Frequently Asked Questions

An EMI (Equated Monthly Instalment) refers to an amount payable to a lender by a borrower, consisting of the principal and interest.

The term "pre-equated monthly interest instalment" refers to interest on part disbursements of loan from the date of disbursement until the date of EMI commencement

In case the borrower is unable to make the EMI payments due to unfortunate circumstances such as death, critical illness, partial or permanent disability or job loss, a home loan insurance covers the borrower and ensures home loan repayment.

It is necessary that your property is properly insured for fire and other hazards during the term of the loan. Truhome Finance will also require you to provide evidence of compliance every year and/or whenever requested. Truhome Finance should be the beneficiary of the insurance policy. 

The term ‘own contribution’ typically refers to the down payment that a homebuyer makes from their own funds when purchasing or constructing a property. It is the portion of the property’s price that is paid upfront by the borrower for a home purchase loan or home construction loan. In simpler terms, the portion paid by the customer during construction is also known as ‘own contribution’.

The market value of a property is the price at which the property can be sold to the buyer. 

Yes. The Income Tax Act of 1961 provides tax benefits on the principal and interest components of your home loan. 

The sale deed of the property, being financed by Truhome Finance would generally serve as security interest and/or any other collateral as may be required by us. Kindly ensure that the title to the property is clear, marketable, and free of encumbrances.

As soon as the loan is fully disbursed, the principal must be repaid. Any amount you pay over and above interest goes toward principal repayment, thereby allowing you to repay the loan faster. 

The 'Agreement to Sale' in a property transaction is a legal document containing the understanding between buyer and seller as well as all the details of the property, including the area, possession date, and price. 

The term ‘encumbrance’ refers to a claim against a property by a party that is not the owner.   

A disbursement of the home loan can be made once the property has been technically appraised, all legal documentation has been completed, and your own contribution has been paid in full.  

The loan will be disbursed in full or in instalments upon receiving your request for disbursement. Under construction properties loan amounts will be disbursed in instalments based on our assessment of the progress of construction. 

Yes. You can repay the  home loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable terms and conditions listed in the Truhome Finance policy.