Business needs

Mortgage buyout/Balance Transfer of existing loan

Consolidation of debt

Personal needs

Bank will consider the following factors to determine eligibility and loan amount:

Age

Income

Valuation of Property (Fair market value)

Existing obligations, if any

Stability/Continuity of employment/Business

Past borrowing track record

The security for the loan will be the first mortgage of the property to be financed, generally by way of deposit of title deeds and/or such other collateral security.

Customer will have to ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.

All the co-owners of the considered property need to come in as co-applicants to the loan.

You will have to ensure that the property is duly and properly insured for fire and other appropriate hazards, as required by BFL, during the tenor of the loan and to produce evidence thereof to the Bank each year and/or whenever called upon to do so.

The EMI consists of the principal amount and the interest on the principal amount. It is calculated by taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum. The EMI may be subject to change when interest rate changes or a part-payment of the Loan is made.

Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

Business Loan eligibility depends on the following factors: Credit score of the loan applicant/co-applicant The last two years financials of the borrowing entity Information about the Debt Service Coverage Ratio: This information tells the lender whether the borrower will be able to service the EMI for the current loan.

Yes. Prepayment is possible and there is no prepayment fee if you repay the loan after six months of availing the loan if you pay from your own source of funds without transferring the loan.

The bank will levy certain ECS bounce charges or penalties. Additionally, that will also get reported in your credit report. Depending upon the severity and the regularity of the miss, it may have a serious impact on your future credit possibilities like in obtaining a home loan, car loan, etc. Additionally, banks may also take legal action against the borrower.

EMI (Equated Monthly Installment) is a monthly amount that you have to pay back to the bank or funding institution for the loan you have availed. The EMI is inclusive of both the principal and interest components.