GIC Home Loans: Get details on Documents, EMI Loan Eligibility & Amount · Application Process · Loan Approval · Loan Disbursement. GIC Housing Finance Ltd. introduces new ‘Home Guard Loan’.
Loan Eligibility & Amount
Most of us do not understand how the amount for the loan to be given is decided. Sometimes, we find that two people working in the same firm with the same salary end up getting drastically different amounts as loans.
The loan eligibility is based on two different calculations
- The amount of loan repayment that you can afford to make every month.
- A percentage of the cost of the property.
Home Loan applications received for rupees ₹ 419,027 crores till 23 October 2020
The ability to repay is based on your total income and expenditure. Let us say that you have a monthly income of Rs.20,000, and your monthly expenses are Rs.12,000 then you can pay Rs. 8000 towards any loan you take. This figure is then reverse calculated over the tenure of the loan to arrive at the Eligibility Amount. Obviously, the larger your repayment capacity, the higher will be your loan eligibility.
If you have any existing loans, they will affect your repayment capacity, since your disposable income (Rs.8000 in the example above) will be reduced by the EMI on the existing loan. Mostly, however, short term loans of 6 months or so are not taken into consideration
While you have understood how the loan eligibility amount can be increased by taking a longer tenure, it is important to understand the limitations of this route.
The maximum tenure of the loan available is based on your age at the time of application. The age should not exceed 58 years / 60 years (as retirement may be defined at your firm) for salaried employees and not exceed 65 years for self employed professionals.
Keeping this in mind, taking the maximum possible tenure will ensure the maximum amount eligibility.
Once your application is processed and depending on the Loan amount applied and repayment capacity, the final loan amount will be communicated to you. You will then be issued a sanction letter stating the terms and conditions under which the sanction is given. These terms and conditions have to be fulfilled before the loan amount to be disbursed.
The Offer Letter will state the loan amount, rate of interest, tenure, mode of repayment and other details and special conditions.
How to Repay
Typically, you will be asked for Post Dated Cheques (PDCs) for a period of 12, 24 or 36 months depending on the amount of the loan sanctioned and the scheme.
In case your installments are to be deducted directly from your salary, you need a letter from your employer confirming this arrangement, and remitting the amount directly to us.
Your bank may also give you the facility to remit the amount directly from your salary account to your loan account.
And yes, you can also deposit the EMI with a demand draft or cash.
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