SBI Loan Against Property

SBI Loan Against Property 

A dream come true! An ALL PURPOSE LOAN for many thing that life throws up at you!! Do you need funds meeting expenditure on education, marriage, healthcare etc. A simple undertaking in the application itself and no documentary evidence for end use of the fund to be insisted upon. Employees, professionals and Self employed individuals who are IT assesses and NRIs who own residential property or commercial property in his/her own name or in the name of spouse/children/parent/sibling

 

SBI Loan Against Property Advantage
  • Complete transparency in operations
  • Personal loan to individual owners of residential home/flat and select commercial properties
  • Access this loan from wide network of branches all over India.
  • Interest rates are levied on a daily reducing balance method.
  • Lowest processing charges. Also, no processing fee period at times.
  • Rental income in select cases also considered for loan eligibility.
  • No prepayment penalties. You can repay and reduce the interest whenever you have surplus funds.

SBI Loan Against Property Scheme 

A personal purpose loan against mortgage of your residential and/or select commercial property.

SBI Loan Against Property Purpose
Any personal purpose other than speculative purpose.

SBI Loan Against Property Eligibility
You are eligible if you are:

A. An individual who is;

  • An Employee or
  • A Professional, self-employed or an income tax assesses or NRIs (Who has residential property or commercial properties in his own name or in the name of spouse / children/parent/sibling)

B. Minimum net monthly income of Rs. 25000/- (or Rs. 3 lacs per annum)

C. Loan under LAP should be liquidated before eldest borrower attain the age of 70 years.

SBI Loan Against Property Features

Loan Amount

Minimum Loan Amount : Rs.10 Lacs

Maximum Loan Amount : Rs.7.5 crores. subject to location of property

Processing Fees

1% of the loan amount plus service tax, maximum of Rs. 50,000/- plus Service Tax

Security

i) Equitable mortgage of the property

ii) In cases where the commercial properties are rented out on lease, equitable mortgage on the property will be created and assignment of rental receivable will be obtained. In addition a Tripartite Agreement / Irrevocable power of attorney is also required.

LTV Ratio

Loan Amount LTV Ratio
Upto Rs. 1crs 65%
Rs. 1 cr & upto Rs. 7.5 crs. 60%

Loan Tenor

Minimum – 5 Years

Maximum – 15 Years (*) Condition apply

EMI / NMI Ratio-

Maximum permissible EMI/NMI will be as below:

Net Annual Income EMI/NMI ratio
> Rs. 3 lacs<= Rs.5 50%
> Rs. 5 lacs <= Rs.10 lacs 55%
> Rs.10 lacs 60%

Maximum Age

Loan under SBI Loan Against Property should be liquidated before eldest borrower attains the age of 70 years.

 

SBI Loan Against Property Documents applicable :
  • Completed loan application
  • 3 Passport size photographs
  • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
  • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/
  • Property tax receipt/ Passport/ Voters ID card)
  • Proof of business address for non-salaried individuals
  • Statement of Bank Account/ Pass Book for last six months
  • Signature identification from present bankers
  • Personal Assets and Liabilities statement

For guarantor (wherever applicable):

  • Personal Assets and Liabilities Statement
  • 2 passport size photographs
  • Proof of identification as above
  • Proof of residence as above
  • Proof of business address as above
  • Signature identification from his/her present bankers

Additional documents required for salaried persons :

  • Original Salary Certificate from employer
  • TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt.

Additional documents required for Professionals/self- employed/ other IT assesses:

  • Acknowledged copies of three years I.T. returns/ Assessment Orders.
  • Photocopies of challans evidencing payment of Advance Income Tax.
How Loanyantra Works With SBI

Loanyantra, India’s first online home loan management company, works with SBI to bring in a better customer relationship and a perfect interaction to get your work done on time. We are just a missed call away, find out all the details from us about your favourite bank by letting us know your requirement. We let you get the best service from SBI without you stepping out of your cozy home. Call know to get the royal service from SBI via Loanyantra.com 040-71011991.

