Frequently Asked Questions

1) Why CFHL?
- Friendship Finance
- No Hidden Costs
- Speedy Sanctions & Transparent Process
- Repayment period upto 30 years
- Loans for Salaried/Self Employed/Business/Professionals/Pensioners/NRIs
- Benefit of entire Processing Charges refund under `Referral Scheme’
- Competitive Interest Rates
- A large network of branches spread across the country
2) What is the maximum loan amount that can be availed from Can Fin Homes Ltd?

The maximum loan amount varies between 70% to 90% of the project cost (excluding the cost of registration) depending on the type of loan being availed.
3) How to apply for the loan?
- Download a loan application from the net or obtain from the nearest branch and submit it along with required set of documents.
- The application will be scrutinized (credit appraisal will be done) for the assessment of income and other criteria for determining loan eligibility.
- The property documents will be subject to legal scrutiny by one of the panel advocates of the Company.
- The property valuation, to assess the value of the property being acquired/mortgaged,will be done by one of the panel valuers of the Company.
- After the above procedure, CFHL will approve the loan, if all other required parameters of the eligibility norms are met, to the satisfaction of the Company.
4) What are the documents that need to be submitted?
i) Personal documents– Photos, Age Proof, Address Proof, PAN, Aadhar, Driving License and educational certificates.

ii) Financial documents – Income proof of the applicants:
- For Salaried applicants: Salary certificates or certified copies of pay slips with deduction for last 6 months, Form 16 from the employer for the past 3 years, bank statement for the last 6 months.
- For Self Employed, Non Professionals (SENP) applicants:
  - Balance sheet and Profit & Loss account for the past 3 years.
  - Statement of total income and IT assessment orders and IT returns for the last 3 years.
  - Brief note on the nature of business, year of establishment, present bankers, form of organisation and the capacity in which the applicant is engaged.
  - Net worth of the applicant and co-applicant.
  - Guarantor forms along with networth proof/income proof. Number of guarantors as per the norms of the company.
iii) Property (Legal) documents
- Original title deeds for tracing the title of the property for a minimum period of 13 to 30 years, depending on the nature of flow of title.
- Encumbrance certificate for 13 to 30 years, based on the flow of title.
- Agreement of sale/construction, if any.
- Approved plan/license, Survey sketch, location sketch, as applicable.
- Conversion/Alienation order, ULC clearance, if applicable.
- Receipts for having invested the margin money through normal banking channels
- NRIs – The payment of margin money shall be through normal banking channels from the Non-Resident (External) account in India and/or the Non-Resident (Ordinary) account in India.
- Latest tax paid receipt.
- Khata/ mutation/ IHC/ Saath Barah/Patta/RTC/ Chitta/ Adangal/Possession certificate/ khasra – khatoni or such other revenue records
5) Who can join the loan as a co-applicant

The loan eligibility will be determined by CFHL on the basis of income duly supported by the relevant documentary proof, age, qualifications, number of dependents, Co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings, prior credit history (CIBIL) etc. The value of property selected will also be a factor in the assessment of loan eligibility.
6) How is the loan eligibility assessed?

The loan eligibility will be determined by CFHL on the basis of income duly supported by the relevant documentary proof, age, qualifications, number of dependents, Co-applicant’s income, assets, liabilities, stability and continuity of occupation, savings, prior credit history (CIBIL) etc. The value of property selected will also be a factor in the assessment of loan eligibility.
7) What is the amount of Processing Fees payable?

For detailed information in this regard, please see the Fair Practice Code (FPC) document uploaded on our website, www.canfinhomes.com or contact the nearest branch.
8) What is the maximum tenure of loan permitted?

The loan repayment period will normally be in the range of 5 to 30 years.
9) What is the rate of interest charged on the loan?

The Rate of Interest (ROI) is levied on the basis of the borrower’s risk rating which is the total marks computed on the basis of certain parameters. Interest is charged on daily reducing balance basis.
Click here for Interest rates
10) What is the security required to be provided for the loan?

