Myths About NBFCs / Banks Vs NBFCs

Why would you prefer going for a home loan only with a bank rather than with an NBFCs?

This question was pondering in my mind since the time I had met a cousin of mine. He was really worried to apply for a loan from an NBFC. I think, after the Sharada scam, the RBI is really strict and clear about the rules with regard to NBFCs. Earlier, the minimum net worth for NBFCs was retained at Rs.25 lakh. Now, since March 2017, all NBFCs are to attain a minimum net-owned funds of Rs. 2 Crore, to ensure the ability of the NBFCs to have good financial standing .

Also you can check the list of NBFCs involved in providing home loan, in the link provided in the official RBI website.

Myths about NBFCs

So, as discussed above, we find NBFCs too are safe to opt. With the emerging economy and population, India needs support financially. Banks could satisfy this need only to a minimum extent and to only a particular group. This made the need for other financial service providers (NBFCs) which are regulated by National Housing Bank.

A coin has both sides. Similarly, banks and NBFCs, have both pros and cons. One should think wise, customize and pick up the best fit. Let us discuss in detail about them.

Home Loan Borrowers – Who should opt for a bank?

  • Apart from the 80% loan amount, if you can meet the  20% down payment amount of the property, the stamp and registration amount. 
  • If you have enough time to wait till the sanction of the loan.
  • If your property has all the required legal documents.
  • If your chosen bank provides a lower interest rate when compared to an NBFC.

Home Loan Borrowers – Who should opt for an NBFC?

  • If you want 80%  loan on home value which includes the stamp and registration charges also.
  • If you are running out of time.
  • If you are satisfied with the interest rates.

Home Loan Borrowers – New customer Vs Existing Customer

Neither the banks nor NBFCs offer the same interest rate to the existing customers as they offer the new customers.

Existing customers can convert to the present interest rate by paying a minimal amount. Usually it is 0.5% – 1% of the outstanding loan amount.

Earlier were the days, where you find NBFCs interest rate in double-digit. With the awareness and competition on the shelf, NBFCs are slowly positioning themselves to become viable alternatives to traditional banks for procuring loans.

Plot loan

Plot Loan India –

In the Indian context investing in buying land or plot hold on age-old and trusted investment. The ideology of buying land and building a house still holds prominence in our nation. But as easy it may appear, buying land is a daunting task if you are new to it. Buying a plot is a costly affair, so most of the people tend to take a loan for the same.

Similar to home loans and other loans there are a series of paperwork that one needs to complete before availing the plot loan. So here is the complete list highlighting about plot loans, its eligibility criteria, and documents. It will help you understand in-depth about plot loans and requirements around it so that you can easily get a loan to buy plot/land.

What is a Plot Loan?

They are also popularly known as a land loan. These loans are unique banking product designed to facilitate the purchase of land or plot. One must not get confused between plot loan and land loan as these two are entirely different aspects of loans. Although, you may find similarities in the documents and eligibility criteria the interest rate and other aspects of plot loan are different from a home loan.

When judged on the parameters or ease of availing the loan, the home loans are easy to avail as compared to the plot loans. The primary reason behind this is that land loan is not only about the purchase of land but also the subsequent development of the property. Plot/Land loans come at a higher risk as compared to a home loan. The moneylender requires security about the ROI. Thus, if one wishes to increase their chances of obtaining the plot loan, it is beneficial to assure the return on the purchased property.

The undeveloped property is a risk for the lender. Thus, they trust more on developed properties. For example, if one wishes to get plot loan for farming purpose, then the probability of obtaining the loan is higher as compared to getting a loan for property which does not have any substantial plan on its development in future.

Leading Banks providing Plot/Land Loans-

As already mentioned, people often opt for plot or land loan for buying land. Some banks and NBFCs can give you plot loan. However, you need to compare their rate of interest processing fees, check your CIBIL score, etc., before applying for the same. Here is the list of banks that you can have on your radar if you wish to get a plot/land loan:

  1. ICICI Bank
  2. Punjab National Bank or PNB
  3. State Bank of India
  4. DHFL
  5. IDBI
  6. Axis Bank
  7. HDFC Bank
  8. Federal Bank etc.

Features of Plot / Land Loans – 

  • Location & Type of Property: You have home loans for various purpose, but when it comes to land/plot loan it can only be availed for buying a residential plot. An important point to note about plot/plan loan is that the land must be present within the limits of the respective municipality.
  • Loan to Value Ratio (LTV): It is the amount of loan you can get against a property. The LTV for a home loan can range between 80%-85%, but for the plot loan, it can be up to 70% of the plot value.
  • Tax Benefits: Well, if you have thought that the plot loan will not give you any tax benefit, then the good news is that it does give you some rebate, only if you wish to construct a house on the land. The tax deduction will only apply to the construction amount of the loan and after the completion of the construction.
  • Tenure: Plot/land loans are of shorter duration as compared to the home loans. The tenure of plot loan an stretch up to 15-20 years.
  • Loan Amount Limit: There is an upper to the plot loans offered by the bank. Different banks may have a different upper limit so make sure that you run through the policy papers and other documents before applying for plot loan.
  • Clauses Included: There is a catch in the plot loan. For example, if you get the loan, you would be required to start the construction work on it within a specified period. It is mentioned in your loan document, so make sure that you run through the paper to get more clarity on it.
  • Prepayment Charges: There is a possibility that the bank may charge a prepayment penalty.
  • Interest Rates:  Similar to other loans, the interest rate for plot loan may vary from bank to bank. Although the range remains the same, the exact percentage may vary. Make sure that you do a thorough study by comparing the interest rates offered by different banks so that you get the best one by your side.
  • Down Payment: When we talk about downpayment then for plot loans, it may be higher because the LTV for plot loan is only 70% as compared to home loans which shoot up to 85 %.
  • Higher interest rates for NRI: NRIs constitute a major segment of people who invest in land. But, it’s not necessary that all bank may provide them the loan. Some banks do provide a loan to the NRIs, but that comes at a higher interest rate.