 

PMAY by DHFL – Jan Awas Home Loan

PMAY by DHFL is brought to the customers in the name ‘Jan Awas Home Loans’

DHFL, the third largest home loan and housing finance company in India, always aims at reaching to its customers with great service and perfect information.

pmay by dhfl
Jan Awas Home Loans

Home is one of the primary needs of every human being. It is in a home that new dreams are nurtured & families are raised.

At DHFL, they vision to enable every Indian to own a home of your own. With the Government’s initiative under ‘Pradhan Mantri Awas Yojana’, DHFL introduces ‘Jan Awas Home Loans’ exclusively for Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) 1 & 2 customers under Credit Linked Subsidy Scheme (CLSS). This Scheme is in-line with the Govt. Of India’s initiative “Housing for all by 2022” & aims to make the dream of owning a house for thousand a reality. The product is to target EWS, LIG and MIG 1 and MIG 2 customers in the urban market. First time home buyers i.e. a household who does not own, at present, any pucca residential house in India and wishes to buy a dream home for his/ her stay may avail the benefit under this scheme.

Features And Benefits of PMAY by DHFL – Jan Awas Home Loans

  1. Loan Amount: For EWS and LIG, avail a Home Loan of up to ` 25 lacs including insurance, and for MIG avail a home loan up to ` 140 lacs including insurance (minimum loan amount ` 50,000 excluding insurance).
  2. Tenure & Term: The tenure of your Home Loan ranges from 1 to 30 years. The term, however, does not extend beyond the retirement age or 60 years, whichever is earlier (70 years for self-employed individuals).
  3. Purpose: Credit Linked Subsidy will be available for housing loans availed for new/ resale purchase of home, construction loan for all segment and additionally for EWS/ LIG, extension / improvement of rooms, kitchen, toilet etc., to existing dwelling can be done.
  4. Interest Subsidy: For EWS and LIG, the credit linked subsidy will be available only for loan amounts up to ` 6 lacs and such loans would be eligible for an interest subsidy at the rate of 6.50% p.a. (Approx. ` 2.67 lacs), for tenure of 20 years or during the tenure of loan whichever is lower, to the eligible customers under the scheme.* For MIG 1 customers, subsidy will be applicable for loan amounts up to ` 9 lacs and such loans would be eligible for an interest subsidy at the rate of 4% p.a. for tenure of 20 years. For MIG 2 customers, subsidy will be available for loan amounts up to ` 12 lacs and such loans would be eligible for an interest subsidy at the rate of 3% p.a. for tenure of 20 years.
  5. Processing Fees: Nil**
    Processing Fees on loan amount as per maximum subsidy applicable (as per customer applicability) to be refunded once claim is received from NHB.
  6. Easy Repayments: You have 2 options for repayment of the loan based on the EMIs payable on your Home Loan
    1. Through ECS (Electronic Clearing Service) based on standing instructions to your bank.
    2. Post Dated Cheques (PDCs) drawn on your Savings/Salary account.
  7. Home Loan Tax Benefits: Resident Indians are eligible for certain tax benefits on principal and interest components of a home loan. As per Income Tax Act 1961 rules, the current applicable exemption under section 24(b) is ` 2,00,000/- for the interest amount paid in the financial year and up to ` 1,50,000/- (under section 80 C) for the principal amount repaid in the same year.
  8. Applicant and Co-Applicant: Home Loans can be applied by an individual. The loan amount can be further enhanced by including an earning co-applicant. Female property ownership mandatory for EWS/ LIG category and not mandatory for MIG category.

