Disclaimer: This facility is available to eligible borrowers as part of the system`s policies. The borrower must apply for a loan in an appropriate manner and complete the documentation and provide the information necessary for the processing of the loan. IHFL will review the application submitted by interested borrowers and evaluate the application taking into account, among other things, the borrower`s credit and risk parameters and other related factors and make the decision accordingly. The final decision or the amount of the loan and the terms of the loan may vary after proper assessment, care and review. Borrowers are required to sign this document as a formality before the loan amount is paid into their account. As soon as a borrower signs this document, the loan comes into effect. The borrower is therefore bound by the conditions specified in the loan agreement. He is also responsible for any financial involvement mentioned in the document. Therefore, it is very important that you read the home loan agreement in detail before signing the dotted line. There are several clauses in your home loan agreement that you need to pay close attention to. These clauses form the framework of the financial transaction between the lender and the borrower and describe in detail the terms of the loan. Here are some of the most important clauses mentioned in the contractual document. Home loans allow potential homeowners to buy a home without having to pay the full amount of the property in advance.

You can simply make a down payment and pay the balance in equal monthly installments by paying some interest on the amount of capital borrowed. Obtaining a home loan is a long process and requires a lot of documentation. One of the most important documents that borrowers should look closely at before the loan is paid is the home loan agreement document. Let`s understand what it is and take a look at the important clauses mentioned in this document. – All other terms of the loan agreement remain applicable Understanding of the important clauses of a mortgage agreement Definition of default: If the borrower is unable to meet his loan repayment obligations, the lender considers it to be a default. The customer must therefore face the consequences set out in the default conditions. It is important to understand what is defined or categorized as default in the loan agreement. – No prepayment fees will be charged for these loans if the facilities are repaid in advance before the end of the term. Force majeure clause: Borrowers can opt for fixed and variable interest rates for home loans. If you opt for a fixed interest rate, you need to be aware of the force majeure clause, also known as loan reset terms.

This clause in the home loan agreement implies that your lender may increase the interest rate or even change it from a fixed interest rate to a variable interest rate after a few years due to exceptional circumstances. Therefore, it`s better to know in advance when your interest rates may change than to be surprised when it happens. As you can see, all the clauses of a home loan agreement have legal and financial responsibilities. It is therefore important that you read the document word for word before signing the agreement. The coverage clause: The coverage clause states that your home loan is sufficiently covered by the guarantee provided for the duration of the loan. In the case of home loans, the property you buy is usually considered collateral. However, if the lender determines that the property is an inadequate type of collateral, it may ask the borrower to provide additional collateral or collateral to secure their interest until the borrower repays the outstanding loan amount. The outbreak of the Covid-19 pandemic and the subsequent event of social and economic lockdown led to an almost complete shutdown of all business activities. The operating cycle of many companies was suddenly interrupted when the stock and payment cycles came to a complete standstill, resulting in a liquidity crisis that posed a serious threat to the survival of the companies. In its fight to contain further damage and support the recovery of businesses and the economy, the Government of India, through the Ministry of Finance, has set up the Emergency Credit Line Guarantee Scheme (ECLGS), with which the Government aims to facilitate businesses/MSMEs/individuals who have used loans for commercial purposes through banks and NBFC/HFC, provide additional loans to existing borrowers.

This will enable these companies and MSMEs to fulfil their operational obligations and resume operations. Under ECLGS 1.0 (extension) and ECLGS 2.0 (extension), the amount of GECL financing for existing ECLGS 1.0 or 2.0 borrowers or new borrowers would be up to 30% (increased from the current 20%) of their total outstanding loan (less support received) as of February 29, 2020 or March 31, 2021, or in the form of an additional credit facility. based on the highest value, provided that the borrower meets all the eligibility criteria in the respective components of the system. According to ECLGS 3.0 (extension), the amount of GECL financing for eligible borrowers would be up to a progressive solvency based on outstanding 29.02.2020 or 31.03.2021, whichever is higher. Prepayment Clause: If you can afford it, you can choose to repay the principal amount of your loan beyond your monthly payment before the agreed loan term. This is called a prepayment. Under a new mandate from the Indian government, lenders are no longer allowed to impose a penalty for prepayment of home loans. However, there are certain conditions that the borrower must meet, that is, a certain term of office after which an advance payment without penalty is possible. It is therefore important that you read the home loan agreement document correctly so that you can complete your loan earlier than the actual term of the loan, as this makes saving easier.

– The total door-to-door duration for the new loan is 48 months with 12 months main moratorium in ECLGS 1.0, 60 months with main moratorium of 24 months in ECLGS 1.0 (extension), 60 months with main moratorium of 12 months in ECLGS 2.0, 72 months with main moratorium of 24 months in ECLGS 2.0 (extension) 72 months with main moratorium of 24 months under ECLGS 3.0 and ECLGS 3.0 (extension) and 60 month with main moratorium of 6 months according to ECLGS 4.0 from the date of the first payment. During the moratorium period, monthly interest is payable. – There is no processing fee for these loans. A home loan agreement is a document that governs the terms or rules and regulations of a home loan. This is a document that sets out the important terms of the loan, including what happens if the borrower does not repay the loan, penalties for rejected checks and late EMI payments, etc. Customers can now easily upload important documents and forms to apply for their home loan. Loan Application Form – For Hindi resident Indians. Notification clause: Borrowers are required to inform or notify their lender if their employment status, occupation, business and income level, etc. change. You must also inform them immediately if your address changes (for example.

B if you are moving to another city, state or country). – No additional guarantee required and additional funds will be covered by an extension of the royalty to the securities already provided. Power of Attorney – Non-resident Indians (including OCI and PIO) Letters to file ownership documents – Ibhfl Confirmation – The amount of financing under ECLGS would be up to a maximum of 20% under ECLGS 1.0 and ECLGS 2.0 and up to 40%, subject to a ceiling of Rs 200 crore per borrower under ECLGS 3.0 of the total amount outstanding as of February 29; 2020 provided that the borrower meets all eligibility criteria and performs the credit rating and evaluation in accordance with the company`s lending standards. Borrowers eligible under ECLGS 3.0 and who have already used services under ECLGS 1.0 or ECLGS 2.0 may be entitled to additional loans up to 20% of the total outstanding amount of their loan from 29.02.2020. None of the credit facilities the company uses from any of the banks or financial institutions are expected to be available on September 29. February 2020 in ECLGS 1.0, 2.0 & 3.0 and based on the revised deadline of March 31, 2021 in ECLGS 1.0 (Extension), 2.0 (Extension) & 3.0 (Extension) s.t. more than 60 days late…