FAQS

• Loan for home purchase
• Loan for residential plot and self-construction
• Loan for home extension/improvement
• Balance transfer from banks, other Housing Finance companies and NBFCs
• Loan for the purchase of commercial property
• Loan Against Property – Term loan against residential or commercial property

A loan can be applied for before or after the selection of a property. You can apply for a home loan even before you have finalised the property. The loan amounts are sanctioned in principle to let buyers know what maximum loan amount they can afford as per their repaying capacity. The disbursements are done after verification of the required documents and completion of specific procedures.

• Applicant must be an Indian resident
• Minimum age of applicant: 21 years (salaried) and 25 years (self-employed)
• Maximum age of the applicant at loan maturity: 65 years (salaried or self-employed).

• Duly signed application form and photographs.
• Know Your Customer (KYC) documents: Identity, age, and address proof of all applicants.
• Bank statements
• Income Tax Returns/Form 16
• Salary slips
• For self-employed applicants: Balance sheet and profit & loss account
• Property documents

No guarantor is required. You can have one or more co-applicants, such as a spouse, parents, son, or brother (in case of a joint business and if residing together). A co-applicant is/are the co-oweners of the property being offered as collateral/security for the loan. However, all co-applicants need not be co-owners.

About 15 working days subject to proper documentation provided by the applicant

Both fixed and floating interest options are available which are calculated on the basis of monthly rest. The floating (variable) rates are based on the Prime Lending Rate (PLR) of SMFG Grihashakti.

SMFG Grihashakti offers home loans of up to INR 1 crore* with a maximum tenure of 30 years*

EMI, which stands for Equated Monthly installment, is the monthly payment made towards a loan. EMI payments include contributions towards both principal and interest on the loan amount. The interest component constitutes the major portion of the EMI payment in the initial stages. As the loan progresses along the tenure, the portion of interest repayment reduces contribution towards the principal repayment increases.

Pre-EMI is the interest paid on the loan amount availed in part and before the start of actual EMI. This mainly occurs in self-contruction or construction stage-linked disbursals. The EMI starts only after the full loan disbursal and hence, interest is charged on the partially disbursed loan amount which is called pre-EMI.

A resident individual can avail of tax benefits on both the interest and principal components of a loan repaid during the year. Under the Income Tax Act, the applicable maximum exemption limits are as follows:

• For interest component – INR 200,000 under Section 24(b)
• For the principal component – INR 150,000 under Section 80C

As per Income Tax rules, only one certificate can be issued for a home loan. Hence, a single certificate can be issued in the name of both the applicant and co-applicant.

The IT certificate is issued at the end of a financial year.

You can request a provisional income Tax ceritifcate which can be issued during the course of the year.