*Terms and conditions apply.
**Other charges as applicable will be required to be paid for availing the Loan

Eligibility For PMAY by DHFL – Jan Awas Yojana

  1. First-time home buyers who will be the end users
  2. Female property ownership mandatory only for EWS/ LIG and not mandatory for MIG 1 & MIG 2 category (for EWS/LIG customers, only in cases when there is no adult Female member in the family, the property can be in the name of male member of the household, or in cases of construction loan, if land is purchased before the scheme start date, the property may be in the name of male member of household).
  3. Loan applicant should not have availed any central or state government subsidy or benefit for housing under PMAY.
  4. Individual loan applicant should not own property under his or her name at present & along with any of the family members including dependants.
  5. Not applicable on renovation or improvement loans for MIG.
  6. Property should be in urban areas basis 2011 census.
  7. Customer Category
Economically Weaker section
(EWS)
Low Income Group
(LIG)
Middle Income Group 1
(MIG 1)
Middle Income Group 2
(MIG 2)
Household Income in ` Annual Family income up to
` 3.00 lacs
Annual Family income from
` 3.01 to
` 6.00 lacs
Annual Family income from
` 6.01 to
` 12.00 lacs
Annual Family income from
` 12.01 to
` 18.00 lacs
Subsidy 6.50% 4.00% 3.00%
Scheme Validity 2022 1 year from January 2017
Maximum Loan Amount (on which subsidy is available) ` 6 lacs ` 9 lacs ` 12 lacs
Maximum Tenure 30 years 30 years

Subsidy Advantage Under PMAY by DHFL – Jan Awas Home Loan

 

Example Example 1 Example 2 Example 3
Value of the property Rs.6,70,000 Rs.10,00,000 Rs.13,50,000
Loan to value 90% 90% 90%
Loan amount Rs.6,03,000 Rs.9,00,000 Rs.12,15,000
Loan duration 20 20 20
CLSS Subsidy at 6.50% for 20 years

(PMAY – EWS and LIG)

Rs.2,67,280 Rs. 2,67,280 Rs. 2,67,280
CLSS Subsidy at 4.00% for 20 years

(PMAY – MIG 1)

Rs.1,57,496 Rs.2,35,068 Rs.2,35,068

 

CLSS Subsidy at 3.00% for 20 years

2,30,000 (PMAY – MIG 2)

Rs.1,15,653 Rs. 1,72,061 Rs.2,30,156

 

Documentation for PMAY by DHFL – Jan Awas Home Loans 

No. Document Name
1. KYC Documents & Photograph for all applicant.
Aadhar is mandatory for all applicants.
2. For Salaried: Salary slip or Certificate & updated bank statement
For Self Employed: Income Tax Returns with other financial of last two years and bank statement.
3. For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant will submit self-certificate/affidavit as proof of income.
4. Customer declaration undertaking
5. Additional Jan Awas Application form

PMAY by DHFL – Jan Awas Home Loan Via Loanyantra – 

Planning to buy a home? If you had short-listed DHFL as one of your home loan finance options, we are with you at the knock of your door to fulfill a smoother process. Getting into loan with loanyantra is not just availing home loan but also managing your loan till the end. Loanyantra will also ensure you get the loan for the required from the best fit banks or housing finance companies.

Plan your loan well with the subsidy scheme and close it earlier than expected.

PMAY by Indiabulls homeloan

Indiabulls home loan, one of the leading housing finance companies is at par with the SBI and the private gaints ICICI and HDFC banks in reducing the interest rates on home loan and also making the home loans easier and accessible to the customers.

Here we go with more details on the Pradhan Mantri Awas Yojana- Credit Linked Subsidy Scheme by Indiabulls.

