Equitas Home Loan

Equitas Home Loan

Dreaming of having your own house is one thing, and getting home loan without hassles is another. There are certain customers especially self-employed and informal salaried segment, who face too many difficulties from HFCs on account of restrictions imposed on them, ultimately gets excluded from granting formal home finance. In order to come up with solutions, Equitas Housing Finance Private Limited came into existence for providing home loans to such segments with ease.

The major objective of the company is:

  • To make funds easily available at a reasonable cost and in a transparent manner to such customers which invoke trust in them to consider Equitas again with full confidence
  • To acquire acceptable returns on investment so as to attract mainstream capital and human resources for serving the needs of such segments with much more convenience.
Loan AspectDetails
Loan AmountUpto INR 300 lakh (upto 90% of the Property Value)
Rate of InterestCustomized
Tenure20 years
Processing FeeUpto 2% of the Total Loan Amount
Part prepayment ChargesNil
Foreclosure Charges2% on the future principal amount

Equitas Home Loan Eligibility Criteria

  • Equitas Housing Finance provides home loan and loan against property to informal salaried and self-employed class of customers who are classified as:
    • Members of Equitas with existing relationship with the Micro Finance segment of the Equitas group
    • General category customers
  • The sanction of home loan is on the following basis:
CriteriaMember of EquitasGeneral Category
Loan AmountHome Loan – ₹1 Lakh to ₹5 LakhsHome Loan – ₹3 Lakh to ₹50 Lakhs
Tenure of Loan3 Years to 7 Years3 Years to 15 Years
Entry AgeMin 18 years and Max 60 years21 years to 60 years for self employed

21 years to 55 years for salaried
Age of MaturityMax 70Max 70 years for self-employed, 60 years or retirement for salaried, whichever is lesser
Life Insurance – Credit Shield for Loan Outstanding amountCompulsoryCompulsory
Property Insurance – Building ValueCompulsoryCompulsory
Mode of RepaymentECSECS

For Loan Against Property-Permissible on General Category Only

CriteriaDetails 
Amount of LoanRs 5 Lakh to Rs 20 Lakhs
Tenure of Loan3 Years to 15 Years
Entry ageMin 18 years and Max 60 years
Age of MaturityMax 70
Life Insurance – Credit Protection for Loan Outstanding amountCompulsory
Property Insurance – Building ValueCompulsory
Mode of RepaymentECS

Please Note: The company has employed process control measures to ensure that the customer and property are checked appropriately prior to the loan

Equitas Home Loan Rate of Interest

Interest Rate model would be a composition of Fixed and Floating rate as follows

  • The interest rate will be fixed for the first 3 years.
  • For the remaining tenure of the loan, the rate will be floating and for the Floating Interest Period, the Rate of Interest would be combined to Special Equitas Lending Rate (SELR)
  • The lending rates for the general customers are combined to Special Equitas Lending Rate (SELR) set at 13.5%
  • Interest Rate for Micro Finance Home Loan is combined to Equitas Lending Rate (ELR) set at 15.5%

Equitas Home Loan EMI Calculator

Home Loan EMI (or equated monthly installment) is a fixed amount of money payable by you to Equitas Housing Finance against the loan obtained. This is towards repayment of your loan to the bank. Every month, it becomes due on a fixed day of the month until you repay your full loan amount.

With the help of Equitas Housing Finance home loan EMI calculator, you can calculate your monthly installments i.e. EMI at varying interest rates and also verify the lowest EMI per lakh applicable on the home loan. Accordingly, you can plan your loan amount on the basis of your monthly repayment capacity because higher loan amount leads to higher EMI. The rate of interest also matters as it creates a direct impact on your EMI. Higher the rate of interest so will be the higher EMI.

It is, therefore, recommended to choose higher tenure as it will reduce your EMI payments going against your sanctioned loan amount.

For example, you are salaried employee earning INR 40,000 p.m., working for a manufacturing firm based in Noida. You have applied for a home loan of INR 20 lakhs to be payable at possible interest rates varying from 13.5% after 15 years. You can consider the following table as it describes your monthly EMI along with interest and the total amount going each year as your settlement done against your home loan.

