All about getting a HOME LOAN

Pre-requisites:
• You have to be above the age of 21 at the time of the loan origination and below 65 at maturity.

•A regular source of income is mandatory.

Useful information:
• Loans can range between Rs 2 lakh and Rs 1 crore, for a period of 5 to 15 years.

•A spouse or immediate family member can be a co-applicant.

•If you are not sure of what budget to set aside in selecting a home, first apply for a loan. Based on the repayment capacity, you will know what amount you are capable of spending.

•Hidden costs may include processing and administrative fees, legal and technical charges among others.

•Repayment is done through Equated Monthly Installments (EMI). Both the principal amount and the interest are taken care of in the EMI.

•EMI is calculated based on a flat rate of interest or annual, monthly or daily reducing balance. The monthly or daily reduction decreases the EMI.

•There are two types of interest offered by the lending institutions—fixed and floating rates. The fixed rate is as the name suggests. No matter what the changes in the prime lending rate (PLR) set by the RBI, your interest will remain the same. A floating rate is based on the PLR. If it decreases, the rate of interest on your loan decreases and vice-versa.

•You can repay the loan ahead of schedule—known as prepayment—but some institutions may charge a penalty for this.



Property registration form guidelines

• Form 1 requires details of the property and its market value. The main aim is to ensure the property has not been undervalued.

•Khata extract is necessary for property tax assessment. It certifies the owner's right to the property and lists the property parameters. Any property transaction requires this form. It also determines the accuracy of the property evaluation.

•Tax paid receipts are required if a property transaction is taking place. These have to be produced to provide evidence that the property is legal.

•Encumbrance certificate is a list of previous owners of the property, usually for the past 13 years.

•A copy of your IT returns or an indication of the Permanent Account Number (PAN) is required while registering property.

For more on the many procedures, log on to this site
set up by the Stamps and Registration Department:
www.kar.nic.in/property-registration



Housing Loan Schemes

Indicative Equated Monthly Installment for every Rs 1 lakh of loan*
Period up to (in years)	5	10	15	20
Floating Rate of Interest	8.0%	8.0%	8.0%	8.0%
EMI	2,027	1,213	956	836
Fixed Rate of Interest	8.75%	9.00%	9.50%	9.50%
EMI	2,063	1,266	1,044	932

*Conditions apply

• The loans can be availed up to a maximum of 85% of the cost of the property, depending upon the housing finance institution • Processing and administrative charges extra • Loan amount limit depends on the income of the applicant • Security of the loan is the first mortgage of the property to be financed • Some institutions may require a local guarantor • Repayment period ranges from 5 to 20 years or on superannuation or on completing 65 years of age • Loans can be availed from leading financial institutions • Interest rates and EMIs are subject to change without notice, check with the financial institutions for prevailing interest rates.



Bangalore listed as
one of the 24 cities of the future

Three Indian cities—Bangalore, Mumbai and Delhi—will be among the 24 rising urban international stars, predicts Jones Lang LaSalle in a recently published research paper. They further add that these Indian cities, along with eight Chinese cities, will power an "Asian Century".

Jones Lang LaSalle, an investment management firm in Chicago, has selected these cities as future winners because they exemplify one or more key drivers of future city success: technology, environment and traditional economic forces.

Bangalore tops the list in the technology category. The research study says Bangalore is moving from an IT back-office location to a full-fledged IT hub, with cutting edge R&D combined with low cost, value-added services.

— Excerpted from The Times of India, June 4



SNIPPETS — The story of Bangalore
Some interesting facts and figures about the Vidhana Soudha

The Vidhana Soudha is very much in public consciousness these days. The media has reported Andhra Pradesh CM, Chandrababu Naidu’s reaction to our favourite building: he was awestruck. The media also keeps us informed on progress of the new block of the Secretariat, coming up just across the road.

Illustration by Kamalesh—Brigade Group Collection

Everyone knows that the Vidhana Soudha houses the state secretariat and legislature, and that it was the brainchild of the late Kengal Hanumanthaiah, Chief Minister of Mysore state. But did you know...

• It is truly a secular edifice, showing features of British, Dravidian, and Indo-Islamic architecture.

•The Vidhana Soudha is built largely with "Bangalore granite", excavated from the areas around Mallasandra and Hessaraghatta. For visual effect and relief, "Magadi pink" and "Turuvekere black" stones have also been used.

• The Vidhana Soudha has three main floors (each of which measures over 1,32,400 sq ft) and a top floor (1,01,165 sq ft). The total floor area adds up to 5,05,505 sq ft.

• Its overall length is 700 feet, width is 350 feet and height (measuring from floor level to top of central dome) is 150 feet.

• The building's central dome is sixty feet in diameter and is supported by eight pillars. It also has six smaller domes, four in front and two behind.

• There are twelve forty-foot columns over the entrance steps.

• The Vidhana Soudha was completed in four years: construction began in 1952 and was finished in 1956.

• About 5000 labourers and 1500 chisellers, masons and wood-carvers worked on the project.

• Almost all the unskilled workers deployed in its construction were convicts, who were given their freedom on its completion.

• The entire cost of the project was Rs 1.75 crore.

Source: The City Beautiful by T.P. Issar