Here Are Key Points That A Home Loan Agent in India:

Should keep in mind when assisting clients:

1. Eligibility Criteria

• Age: Usually 21-65 years (varies by lender).
• Income: Minimum income criteria vary based on location and lender.
• Employment Status: Salaried or self-employed individuals may have different eligibility requirements.
• Credit Score: Typically, a score above 750 is ideal for securing favorable terms.
  Property Documentation: Proper verification of the property title and legal clearances is critical.

 

2. Types of Home Loans

• Home Purchase Loan: Loan for purchasing a new or resale home.
• Home Construction Loan: For constructing a new house.
• Home Improvement/Extension Loan: For renovation or extending existing property.
• Land Purchase Loan:For buying a plot for residential construction.
• Balance Transfer Loan:Transfer of existing loan to another lender with better terms.

 

3. Loan Amount

• Loan amount generally depends on the borrower’s income, age, and property value.
  Lenders usually finance up to 75%-90% of the property value, depending on the loan amount.

4. Interest Rates

• Interest Rate: Varies based on market rates (linked to repo rates, MCLR, etc.)
• .Compare rates from different lenders to get the best deal for the client.
• Fixed Interest Rate: Interest remains the same throughout the loan tenure.

5. Loan Tenure

• loan tenures typically range from 5 to 30 years.
  Longer tenures mean lower EMIs but higher interest costs over time, while shorter tenures result in higher EMIs but lower overall interest costs.

6. Processing Fees & Charges

• Lenders charge a processing fee ranging between 0.5% to 2% of the loan amount.
  Other charges like legal fees, valuation fees, stamp duty, and prepayment penalties may also apply.

7.Prepayment and Foreclosure

• Educate clients on prepayment (partial payments) and foreclosure (full repayment) terms.
  Some lenders may have no prepayment charges for floating-rate loans but may charge for fixed-rate loans.

 

8. Required Documentation

• Identity and Address Proof: Aadhaar, PAN, passport, or voter ID.
• Income Proof: Salary slips, bank statements, or ITR for self-employed individuals.
• Property Documents: Sale agreement, NOC from the builder, and other property-related documents.

9.TaxBenefits

• Clients can avail of tax deductions under Section 80C for principal repayment (up to ₹1.5 lakh) and Section 24(b) for intepayments (up to ₹2 lakh for self-occupied property).

10.Loan-to-Value (LTV) Ratio

• The LTV ratio represents the percentage of the property’s value that can be financed by the loan. In India, LTV is typically between 75% and 90%, based on the loan amount.

11.Balance Transfer Facility

• Agents should inform clients about home loan balance transfer options, allowing them to switch to lenders offering lower interest rates and better terms.

12.Legal Verification

• Agents must ensure that the property is legally verified with clear titles and no pending litigation.

13.Post-Sanction Services

• Asistance with disbursement, explaining EMI options, and providing support throughout the loan tenure is critical for customer satisfaction.