North East Region Housing Finance Company Ltd., also known as NERHFC, is one of the top Housing Finance Company, catering to customers in the hilly regions of North East India and Uttaranchal. Established as a public limited company, they are registered with the National Housing Bank (NHB) and has been promoted by the same group which is the driving force behind NEREFS Ltd., a pioneer in extending microfinance loans, business loans, consumer loans and personal loans to customers in the North-East region. The company operates with the help of a well distributed network of 26 branches which are located across located in 5 states and Union Territories. The home loan offered by NERHFC comes loaded with a host of features like easy repayment methods, longer tenures, tax benefits, multiple purposes for which the home loan may be used, along with a few other notable features.
Features of North East Region Housing Finance Home Loan:
- Purpose of Availing Loan – You can apply for this home loan for fulfillment of purpose like the purchase of a new house or flat, purchase of an existing house or flat, construction of a new house or for the renovation or extension to an existing house.
- Amount of Loan Provided – The NERHFC Home loan features loan amounts to take care of all your home financing needs. The minimum amount for which you may avail this loan is fixed at Rs 1 lakh. The maximum amount for which this loan may be taken is fixed at Rs 10 lakh. The maximum amount of loan must not exceed more than 80% of the value of the property in question (inclusive of registration fees and stamp duty) or 75% of the property’s market value, whichever amount is lower.
- Tenure of Loan – A home loan is an added expense to your monthly budget. Before choosing one must carefully select the tenure for which they wish to take a loan. Ideally, longer home loan tenures can help ease the burden of EMI payments, thus, allowing you to maintain your preferred standard of living and lifestyle. NERHOFIC offers home loans with repayment tenures ranging between 5 years to 12 years, which in turn helps in reducing the amount of EMI over the years.
- Home Loan Processing Fee –Every home loan provider charges a certain amount of fee towards the process of loan application.NERHOFICcharges a very nominal amount towards loan processing fee which is fixed at 1.5% of the loan amount for salaried individuals and charged at the rate of 2% of the loan amount with addition to applicable GST ,for self-employed professionals / non-professionals.
- Home Loan Repayment Options – One of the notable features of these home loans is that they offer some flexible terms when it comes to loan repayment. Customers have two different options to repay their loan, depending on the amount of EMI payable by them. The first option is to repay the loan via ECS (Electronic Clearing Service) which is based on the instructions provided to the borrower’s bank. The second option available is to make the payment via PDCs (Post-dated cheques) which must be drawn on the applicant’s Salary or Savings Account.
- Tax Benefits – Loan applicants can reap maximum tax benefits, thanks to their home loans. According to the Indian Income Tax Rules, individuals can avail tax exemption for up to Rs 2,50,000 in a single financial year. They can avail tax exemption for Rs 1,50,000 for the amount of interest which they have paid in one financial year, along with a further exemption of Rs 1,00,000 on the principal loan amount which they have repaid in the same financial year. Overall, one can save up to Rs 70,000 with the help of tax exemption, annually.
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North East Region Housing Finance Home Loan Interest Rate:
North Eastern Region Housing Finance provides home loans to individuals at very competitive interest rates. The rate of interest applicable on the NERHFC Home Loans ranges between 13.00% to 16.50%, dependent on the conditions of the money market.
North East Region Housing Finance Home Loan Eligibility:
An individual’s eligibility for a NERHFC Home loan is determined on a variety of factors like their age, educational qualifications, stability/regularity/continuity of income, co-applicant’s income (if any), assets, liabilities, repayment capability and saving habits, among others.
North East Region Housing Finance Documentation:
In order to apply for a NERHOFIC Home loan, applicants must adhere to certain documentation requirements and procedures. To facilitate speedy application for a home loan, applicants must submit the following documents.
- KYC (Know Your Customer) documents as requested by the company.
- Documents giving evidence of Proof of Income
- Bank Statements, in accordance with the log-in checklist.
- Documents related to the property to be purchased.
- What are the various methods of repayment for these home loans?
Customers have two different options to repay their loan, depending on the amount of their home loan EMI. The first option is to repay the loan via ECS (Electronic Clearing Service) which is based on the instructions provided to the borrower’s bank. The second option available is to make the payment via PDCs (Post-dated cheques) which must be drawn on the applicant’s Salary or Savings Account.
- Can I avail any tax benefit from the home loan that I have taken?
Yes, you can avail tax exemption for up to Rs 2,50,000 in a year on your home loan interest payment and repayment.
- What is the processing fee applicable n these home loans?
The processing fee applicable on these home loans varies for salaried and professionals. For salaried applicants, the processing fee will be charged at the rate of 1.5% of the loan amount. For self-employed professionals / non-professionals, the processing fee will be charged at the rate of 2% of the loan amount with addition to applicable GST.
- What is the tenure for which one can avail this home loan?
Applicants can avail this home loan for a tenure ranging between 5 years to 12 years.