Home Loan

Supertech the Romano

Type 1:
Subvention plan
o 5% at the time of booking
o 80% through the bank
o 15% at the time of possession

Mr. Jha chose a home for himself which cost him 50,00,000 and Supertech the
Romano has offered them a flat of 1 BHK for the aforesaid sum. The payment
conditions are the same as the conditions of subvention plan of builder. Mr. Jha
went to UCO Bank to get his loan financed for his home and the loan amount of
INR 40,00,000 has been disbursed by UCO Bank as per their home loan plan.
The bank kept the following conditions for loan financing-
o Interest will be 8.70%
o 0.5% of Loan amount as processing fee (Min-1500 and max-15000).
o Repayment will be done in 10 years with monthly compounding.
o Loan is disbursed on jan 1, 2002 and possession is given after 36
months Interest and EMI is due on first of every month.
o EMI is in Arrear.
(For more details regarding loan product of UCO Bank
https://www.ucobank.com/personal-banking/loans-
advances.aspx#.WSe_j2iGO00 )
Type 2:
Prepayment of loan

Mr. Jha for same amount of loan applied in the bank and the bank offers him the
loan with the option of prepayment of loan after 36 Months (i.e. 2 years).
The remaining rules regarding the Loan remains same.

Type 3:
Fixed Principal method
Mr. X took a loan of INR 2500000 for 15 years to buy a 1 BHK flat with following
conditions-
o PV 2500000
o Tenure 15 years
o Compounded Monthly
o Equated principal method
o EMI type Advance
o Interest 8.55%

Prepare EMI Schedule with fixed principal method

Type 4:
Loan transfer to another bank
Mr. Khatri wants to buy a villa worth INR 5 cores and took a loan from UCO bank
with following conditions-
PV 50000000
Tenure 20 years
Monthly compounding
Interest rate 9%
Type arrear

Mr. Khatri is transferring the loan to SBI after 4 years with new interest rate @
8.59%
Find out the advantage in monetary terms that Mr. Khatri will get by transferring
the loan to another bank.

Type 5:
Balloon payment
Ms. Dagga has chosen a house for herself worth INR 5000000 and has taken a
loan of worth INR 4500000. She has agreed to make the balloon payment of INR
1000000 at the end of 10 years, the terms of loan as agreed upon are-
Int 8.76%
Tenure (yr) 10
T 12
Repayment started from jan 1, 2005
Type 6:
Payment Holiday
Mr. Pandey is looking for a 2 BHK flat and has selected one for himself for which
he took a loan of INR 3200000 with following conditions-
Int 8.96%
Tenure (yr) 8
T 12
Repayment started from jan 1, 2005.
Payment Holiday is given by bank for 6 months where no interest will be charged
from the borrower Payment holiday starts from jan 1, 2010.

Type 7:
Floating Interest Rate
Mr. Gupta has paid the booking amount and has applied for loan with the bank
for further payment the loan amount is 40000000. The disbursement date for
loan is jan 1, 2003.
PV 40000000
Int 8.500%
Tenure 84
T 12
Type Arrear
Max tenure 90
The interest rate is floating the interest rate is given as follows
 1-Jan-03 8.500%
1-Jul-03 8.512%
1-Jan-04 8.524%
1-Jul-04 8.536%
1-Jan-05 8.548%
1-Jul-05 8.560%
1-Jan-06 8.572%
1-Jul-06 8.584%
1-Jan-07 8.596%
1-Jul-07 8.608%
1-Jan-08 8.620%
1-Jul-08 8.632%
1-Jan-09 8.644%
1-Jul-09 8.656%
1-Jan-10 8.668%

Type 8:
Construction Linked Plan
Shine city in Ghaziabad has started a project in Noida with options of 2/3/4 BHK
flats with the option of payment of construction linked plan, a 4 BHK flat worth
35000000 is chosen by Ms. Archi. The terms of loan are as follows-
Int 8.70%
Repayment Tenure 15 years
Disbursement started 1-Jan-00
Repayment Started 1- Jan 05
The customer does not pay the interest during construction period.
The construction Schedule is as follows-
Condition %age Date
(assumed)
At the time of Booking 20% 1-Jan-00
Within 60 Days of Booking 10% 1-Mar-00
On Start of Construction 7.50% 1-Aug-00
On Start of Basement slab 7.50% 1-Jan-01
On Start of First Floor Slab 7.50% 1-Apr-01
On start of Third floor slab 7.50% 1-Dec-01
On start of Sixth floor slab 7.50% 1-Mar-02
On start of Ninth floor slab 7.50% 1-Jun-02
On Start of Top Floor Roof 5% 1-Sep-02
Slab
On Start of Brick Work 5% 1-Mar-03
On Start of External 5% 1-Jan-04
Plaster
On Start of Flooring 5% 1-Jul-04
On Start of Possession 5% 1-Jan-05