Home loan Eligibility Calculation

POSTED BY Seetharam KM ON April 22, 2013 10:19 pm COMMENTS (6)

Hi all

I booked a flat costing Rs.30lac( Including Registration), Iam seeking loan around 25lac for a tenure of 15 – 20 years, (age is 48years) my takehome salary is 40k, I approched  SBI they told my eligibility is 19lac, when I highlighted my bonus amount of 62k in my bank statement they told it may come upto 21 lac. but my requirement is 25lac

1. can anybody tell me the loan eligibility calculation?

2. how apply for the SBI maxgain home loan?

immediate suggetion is appreciated

 

6 replies on this article “Home loan Eligibility Calculation”

  1. Dear Seetharam, I’m trying to answer your queries.

    1. is the same amount will be sanctioned at the process center?
    If your documents are OK, Yes the similar amount can be sanctioned.

    2.If the sanction is less at the process center, what is the process to increase the loan amount?
    Once sanctioned, you can not increase the loan amount.

    3. is there any provision for loan to registration amount? (value of property is 30lak with
    registration)
    NO, after RBI guidelines, the SBI is not offering Loan for registration amount.

    4. please list me the documents produce to avail maximum loan.
    To avail maximum possible loan, the only option left with you is to declare future rental income from the proposed property on a 100 Rs. Stamp paper.

    5. Current month salary slip and 13-14 CTC not produced(Not yet received). As I have to pay to the builder, shall I process for the loan then can I produce the current months detail?
    Please move ahead & pay to builder. From the discussed nos. I assume with the addition of rental income, you ‘ll be able to get the desired loan amount.

    Thanks

    Ashal

  2. Raghav V says:

    Mr.Seetharam…

    As far as my knowledge goes…SBI shall take your loan application forward only if you shall provide the last 3 months payslip and appropriate IT statements.At the time of applying they may say its kinda okay…but during docs verification it may fail…so ultimately you will be not in a great situation then.Sbi is really meticulous in verification and documentation related stuff..so clearer your documentation, higher is your rate of getting loan with sbi in a quick time.For me it took around 2 weeks…

    Considering your situation as Ashal suggested you shall go for a higher loan siting rental income too if you are letting it out…otherwise I would suggest you to arrange the remaining amount other than what sbi promises via some other mechanism and then after one year you shall close this intermediate thing and may be try for sbi equity on your property itself.The interest for this new equity shall be an add-on to your loan intrest.

  3. Dear Seetharam, are you running any other loan as on date? If yes please calrify. Regarding the SBI Max Gain & maximum eligible age, if you do have PF account & hopefully a good corpus in it to show as your networth, you may ask SBI to go for maximum possible loan term of age 70 for you. So the loan term ‘ll be 21-2 years for you.

    For 21Y term, the EMI for 25L Rs. loan ‘ll be around 23686 Rs. @ 9.95% ROI. Keeping in mind your last 6 month’s salary, bank ‘ll not offer you 25L Rs. loan. At best you can opt for 22-23L Rs. loan based upon the proposed increament. Now I want to know, the house in question ‘ll be self ocupied or for rent. In case it’s for rental purpose, you can go for 25L Rs. loan by showing the future rental income to increase your mly income from salary + rent.

    if the house is for self consumption, opt for redeeming some of your old investments. Can you elaborate a bit for your other investments?

    Thanks

    Ashal

    1. Seetharam KM says:

      Dear Ashal,

      Thank you for you valuable suggestion, as per your response

      are you running any other loan as on date?
      – No

      for rental or self occupy?
      – not yet decided

      PF – at present monthly 2000/-(from me)
      Investment – Around 1.5lac

      yesterday I visited SBI with my ctc detail of 2years(11-12 and 12-13) and salary slip for jan, feb, mar (40k), as per them my eligibility is upto 23lakh, my doubt is that,

      1. is the same amount will be sanctioned at the process center?

      2.If the sanction is less at the process center, what is the process to increase the loan amount?

      3. is there any provision for loan to registration amount? (value of property is 30lak with registration)

      4. please list me the documents produce to avail maximum loan.

      5. Current month salary slip and 13-14 CTC not produced(Not yet received). As I have to pay to the builder, shall I process for the loan then can I produce the current months detail?

      Thank you in advance
      seetharam

  4. Seetharam KM says:

    Hi Syamantak

    Thank you for your reply, as you know my requirement is around 25lac,
    1. I want solution to avail that much amount. One more benefit Iam getting is an Increment from this month, it may go upto 45k pm.
    2. Method of eligibility calculation.

    thanks

  5. Syamantak says:

    Hello Seetharam,

    a) Your total loan eligibility is calculated on basis of your total take home per month. Typically banks follow a thumb rule – cumulative total EMI towards all your loan accounts should be not more than 50% of your monthly take home. a slight negotiation can be done to increase the limit a bit but not more than 52% is generally approved

    Now in your case, what might have caused the trouble is your age. at 48, you are expected to have a income for next 12 years (it can be even less than 12 years). Since the tenure is less, your EMI towards the loan goes higher. now that we have the EMI fixed (50% of take home), tenure is fixed (12 yrs ) your total loan eligibility is the only thing that the banks can decide upon and hence they reduced it to 21L

    b) For Maxgain, contact your nearest SBI branch. They’d be able to help you

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