I want to apply for a loan to AHFCL. What do I need to do?

You can apply for a loan by walking into any of our branches.

How does AHFCL calculate if I am eligible for a loan?

The calculation method takes various parameters related to the applicant and co applicant as input such age, educational qualification, income, nature and type of employment/Business.

What are the interest rates for home loans products?

Interest rate on home loans is derived on the basis of AHFCL Retail Prime Lending Rate (RPLR) which is dependent on various business parameters that are dynamic in nature.

Do I need to have a co applicant in my application?

It is mandatory to have a co-applicant in your application. The co-owner of the property is compulsorily required to be a co-applicant.

What is the process from application to home loan disbursement being followed at AHFCL?

Once you submit the application along with the necessary documents,

  1. AHFCL determines your eligibility based on various parameters
  2. AHFCL team of empanelled lawyers and valuers will appraise the property
  3. Post legal and technical clearance, AHFCL will commence the process of disbursement

Can I apply for a home loan before selecting a property?

Yes. In this case, AHFCL will issue a sanction letter based on your KYC and income documents which will be valid for three months. Post selection of property, you need to submit the property related documents for legal and technical appraisal. Subsequently, the home loan will be disbursed.

Can AHFCL assist me in shortlisting a property?

Aspire Property Services Division (APSD) is a division of AHFCL where a dedicated and experienced team of professionals will help you out in selecting a property as per your requirements.

What is Credit Appraisal?

Credit appraisal process evaluates the credit worthiness of the applicant. This appraisal takes various parameters like age, income, expenditure, savings, nature of employment, existing loan obligations, number of dependents etc. into consideration and calculates the loan eligibility (quantum and tenor of the loan) of the applicant.

What is Legal Appraisal?

Credit appraisal process evaluates the credit worthiness of the applicant. This appraisal takes various parameters like age, income, expenditure, savings, nature of employment, existing loan obligations, number of dependents etc. into consideration and calculates the loan eligibility (quantum and tenor of the loan) of the applicant.

What is Technical Appraisal?

Technical appraisal is a due diligence carried out related to the property being purchased. In this process, the property is being checked for stability and marketability. The technical appraisal process involves analysis of the property in the form of site visits and checking the related documents as well as the necessary approvals by the competent authorities.

Do I need to pay a processing fee along with the application?

Yes. You need to pay a fee towards processing of your home loan application which is a percentage of the loan amount (excluding service tax and cess).

Is there any own contribution I need to make before availing a loan?

Yes. AHFCL requires you to contribute a minimum of 15% of the total property purchase cost which is known as Own Contribution (OCR) post which AHFCL will disburse the loan amount (In case of plot loans:  OCR of a minimum of 25%, construction loans: OCR of a minimum of 15%).

What is the minimum age for applying for a home loan at AHFCL?

An individual who owns or proposes to own a property, the minimum qualifying age is 21 years. If income is not considered for calculation of loan eligibility, it is 18 years at the time of loan origination.

What is the maximum Loan Amount that I can apply for?

You can apply for a maximum loan amount of Rs.25 lakhs.

What is the maximum tenure that I can apply for?

Maximum of 25 years for salaried customers and 20 years for self-employed customers. Loan tenure should not go beyond the age of retirement or on reaching sixty years of age in case of Salaried and Seventy in case of self-employed customers.

Do I need to have a security for the loan?

AHFCL extends loans by creating first charge on the property financed in favor of Aspire Home Finance Corporation Ltd; by way of equitable mortgage deed. The charges on such deed are a state specific subject and are payable by the customer as per the actuals. The property needs to be insured for an amount equivalent to the loan amount and for the period of loan tenure.

How do I repay my home loan?

You will be required to pay an EMI (Equated Monthly Installment) towards your loan every month. The EMI consists of an interest portion and principal portion. This is calculated on the basis of loan amount, tenure and the interest rate applicable on the loan.

What is Part Disbursement?

In case of property under construction, AHFCL officer visits the property to be financed and depending on the stage of construction, the officer recommends partial loan amount to be disbursed.

What is Pre EMI Interest?

Pre-EMI interest is the interest on partially disbursed loan amount. This is payable every month up to the disbursement of full loan amount and commencement of EMI.

What are the different modes for payment of EMI?

You can pay EMI through Post Dated Cheques (PDCs) or through ACH / ECS mandate.

Can I prepay my loan?

Yes. You can partially or fully prepay your home loan after six months of the disbursement. There are no charges for partial of full prepayment of your home loan.

Can I get additional loan through my existing loan account?

Yes. You can get additional loan through the existing loan account based upon your repayment capacity and value of the property.

Do I need to take the insurance on my property?

Insurance of the property is required which will help the protection of the property against contingencies during the loan tenure.

Can I avail a tax rebate on my home loan?

Interest paid up to Rs.2.0 lakhs on home loan gets qualified for a tax rebate under Section 24(b) of the Income Tax Act, 1961. Principal paid up to Rs.1.5 lakhs on home loan gets qualified for a tax rebate under Section 80C of the Income Tax Act, 1961.