CREDIT LINKED SUBSIDY SCHEME
The Pradhan Mantri Awas Yojana (PMAY) Credit Linked Subsidy Scheme (CLSS) is a scheme launched by our honourable Prime Minister Shri Narendra Modi for the Economically Weaker Section (EWS) and Low Income Group (LIG) of people. Through this scheme, the beneficiary is eligible to avail interest subsidy on the purchase/construction of a house. The PMAY by Indiabulls home loan scheme is also available for the enhancement of a dwelling unit.
SALIENT FEATURES OF CLSS
  • Interest subsidy of 6.50%* p.a. up to a loan amount of ₹6 lakh for 15 years or the actual term, whichever is lower, credited upfront
  • Actual subsidy amount credited is as approved by the National Housing Bank (NHB)
  • Family income should not exceed ₹6 lakh p.a.
  • Family means husband/wife/unmarried children
  • Applicable for customers who are purchasing/constructing their first home. The beneficiary family should not own any home in their name
  • The carpet area should not exceed 30 sq. mt. for EWS (Income upto ₹3 lacs PA) and 60 sq. mt. for LIG (Income up to ₹6 lacs PA)
  • The construction/extension must be completed within 36 months
  • Woman has to be owner/co-owner of the property.
PMAY by Indiabulls homeloan
PMAY-CLSS by Indiabulls
Celebrate the joy of belonging to your OWN home! Begin your own story and create memories in a place you can call your ‘own’. Indiabulls Home Loans provide the most convenient home loan at the most attractive interest rate.
Indiabulls Home Loan Via Loanyantra – 

Loanyantra, a one stop solution for all your needs, is always a perfect guide for you at any stage. Let us know your home loan plan and we will suggest you the path to take. If you meet the criteria for the PMAY-CLSS scheme, and if you wish to get home loan from Indiabulls, we are here, as we partner with Indiabulls home loans, to get things done faster and exactly according to your plan.

PMAY by HDFC bank

pmay by hdfc bank
PMAY by HDFC – Go via Loanyantra

Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana (URBAN)-Housing for All, for purchase/construction/extension/improvement of house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income Group (MIG), given the projected growth of urbanization & the consequent housing demands in India.

Here are the FAQs on the scheme by HDFC bank.

1Q. Who Can Avail Subsidy Under Credit Linked Subsidy Scheme (CLSS)?

1A. A beneficiary family not owning a house in any part of the India is eligible for this subsidy subject to income criteria as defined for the family.

2Q. What Is The Definition Of Beneficiary Family?

2A. The beneficiary family will comprise husband, wife and unmarried children. (An adult earning member irrespective of marital status can be treated as a separate household in MIG category)

3Q. What Are The Income Norms For EWS, LIG And MIG Categories?

3A.

CLSS Scheme Type Eligibility Household Income ( Rs.) Carpet Area-Max (sqm) Interest Subsidy (%) Subsidy calculated on a max loan of Loan Purpose Validity of scheme Max Subsidy (Rs.) Woman Ownership
EWS and LIG Upto Rs. 6,00,000 60 sqm 6.50 % Rs. 6,00,000 Purchase/Self Construction/Extension 31/03/2022 2.67 Lacs Yes *
MIG 1 ** Rs. 6,00,001 to Rs. 12,00,000 90 sqm 4.00 % Rs. 9,00,000 Purchase/Self Construction 31/12/2017 2.35 Lacs Not Mandatory
MIG 2 ** Rs. 12,00,001 to Rs. 18,00,000 110 sqm 3.00 % Rs. 12,00,000 Purchase/Self Construction 31/12/2017 2.30 Lacs Not Mandatory

* woman ownership is not mandatory for construction / extension

**for MIG – 1 & 2 loan should be approved on/or after 1-1-2017

4Q. Is This Applicable For Properties In Rural Areas?

4A. No.

5Q. Is Woman Ownership Mandatory To Be Eligible For This Subsidy?

5A. Woman ownership or co-ownership is mandatory for EWS and LIG. However, this condition is not mandatory for self construction/extension or MIG categories.

6Q. What Is The Process Of Claiming Interest Subsidy?

6A. After the loan is disbursed, the required details are sent by HDFC to NHB for validation of data and other checks. NHB after necessary due diligence approve the subsidy to eligible borrowers.

7Q. How Will I Receive The Interest Subsidy Benefit?

