There’s a lot more you can do with an existing home loan. Top it up or get your balance transferred to enjoy our home loan solutions that include exciting features. IndoStar Home Finance Private Limited (IHFPL) provides financial solutions that allow you to do transfer your current home loans from other financial institutions. We provide a Balance Transfer (BT) + Top-Up facility with higher eligibility to meet any additional requirement for your home needs such as renovation, extension and more. IHFPL enables you to meet any emergency and unplanned financial needs without any worry.
Rate of Interest
Keep the following documents handy to enjoy a simple and hassle-free loan application process:
Disclaimer: The above list is indicative and may require additional documents depending on your case.
Am I eligible to apply for a home loan at IndoStar Home Finance Pvt Ltd (IHFPL)?
Yes, you are eligible to apply for a home loan with us if you are an Indian resident or an entity that’s intending to purchase a residential, under construction or ready property or a residential plot on which you’re planning to construct a dwelling unit. You have to be at least 21 years old to apply for a loan with IHFPL.
Is a co-applicant mandatory? Am I eligible to be a co-applicant?
Yes, a co-applicant is mandatory to apply for a loan. All owners/co-owners of the property to be financed have to necessarily be co-applicant(s) to the loan.
What does Rate of Interest, Margin and PLR mean?
'Rate of Interest' is the interest rate that’s charged for a loan on a reducing balance basis. The rate of interest is linked to the IHFPL-Prime Lending Rate and quoted as IHFPL PLR + margin. Margin is the difference between the IHFPL-PLR (currently 16% per annum) and the rate of interest.
For example: If your rate of interest is 10% per annum then it would be quoted as 16% - 6%, wherein 16% is the IHFPL-PLR and 6% is the margin.
What is fixed rate of interest, floating rate of interest and semi-fixed rate of interest?
For a loan that is running a 'fixed rate of interest', the rate of interest and the EMI stays constant for the entire tenure of the loan.
A 'floating rate of interest' is pegged to the IHFPLR and it changes with a change in IHFPL-PLR. In these loans, the EMIs are kept constant and the loan tenure is increased or decreased in case of a change in the rate of interest. In certain scenarios, the EMI amount can also change.
A 'semi-fixed rate of interest' has a specific tenure of the loan with a fixed rate of interest, and another specific tenure with a floating rate of interest. For example, a loan with 3 years of a semi-fixed rate of interest would have a fixed rate of interest for the first 3 years and subsequently, would move to a floating rate of interest.
How is my loan amount determined?
Your loan amount is determined based on two major factors, which are: your income and the value of the property you want to purchase. Typically, 50% of your monthly income is considered as your EMI-paying capacity, though this varies depending upon your income levels and type of income. The other factor is Loan-to-Value (LTV ratio), which determines the percentage of the property value that can be given as loan. The LTV ranges up to 90% depending on the market value of the property and your repayment capacity.
How much of my income can I pay as EMI?
Typically, 50% of your monthly income is considered as your EMI-paying capacity. The same varies as per the type of income for example: salary through cheque or cash, business income, etc.
Is my entire family income considered for calculating loan eligibility?
Your entire family income can be considered for calculating eligibility under certain conditions.
What is Loan-to-Value (LTV) ratio?
Loan-to-Value or LTV ratio is the amount of loan that will be provided compared to the market value of the security, in this case, property. For example, if you are purchasing a property for ₹ 30 lakh and IHFPL quotes LTV as 90%, then IHFPL is ready to fund ₹ 27 lakh for your purchase. The LTV ratio excludes any taxes and statutory levies.
What is market value of the property?
Market value is the fair value of the property that you intend to purchase and/or mortgage with us. This is determined by valuers that IHFPL empanels.
What is EMI and pre-EMI?
An EMI or Equated Monthly Instalment is the monthly payment that you make to your home loan lender. This payment is due on specific dates such as the 5th or 10th of every month in case of IHFPL. The EMI consists of two parts: the interest to be paid on the loan and the principal component. Thus, with every EMI that you pay, you are repaying a part of the loan as principal repayment along with the interest due on the amount borrowed.
In case you avail only a partial disbursement of a loan (part of sanctioned amount of the loan), typically in cases of property under construction, you will be charged simple interest on the amount that has been disbursed till date. This is called as pre-EMI. Once the complete loan gets disbursed, the EMI starts.
There is one more type of pre-EMI and this is collected as a cheque upfront during the disbursement process. As the EMI starts on a specific date, there is a gap between when the loan is disbursed and when the EMI payment begins. The interest charged during this period is also called as pre-EMI.
How do I pay my EMI/pre-EMI?
You can pay your EMIs by providing us a National Automated Clearing House (NACH) mandate form. This is an instruction that authorises the direct deduction of the EMI amount from your bank account (from which you would repay your loan) on specified dates. In case your bank is not registered for NACH, then you may have to open a new bank account in a registered bank and give us the form.
What is margin money or Own Contribution Receipt (OCR)?
Margin money or own contribution is the amount that has to be paid by you to the builder/seller before availing the home loan. This is your contribution towards the purchase of the property.
Can I pre-pay my loan? If I did, is there a prepayment penalty?
Yes, you can pre-pay your loan. If you are an individual borrower with a loan under floating rate of interest, there is no prepayment penalty applicable. If you are running a loan with a fixed rate of interest for the entire or partial tenure of the loan, a prepayment penalty of 3% is applicable on the principal outstanding of your loan at the time of loan prepayment. If you are a non-individual borrower, a prepayment penalty of 3% is applicable at the time of loan prepayment.
Where can I find all the charges applicable to the loan?
You can find all the applicable charges in the section Fees and Charges, you can click here to access it
How do I contact IHFPL customer service?
You can email us at email@example.com or visit any of our branches. To know our branch locations, click here.
What tax benefits are available on home loans?
Tax benefits are available on both principal repayment and interest payment.
This is applicable as follows: for principal repayment up to ₹ 1.5 lakh (up to ₹ 2 lakh for senior citizens) and on interest repayment up to ₹ 2 lakh (up to ₹ 3 lakh for senior citizens). The tax benefits would change from time to time as per the law. To know more about the benefits applicable to you, please consult with your tax consultant or chartered accountant.
What is PMAY?
PMAY stands for Pradhan Mantri Awas Yojana Credit Linked Subsidy Scheme. This subsidy scheme was launched by the Prime Minister of India with the vision of providing housing for all by 2022.
Under this scheme, on meeting the eligibility criteria, the subsidy is received into the individual borrower’s account from the government in the form of principal repayment that effectively reduces the overall interest cost to them. The maximum subsidy received under this scheme is ₹ 2.67 lakh.
This scheme is applicable for borrowers with a family income from ₹ 3 to ₹ 18 lakh per annum. They are categorised into Economically Weaker Sections (EWS), Low Income Group (LIG), Middle Income Group - I (MIG – I) and Middle Income Group – II (MIG – II).
To know more about this scheme, please click here
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