Is Your Builder Recommending a Home Loan Lender?

I have been checking for a home loan transfer recently. When I bought a house, I did not go around banks to get a home loan. Guess why? Because my builder, at the time of selling, suggested a bank for the home loan and I followed him. Now with the raise in interest rates, when I looked for a balance transfer to another bank, I ended up with no result after going around all the possible banks.So where does the problem lie? Is it with me because I didn’t confirm the legality of the required documents or because I blindly followed the builder recommended bank? Or is the builder at fault because he made himself comfortable with the one he was tied up with? Both of us looked for our safe side. That’s good. But what happens next is the question. I can look for financial institutions or individual lenders. So for those, like me, who want to get home loan from the banks, it is very much important to research on the banks, on the legality of the property and then decide to buy the property.


It has been found that in many cases, the agents of the banks colluded with the builder to help them to sell their residential units and for this, they keep the prospective home loan buyer in dark about some of the important aspects of the housing project.


So what are the things one should look at while buying a property or I should rather put it as, what are the things a bank looks at while granting a home loan.

  1. Legal search report to ascertain the title of the property.
  2. Technical search report to know the layout plan and the quality of construction.
  3. Land record, occupancy certificate, Title deed, authority or municipality approvals and other similar documents. Note : Please demand these documents from the builder in whose project you are going to invest. After all you are going to invest your hard earned money. you have all the rights to go into the details.

After granting the home loan, the next stage is disbursement. So, if you go with the builder recommended bank, it usually happens that instead of 20% disbursal, the bank might disburse 40%. So again the buyer is at loss. The buyer ends up paying more interest without any reason and necessity. 

In contrary, not all the cases would be the same. The buyer should always keep in mind that in real estate sector there are a very few honest builders. Also one should always check with those home buyers who have earlier bought the flat from your selected property developer. 

What Loanynatra.com does

So, after buying the home with the help of home loan from your preferred bank, what is the next step. Keep watching for the lower interest rates every now and then, find out for the lowest interest rate and that too a suitable home loan for the balance transfer. So it is a cyclic process. Is there any solution that you can keep your hands away from the research and have a sound sleep? Yes. www.loanyantra.com stays with you from the time you decide on buying your new home. It selects a suitable home loan product for you, helps you in knowing the interest rates by giving alerts. Suggests you with the best balance transfer option when needed. So being a loanyantra customer, it saves your time and also saves your money. Use that saved money and time to spend with your family. Plan for a vacation. 

Loanyantra Customer? Know your Benefits.

The major change this century is going through is e-commerce. Isn’t it surprising at the change we are into now! To purchase an item say a saree or a shirt, earlier was the time when we used to go to different shops, explore and then decide and finally buy it if it is of the right price. Now it is all “online.”  For what not and where not, this convenience has been experienced? 

Yes, home loan sector also takes up this change and makes it convenient to the customers. So is the convenience only till choosing the home loan or suggesting a home loan? No, loanyantra.com goes a little beyond this. Let us see till where loanyantra.com makes its customer convenient and above all risk-free.

Two friends conversing..

Friend 1 : Hi bro, finally I took a home loan from a bank after a lot of research.

Friend 2 : Oh cool. But I didn’t research, I got associated with a company. 

Friend 1 : Company? what company?

Friend 2 : It is loanyantra.com… a website which manages your home loan. 

Friend 1 : But what is the need bro..is it really thaaat advantageous?

Friend 2 : Ok let me explain you. Suppose that both of us are in a home loan entered at a same time. Say loan of Rs.45 lakhs with interest of 9.50% with EMI being Rs.41,946 for 240 months. 

Friend 1 : Ok fine. Say the time to be Jan 2015. So our loan goes till 2035.

Friend 2 : Correct if there is a change in interest rate by 0.5%, the EMI to be paid will increase from 240 months to 271 months.

Friend 1 : Yes, ofcourse. What can anybody do with that.We just have to pay.

Friend 2 : No dear, that is what loanyantra.com does. 

Friend 2 (loanyantra.com customer)                             Friend 1

Home loan : Rs. 45  Lakhs                                                              Rs. 45 Lakhs

(Jan 2015)

Interest :       9.50%                                                                           9.50%

EMI :             Rs. 41,946                                                                    Rs. 41,946

Period :         240 months                                                              240 months

* (June 2015) Increase in interest rate by  0.5%

Period :        Remains at 240 months as he                              271 months

(June 2016–  paid 3 EMIs extra as part payment                     Still paying.

June 2027)    as suggested by loanyantra.

June 2027  :  Loan closed                                       

                     Total paid  – 

                     148 EMIs + 

                           36 EMIs                                                                     Still paying

                  (as partpayment suggested by loanyantra)

                   So,184 EMIs * 41,946 =  Rs.77,18,004

                                                

July 2027 : Started investing Rs.42,000                                      Still paying

                   in SIP till 56 months with 

                   average returns of 15%.

                                     

                                          

Jan 2032 :  Received Rs.34,19,126                                                        Still paying

                  (Left these returns untouched for 5 years)

                                     

June 2037 : Final returns received Rs.68,76,830           Loan closed 

                                                                                                     Total paid – 

                                                                                                     271months *41,946 = Rs.1,13,67,366.

Friend 1 : Those are really big figures!!! So, you say, with  loanyantra managing your home loan, you could finish your home loan faster and also could invest in investments of your preferred choice.

Friend 2 : Yes, dear. Remember that the above situation has change in interest rate only for once. In practice, the interest rate change can be many a times. So, each time researching might not be possible. So, why not leave it to the managing company. It costs you really a minimal.