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1. What is carpet area, built up area and super built up area?
Carpet area: This is the area of the apartment/Building which does not include the area covered by the wall.
Built up Area: The Carpet area including Wall area.
Saleable area / Super Built up Area: This includes the area along with the area under common space such as lobby, lifts, stairs, etc.,

2. What is the maximum allowed percentage of common area?
Common area are normally varies from 15% to 25%. We at Mahalakshmi Builders follow 15% to 18%.

3. Under whose name do I have to purchase the stamp paper and who pays the stamp duty during a transaction of buying and selling?
The Stamp paper is generally purchased in the name of the executor to the agreement. Generally, the buyer pays the stamp duty unless agreed otherwise.

4. How does on get tax benefit on the loan?
There is an eligibility of certain Tax Benefits on principal and interest components of a loan under the Income Tax Act, 1961.Moreover, you can get Tax benefits under sec 88 on repayment of principal amount.

5. What is an annual rest?
Interest is calculated on annual resets. The effective rate of interest varies depending on the loan. For a loan with the term of 15 years, the effective interest rate would be higher by a smaller percentage (in terms of fraction) per annum than the indicated rate of interest.

6. Do Banks/FI assist one in selecting property / Building / Flat of ones own choice?
Yes certain Banks / FI have approved Builders and Developers and assist you in your choice.

7. What Security does one provide against the loan amount to be borrowed?
Generally, by way of deposit and deeds and / or such other collateral security as may be necessary.

8. Can one repay the loan ahead of schedule?
It is possible for one to repay a loan ahead of schedule. A form of a penalty termed as pre-payment penalty is payable to certain institutions.

9. Does the property has to be Insured?
You will have to ensure that the property is duly and properly insured for fire and other Appropriate Hazards, as required by banks/ financial institutions with whom you may mortgage the property, during the pendency of loan. In such cases the beneficiary of the policy will be the concerned institution offering the loan. Even otherwise, it is advisable to insure your property from fire and other hazards.

10. Home Loans: What is the amount that can be sanctioned?
Banks/ Financial institutions sanction loan amount based on certain criteria depending upon your repayment capacity. (Which taken into account your age, qualification, assets, liabilities, stability of occupation, saving History) and according to your income. You can include income of your loan. The maximum that can be sanctioned varies with Housing finance companies. Generally the maximum loan amount is 80% - 85% of the cost of your home.

11. What is meant by an EMI (Equated Monthly Installments)?
An EMI is the monthly amount to be repaid by the bank or financial institutions against a loan amount borrowed for a fixed period of time. An EMI has two components, the principal component and the interest component. There are two methods reducing balance method and Monthly balance method. The reducing balance method reduced the principal amount already paid from the outstanding loan amount. Every time you make a payment, you pay interest on the part of the original principal sum that has remain update till then. The loan carring the lower EMI for the same tenure is the cheaper option.

12. What is Pre ENE – Interest?
Pending final disbursement, you pay interest on the portion of the loan disbursal. This interest in called the pre- EMI interest is payable every month from the date of each disbursement up to the date of commencement of EMI.

13. What is a Floating interest rate?
A loan taken on a floating interest rate, is a loan were the interest rate is payable is linked to the market rate. e.g. The Bank leading rate. The interest payable will also rise and fall as per bank leading rate which may also fluctuate.