Eligibility for Plot loan – 

The eligibility for land/plot loan is very similar to a home loan. Here is what makes you eligible for plot loan :

  • You must be the resident of India
  • Your age must be above 21 years
  • Good CIBIL score (it may vary from bank to bank)
  • If you are a salaried individual, then you must satisfy the income criteria as specified by the bank.
  • In case you are self-employed with the bank where you have applied for a loan then you must be employed by the bank for a specified period to become eligible for plot loan.

Documents for Plot loan – 

Here we have listed the documents that you are required to submit when you apply for plot loan:

  • Filled the application form
  • Photograph of the applicant
  • ID proof- Adhaar card, passport, voter card, driving license, etc.
  • Residence proof- like electricity bill, phone bill
  • Bank statement of last six months
  • Form 16
  • Identity and address proofs
  • If you are a salaried person, then you need to submit the copies of your salary slip as income proof.
  • Last six months bank statement reflecting credited salary
  • In case of a self-employed individual, you must submit last three years’ IT return along with sales receipt to show your income proof.
  • The borrower may also be required to submit site ownership documents in the sellers’ name. It includes the following documents :
  • Original ownership document of the land
  • ‘No Encumbrance’ Certificate for the plot
  • Plot layouts which are duly approved by the Town Planning Authority
  • Land records
  • Revenue receipts
  • Tax receipts for taxes paid by the landowner

What do you need to know about Plot Loan Interest Rates?

Similar to a home loan, the plot loans also come with certain interest rates. This interest rate may vary from one bank to another. Thus, it’s advisable that you must check the interest rate before applying for plot loan. Another important factor that you must take into consideration is the type of interest rate, where it’s floating or fixed. The interest rates play a key role in impacting the EMIs. Thus, it is the first thing that you must take into account the moment you start applying for plot/land loan. You can also use the plot loan EMI calculator which will help you find out the EMIs and based on it you can figure out the bank from where you would like to take the loan or decide the amount of loan.

Plot Loans Interest Rate – 

When it comes to the interest rates offered by the bank, then it ranges from 9.95%-12% percent. It may be floating or fixed; you must inquire with your desired bank about the same. Another important point to note about plot loan is that the NRIs get the plot loan at a slightly higher interest rate as compared to the Indian residents.

Snapshot at some of the leading plot/land loan provider and their key features –

Many banks and NBFCs can provide you with the plot. Although there are many other banks in the league here, we have shortlisted the popular ones.

Bank Name Rate of Interest Processing Fee Loan Amount Tenure
SBI Floating – 8.30% – 8.65% ₹2,000 to ₹10,000 + applicable tax  upto 50 cr. 1-30 years
HDFC 8.45% – 8.70%Floating Up to 0.5% (max. ₹11,800)One time fee 5L – 10Crs 1-30 years
ICICI 8.50% – 8.85%Floating 0.5% (max. ₹11,800)One time fee 5L – 10Crs 3-30 years
Axis 8.35% – 11.75%Fixed/Floating 0.50% (min. ₹10,000)One time fee 5L – 10Crs 1-30 years
DBS 8.5% – 8.5%Floating ₹ 10000+ taxesOne time fee 50L – 5Crs 1-25 years
PNBHFL 8.40% – 10.20%Fixed/Floating Up to 0.50% (min. ₹10,000 + GST)One time fee 8L Min 1-30 years
CANARA BANK 8.35% – 8.55%Floating 1,500 to ₹10,000 30 years
DHFL 9% – 9.75% 5,000 to ₹20,000One time fee 1L – 5Crs 1-30 years

 

The list of banks doesn’t end here; you may choose from the number of other banks and NBFCs. But, it’s always good to compare the interest rate of various banks so that you may find the right bank to support your dream of buying a plot.

HDFC Plot Loan

Eligibility Individually or Jointly
Tenure of Plot Loan Maximum 15 years
Maximum Loan amount If it is up to 20 lac, you will get funding which is 90% of the cost of property, If it is Rs.20.01 lakh – Rs.75 lakh then you will get funding which is 80% of the cost of property, for the amount above 75 lac, HDFC funding is 75% of the cost of property
Documents Required You need to submit the following documents :

  • Allotment letter copies
  • Approved drawing  of the property you were willing to purchase
  • Sale deed from the architect
  • ID proof like Adhaar card, driving license, passport, voter ID
  • Address proof- electricity bill, phone bill, property documents
  • Last six months bank statement
  • Title deed

SBI PLOT LOAN

Eligibility You must be an Indian national and above 21 years of age. The borrower must also have records f repaying the loan for at least two years.
Tenure of Plot Loan Maximum 9 – 10 years..
Loan amount The loan amount is based on the cost of the plot. The bank offers loan which is up to 85% of the cost of the plot.
Documents Required
  • ID Proof like Adhaar card, Voter ID, Driving license
  • Income proof like last six months bank statement, IT returns, Form 16, salary slips
  • Property related documents like title deeds, allotment letter.

