Home Loan (Confused)

A

amanbhosle

Disciple
With so many banks around i m confused which one to choose for...

My requirement :
Loan amount : 18 lakh.
Type : Home loan
Location : Mumbai

I can spend upto 20000-35000 on EMI.

Now i m confused whether to go for Higher EMI or lower. I just hate all this karja verja But had no choice :(.

Please suggest with your valuable inputs.

Based on below Answers i m come up with more sub queries :)
1) What is the minimum duration i can get Considering salary of 5 lakh per annum .?My wife too earn the same.
2)Which is the preferred mode Floating or Fixed (there might be big debate on this but i would go with % )
3) Agree that it may be based on the salary What if i get join loan with my wife.
4) I have LIC policy under my belt too :) (Jivan saral to be specific ) . I m also paying 5k emi every month on it. I heard LIC is also providing home load is it any better than any other bank loans?
5) If i opt for join load ,do i need to register my home on (me and my wife's) name?
 
I would go for higher emi, since at 35000 pm you can get that repaid in 6 years (approx)
and if it is 25000 pm it will take 10 years (approx)
 
hareshr29 said:
I would go for higher emi, since at 35000 pm you can get that repaid in 6 years (approx)
and if it is 25000 pm it will take 10 years (approx)
Click to expand...

No one repays home loans in 6 years.

EMI quantum depends on your income. Choose an Indian band as far as possible, their up front service may not be shiny, but they are infinitely better in terms of charges and troubled times.

You did not ask the more important Qs, fixed or floating interest, what are you doing about that ?
 
^^^ Questions updated.
1) What is the minimum duration i can get ?
2)Which is the preferred mode Floating or Fixed (there might be big debate on this but i would go with % )
3) Agree that it may be based on the salary What if i get join loan with my wife.
4) I have LIC policy under my belt too :) (Jivan saral to be specific ) . I m also paying 5k emi every month on it. I heard LIC is also providing home load is it any better than any other bank loans?
5) If i opt for join load ,do i need to register my home on (me and my wife's) name?
 
Choose Indian Nationalized banks. Never go for Private banks.
Choose 10-15 yrs term. ( You can save about 25-50K tax per year on principle and interest rates). If you close the loan quickly and if you need money for something else, you have to go for personal loan and you will not even get tax exemption. So pay the actual emi and enjoy the home loan at 10 to 12% for other usage by investing the Excess amount in Gold or some thing else.

My friends father purchased a house about 10 yrs back at a town and he is now paying 2k as EMI and Enjoying 20k per month as rent. So make the best out of a Housing loan, without closing it.
 
thenvk said:
Choose Indian Nationalized banks. Never go for Private banks.
Choose 10-15 yrs term. ( You can save about 25-50K tax per year on principle and interest rates). If you close the loan quickly and if you need money for something else, you have to go for personal loan and you will not even get tax exemption. So pay the actual emi and enjoy the home loan at 10 to 12% for other usage by investing the Excess amount in Gold or some thing else.

My friends father purchased a house about 10 yrs back at a town and he is now paying 2k as EMI and Enjoying 20k per month as rent. So make the best out of a Housing loan, without closing it.
Click to expand...
Wow this has given me new way of looking at the home loan. But for tax saving i have LIC I m paying 5k per month .

^^ I will consider this wonderful opinion . Can you answer rest of the questions.
 
amanbhosle said:
Wow this has given me new way of looking at the home loan. But for tax saving i have LIC I m paying 5k per month .

^^ I will consider this wonderful opinion . Can you answer rest of the questions.
Click to expand...
1) What is the minimum duration i can get ?
IIRC, its 5 yrs. but banks prefer people to take at least 10 yrs
2)Which is the preferred mode Floating or Fixed (there might be big debate on this but i would go with % )
Floating: The reason being its lower than the fixed and yes, there is risk of this value going to higher values, but even in that case, floating will be lower than fixed ( Ex:- Floating 9-12%, fixed 14%+)
3) Agree that it may be based on the salary What if i get join loan with my wife.
Joint loan will always yield you more.. IIRC, Max eligible amount its 100 times your 50% sal per month.
4) I have LIC policy under my belt too
happy19.gif
(Jivan saral to be specific ) . I m also paying 5k emi every month on it. I heard LIC is also providing home load is it any better than any other bank loans?
LIC policy and Home loan have nothing do do with each other. But yes, LIC is also a good provider. Also 60k is what you are paying for the LIC, you can pool the rest 40k from Home loan EMI principle part.
5) If i opt for join load ,do i need to register my home on (me and my wife's) name?
Yes, the house gets registered on both your names and will be mortigazed to bank for the entire loan duration.
 
thenvk said:
3) Agree that it may be based on the salary What if i get join loan with my wife.
Joint loan will always yield you more.. IIRC, Max eligible amount its 100 times your 50% sal per month.
4) I have LIC policy under my belt too
happy19.gif
(Jivan saral to be specific ) . I m also paying 5k emi every month on it. I heard LIC is also providing home load is it any better than any other bank loans?
LIC policy and Home loan have nothing do do with each other. But yes, LIC is also a good provider. Also 60k is what you are paying for the LIC, you can pool the rest 40k from Home loan EMI principle part.
Click to expand...
Thank you very much for valuable inputs .
Let talk about point 3 and 4.
As you said join loan allow both of us to get tax deductions as my wife has very little to show in tax.
So Join loan is preferred right?
What other benefits you can think of Join loan?

As far as point 4 goes let me talk to LIC agent of mine and update you here.
 
amanbhosle said:
Thank you very much for valuable inputs .
Let talk about point 3 and 4.
As you said join loan allow both of us to get tax deductions as my wife has very little to show in tax.
So Join loan is preferred right?
What other benefits you can think of Join loan?

As far as point 4 goes let me talk to LIC agent of mine and update you here.
Click to expand...

Point 3: You can get tax benefit for only the amount paid in EMI towards principle and it will be low. the total that both of can you claim should not be more than that. So in this case, if you had paid 40k as principle, its gets split between two of you. Not sure of the ratio though.
 
From whatever little i know, the banks won't allow you to set your EMIs to more than half your take home salary. You might want to keep that in mind...
 
18 Lakh, you get home in Mumbai.. wow :)

Tips..
Prefer SBI. They are very good & have very good rates.
You have LIC Policy, Approach LIC Housing Finance. They are next best to SBI but rarely used in India.
Take Joint loan. Share EMI with wife & take tax deduction for wife too. 50-50%
 
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