Security for the loan will be the mortgage of the property being financed, normally by way of equitable mortgage (by way of deposit of title deeds) or by registering the Memorandum of Deposit of title deeds or registered simple mortgage, as the case may be, depending upon the clarity in flow of title and place of creation of mortgage. Personal guarantees or collateral security as acceptable to the Company could also be taken under certain circumstances.
11) What is the time limit for availing the sanctioned loan?

The loan will have to be availed within 3 months from the date of sanction if the purpose of loan is for purchase of a ready built house/flat/site and within 14 months if the purpose of loan is for construction or 18 months for a composite loan.
12) When will the loan disbursement take place?

After the sanction of loan, after ensuring payment of margin money (difference between project cost and CFHL Loan) invested by the borrower, completion of the technical evaluation of the property as well as documentation formalities, Can Fin Homes Ltd will disburse the loan amount to the vendor on the day of registration in the case of purchase of site or house or to the builders/ developers, in case of property under construction disbursements will be made on the basis of progress of construction. In the case of house construction, the loan amount will be disbursed in stages to the borrowers, based on the progress of construction and subject to the entire margin money (difference in the cost of construction and the loan amount sanctioned by Can Fin Homes Ltd.) being invested first by them.
13) How can the loan instalments be paid?

The loan is repayable in Equated Monthly Instalments (EMI) comprising both principal and interest. EMI is to be paid on a fixed date every month and will commence from the month following the month in which your loan is fully disbursed. Till such time the loan is fully disbursed, interest on the loan amount which has already been disbursed is to be paid every month. This interest, called Pre-EMI is payable by the end of every month. EMI/Pre-EMI payments can to be made through salary deduction, Electronic Clearing System (ECS) or National Automated Clearing House (NACH).
14) Is it possible to prepay a portion of the loan to reduce the liability and if so, whether any prepayment charges are payable?

It is permissible to prepay a part of the loan without the levy of any prepayment charges.
15) Whether the loan can be fully pre-closed before completion of the tenure and how will the interest be collected in such cases?

Closure of loans before completion of the tenure is permitted. Upon closure, interest will be charged only till the date of realization of the cheque/ credit of the amount in the loan account.
16) At the time of closure, what are the pre-closure charges applicable?
- Prepayment charges are applicable @ 2% on the Principal repaid in the case of fixed rate of interest HL schemes.
- Prepayment charges are not applicable on floating rate of interest HL schemes.
17) Are there any tax benefits on the loan?
- As per the Income Tax Act, 1961, tax benefits are given on the interest and principal component of the loan, which are declared every year by the government, at the time of budgetary exercise and hence the benefits may vary.
- The benefits available for the present are as under:
- 80C: Principal – upto Rs.1,50,000/- within the overall limit of Section 80C from FY 2014-15 onwards (Rs. 1 lakh if you are filing returns for last financial year).
- Interest amount upto Rs.2,00,000/- is exempt from tax during a financial year.
18) How can the tax benefit be claimed every year?

The Company will provide the provisional Income tax certificate, which discloses the interest and principal component of the Equated Monthly Instalments (EMIs) paid for that year.
19) Will IT certificates be issued in the name of both the applicant and co-applicant separately, if requested?

As per IT rules, only one certificate can be issued for a Home Loan, hence one certificate will be issued in the name of both the applicant and co-applicant.
20) What is the eligibility criteria to avail subsidy Under Credit Linked Subsidy Scheme (CLSS) of Pradhan Matri Awas Yojna (PMAY)?
- A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family under various schemes for EWS/LIG/ MIG-1 and MIG-2.
- Through this scheme, the beneficiary is eligible to avail interest subsidy on the purchase/construction of a house/enhancement of a dwelling unit, subject to the government rules.
21) Does the property need to be insured?

Property insurance is mandatory in order to protect your property against uncertainties like earthquake, fire or any damage and destruction due to natural and man-made calamities, during the tenure of the loan.
22) Can we Hold/Cancel NACH/ECS Mandates?

Yes, you can cancel/stop NACH/ECS service at any point of time by submitting the online request form for NACH/ECS Cancellation/Hold available on our website.
To Cancel/Stop EMI Mandate

	FAQ on Tax on Dividend

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