ICICI PLOT LOAN

Eligibility The applicant must be a resident of India and 21 years of age. An individual can be salaried or self-employed
Tenure of Plot Loan 3-30 Years
Loan amount 5L – 10Crs
Documents Required
  • Identity Proof like Adhaar card, Driving Licence, Voter ID
  • Income Proof like salary slip, bank statement, Form 16
  • Property related documents like title deeds, allotment letter, drawing of the plot.

Plot Loans Through Loanyantra.com – 

Loanyantra is a great way to help you find the right loan provider. Apart from finding the right lender and helping you find out the most cost-effective way to buy land, we also help you with the complete paperwork so that there is no hurdle in the process of loan application and approval. Based on your requirement, we also provide you the complete information about the current interest rate so that you can get the complete insight into it. To know more about our company and services you can contact us today. Remember, Loanyantra is a complete one-stop solution when it comes home loans, plot loans, paperwork, etc.

Plot loan purchase, plot loan calculator, plot loan emi calculator, plot loan documents, plot loan Icici, Icici realty loan, loan for agricultural land purchase Icici, hdfc plot loan, SBI plot loan, construction composite loan, know everything from Loanyantra.com. Get every minute detail about ICICI plot loans, HDFC plot loans, SBI plot loans and many other. Know about bank’s loans interest rates that are linked to MCLR which are auto corrected according to the economy’s growth and interest rates that are lonked to base rate. Get the lower interest rate ever. Calculate your emi on plot loans and know your eligibility. Plot loan documents are same as the home loan documents. And get instant approval. Apply online paperless and get instant approval. You can select a plot and get loan on the plot but you have to construct your house within two years on the plot. This realty loan from ICICI bank fulfils your dream if constructing a house on your own. Construction composite loan is availed to buy a plot and construct a home on the plot. Together is called construction composite home loan. The whole amount is not disbursed at a time but partially disbursed according to the phases of construction. And the customer is required to pay pre-emis on the loan disbursed. The documents for land loan include your original basic documents like aadhar card, address proof, etc and also the title deed of the plot.  For example, ICICI bank Agriculture loans, krishi loan offers loan to meet all the agriculture needs like buying equipment, meeting working capital needs, etc. The interest rate varies from 10.00%- 14.50% as of May 17th 2018. You can repay the loan within four years or even less than that.  Know more about each product from Loanynatra.com. All you need to do is just give a missed call to 040-71011991. Calculate your emi for bank plot loans and construction loans.

 

How does personal loan affect your credit

Know how Personal loan affect your credit and manage your loan through Loanyantra. Every now and then, you need a little help with your finances. A personal loan is one way to smooth your finances or get extra cash for a purchase. An unsecured personal loan can allow you to accomplish some of your goals without the need for collateral, or to share a specific purpose with the lender.

Personal loan interest rates, loan amount and tenure details – 

Bank Name Personal loan Interest Rate Minimum Tenure- Maximum Tenure Personal Loan Amount
Citi Bank 10.99% – 15.99% 1-5 years Max-30Lakhs.
Axis Bank 15.50% to 24% p.a. 1-5 years Min- Rs 50,000

Max-Rs 15 lakhs.

STANDARD CHARTERED BANK 10.99% – 14.49% 1-5 years Max- 30lakhs.
HDFC Bank 10.99% – 20.75% 1-5 years Max- 25Lakhs
FULLERTON 14% – 33% 1-4 years Max- 15lakhs
HSBC 11.29% p.a. to 17.5% up to 5 years Max- 30 lakhs
ICICI 10.99% to 22.00% per annum 1-5 years Max- 20lakhs
IDBI 12.75% to 13.75% up to 5 years Min- Rs. 50,000

Max-10lakhs

SBI 12.90% – 14.90% 5 Years Min- 25,000

Max- 15 lakhs

The above table lists the lenders with whom loanyantra.com has tie-ups. About every bank’s personal loan interest rates, you find at the end of the article.

But whenever you get any loan, it’s important to consider the impact on your finances and on your credit. It is always better to consider the personal loan affect on credit.
Before you apply for a personal loan, consider the credit score factors that are likely to be a part of the equation. Any debt impacts your credit — and that means a personal loan can affect your situation as well.
But that doesn’t mean the effects of a personal loan will be all negative. In fact, when used properly, a personal loan can have a net positive impact on your credit, and that means it can also have an effect on your life and finances beyond just your credit rating.

What happens to your credit when you apply for a personal loan? How does personal loan affect your credit?

When credit score calculated by CIBIL, there are five main credit score factors that each carry a specified weight:
Payment history: 35%
Amounts owed: 30%
Length of credit history: 15%
New credit: 10%
Credit mix: 10%
With a personal loan, the main things that affect your credit score fall under the categories “length of credit history” and “new credit.” When you apply for a personal loan, that represents an inquiry that will show up on your credit report and impact your credit score.

