There are always a percentage of home loan that a Bank sanctions to an individual; most commonly it is 85% of the property value. But the question arises that how come the remaining amount will be arranged?

There are different ways through which you can arrange these funds, you can take an additional loan and can pay the remaining amount. But you need to be very specific that you should be capable of paying both loan emi’s and the new loan should not affect your home loan eligibility.

A number of factors are considered when the repaying capacity is calculated, they are like income, age, and number of dependents, job profile, total work experience, continuity of job and many more. We should try to take loan against liquid assets as they come at a cheaper rate as compared to personal loan or loan on credit card.

You can take loan on following basis:-

1) Loan against life policies: – You can borrow loan against your endowment policies only. Life Insurance corporation is the one who allows you to borrow loan against endowment policy up to 90% of the surrender value of the policy, for which, you will be charged an interest of 9%, to be paid half yearly. The company also gives you an option where the loan amount will be deducted at the time of claiming payments. The other thing that you can do is, raise a loan by pledging your insurance policy with a bank.
In either case, in the event of your demise, the benefits repay the loan outstanding and any surplus left-over is paid to your nominees.

2)Loan against securities & FD’s:- Here the loan amount does not exceed more than 50% of the securities valuation. You can borrow loan against equity shares, mutual funds, fixed deposits, etc.

3) Loan against Gold: – The most commonly used method to arrange funds is taking a loan against gold. Tenure of 6 to 12 months is offered and banks like HDFC can offer you 80% loan against the ornament value or maximum to Rs. 10lacs.

4)PF (provident fund) & PPF (public provident fund):- Although it should be your last option because withdrawing PF & PPF will disturb your future planning. Maybe you have kept this amount for you retirement time or for your children education.

5)Personal Loan: – You can take a Personal loan, which is an unsecured loan, the Personal Loan interest rates would be high but you done need to lend anything for a personal loan. On the basis of some documents this loan will be sanctioned.

Try to consider the above mentioned points, so that you wont get any problem while buying your dream home.