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Owning a home is an aspiration for many of us and we spend a lot of energy and resources on acquiring one. A home represents more than just a place we come back to, but is a symbol of wealth and stability. It is this reason so many of long to own a home of our own. However this is proving to be increasingly difficult with the high rent costs and property prices. Those who are looking at owning a home but do not have the resources to pay for one can avail of housing loans. These are paid out to individuals and have reasonable rates of interest, and can be paid back over a period of time. Many aspiring home owners resort to home loans to purchase homes.
OCHFL or the Orange City Housing Finance Limited is a home finance company based in Nagpur. The company was founded to provide finance for individuals to purchase and properties. It is one of the oldest home finance companies in the country and are known for their market knowledge and operational excellence. The company provides loans covering every aspect of the housing segment.
OCHFL has a number of housing loans that it provides to its customers, which are mentioned below:
New Home Loan: This is a loan offering for those individuals looking at buying or building a new home. The maximum amount that can be availed is 80% of the value of the property but not exceeding Rs. 90 lakhs. The loan amount paid out would depend on the borrower’s assets and liabilities, capacity for loan repayment, among others. The loan can be repaid over a period ranging from a year to 20 years.
Resale Property Loan: This loan provides individuals looking to purchase a home that is up for sale with the finances to do so. The applicant can avail a loan up to a maximum of Rs. 90 lakhs but not exceeding 80% of the property’s value and 100% of the cost of the property. The loan can be repaid over a period of 1 year to 20 years in equated monthly instalments. The loan amount sanctioned would be dependent on additional factors such as the incomes of the applicant and co-applicant, assets and liabilities as well as the applicant’s financial stability.
Home Improvement Loan: Individuals who are looking at renovating or repairing their present home and require financing to do so can avail of this loan. The loan amount that can be sanctioned ranges between Rs. 1 lakh to Rs. 50 lakhs. This amount cannot exceed 75% of the property’s value and 80% of the total costs for the repairs. The amount cannot exceed 80% of the total repair/renovation cost for loan amounts up to Rs. 20 lakhs and cannot exceed 75% of the total repair/renovation cost for loan amounts above Rs. 20 lakhs.
Home Extension Loan: This loan is available for individuals who are looking at extending or adding to their current home, by building an additional bedroom, building on terraces etc. the maximum amount that can be availed under this loan is Rs. 90 lakhs. This amount however cannot exceed 50% of the market value of the property and 80% of the total cost of the additions/extensions. The loan can be availed for a tenure between 1 and 20 years, and can be repaid in equated monthly instalments.
Loan Against Property: There are occasions when unexpected expenses come up. At times it is difficult to come up with the money to pay these off using conventional finance options. Individuals can avail a loan against their property at a reasonable interest rate. In this way, they will receive the funds needed to meet their financial needs as well as retain ownership of their property. The loan amount paid out will be a maximum of Rs. 90 lakhs but not exceeding 80% of the property’s current market value. The loan can be paid off over a tenure ranging from 1 year to 20 years.
Home Loan for Self-Employed: this loan offering is designed especially for individuals who run their own businesses or are self-employed, resulting in them not having a stable and regular income source or the necessary documentation required for a regular home loan. The loan amount available under this scheme is a maximum of 80% of the total cost.
Loans for Land Purchase: this loan is available for those individuals who are looking at purchasing a plot of land for the purpose of building a home. The plot has to be non-agricultural land and within the limits of the municipal authority or other local developmental authority. The loan can also be used to build a home after purchasing the plot of land. The maximum loan amount payable to an applicant is Rs. 90 lakhs but not exceeding 75% of the total market value of the plot. The loan can be repaid over a tenure from 1 to 3 years.
Loans Against Leased Properties: Designed for individuals and corporates, this loan is available for those who own commercial property and have leased it on a long term basis. These individuals will be able to take out a loan on the property based on the property value as well as the discounted value of the rental. The loan can be taken out for any requirement, and is available for individuals, partnership firms, companies (both private as well as public limited), professionals etc. the loan amount to be disbursed will not be more than 75% of the property’s market value as ascertained by the company.
Commercial Loans for Professionals: this is a loan offering for professionals seeking fiancé to purchase a non-residential property for business purposes. Professionals such as doctors, lawyers, architects etc can apply for this loan. The applicant can receive Rs. 2lakh to Rs. 50 lakh in the form of a loan, not exceeding 80% of the property’s total cost.
Personal Loan: This is a loan offering that can be used for an expense or for the purchase of soft furnishing for your existing home. The loan can be taken out for any expense, with the maximum amount given out as loan being 60% of the total cost of property or security provided. The loan can be repaid over a period of 1 to 10 years.
Construction Loan for Builders: builders looking at financing options for their ongoing projects can apply for this loan, which is available immediately. The maximum amount payable as loan is Rs. 90 lakhs, not exceeding 75% of the estimated construction cost. The loan can be repaid over a 36 month period. Applicants should refer to the additional terms and conditions on the official website.
Those looking at taking a home loan from OCHFL will have to check their eligibility for the same. The eligibility criteria is laid down to ensure there is no misuse of the loan amounts and that applicants are able to repay the loan amount. Applicants can check their eligibility criteria through the website’s Loan Eligibility Calculator, which mentions the loan amount the applicant is eligible for based on his income, repayment capacity, tenure as well as the interest rate he wishes to pay. It is advisable for individuals to also contact the company to confirm their loan eligibility before applying.
Home loan applicants who have fulfilled the eligibility criteria will have to submit documentation to OCHFL so their credit worthiness can be assessed. The company will assess whether they will be able to repay the loan through an assessment of their saving habits, if they have any current liabilities, their income and scrutinising their credit score. OCHFL home loans require applicants to submit the below mentioned documentation when applying for a home loan:
Additional Requirements for Flats:
Special Documents for Self-Employed Applicants:
Special Documentation for Employed Applicants:
OFHCL offers attractive rates if interest on their home loans. The company offers a fixed interest rate on its loans. For information about the current rate, please visit the company’s official website or contact their offices.
Those individuals and corporate entities who have met the eligibility criteria and are looking at applying for a home loan will want to know the amount they would be repaying. As the loan is to be repaid in equated monthly instalments, applicants would want to know what their monthly payments would amount to. They can do this by using the EMI calculator on the site. The EMI calculator uses information like the loan amount applied for, the tenure of the loan and the rate of interest payable. The EMI would then be computed, helping applicants set aside this money for their loan repayment each month.
Applicants who have attained majority can apply for a home loan. However the loan tenure does not extend beyond the applicant attaining 75 years of age.
Yes, you can repay your loan before the stipulated tenure ends. There are no charges associated with an early payment. Please contact a company loan counsellor for further details.
Yes, at present Indian citizens holding foreign passports can also apply for a home loan.
If you are an Indian residing in India, you can avail tax benefits up to Rs. 50,000 if they fulfil certain conditions on their home loans under the Income tax Act and Section 80C. Please contact a tax consultant for additional details.