Table Showing EMI, Interest Outgo, and Total Repayment Amount

LOAN AMOUNTINTEREST RATETENUREMONTHLY INSTALMENTTOTAL INTEREST AMOUNTTOTAL AMOUNT
₹ 20,00,00013.5%1₹ 1,79,104₹ 1,49,249₹ 21,49,249
₹ 20,00,00013.5%2₹ 95,554₹ 2,93,297₹ 22,93,297
₹ 20,00,00013.5%3₹ 67,871₹ 4,43,341₹ 24,43,341
₹ 20,00,00013.5%4₹ 54,153₹ 5,99,327₹ 25,99,327
₹ 20,00,00013.5%5₹ 46,020₹ 7,61,182₹ 27,61,182
₹ 20,00,00013.5%6₹ 40,678₹ 9,28,811₹ 29,28,811
₹ 20,00,00013.5%7₹ 36,930₹ 11,02,102₹ 31,02,102
₹ 20,00,00013.5%8₹ 34,176₹ 12,80,927₹ 32,80,927
₹ 20,00,00013.5%9₹ 32,085₹ 14,65,140₹ 34,65,140
₹ 20,00,00013.5%10₹ 30,455₹ 16,54,583₹ 36,54,583
₹ 20,00,00013.5%11₹ 29,160₹ 18,49,085₹ 38,49,085
₹ 20,00,00013.5%12₹ 28,114₹ 20,48,465₹ 40,48,465
₹ 20,00,00013.5%13₹ 27,260₹ 22,52,534₹ 42,52,534
₹ 20,00,00013.5%14₹ 26,554₹ 24,61,095₹ 44,61,095
₹ 20,00,00013.5%15₹ 25,966₹ 26,73,947₹ 46,73,947

EMI, Total Interest Outgo, Total Repayment (Interest + Principal)

YEARPRINCIPALINTERESTBALANCE AMOUNT
1₹ 44,269₹ 2,67,327₹ 19,55,730
2₹ 50,629₹ 2,60,967₹ 19,05,101
3₹ 57,903₹ 2,53,693₹ 18,47,197
4₹ 66,223₹ 2,45,373₹ 17,80,974
5₹ 75,737₹ 2,35,859₹ 17,05,236
6₹ 86,619₹ 2,24,977₹ 16,18,617
7₹ 99,064₹ 2,12,532₹ 15,19,553
8₹ 1,13,297₹ 1,98,299₹ 14,06,256
9₹ 1,29,575₹ 1,82,021₹ 12,76,681
10₹ 1,48,191₹ 1,63,405₹ 11,28,489
11₹ 1,69,482₹ 1,42,113₹ 9,59,006
12₹ 1,93,833₹ 1,17,763₹ 7,65,173
13₹ 2,21,682₹ 89,914₹ 5,43,490
14₹ 2,53,532₹ 58,064₹ 2,89,958
15₹ 2,90,247₹ 21,638₹ 0

Equitas Home Loan Documents Required

The following list consists of the types of documents which are required from salaried employees and self-employed individuals which are described as:

DOCUMENTS REQUIRED FROM SALARIED EMPLOYEES

  • Identity proof-Passport/Driving License/Voter ID/PAN
  • 2 Passport Size photograph
  • Filled Loan Application Form
  • Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old) and Passport
  • Income Documents consisting of: 6 months payslip, 2 years Form 16, and 6 months bank statement showing salary credit and any EMI debits

DOCUMENTS REQUIRED FROM SELF-EMPLOYED INDIVIDUALS

  • 2 Passport Size Photo
  • Filled loan application form
  • Residential Address Proof – Leave and License/ Registered Rent Agreement/ Utility Bill (upto 3 months old) and Passport
  • Identity Proof – Passport/ Driving License/ Voter ID/ PAN
  • Business proof such as VAT/ service tax registration, business address proof, incorporation details in case of companies, profit and loss account and balance sheets verified by Chartered Accountant, copy of partnership deed and proof of business existence and business profile

Equitas Home Loan Features and Benefits:

There are some amazing features and benefits of the Equitas Housing Finance Home Loan that you should look at. All of them are mentioned below.

