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Is there any method by which I can know, the approximate amount of debt i can take from the banks.
asked Sep 7, 2017 in Home Loan by saheel (91 points) | 34 views

2 Answers

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You can get a Loan up to 80% of the registered value of your property depending on the Bank’s policy and the property type and valuation.
answered Sep 7, 2017 by Mahadev (164 points)
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Hi Saheel - to further elaborate on Mahadev's answer. Banks will provide loans upto 80% of the property value. How this 80% is calculated varies between financial institutions.
In Pune, a buyer has to pay approx. 6% stamp duty and Rs. 30,000/- registration charges when registering property. So, if the property value is Rs. 50L (including GST), the final cost to customer will be Rs. 50L + Rs. 3L stamp duty + Rs. 0.3L registration fee. Most banks, will calculate 80% on the basis of 50L - so, you can get a loan of upto 40L. However, some financial institutions consider the stamp duty too. In this case, the max loan amount is 80% of 53L = Rs. 42.4L.
However, how much the bank will actually give you is determined by your income. If your monthly income cannot support the EMI on 40L, then the bank will give you a much lesser loan amount.
answered Sep 7, 2017 by Rakesh Mohan (17 points)
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