Things change if you are making a lot of credit inquiries in a short period of time, however. The more loans you apply for in a short timeframe, the bigger the impact on your credit history.
Your new credit will also have an impact on your credit history. Part of the calculation of credit history is the average age of your accounts. A new credit account, like your personal loan, brings down the average age of your accounts.
However, the impact shouldn’t be too huge, as long as you don’t have a lot of newer credit dragging on your score.
Once you get your personal loan, it’s important to pay attention to how you manage personal loan affect credit score, since that’s what will matter most to your credit score going forward.

Don’t let a personal loan bring down your credit score

Simply getting a personal loan isn’t likely to have a long-term negative impact on your credit. You might be surprised to discover that a personal loan can actually help your credit score in the long run.
Of the credit score factors, the most important item is your payment history.
As long as you make your loan payments on time and in full, your score will be impacted positively. The more on-time payments you have, the better your credit score.
With a personal loan, factors that affect credit score most are the payments you make and the mix that your loan adds to your credit profile.

Adding a personal loan to your credit mix can actually give your score a little boost. While credit mix is only 10% of your score, it can still provide a little help. Showing that you can handle an instalment loan as well as a revolving credit loan (such as a credit card) can add to your score.
The opposite is true, too. If you miss payments on your personal loan, you will be penalized. When you get any type of credit, it’s vital that you make regular payments in order to prevent damage to your credit score.
A personal loan is most dangerous to your credit when you don’t make payments.

Only borrow what you need

Any time you borrow money, it is important to limit your loan to what you need to accomplish your goals.
A personal loan can be a way to consolidate your debt to make it easier to pay off, or to help you smooth your cash flow while you restructure your finances. No matter what you use your personal loan for, don’t borrow more than you can handle and avoid paying late.
Your instalment loan won’t have the same impact in the credit utilization measure of your credit score, but it can still impact decisions about your finances in the future.
Lenders and others look at your credit file for red flags. If you have a large personal loan, it can affect your ability to get other credit and financial products, even if you have a good credit score. Lenders and others assess risk, and a large personal loan can make you a bigger financial risk.

Personal loans can help your finances, and even provide a boost to your credit, but you need to be careful about how you apply for and use them.

Personal loan interest rates (as of May 08th 2018)

Bank Personal Loan Interest Rates
Citibank 10.99% – 16.49%
SBI Personal Loan 12.50% – 16.60%
HDFC Bank Personal Loan 10.99% – 20.00%
ICICI Bank Personal Loan 10.99% – 22.00%
RBL Bank 13.99% – 16.00%
Canara Bank 13.65% – 13.65%
Dena Bank 13.00% – 14.00%
Union Bank of India 14.40% – 14.40%
Vijaya Bank 12.50% – 13.50%
Andhra Bank 13.05% – 14.30%
Allahabad Bank 13.10% – 13.10%
Bajaj Finserv 11.99% – 15.50%
Standard Chartered Bank 11.49% – 20.00%
Bank of Baroda 11.60% – 16.60%
Corporation Bank 12.75% – 13.75%
IDBI Bank 13.20% – 13.75%
Indian Bank 14.35% – 14.85%
IDFC Bank 11.00% – 19.50%
Axis Bank 11.25% – 24.00%
Tata Capital 11.99% – 18.00%
Fullerton India 14.00% – 34.00%
IndusInd Bank 11.99% – 23.00%
Kotak Bank 11.50% – 24.00%
IIFL 12.99% – 19.99%
Yes Bank 11.99% – 20.00%
Bank of Maharashtra 15.10% – 15.10%
Federal Bank 13.32% – 15.12%
Indian Overseas Bank 12.70% – 15.25%
Syndicate Bank 14.20% – 14.20%
Karur Vysya Bank 13.90% – 16.40%
Punjab National Bank 12.25% – 15.25%

Why go through Loanyantra for a personal loan –

Loanyantra, an online platform for all your financial needs. It is India’s first ever fintech company to manage your loan till the closure. Usually, you find personal loan interest rates are a little higher when compared to any other loan interest rates. Here is when loanyantra helps you getting a personal loan at the best rate and also get alerts as long as you are in the loan about the current market interest rates. Also avail wonderful offers like cashback and referral offers by getting a loan through loanyantra.com.

Home Loan Balance Transfer – Eligibilty, Calcualtor, Documentation

HOME LOAN BALANCE TRANSFER

Home Loan Balance Transfer is switching your lender or transfer your balance loan amount from one bank to other bank for quite some valid reasons. Buying a home was never as easy as it is today. Home loans are a great way for people to fulfill their dream of buying a home. However, home loans are dependant on EMI, tenure and interest rate. The home loan interest rate, 2018 varies from 8.35% to 12 %. And interest rate changes according to the RBI’s repo rate which depends on the economy’s growth. EMI depends on the tenure of the home loan. Tenure can be fixed to 20 years to 30 years. So, the EMI varies according the interest rate and tenure of the home loan. Over a period you might feel burdened with the pressure of EMI payment because of the change of interest rates, in such cases, one can opt for home loan balance transfer.

Home loan balance transfer is an excellent facility given by the banks to people to transfer their home loan from one bank to another where the interest rates are lesser. But, before getting ahead, let’s have an understanding of home loan balance transfer.

