In Merchant Navy? Here Is How To Apply For Home Loan
If you are working in the merchant navy, your job requires you to be away from home from several months at a stretch. The time you get to spend with your family is precious and you would certainly not like to spend it understanding banking norms on home loans.
To make the process easier for you, MakaanIQ explains banks' lending for to merchant navy men.
Most of the banks consider an income of at least $15,000 per annum (about Rs 9 lakh) as the minimum income criteria for navy men.
Generally, the fixed-obligation-to-income ratio (Foir) is kept at 60 per cent and the loan tenure is kept for 15 years, with exceptions in certain cases.
Among the crucial documents is the copy of the continuous discharge certificate (CDC), which lenders use to calculate your eligibility. The disembarkation stamp is also studied while verifying the documents. The latest work contract between the shipping company and the merchant navy individual is taken into consideration to understand the nature of the shipping agreement. Apart from that, your salary slips, various deduction components, your date of joining or on board of the ship and designation are some details that will be verified. Your work permit, the copy of the email confirming your employment with your shipping company, a notarised power of attorney are other important papers that would also be verified. The copy of your Passport is another important document that you have to produce before the bank.
If you have a co-applicant for the loan, their details will also be required and in case you do not you may have to provide a guarantor.
Permanent address proof
Seafarers work on foreign flag ships and remain outside India for majority of period. In such cases, lenders ask for the permanent address proof.
The loan amount is calculated on the basis of the number of days the navy officer spends on the ship. Generally, a merchant navy officer sails for nine months on an average and for the rest of the period, they remain unpaid. So, the eligibility is calculated taking into account the net income of nine months only.
Repayment of the loan can be made through the “Seafarer account” which is a Non-Resident External (NRE) savings account especially created for mariners.
The loan-to-value ratio (LTV) is set according to a standard home loan.