  1.  After the loan is disbursed, the HDFC will claim subsidy for eligible borrowers from National Housing Bank (NHB).
  2. NHB after due diligence would approve & credit the subsidy amount to HDFC for all eligible borrowers.
  3. The subsidy will be calculated on the NPV (Net Present Value) method at a discount rate of 9%.
  4. On receipt of subsidy amount from NHB , same is credited to respective home loan account of the borrower and EMI is reduced proportionately.

8Q. What Happens When The Subsidy Has Been Disbursed But Due To Certain Reasons, The Construction Of The House Is Stalled?

8A. In such cases, the subsidy is to be recovered and refunded to the Central Government.

9Q. Can A Beneficiary Family Get A Loan Term Beyond 20 Years?

9A. Yes, beneficiary can avail a longer term beyond 20 years as per HDFC credit norms but the subsidy will be restricted to a max term of 20 years.

10Q. Is There Any Limit On The Loan Amount Or The Cost Of The Property?

10A. No, but the subsidy will be limited to the loan amount defined against each category and additional amount will be at non- subsidized rate of interest.

11Q. How Will The Interest Subsidy Work In Case I Transfer My Home Loan To Another Lender?

11A. In case a borrower who has taken a housing loan and availed of interest subsidy under this scheme but later on switches to another lending institution for balance transfer, such beneficiary will not be eligible to claim the benefit of this scheme again.

12Q. Where Can I Apply For Credit Linked Subsidy Scheme (CLSS)?

12A. You can apply for housing loan under CLSS at any HDFC branches.

13Q. Do I Have To Give Any Additional Documents To Avail This Subsidy?

13A. No, there are no additional documents except a self declaration of not owning a pucca house in the format as available in HDFC offices.

14Q. Can NRI Avail PMAY by HDFC bank?

14A. Yes.

PMAY by ICICI bank

pmay icici bank home loan
home loan under pmay scheme

Pradhan Mantri Awas Yojana, PMAY by ICICI bank provides more information about the scheme.The scheme was announced by our Honourable Prime Minister Narendra Modi and envisages the vision of housing for all by the year 2022.

Know more by following the below FAQs on PMAY by ICICI bank.

1Q. Who can avail Pradhan Mantri Awas Yojana PMAY under credit linked subsidy scheme?

1A.  A beneficiary is defined as:

  • A family comprising of husband, wife and unmarried children
  • Beneficiary should not own a pucca house either in their name or in the name of any member of their family in any part of India to receive central assistance under the Mission
  • Meeting income criteria defined under the scheme.

2Q. What is Pradhan Mantri Awas Yojana Credit linked subsidy scheme?

2A. Credit Linked Subsidy, is a scheme launched by our honourable Prime Minister Shri Narendra Modi for Economically Weaker Section (EWS) and Low Income Group (LIG). The beneficiary would be eligible for interest subsidy on purchase/construction of a house. The scheme is also available for enhancement of a dwelling unit.

3Q. What is the interest rate subsidy and the loan amount for PMAY?

3A. Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking housing loans would be eligible for an interest subsidy at the rate of 6.5% for a tenure of 15 years or during tenure of loan whichever is lower on the initial Rs. 6 Lakh. Any additional loan/s beyond Rs. 6 Lakh, will be at nonsubsidised rate.

4Q. How will you receive the interest subsidy benefit under PMAY ICICI bank?

4A. The bank will claim subsidy benefit for eligible borrowers from National Housing Bank (NHB). The NHB will conduct a due diligence to exclude claims where customer has submitted multiple request. For all eligible borrowers, the subsidy amount would be paid to the Bank. Once the bank receives the interest subsidy, it will be credited upfront to the Loan Account. The subsidy will be calculated on NPV basis at the rate of 9% discount rate.

For example, the borrower avails a loan for Rs. 8 Lakh and the subsidy works out to Rs. 2,20,000. The amount (Rs. 2,20,000) would be reduced upfront from the loan (i.e., the loan would reduce to Rs. 5,80,000) and the borrower would pay EMIs on the reduced amount of Rs. 5,80,000.

