is not the owner.
When can I take disbursement of the home loan?
A disbursement of the home loan can be made once the property has been technically appraised, all legal documentation has been completed, and your own contribution has been paid in full.
In how many installments will the home loan be disbursed to me?
The loan will be disbursed in full or in installments upon receiving your request for disbursement. Under construction properties loan amounts will be disbursed in installments based on our assessment of the progress of construction.
Can I repay my home loan ahead of schedule?
Yes. You can repay the home loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable terms and conditions listed in the Truhome Finance policy.
Can I get an in-principle approval and actually avail of the loan later?
We are happy to say yes again! Before you choose the house you want to buy, we give you an in-principle approval based on your income and capacity to repay. This makes the entire process of identifying and buying a house easier and more flexible.
When is the right time to apply for a home loan?
From the time you decide to invest in real estate to the time you decide the final property, any time in between is a good time to apply for loans. The loan amount is sanctioned in principle so that you can know the loan amount limit. This will help you plan your other expenses involved during setting up your dream home.
Who can be a co-applicant of a home loan?
The co-applicants can be spouse, siblings, parents and children.
Why should I have a co-applicant for the home loan?
Having a co-applicant for your home loan or opting for a joint home loan offers the benefit of higher loan eligibility, higher tax benefits, sharing loan payments, and buying a bigger house in a preferred location.
How do I repay my home loan?
Repaying a home loan typically involves making regular payments (Equated Monthly Instalments or EMIs) to your bank or financial institution over a specific period of time until the loan is fully paid off. You can also make part payment(s) towards your principal, if you wish to. This can significantly reduce the overall interest you pay and/or reduce the loan tenure.
From where can I download the ‘Truhome Finance Home Loan' mobile application?
Android users can download the ‘Truhome Finance Home Loan app’ from the Google Play Store, while Apple users can download the app from the Apple Store.
Can my spouse be a co-applicant in a home loan? Will our income be taken into consideration for calculating the home loan amount?
Yes. You can add your spouse as a co-applicant and his/her income can be considered for determining your home loan eligibility. Kindly note that this is subject to availability of his/her income documents, KYC and other documents as needed.
Can I get approval for a home loan while I decide which property I should purchase?
Yes. You can apply for a home loan based on income eligibility, subject to legal and technical clearance of the property as and when the property is finalized. Generally, Property Not Identified (PNI) sanctions are taken prior to property selection and are valid for a period of 3 months from the date of sanction.
Is it mandatory to have a co-applicant when you apply for a home loan?
Yes, atleast one co applicant is required to be part of structure. In the case of a jointly owned property, all co-owners in the said property would become co-applicants in the home loan. Co-applicants can generally be spouse, parents, siblings and children.
What is part/subsequent disbursement of a home loan?
Truhome Finance disburses loans for properties under construction in instalments based on construction progress. Every instalment disbursed is known as a 'part' or a 'subsequent' disbursement.
When do my home loan EMIs start?
The home loan EMIs typically start a month after the full amount is disbursed. However, when the home loan is disbursed in parts for under-construction property, you may be required to pay a pre-EMI. A pre-EMI consists of solely the interest on the principal amount and not a combination of interest and principal.
What is the maximum home loan that I can obtain?
The maximum home loan that you can obtain will be determined based on your income, age and several other eligibility factors, subject to Truhome Finance’s sole discretion.
What is the maximum tenure allowed for repayment of your home loan?
The minimum loan tenure is 1 year, and the maximum is 25 years. However, the repayment tenure of the loan depends on the profile and income assessment of the borrower, subject to Truhome Finance’s sole discretion
Will interest rate change during home loan tenure?
If your loan is on floating rate of interest, which may change as per prevailing factors to compute interest rate, the rate of your loan will also change.
What are the factors that determine home loan eligibility?
Some of the factors that determine your eligibility for a home loan are:
- Income and Repayment Capacity
- Age
- Financial Profile
- Credit History/Credit Score
- Existing Debt/EMIs
- Property Valuation
- Legal Clearances
Can I get an in-principle approval on a Home Loan and avail of the loan later?
Yes. You can get an in-principle approval for a home loan – the process involves assessing your income and repayment capacity.
What is a home extension loan?
A home extension loan is generally offered to an existing residential property holder for expansion or extension. For example, for building an extra floor or room.
Who can avail a of home extension loan?
To avail a home extension loan, individuals must meet certain eligibility criteria set by the bank or financial institution. Specific requirements may vary slightly among lenders. However, Truhome Finance’s eligibility criteria for obtaining a home extension loan are age, income, credit score, property ownership, co-applicants, documentation, loan amount, loan tenure, employment stability and property valuation.
What is the maximum term for which I can avail of a home extension loan?
The minimum home extension loan tenure is 1 year and the maximum is 25 years. However, the repayment period of the loan is based on the profile and income assessment of the borrower, subject to Truhome Finance’s sole discretion.
Are the interest rates of a home extension loan higher than that of a home loan?
The interest rate for a home extension loan is generally the same as a home loan.
Do I get tax benefits for a home extension loan?
Yes. You are eligible for tax benefits on the principal and interest components of your home extension loan under the Income Tax Act, 1961.
What is the security that I will have to provide for a home extension loan?