WHAT IS HOME LOAN BALANCE TRANSFER?
This term is popularly known as refinancing or Balance Transfer. It allows you to reap the benefits of lower interest rates offered by other banks of financial institutions. Usually people having a remaining home loan amount transfer it to another bank or NBFC which is offering a lower interest rate. To sum it in simple words, home loan balance transfer is the process of transferring the outstanding loan amount. It saves the borrower from the pain of high interest rates.

WHAT ARE THE KEY FEATURES OF BALANCE TRANSFER:

  1. It involves transfer of outstanding home loan from one lender to another lender.
  2. It requires payment of processing fee which is about 1% of the loan transferred amount which is remaining loan amount.
  3. The entire process of balance transfer of home loan involves similar paperwork and other formalities as it is in the case of home loan.
  4. One can only apply for home loan balance transfer only after certain number of years of availing home loan. This time period is pre-determined and is mentioned in the original home loan agreement.

The Home Loan Balance Transfer, also called the ‘refinancing’ of a Home Loan, may be advisable under certain circumstances. However, it may not always be the ideal solution for the problems you face with your lender.

For more information – http://loanyantra.com/blog/what-is-re-financing.html

BENEFITS OF HOME LOAN BALANCE TRANSFER

The first and the foremost advantage of home loan balance transfer is, it saves your money. Usually, people go for the option of balance transfer if they find any lender is offering a lower interest rate as compared to their current lender. The difference of interest rates, the tenure of the home loan amount and outstanding amount are the contributing factors in the process of home loan balance transfer.

It is always advisable to make a switch of banks or lenders for your home loan, after you have thoroughly analyzed the interest rate difference between the two lenders. Once you find that there is going to be a significant difference, you must go ahead. If you are going for home loan balance transfer, you must first know the rules for the same and also do the cost-benefit analysis. It means that this process of refinancing must bring down your monthly EMI or lessen the time period and also decrease the cost of acquisition.

REASONS FOR HOME LOAN BALANCE TRANSFER-

Do you experience atleast one among the below mentioned reasons –

  1. Frustrated about the lender because of delayed and laid back customer solutions for queries and requests?
  2. Paying more than the existing rate of interest?
  3. Attractive products with other lenders?
  4. More discounts and benefits with other lenders?

If you feel yes, for any of those, then you have to surely look out for a balance transfer option with reduced EMI every month which helps you to plan something more important in your budget. Cutting down the total amount of money to be paid as the interest on the loan which means it in turn reduces the tenure of the home loan also. Also apply for home loan balance transfer to avail attractive discounts and benefits offered by another lender. Save time, money and energy with Balance transfer.

When Can You Go For A Home Loan Transfer

ELIGIBILITY CRITERIA FOR HOME LOAN BALANCE TRANSFER –

Similar to other loans, to avail the home loan balance transfer one must be eligible and hence it becomes important to know about the eligibility criteria for refinancing or home loan balance transfer. Anyone who has availed home loan is eligible for home loan balance transfer. An important point to note here is that if you have regularly paid your EMIs of home loan, you can go for home loan balance transfer. Although the criteria by most of the lenders remain the same, you may find some difference with each lender.

But, here is a generic eligibility criterion for home loan balance transfer :

  1. Firstly, you must be an Indian national above 21 years of age to be eligible for home loan balance transfer. The age bar is between 21 to 60. For a self-employed individual the age slab is up to 65 years.
  2. You must have an excellent credit rating. Irrespective of the fact that you had good credit rating at the time home loan application, if the credit rating decreases after applying for home loan, you might not be able to avail home loan balance transfer facility.
  3. If you are a salaried professional, you must be employed with your current professional for a certain number of years. Usually, this period is two years.
  4. You must have the capacity to repay the loan.
  5. Some banks may ask for Minimum sum gross family income as mentioned by the lender.

HOME LOAN BALANCE TRANSFER RULES

The rules for home loan balance transfer include submission of all the documents and papers (discussed later), submission of ID and address proof, good credit history, good CIBIL score and surety that as an individual you would be able to repay the loan amount to the bank or NBFC.

As per the RBI guidelines for home loan balance transfer and home loan, the money lenders or the banks are not allowed to charge anything for prepayment of floating interest rate loans. Thus, the home loan balance transfer charges as per RBI guidelines are also influenced by this decision.

DOCUMENTS FOR HOME LOAN BALANCE TRANSFER

Home Loan Balance Transfer Documents required by the banks or NBFCs :

  • Passport-size photographs of the borrower and the co-applicant if any.
  • Completely filled application issued by the financial institution.
  • The latest or the last three months salary slip as asked by the bank
  • Bank’s last six-month statement showing salary credited.
  • ID proof like Pan card, Adhaar card (mandatory), driving license, voter ID, Passport and employment ID card in case of salaried professional.
    Proof of address
  • Proof of Age (Either of these): 10th or 12th Marks Cards, PAN Card or Voters ID Card.
  • In case you are self-employed or a businessperson, then you have to submit documents which prove the existence of your business and academic qualifications along with the financial statements.
  • Bank statements which show that home loan EMI deduction. Usually, it is of last 12 months.
  • Loan statement of the company and the entire set of documents related to the property that is currently in possession of the home loan provider.

Just like your home loan or any other loan, in case of home loan balance transfer you are required to go through some paperwork, which assures the lender that you can repay the loan amount. Banks or other financial institutions require you to submit certain documents so that they can proofread it and also adjudge your credibility for home loan balance transfer.