  • Reasonable rates of interest – With the Equitas Housing Finance Home Loan, you can opt for the loan amount at an affordable rate of interest, which will help you in repaying the loan amount easily. Because of lower interest rates, your repayment amount will be lower and ensure timely repayment.
  • Easy and understandable terms – Equitas Housing Finance provides you an opportunity to avail of a home loan with a hassle-free procedure. The friendly representatives will tell you about each aspect of the loan carefully so that you can choose the suitable scheme according to your convenience.
  • Quick sanctions and disbursements – When you apply for Equitas Housing Finance Home Loan, you can get the loan amount at a much faster rate as the overall documentation process and authentication process is quite swift. As soon as you will submit the required documents and the authentication is done, your loan amount will be disbursed into your account.
  • Doorstep services – If you can’t go to any of the branches, you can opt for the Doorstep services. This will ensure the lender representatives take your documents from your home or office. You don’t have to go anywhere in order to apply for the loan.

Equitas Home Loan Customer Care Contact Number

If you face any difficulty in understanding the sanction process of the loan amount or have any queries relating to interest rates or facing any issue in completing the formalities of documentation process then contact a devoted customer care representative on 1800 3000 3030(toll-free number) or 044-42995000

Equitas Loan Against Property

LAPs or Loans against Property are loans given against the mortgage of property. It is disbursed as a percentage of the market value of the property. These loans are secured loans where the borrower uses his property as security as a guarantee. LAPs are usually issued to applicants to meet expenses such as:

  • Business expansion
  • Marriage expenses
  • Medical expenses
  • Higher educational expenses for children

Equitas Housing Finance Limited, which is a wholly owned subsidiary of Equitas Holdings Limited (formerly known as Equitas Micro Finance India Private Limited) makes loans against property available for informal salaried, unsalaried and self-employed customers who come under the bracket of general category customers.

Features of Equitas Loan against Property

Some of the main features of Equitas loans against property are:

  • The loan amount ranges from Rs 5 Lakh to Rs 50 Lakh
  • The tenure of the loan ranges from 3 – 15 years
  • 17% – 18% diminishing rate of interest
  • The minimum entry age is 18 years and the maximum entry age is 60 years.
  • The maximum maturity age is 70 years.
  • It is mandatory to have a Life Insurance – Credit Shield for the loan outstanding amount.
  • Property insurance is also mandatory.
  • The loan will have to be repaid on a monthly repayment frequency.
  • Registration of memorandum of deposit and title deeds is mandatory

Rate of Interest for Equitas Loan against Property

The interest rate charged by Equitas on Loan against Property is a combination of fixed and floating rates as per the following parameters:

  • The interest rate will be fixed for the first three years
  • The interest rate will be floating for the remaining period of the loan and during this period the interest rate will be linked to Special Equitas Lending Rate (SELR)
  • The lending rates linked to Special Equitas Lending Rate is set at 13.5%

Fees and Charges

Equitas loans against property entail the following fees and charges:

  • For loans up to Rs 20 lakhs, a processing fee of Rs 5,000 is payable at the time of sanction.
  • For loans above Rs 20 lakhs, a processing fee of Rs 6,000 is payable at the time of sanction.
  • An administration fee of 0.75% of the sanctioned loan amount is charged at the time of disbursement of the loan.
  • A tech fee of 0.75% of the sanctioned loan amount is charged at the time of disbursement of the loan.
  • Pre-closure of the loan is allowed within 6 months.
  • The pre-closure charge is nil during the floating period, 3% for own funds during the fixed period and 5% for other sources during the fixed period.
  • Cheque bounce charges are Rs 500
  • Additional finance charges of 36% per annum on the amount overdue
  • CERSAI charges of Rs 250 for all loans up to Rs 5 lakhs and Rs 500 for all other loans.

Verification

Equitas require verifications to be carried out by the following authorities for loans against property:

  • The Marketing officer will undertake the evaluation of the applicant’s creditworthiness
  • Credit assessment of the applicant will be carried out by the credit manager
  • A technical verification will be carried out where the property will be visited by the value and a report will be submitted regarding its valuation
  • A legal appraisal of the property documents will be carried out by a legal officer and the clarity of the title of all financed properties will also be checked.

Equitas Loan against Property Documentation Required

The following documents are required when availing a loan against property from Equitas:

  1. Completed loan application form with photographs and signatures of all co-applicants
  2. KYC documents
  3. 12 months bank account statements
  4. Documents validating sources of income