The security of the home extension loan is the existing property itself.
What is a house renovation / improvement loan?
A house renovation or improvement loan is a type of housing loan designed to assist homeowners in financing the renovation or improvement of their homes.
Who can avail of a house renovation / improvement loan?
To avail of a house renovation or improvement loan, you must qualify for the specific eligibility conditions established by the bank or financial institution. While these criteria might slightly vary from one lender to another, Truhome Finance’s criteria/factors typically include age, income level, creditworthiness, property ownership status, the inclusion of co-applicants, document verification, desired loan amount, preferred loan tenure, job stability, and property valuation. It is important to note that a house renovation loan is offered to customers with self-owned property.
What is the maximum term for which I can avail of a home extension loan?
The minimum home extension loan tenure is 1 year and the maximum is 25 years. However, the repayment period of the loan is based on the profile and income assessment of the borrower, subject to Truhome Finance’s sole discretion.
Do I get tax benefits for a house renovation / improvement loan?
Yes. You are eligible for tax benefits on the principal components of your house renovation loans under the Income Tax Act, 1961.
What is the security that I will have to provide for a house renovation / improvement loan?
The existing property would be considered as security of the loan along with any other collateral or interim security that may be deemed appropriate by the Truhome Finance policy.
What is a top up loan?
A top up loan is a type of loan that is an additional credit facility available to customers who are already servicing loans with Truhome Finance. You can avail a top up loan for personal as well as professional needs (other than for speculative purposes) such as weddings, education for children, expansion of businesses, consolidation of debt, etc.
Who is eligible to receive a top up loan?
You may apply for a top up loan if you have an existing relationship with Truhome Finance. Additionally, new customers who have availed a balance transfer loan are eligible for a top up loan.
What is the maximum amount that can be borrowed as a top up loan?
The maximum top up loan that you can avail of is determined based on your income, age, repayment history of any ongoing home loan and the current valuation of the property as defined in the Truhome Finance policy.
What is the maximum term for which I can avail of a top up loan?
The maximum tenure of the top up loan will be that of the existing home loan. In the case of a balance transfer loan, it should not exceed that of the balance transfer loan itself.
What is the security that I have to provide for a top up loan?
Your existing property acts as security against the top up loan along with any other collateral or interim security that may be appropriate as specified by the Truhome Finance policy.
What is a balance transfer loan?
A balance transfer loan allows property owners to transfer their existing home loan from one lender to another. The primary goal of obtaining a balance transfer loan is to take advantage of lower interest rates, better services or repayment terms
How does a balance transfer loan work?
A balance transfer loan allows property owners to shift their existing home loan from one financial institution to another for better terms, lower interest rates and better services or repayment terms. The process involves applying to a new lender, assessing the eligibility and property value, and settling the old loan. Once the loan is sanctioned, borrowers start repaying the new lender under the revised terms. Costs such as processing fees may apply.
What are the eligibility criteria for an Truhome Finance Balance Transfer Loan?
Truhome Finance offers balance transfer loans to borrowers with existing home loans from another bank or financial institution. The eligibility for a balance transfer loan is determined by various factors such as income, employment status, tenure, property valuation, age and credit score.
What is the maximum term of an Truhome Finance Balance Transfer Loan?
The maximum term that a customer can avail of is 25 years or should comply with age norms defined in Truhome Finance policy whichever is lower.
Can I get a top up loan in addition to a balance transfer loan?
Yes. You can get a top up loan along with a balance transfer loan from Truhome Finance.
Can a borrower of an under-construction property obtain a balance transfer loan from Truhome Finance?
No. The property needs to be 100% ready and possession must be in the borrower's hands as stipulated in the product policy to apply for a balance transfer loan.
How does a loan against property (LAP) work?
A loan against property is a type of loan where individuals can borrow money by mortgaging their property as collateral to a bank or financial institution. This allows property owners to unlock the value of their real estate assets and use them to meet various financial needs, such as funding education, business expansion, investments, consolidating debts or other personal needs.
What is the maximum amount of funding I can receive through an LAP?
The maximum loan against property you can obtain will be determined based on your income, age, and determined based on your income, age, and several other eligibility factors defined in the Truhome Finance policy.
Who can avail loan against property?
Loan against property can be availed by both salaried and self-employed professionals (SEP) for purposes like marriage, child's education, business expansion, debt consolidation etc.
Is there a maximum term for an Truhome Finance Loan Against Property?
The minimum loan tenure for an Truhome Finance Loan Against Property is 1 year and the maximum is 15 years. However, the repayment term of the loan depends on the profile and income assessment of the borrower, subject to Truhome Finance’s sole discretion.
Is there a security requirement for obtaining a loan against property?
Yes. Your existing property acts as a security against the loan against property along with any other collateral or interim security that may be appropriate as specified by the Truhome Finance policy.
Can I avail loan against property for a commercial property?
Yes. A loan against property (LAP) can be obtained against commercial properties that have been constructed and are freeholds.
Is there a fee or charge associated with Home Loans and LAPs?
Yes. There is a processing fee for the evaluation and processing of your application. To view the complete list of charges applicable on your home loan, kindly visit https://truhomefinance.in/investors/terms-and-conditions
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