All these documents provided by the borrower is revalidated and vetted by the bank or NBFC. You must make sure that all the documents are correct and appropriate as the approval of the bank depends on your repayment capabilities which are decided by the documents.

HOME LOAN BALANCE TRANSFER PROCEDURE

The process of balance transfer of home loan involves a few basic steps –

Your first step for home loan balance transfer is to send an application for Home Loan transfer to your current bank. They should then provide a No Objection Certificate (NOC), foreclosure letter, a statement specifying the outstanding balance on your Home Loan, a statement of your EMI payments so far, and a list of the loan related documents available with them.

For balance transfer, you have to submit the documents to the new bank, along with whatever else they may ask for. This might include your KYC documents, income proof, a no objection certificate from the builder/developer if they are being repaid through the Home Loan.

The new lender will then verify all the information, and do a complete reassessment of your creditworthiness and property. Once the loan is sanctioned, the representatives of the two banks will meet. The new bank will hand over the cheque for foreclosing the old loan and the previous lender will hand over all the relevant documents to the new lender.
Now, your Home Loan is with the new bank and you can enjoy the benefits offered by the switch.

HOME LOAN TRANSFERS TO SBI, ICICI, HDFC BANKS – 

Usually, people look for Home loan transfer to the top most lenders in the market like :
SBI or State Bank of India
ICICI Bank
HDFC Bank

STATE BANK OF INDIA HOME LOAN BALANCE TRANSFER  – SBI is one of the most trusted banks in India and offers great benefits and advantages. The SBI home loan balance transfer scheme with a low-interest rate is one of them. The SBI is one of most convenient and easily accessible bank. SBI home loan balance transfer charges are Up to 0.35% of your outstanding loan amount (maximum ₹11,500) (one-time fee).

ICICI BANK HOME LOAN BALANCE TRANSFER : ICICI BANK is also one of the leading private banks in India. ICICI offers benefits like top-up loan amount up to 100% of the original home loan. Apart from this, ICICI bank offers to lure interest rate and simplified documentation. The ICICI home loan balance transfer charges are 0.5 % of your outstanding loan amount(Maximum. ₹11,500) (one-time fee)

HDFC BANK HOME LOAN BALANCE TRANSFER : HDFC BANK is one of the leading home loan providers in India. You get an option of the top-up load which doesn’t exceed Rs. 35 lacs on your current outstanding amount, The series of benefits by HDFC banks include lowered interest rate, customized repayment options, and simplified paperwork. HDFC home loan balance transfer charges are up to 0.5 % of your outstanding loan amount.

HOME LOAN BALANCE TRANSFER CHARGES FOR THREE MOST POPULAR BANKS:

SBI HOME LOAN BALANCE TRANSFER FEES

Processing Fee
  • 0.35% of the outstanding loan amount
  • Minimum Rs.2,000 or Maximum  Rs.11,500

ICICI BANK HOME LOAN BALANCE TRANSFER CHARGES

Processing Fee 0.5 % of outstanding loan amount or Maximum. ₹11,500 (One-time  fee)

HDFC HOME LOAN BALANCE TRANSFER CHARGES

Processing Fees •    For a self-employed professional it is Rs. 3000 or 0.50% of the outstanding loan amount, whichever is higher along with the taxes.

•    Self-employed non-professionals it is Rs.4,500 or 1.50% of the outstanding loan amount, whichever is higher, plus the applicable taxes.

Salaried individuals it is  Rs.3000 or 0.50% of the loan, whichever is higher, plus the applicable taxes.

 

COMPARATIVE ANALYSIS OF HOME LOAN TRANSFER OFFERS

BANK HOME LOAN TRANSFER INTEREST RATES PROCESSING FEES LOWEST EMI PER LAC FOR 30 YEARS
SBI 8.35% 0.50%
Minimum Rs. 10,000 – Maximum Rs. 10,000
Rs.758
ICICI 8.45% 1.00%
Minimum Rs. 5,000 – Maximum Rs. 5,000
Rs. 765
Bank of Baroda 8.40% 0.50%
Minimum Rs. 7,500 – Maximum Rs. 20,000
Rs. 762
HDFC 8.40% 0.50%
Minimum Rs. 10,000 – Maximum Rs. 10,000
Rs. 762
LIC Housing Finance 8.50% 0.50% Rs. 769
Union Bank of India 8.30% 0.50%
Maximum Rs. 15,000
Rs.755
Syndicate Bank 8.55% 0.13%
Minimum Rs. 500 – Maximum Rs. 5,000
Rs. 772
Axis Bank 8.40% Minimum Rs. 10,000 – Maximum Rs. 25,000 Rs. 762
DHFL 8.35% 0.50%
Minimum Rs. 2,500 – Maximum Rs. 20,000
Rs. 758
PNB Housing Finance 8.85% 1.00%
Maximum Rs. 10,000
Rs. 794
Indian Overseas bank 8.40% 0.53%
Minimum Rs. 8,900 – Maximum Rs. 13,350
Rs. 762
South Indian Bank 9.00% 1.00%
Maximum Rs. 10,000
Rs. 805
Federal Bank 8.95% 0.50%
Minimum Rs. 3,000 – Maximum Rs. 7,500
Rs. 801
Central Bank of India 8.45% 0.50%
Maximum Rs. 20,000
Rs. 765
United Bank of India 8.45% 0.59%
Minimum Rs. 1,180 – Maximum Rs. 11,800
Rs. 765
Canara Bank 8.65% 0.50%
Minimum Rs. 1,500 – Maximum Rs. 10,000
Rs. 780
Vijaya Bank 8.65% 0.50%
Minimum Rs. 1,000 – Maximum Rs. 20,000
Rs. 780
LT Housing Finance 9.90% 2.00%
Minimum Rs. 4,999
Rs. 870
Punjab and Sind Bank 8.40% 0.25%
Minimum Rs. 1,000 – Maximum Rs. 15,000
Rs. 762
IDFC Bank 8.65% Minimum Rs. 2,500 – Maximum Rs. 2,500 Rs. 780
Bank of Maharashtra 8.65% 0.50% Rs. 780
Reliance Capital 10.00% 1.00%
Minimum Rs. 3,000 – Maximum Rs. 6,500
Rs. 878
PNB 8.35% 0.50%
Minimum Rs. 20,000 – Maximum Rs. 50,000
Rs. 758
Syndicate Bank 8.55% 0.13%
Minimum Rs. 500 – Maximum Rs. 5,000
Rs. 772

