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What is the difference between Built-up Area, Super Built-up area, and Carpet area?

Carpet Area : As its name suggests, Carpet Area is the area where we can spread a carpet, means area calculated from inner wall to wall distance inside the house. So essentially, Carpet area is nothing but the net usable area inside the house.

Built up Area : Built up area is Carpet Area + Area of walls and ducts+ 1/2 the Area of terrace. A terrace is considered as half the actual area for calculating built up area.

Super Built up Area : This is built up area + area occupied by common amenities like lifts, corridors, awnings, club house, stairs.

What is a loan repayment?

Repayment is the act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment.

What types of loans does AAVAS FINANCIERS LIMITED provide?

Finance for purchase: Ready built property/ flat (including apartments in low-cost buildings, residential units, etc).

Finance for construction: loans for construction on a plots which have been pre-acquired.

Finance for home extension: Loans to individuals for extension of an existing home unit, which can include construction of additional rooms, floors etc.

Finance for affordable housing: Especially under the Indian government’s credit linked subsidy scheme, Pradhan Mantri AwasYojna (PMAY).

How is an EMI calculated?

Comprises of two variable components those are principal amount and interest rate.
EMI is calculated using the factors like interest rates, loan amount and the tenure of the repayment.

What is an EMI?

An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.

What security will I have to provide?

Security of the loan would generally be security interest on the property being financed by us and / or any other collateral / interim security as may be required by us.

It is extremely important for you to ensure that the title to the property is clear, marketable and free from encumbrance. There should not be any existing mortgage, loan or litigation, which is likely to adversely affect the title to the property.

Can I prepay the loan ahead of schedule?

Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges.

What is part disbursement?

Finance for construction: Usually, loans are disbursed on the basis of the stage of construction of the property. So, in case of resale or ready possession properties, the disbursement is full and final. However, in case of under‐construction properties, the payment is made in parts, also known as part‐disbursement.

What is Pre EMI interest?

Where you have availed only a part of the loan, you would be required to pay us only the interest on the amount disbursed till the full loan is availed. This interest is called preEMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

Can I avail a tax rebate on my home loan?

Yes, Resident Indians are eligible for tax benefits on both the principal and the interest of a Home Loan under the Income Tax Act. Please consult your tax advisor for details.

What is a fixed rate of interest?

Fixed rate of interest on a loan would mean that the equated monthly installments or EMIs would remain constant over the tenure of the loan.

What is a floating rate of interest?

On the other hand for floating interest rates, the EMIs would fluctuate as per the market dynamics asinterest rate increases or decrease.