A Power of Attorney allows a person to grant another person the right to make decisions regarding the person's assets, finances and real estate properties.
There are two types of power of attorney.
First, the 'General Power of Attorney'where a property owner confers 'general' rights. The rights include but are not limited to sell, lease, sub-lease etc.
Second, is the 'Special Power of Attorney'wherein only a specific right is given by the owner to the chosen person.

An Equated Monthly Installment (EMI) is a monthly payment made by a borrower to a financial institution for the loan availed. The EMI is made up of two components, namely the principal and interest. This means that with each payment, the borrower pays back a portion of the loan amount as principal and a certain amount as interest. By the end of the loan term, the borrower would have paid back both the principal and interest amounts in full.

Pre-EMI is the interest borrowers pay until the final loan disbursement and EMI start. It's the interest on the loan amount disbursed, paid monthly until EMIs start. Lenders usually offer pre-EMI for buying under-construction properties with a loan.

The period (in months or years) for which a financial institution lends the money to a borrower. The tenure may be different from person to person.
Godrej Capital Home Loans offer longer tenures of up to 30 years.

Collateral is an asset that a financial institution accepts and holds as security until the loan is fully repaid. This provides a safeguard for the financial institution to mitigate any potential risks. In the case of home loans, the property itself is often used as collateral.

APF stands for Approved Project Funding.
Godrej Capital, identifies projects by certain developers and builders and estimates on the basis of the properties’ legal and technical evaluation. If a project qualifies the necessary requirements, it’s included in the APF master of Godrej Capital. The TAT (turnaround time) for a loan disbursal, is lesser, where a project already is an APF and the loan processing is much simpler.

Loan to Value (LTV) is the loan amount divided by the property's total value, shown as a percentage. For example, a loan of INR 75 lakhs for a property worth INR 1 crore would have a 75% LTV.

Own Contribution (OCR), also known as the down payment, is the portion of the property's purchase price that you, as the borrower, are required to pay from your own funds when taking out a home loan. Typically, lenders finance a percentage of the property's value, and the OCR is the remaining amount you must contribute. For instance, if the lender covers 80% of the property cost, you would need to provide the remaining 20% as your Own Contribution. This amount demonstrates your financial commitment and reduces the lender's risk, as you have a vested interest in the property's purchase.

Tranche disbursements refer to the process of releasing loan funds in stages rather than as a single lump sum. This method is commonly used in large loans, such as those for real estate, construction projects, or business financing.

When you transfer, sell, lease, or make any other change to a property, you must register the related documents under the Indian Registrations Act, 1908, Section 17. Once a property is lawfully registered, the person it's registered to becomes the rightful owner, responsible for it entirely. This process is called Property Registration.

Disbursement means paying out the loan amount to the borrower or the builder from which the borrower has bought the home. The disbursement can be either in full or in tranches depending on the type of home financed (tranches are common for under-construction properties) and the terms agreed between the financial institution and the borrower.

The Schedule of charges is the list of charges and corresponding amount levied by a financial institution over the duration of the loan, if applicable. For Godrej Capital, refer to the schedule of charges here.

The Most Important Terms and Conditions (MITC) includes important details regarding a loan account such as the loan specifics, repayment schedule, charges, and any other pertinent information that a borrower needs to be aware of. This information can be accessed through both the institution's website and the customer portal.

A repayment schedule is a table that lists all the payments you need to make for a loan. It shows how much of each payment goes towards paying off the loan amount (the principal) and how much goes towards paying the interest. This schedule continues until the loan is fully repaid.

An Interest Certificate is a document issued by the lender which details out the bifurcation of the Principal and Interest Amount paid towards a home loan account in a particular financial year.

The NOC, or No Objection Certificate, is a document that states that you have paid all the EMIs and cleared all other outstanding loan dues and is issued by the company post the closure of the loan account. Please note that till the time NOC is not issued you may have liability towards Godrej Capital.

Yes, these expenses can be claimed as well, under section 80C but only in the year in which the expenses are incurred and within the overall limit of Rs. 1.5 lakhs.

Swap charges are incurred by the borrower for changing the repayment instrument or change in the bank account for NACH Mandates.

For more detail and updated information refer Schedule of Charges.

Recovery charges are levied by the Company for any expenses incurred on the collection of overdue from the borrowers.

For more detail and updated information refer Schedule of Charges.

Foreclosure or prepayment charges are the charges a borrower incurs for partly paying/closing the loan ahead of its full loan term.

For more detail and updated information refer Schedule of Charges.

These are the charges paid by the customer as per the State laws to register the property they have purchased. For more details and updated information, please refer to Schedule of Charges.

The fee for registering charges on the mortgaged property and for uploading KYC details on CKYC.

For more detail and updated information refer Schedule of Charges.

Charges incurred by the Company for any legal actions against the Borrower/s in case of default.

For more detail and updated information refer Schedule of Charges.

Loan-linked Insurance covers a large amount of the loan liability. In any unforeseen circumstances like death, disability, hospitalization, and diagnosis of critical ailments, the Insurer can repay the loan liability through Insurance.

Credit-Life Insurance provides death cover for natural, accidental, and unnatural cause deaths. It also includes coverage for death due to Covid-19 and can be extended to co-borrowers. Customers can also avail the benefit of Section 80-C Income Tax deduction.

Survival-Benefit Plan is for critical illness insurance and provides additional cover for medical emergencies like heart attack, stroke, or cancer. Because these emergencies or illnesses often incur greater than average medical costs, these policies pay out cash to help cover those overruns where traditional health insurance may fall short. These policies come at a relatively low cost. However, the instances that they will cover are generally limited to a few illnesses or emergencies.

Health insurance aims to provide a defence against the hardship caused due to lack of income because of (a) Disease, (b) Accident, (c) Surgery and (d) hospitalization.

Property Insurance secures the property for which the loan has been availed; ensures the security of valuables within the house. It is applicable for entirely constructed property wherein the customer has possession of the property. The Claim amount is the reinstatement value of the property.

A semi-fixed rate of interest refers to an interest rate that remains fixed for a certain period of time, as informed to the borrower in advance, and upon completion of this period becomes floating. 

For the salaried customers, the fixed interest component will start from 8.55% for the initial three years, while for the SEP/SENP customers, the fixed interest rate element will be 8.99% onwards, subject to other eligibility criteria.

The maximum loan amount that can be availed under a semi-fixed rate home loan is dependent on factors like the unit purchased, income of applicants, and cost of the property, among others, and therefore may vary. Please check with your Sales Manager for details based on your specific requirements.

The processing fee for this type of home loan can go up to 2% of the loan amount.

Yes, a conversion fee of 2.5% is applicable on the principal outstanding if you wish to change your fixed rate of interest into a floating one before the end of your fixed rate period.

The semi-fixed rate home loan is launched as an offering for new home loan customers and is not available for existing customers.

The approval and disbursement timeline may vary based on factors such as documentation and verification. Please check with your Sales Manager for details of the application process and an estimated timeline.

Yes, the loan will automatically get converted to a floating rate of interest after the period of three years of fixed interest rate ends. 

Visit Godrej Capital’s customer portal or contact our customer care team to get updates on the status of your existing loan.