HOME LOAN BALANCE TRANSFER EMI CALCULATOR :  

Before opting for a balance transfer, calculate your EMI, as per the interest rate and tenure. Switch homes only when you make really a prominent impact. Do your math and then enjoy the benefits. Make sure you are on the right path. Use Loanyantra’s balance transfer calculator and choose your lender.

http://loanyantra.com/Balance-Transfer-Calculator.aspx#Balance-Transfer-Calculator

HOME LOAN BALANCE TRANSFER AND CO-BORROWER : 

While you refinance your home or look of balance transfer, your chosen lender will also look for your credit score. At the same time, the lenders look for your co-borrower’s credit score too. So, carefully choose and your co-borrower while you opt for loan balance transfer.

How to add a co-borrower when you refinance a home?

HOME LOAN BALANCE TRANSFER FOR NRIs – 

Home loan balance transfer for NRIs is also made easy as one can give the power of attorney to a reliable person. So, choose any lender and fulfil all the required steps and get the balance transfer from different banks done. Learn more –

Applying for Home Loan or Balance Transfer as an NRI / OCI/ PIO

LOANYANTRA.COM AND HOME LOAN BALANCE TRANSFER – 

Loanyantra.com is a name synonymous with providing simplified loan services to the people who are planning to buy home. Our one-stop solution web portal will guide you through home loan schemes, procedures, documentation and find out the best bank or NBFC that helps you avail loan at a lower interest rate. We will help you understand how much you can save in case you plan to do the home loan balance transfer and also find the right bank for the same. It is a great gate way to switch from an expensive loan to a lower interest rate. At Loanyantra we have helped many customers save money by helping them find a lender who offers lesser interest rate. To know more about how Loanyantra can help you, sign up with us today or just give  a missed call to 040-71011991. Know more how we manage your loan …

Online Quotes for Fresh Home Loan and Balance Transfer

 

 

 

Applying for Home Loan or Balance Transfer Home Loan as an NRI / OCI/ PIO

Applying for Home Loan or Balance Transfer Home Loan NRI / OCI/ PIO

Most of the times, its a dream for NRI to buy a property in his/her home town or clear existing home loan before they return India. We come across NRI/OCI/PIO buying property in India very frequently. There are a lot of doubts which seem to be repeated by most clients.

This blog would give an insight of the process so that one can avoid errors and rework.

Process for Non Residents Indian / Person of Indian origin PIO or Overseas Citizen of India  OCI for Home loan application.

NRI OCI PIO Home Loans
NRI Home Loan Balance Transfer

HOW TO APPLY FOR NRI BALANCE TRANSFER HOME LOAN ? 


First Step is to Decide the Power of Attorney (POA) Holder

The first step for any NRI/OCI/PIO is to decide who would be the POA holder. He/she has to be a blood relation residing in India preferably in a metro like Bangalore,Hyderabad, Mumbai, Mysore, or Pune.

Most of the banks ask for a Co-applicant. Your blood relative in India that is your parents/spouse can be a co applicant. You also need to convey the property ownership details .

In case you are buying in joint name i.e either your spouse / parents, he /she would have to be on the loan as a co applicant.

Please note the POA holder is the person who would be called in case you delay/ default on our loan.

Power of Attorney(POA)

The most crucial document you need to execute is the POA in the format of Bank that you are applying for the home loan. Each Bank has its own format for the Power of Attorney.

Do not execute a generic general power of attorney as most banks refuse to accept the same for the application. Once you have the power of attorney format of the bank that you wish to avail home loan from since you would be executing the POA outside India, you need to visit the Indian Embassy and complete the process.

In case your co applicant is an NRI you would need to execute POA for him/her also. Both POAs can be given to the same relative in India.

Please get the Power of Attorney checked from your banker before notarizing it from the embassy. Any errors can be rectified.

Kindly note that the POA attracts a fee in the embassy as well as here in India. In India you need to affix a Rs 500 stamp paper and get the documents notarized.

Kindly note in case there are any errors / gaps in the POA you waste a lot of time, energy and money because the entire exercise has to be repeated.

