Owning a home is seen by many as the ultimate status symbol. Whether a palatial mansion or a terraced bungalow, most of us dream of a house to call our own. Making that dream a reality is, however, the reality check. With property rates climbing ever higher, owning a home is proving to be an unattainable dream. Housing loans come to the rescue, providing aspiring homeowners with the necessary capital to buy a home. There are loans to suit every budget and tailored to cater to the changing needs of the growing housing market, making this a wise decision if you’re looking at making a down payment on a property.
Kerala Housing Finance Limited is the standard bearer when it comes to home finance in south India. The company was founded in 1992 and holds the distinction of being the first housing finance company in Kerala. It was set up to provide home finance options to the middle class and economically weak sections of society.
The company has a variety of loan offerings and provides loans to customers at low rates of interest, making it easy for everyone to apply for a loan and buy or build their dream home.
Kerala Housing Finance Limited have numerous offerings for those looking at home financing options. The company is seen by many as a stalwart in the segment, in part due to their many years of experience. The many features of their loans are given below:
Home Loans: Home loans are provided for the purpose of building or purchasing a residential property. The tenure of the loan is between 3 to 10 years and can be paid off in monthly instalments. The applicant can avail a maximum of 70% of the property’s value as the loan amount, which is payable in a lump sum in the case of a home purchase and in disbursements in the case of home construction.
Home Extension Loans: As the title suggests, these loans can be applied for if the applicant seeks to extend or expand his current home. The maximum amount that will be disbursed in the form of a loan is 70% of the estimated construction cost and is dependant on the applicant’s repayment capacity. The loan can be paid back over 3 to 7 years through equated monthly instalments.
Home Renovation Loan: This loan can be applied for to finance the cost of repairing or renovation of an existing home. The applicant can avail a maximum of 70% of the cost of repair or renovation as the loan amount, which can be repaid in equated monthly instalments over 3 to 7 years. The loan amount would be disbursed depending on the progress of the work.
Site Purchase Loan: This loan is available for those applicants who require finance to fund the purchase a site or plot of land for the purpose of constructing a home. The applicant can avail a loan up to a maximum amount of Rs. 15 lakhs but not exceeding 70% of the appraised value of the property being purchased. The loan can be repaid over a 3 to 7 year period, and is to be paid back in monthly instalments every month.
Personal Loan: Applicants who are in urgent need of capital can take out a loan against the value of their homes. Also known as mortgaging, the loan amount would be a maximum of 60% of the appraised value of the property/home. This loan would be for a tenure of 3 years and repayment would be through equated monthly instalments.
The Kerala Housing Finance Limited provides housing loans for a variety of purposes to individuals seeking to finance their home or property purchases. Applicants wishing to take a loan would have to fulfil the eligibility criteria as laid down by the company from time to time. Applicants who fulfil the eligibility criteria only will be entertained when it comes to loan sanctions. The eligibility criteria is as follows:
After the applicant has met the eligibility criteria and is considering applying for a home loan, he/she has to submit documents as specified by the company. These documents serve as verification of the applicant’s credit worthiness and financial status. The applicant’s credit score and his/her ability to repay the loan are measured based on the documents submitted, based on which the company will sanction the loan amount. The documents to be submitted when Applying for a home loan at Kerala Housing Finance Limited are given below:
Proof of identity documents:
Any one of the following documents can be submitted as proof of identity:
Proof of address documents:
Any one of the following documents can be submitted towards proof of address:
The Kerala Housing Finance Limited offers its customers competitive interest rates to make it easy for all applicants to repay their loans. The current rates of interest are mentioned below:
When applying for a home loan, applicants have to keep certain factors in mind. The loan amount is to be paid back in equated monthly instalments (EMI), which would mean that applicants would need to budget for this additional monthly expense. Not making an EMI payment would be detrimental to the applicant’s credit score and also mean they would have to make a larger payment the next month. So missing a payment is definitely to be avoided. To help applicants budget for their home loan EMI’s, they can use an EMI calculator. This calculates their monthly repayment amount based on values like their total loan amount, the tenure of the loan as well as the rate of interest payable.
The calculator will calculate an approximate value of the monthly instalment, and applicants are advised to check with the company as to the actual amount payable each month.
1. What is the loan sanction process?
Once you have submitted the required documents, the company will verify them based on their criteria. Once they have established that you will be able to repay the loan, they will sanction it and make the disbursement based on the type of loan (either lump sum or in stages).
2. How long will it take for the loan to be sanctioned?
Loans are sanctioned after the company verifies all the documents submitted. This process usually takes 5 working days.
3. Who can apply for a home loan?
Individuals who are self-employed/run their own business/salaried can apply.
Indian residents as well as NRI’s.
Those between the ages of 18-55 years.
4. What is the security I have to provide for my home loan?
The security to be provided for a home loan is a personal guarantee of the applicant, co-applicant as well as an outside guarantor.
Equitable mortgage of the property (where the bank takes possession of all original deeds relating to the property).
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