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FAQS

UMMEED HOUSING FINANCE Private Limited is a housing finance company registered with National Housing Bank (NHB) as a housing finance company under National Housing Bank Act, 1987.

  • What is a fixed rate of interest?
    Fixed rate of interest means the interest rate charged by the Bank/HFC on the loan amount, remains constant over the entire tenure of the loan.
  • What is a floating rate of interest?
    Floating rate means that the interest rate which is payable on the loan is linked to URR (Ummeed Reference Rate) rate of the company. The interest rate payable by the borrower will also rise and fall as per the fluctuation in the URR.
  • What is Pre-EMI Interest?
    Pre-EMI is the Interest paid on the Loan Amount availed in part and before the start of the actual EMI. This generally occurs in cases where loan amount is paid in parts (example – Construction case, where the loan is disbursed as per construction stage).The EMI doesn't start till the loan is disbursed in full; hence interest is charged on the partially disbursed loan amount, which is pre-EMI.
  • When can I apply for a Home Loan?
    You can apply for a Home Loan at any time once you have decided to purchase or construct a property, even if you have not selected the property or the construction has not commenced. The loan amount is sanctioned in principle, however the loan is disbursed only after satisfactory verification of property documents & property market value.
  • What are Collateral Securities taken by the lenders?
    The property against which the loan is given is called the primary security. At times company may ask for additional security in the form of another property, insurance policies, guarantor or such other securities as may be acceptable to the company.
  • What is URR?

    “URR” refers to Ummeed Reference Rate. This is the applicable reference rate of interest as decided by the company from time to time based on borrowing rates in the financial market, prevailing market conditions as well as guidelines of any statutory authority (the Reserve Bank of India and the National Housing Bank).

  • Who can be the Co-Applicants for the loan?

    Co-applicants for the loan could include your spouse and blood relatives (close family members). Please remember that property owner is mandatorily required to be a co-applicant

  • What is EMI?

    EMI refers to equated monthly installment. This is the amount you pay on a specific date of each month for repayment of interest and principal. This amount needs to be paid till the loan is repaid in full.

  • What are the different types of loan offered by Ummeed Housing Finance?
    • Loan for home purchase
    • Loan for home construction
    • Loan for Residential plot purchase and self construction
    • Loan for Home extension/Improvement
    • Balance transfer from other banks
    • Loan for Purchase of shop
    • Loan against existing residential & commercial property for personal use
    • Business loan against existing residential & commercial property
    • Small ticket & short-term business loans for shopkeepers against existing residential & commercial property
  • What tax benefit do I get on a Home Loan?

    You are eligible for tax benefits on the principal and interest components of your Home Loan under the Income Tax Act, 1961. *These benefits are in the form of deductions from taxable income. Under section 80C, you can reduce your taxable income by Rs 1.5 lakh for repayment of principal. You can also claim a deduction of a maximum of Rs 2 lakh a year on interest paid on home loans under Section 25.

    Given the constant changes in the tax structure & benefits, we would suggest you to please consult with your tax advisor/consultant for the exact tax benefits

  • Can I repay my loan ahead of schedule?

    Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges. The details of pre payment charges are detailed in the MITC (Most Important Terms & Conditions) document.

  • What is Amortization Schedule?

    An amortization schedule is a table giving details of how much your loan amount decreases each month when you pay EMIs. The amortization schedule also gives information on how much outstanding principal and interest you are repaying with each EMI.

  • How the company will derive my loan eligibility?

    Loan eligibility is determined largely by your income, repayment capacity property value. Other important factors include your age, number of dependants, your family income (if any), savings history and the stability & continuity of occupation.