For Property Registration

The power of attorney you have executed for the bank can also be used for the registration of the property document. However you need to get the same checked from the developer from whom you are buying property.

All the income and personal documents as per the list have to be self attested by you (signed by you/POA holder) when you despatch the same to India.

Kindly also provide your overseas address proof which can be your employer’s letter in original.

You need to provide following documents attested by Indian Embassy : PAN CARD COPY, PASSPORT COPY and Overseas Residence proof

WHAT TO SUBMIT FOR NRI BALANCE TRANSFER HOME LOAN ?

List of Documents for NRI

  • Photo of Applicant and co-applicant
  • Latest 4 months salary slip
  • Appointment letter
  • Increment letter with salary breakup
  • Address proof
  • Previous work experience letter
  • Pan card copy & Passport copy
  • Processing fees cheque from NRE account
  • Co-applicant photo ID proof and sign Proof ( Pan Card ,Passport, Driving License copy)
  • Employment contract (English copy if the contract is not in English, attested by the Embassy/Employer).
  • Latest work permit.
  • Details of previous employment.
  • Identity card issued by current employer.
  • Bank Account Statement For Salary & Saving a/c (six months).NRI,NRO A/C
  • Pages with visa stamp on the passport.
  • Power of attorney For Bank Format
  • Pan Card Copy, Address proof, Photo for POA holder
  • Detailed credit report from Equifax / Experian

Credit Report

A credit report is a mandatory document for NRI/OCI/PIO US/UK/European countries, Australia, New Zealand and South Africa.

The credit report is not required for professionals working in the Middle East

Please download a detailed credit report which would clearly state your credit score. Most of the times you would have to pay fee to download the credit report. the credit reports available free of cost do not provide detailed credit history and might not provide the score.

WHERE TO PROCESS FOR NRI BALANCE TRANSFER HOME LOAN ?

We would recommend to process with Bank or institution which is providing Online Access to monitor, manage and allow part payments online. Most of the banks provide online access. So make sure you collect all the required online access details at the end of Loan process. We, at Loanyantra as part of process checklist, make sure our customers get the required online access to the loan process.

WHOM TO APPROACH FOR NRI BALANCE TRANSFER HOME LOAN?

NRI/OCI/PIO Loans if not professionally handled it might be very cumbersome job. It is always good to be ready with all the documents before starting the Home Loan process. In case of additional documents required then it would take extra money to send , extra time it would take to receive and extra efforts by the  Power of Attorney(POA) to submit the documents. We would recommend, use services from a prompt loan professional to process it smoothly. Loanyantra.com, India’s first online loan management company, a reliable and perfect source if you are looking for a smooth process.

In a hawk’s eye, Loanyantra provides professional service at free of cost. As our process protocol, we first send entire checklist and have a professional call before we start the process. Once the process starts you get online access on Loanyantra portal which would update the status of the Loan process and it provides a chat facility between you, Loanyantra executive appointed for your process and the Banker. We make over all experience a cake walk.

Online Quotes for Fresh Home Loan and Balance Transfer

It’s a new world, the systems of various sectors have changed a lot and people are now having plenty of avenues in fulfilling their dreams, such as; buying of homes, cars, appliances, dresses, gadgets, furnishings etc., which can now be bought with different kinds of financial instrument by banks and financial institutions. Home is a lifetime aspiration of any person and makes the biggest investment, however, the resource mobilization for the same is always been a point of worry until recently, but nowadays there are several banks and financial institution, who used to provide financial support in the form of housing loan, which is considered a great help for any intended buyer of home. Although there are some differences in technicalities and other features, which vary from bank to bank, but some important issues are almost same in all cases.

Online Quotes for Fresh Home Loan and Balance Transfer

Home loan and Other Features

Home loan is now one of the strongest tools for commercial banks and other such financial institutions as an important means of revenue generation. Banks are usually having some standard products or packages of home loan, at the same time; they make necessary changes in their existing packages or in the interest rates to woo potential customers. In the earlier times, the client used to visit the bank to discuss the finer details of the available home loans and other issues, but nowadays, due to stiff competition banks are providing a more comfortable way for their clients and their personnel visits the customer’s place to get the business. The advents of the computer and the internet technology have opened up the scopes for the banks, as well as, for the buyer to get all relevant issues through the online mechanism.

While the respective bank’s website provides useful information about the home loan, but usually a potential buyer always tries to compare other probabilities from other banks, which will be helpful for them to select the best loan program, as per their specific requirements. There is another mechanism, known as the online marketplace for home loans and related issues; where one can find multiple offers of various banks, including rates of interest, riders, loan repayment facilities, flexible EMIs, prepayment modalities etc., which are quite helpful for any customer to formulate a comparative idea about the issue.

Balance Transfer

If a person, after some time, feels that the interest rates and other terms & conditions are not very lucrative, whereas, there are some other banks, who are providing very supportive and beneficial offers, he can opt for the transferring of the existing loan from the present bank to the other bank for better profit. The relevant information, regarding specific issues of balance transfer of the existing loan, can be obtained in the online marketplace, where the person can get the competitive rates and terms, which are of great help in finalizing the decision of the intended transfer. One of the most imperative supports can be attained in the online marketplace of home loans; the eligibility test of the person concerned, which is a real benefit for taking the decision.