Suggestions over Home Loan and my applicability for home Loan ?

POSTED BY vijay1503 ON February 19, 2014 10:07 am COMMENTS (11)

Dear Experts,

this is vijay from bangalore… need ur advise and suggestions….. im planning to for LIC (10,25 fixed interest) home loan….. for the flat value of 51.75 laks(possession by aug 2015)

i hav already paid 10 laks for agreemnt

my cibil score is 732

but i also hav 2 personal loans running….paying around 42 k emi
( 1st emi – 17k – which will end by nov this year)
(2nd emi – 24.5k which will run for another 4 years)

my gross salary is around 1.25 laks

im worried…, if home loan would get approved…for me

pls suggest/clarify…..

11 replies on this article “Suggestions over Home Loan and my applicability for home Loan ?”

  1. vijay1503 says:

    Dear Credexpert,

    Thanks for the reply.
    Will ensure i close my personal loans at the earliest, before going for homeloan.

    with regards,

  2. Credexpert says:

    Dear Vijay,

    Closing the Personal loan (EMI 24.5 K) before applying for the home loan and closing the other personal loan (EMI 17K) in November, would ensure that your cash flows are not stretched.

    Also, since your fixed obligation would now come down by 24.5 K (assuming you repay this personal loan), your loan eligibility would be higher.


  3. ashalanshu says:

    Dear Vijay, can you prolong your Loan application till Nov 2014 i.e. and of 1st PL?



  4. vijay1503 says:

    And yes, my takehome salary is around 1.10 lak..

  5. vijay1503 says:

    @Viren : Thanks for the links. Let me go through the links.
    @Ashal : LIC have already approved that project and hence they “claimed” that home loan will be approved for me in within 10 days. However as far as i have been told, SBI takes minimum of 1 month to approve the home loan, and due to personal reasons i need to get it done at the earliest. So i’m not really going for SBI.

  6. ashalanshu says:

    Dear Vijay, whjat is your net take home salary?

    Why are you opting LIV HFC and not SBI or any other bank?



  7. Viren Phansalkar says:

    Hello Vijay,

    Please read Pattu’s:
    The reason I said I am impressed is, I am myself paying hefty EMI (40k) and I am always looking to save money here and there and put it in OD account.
    Alternatively, you may also read:

    Moreover, you may look at SBI maxgain loan account. I guess, current interest is 10.4%. For its advantages, look no further than any of the Ashal’s article on Maxgain (I do not have link, you may google)…


  8. vijay1503 says:

    Dear All,

    Thanks for the quick response.
    Sorry for missing out to add one more thing.

    Actually i’m planning to close one of the personal loan(24.5k emi) before going for home loan.

    @Roshan : Having said above, i cross-checked and definitely my homeloan would fall around 40% of my take home salary.

    @Viren : Hope with this update, its clear for you about the generation of “cash”. 🙂

    @CredExpert: Thanks for the suggestions. The actual emi for home loan of say around 42k would actually start from mid of next year i believe, as the project is still under construction, and so by that time my other personal loan of 17k emi would also get closed and i will be left with only home loan.

    Thanks a ton for the quick responses/suggestions by all.


  9. Credexpert says:

    Dear Vijay,

    What is the EMI that you are expecting to pay for the home loan?

    This EMI would add to your monthly fixed obligation of Rs.42,000. Ensure that this additional EMI does not impact your budgets and contingency funds.

    The lending institution would evaluate your credit worthiness based on your credit report & score, income, your existing fixed obligations along with their internal credit policies. The approval of your home loan hence would be at the discretion of the lending institution.

    We would suggest that you first check the loan amount that you are eligible for with the lending institution of your choice. Do not make random application to many lending institutions for the same, as this would impact your credit report & score.


  10. Viren Phansalkar says:

    Sorry, may sound little off the topic, but honestly I am impressed by your ability to generate cash…. 42k emi (personal loan) and expecting around 40k more (since 50 – 10 lakhs)…


  11. roshan says:

    The thumb rule is that your home loan emi should not exceed 40-60% of your take home salary. You may need to adjust loan amount applied accordingly

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