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Equated Monthly Installment, simply known as EMI is the amount payable, every month, to the institution lending out capital to you, till the loan is paid back in full. Each monthly installment comprises a portion of the interest as well as the principal. EMI is calculated using the formula: l x r [(1+r)n /(1+r)n-1 ] x 1/12 (l = loan amount, r = rate of interest, n = term of the loan)

Certain institutions lend out money at a fixed rate of interest, i.e., the rate at which interest is calculated on the borrowed sum, remains the same throughout the entire period of the loan. As a result, you do not gain or lose, if rates fluctuate.

As the term ‘floating’ suggests, this rate of interest fluctuates according to the lending rates prevalent in the market at the time. Consequently, you risk of paying more than you budgeted for, just in case the market lending rates shoot.

Typically, a maximum of 85% of the cost of the property in question is loaned out to the applicant. The rest of the 15% (seed money) will have to be provided by the loan applicant. The loan amount for various applicants differs on the basis of age, income, no. of dependents, monthly outgoing and repayment capacity.

You can apply for your home loan either before or after selecting the desired property. Once the loan is sanctioned in principle, you know for certain what amount you have at your disposal. This in turn helps you decide your budget. However, it is only after satisfactory verification of all necessary documents and procedures that the actual disbursement of the loan takes place.

The loan application approval usually takes 0-15 days.

For the purpose of purchasing a property, it is essential that you see the approved layout plan, approved building plan, ownership documents, carryout search, and other such legal documents.

A thorough title and document search needs to be completed with the help of a competent advocate before you purchase a flat.

As per Section 30 of the Bombay Stamp Act, 1958, the buyer is liable to pay the required stamp duty unless agreed otherwise.

Market value is nothing but the price at which a property can be bought in the open market on a particular date, when the instrument in question is executed.

Yes. Stamp Duty is required to be paid at the rate which is stated in the agreement value of the property or the market value, whichever is higher.

The instruments on which Stamp Duty is levied on market value of the property are: - Agreement to Sell - Conveyance Deed - Exchange of property - Gift Deed - Partition Deed - Power of Attorney settlement and Deed - Transfer of lease