Charisma Builders Ltd.

How is an EMI calculated?
Equated Monthly Installment, simply known as EMI is the amount payable, every month, to the institution lending out capital to you, till the loan is paid back in full. Each monthly instalment comprises a portion of the interest as well as the principal. EMI is calculated using the formula:

l x r [(1+r)n /(1+r)n-1 ] x 1/12

(l = loan amount, r = rate of interest, n = term of the loan)

• What is a ‘fixed rate of interest'?
	Certain institutions lend out money at a fixed rate of interest, i.e., the rate at which interest is calculated on the borrowed sum, remains the same throughout the entire period of the loan. As a result, you do not gain or lose, if rates fluctuate.

• What is a ‘floating rate of interest’?
	As the term ‘floating’ suggests, this rate of interest fluctuates according to the lending rates prevalent in the market at the time. Consequently, you risk of paying more than you budgeted for, just in case the market lending rates shoot.

• On what factors does the amount loaned out by a housing finance company depend?
	Typically, a maximum of 85% of the cost of the property in question is loaned out to the applicant. The rest of the 15% (seed money) will have to be provided by the loan applicant. The loan amount for various applicants differs on the basis of age, income, no. of dependents, monthly outgoing and repayment capacity.

• What is the appropriate time to apply for a home loan?
	You can apply for your home loan either before or after selecting the desired property. Once the loan is sanctioned in principle, you know for certain what amount you have at your disposal. This in turn helps you decide your budget. However, it is only after satisfactory verification of all necessary documents and procedures that the actual disbursement of the loan takes place.

• Typically, what is the time required for a loan application to get approved?
	The loan application approval usually takes 0-15 days.

• What documents do I need to verify before purchasing a property?
	For the purpose of purchasing a property, it is essential that you see the approved layout plan, approved building plan, ownership documents, carryout search, and other such legal documents.

• I want to buy a flat. What documents should I verify before going ahead with the purchase?
	A thorough title and document search needs to be completed with the help of a competent advocate before you purchase a flat.

• What is the meaning of the terms ‘carpet area’, ‘built up area’ and ‘super built up area’?
	Carpet area is the area of the apartment/building, which does not include the area covered by the walls. The term built up area includes the area of the walls along with carpet area. The term super built up area is applicable exclusively to multi-dwelling units and includes the area under common spaces such as the lobby, lifts, stairs, etc along with the built up area.

• Who pays Stamp Duty for a property – the buyer or the seller?
	As per Section 30 of the Bombay Stamp Act, 1958, the buyer is liable to pay the required stamp duty unless agreed otherwise.

• What is the ‘market value’ of a property?
	Market value is nothing but the price at which a property can be bought in the open market on a particular date, when the instrument in question is executed.

• Do I need to pay Stamp Duty on the market value or as stated in the agreement?
	Yes. Stamp Duty is required to be paid at the rate which is stated in the agreement value of the property or the market value, whichever is higher.

• Which instruments are eligible for the payment of Stamp Duty?
	The instruments on which Stamp Duty is levied on market value of the property are: - Agreement to Sell - Conveyance Deed - Exchange of property - Gift Deed - Partition Deed - Power of Attorney settlement and Deed - Transfer of lease