*The above example is for illustration purpose only and will depend on the actual amount received or any changes done by NHB on the same.

5Q. Is there any loan amount limit on PMAY by ICICI bank?

5A. No, there is no loan amount limit under this category of loans by ICICI bank.

6Q. What are the norms for EWS and LIG categories?

6A. The income norms for EWS/LIG categories are defined as follows:

  • EWS households with an annual income up to Rs. 3 Lakh
  • LIG households with an annual income between Rs. 3 Lakh to Rs. 6 Lakh

7Q. Where can you apply for credit linked subsidy scheme?

7A. You can apply for Housing Loan under CLSS at any ICICI Bank branch.

8Q. Do you have to give any additional documents to avail Pradhan Mantri Awas Yojana, PMAY by ICICI Bank?

8A. Just one additional document of declaration of not owing a pucca house in your name.

9Q. If you are a self-employed with a small business, can you avail Home Loan under Pradhan Mantri Awas Yojana, PMAY in ICICI Bank?

9A. Yes, you can avail this facility, if you qualify for the income criteria defined under this scheme.

Illustration:  Pradhan Mantri Awas Yojana, PMAY,  is a government subsidy scheme for families buying their first house, though there is no upper Loan Amount and Tenure cap for the scheme, however the subsidy benefit would be available on the initial Rs. 6 Lakh. It would be computed at a rate of interest of 6.5% p.a on a maximum amount of Rs. 6 Lakh or the loan amount whichever is lower for 15 years tenure with discounting rate of 9%. For 6 Lakh the interest subsidy comes to around Rs. 2,20,000. Hence an upfront subsidy of Rs. 2,20,000 would be claimed by the bank from NHB and the same would be adjusted against the outstanding amount in the Loan Account. The loan outstanding would reduce and result in lower EMI of approximately Rs. 2,000.

10Q. What is the size of dwelling units under Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana?

10A. The Credit Linked Subsidy is available for housing loans availed for new construction and addition of rooms, kitchen, toilet, etc. to existing dwellings as incremental housing. The carpet area of houses being constructed under this component should be up to 30 sq. m. for EWS category and up to 60 sq. m. for LIG category. However, the beneficiary can construct a bigger house.

Home Loan Interest Rates May 2017

SBI slashes home loan interest rates and yet again intensifies competition among the lenders by reducing the home loan interest rates by 25 basis points.

ICICI and HDFC, the prime private lenders followed SBI for a further reduction of home loan interest rates basis points.

Indiabulls, one of the largest financial institute, takes the same path as the pioneers SBI, ICICI and HDFC.

For loan upto Rs. 30 lakh, pay 8.35% home loan interest rate, if you are a women borrower and 8.4% for others. For loan from Rs. 30 lakh to Rs. 75 lakh, pay 8.5% for women and 8.55% for others; for above Rs. 75 lakhs, pay 8.55%.

The ICICI Bank allows the weaker section to avail dual benefit of low interest rate and credit linked subsidy under the Pradhan Mantri Awas Yojana

Get more discount on home loans from your favorite banks. Go via Loanyantra to the most recommended banks in India to avail the lowest  home loan interest rates ever.

Whether it is a new home loan or a balance transfer, we plan it for you to save the maximum on your home loan. Know more tips and suggestions for free, on home loan and its management.

Follow this link and check your eligibility and get the lowest home loan interest rates

http://loanyantra.com/Home-Loan-Calculator.aspx#Home-Loan-Eligibilty-Calculator

Click the link below to manage your loan

http://loanyantra.com/ManageMyLoan.aspx

If you are paying more than 8.5% home loan interest rate on your home loan, look for balance transfer

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

It is time to enjoy the benefits of low home loan interest rates. Never wait for your dream home. Think positive, choose an affordable house and avail all the benefits in home loan.

Home Loan For Women Borrowers

Loan for women borrowers– new focus area of banks/ financial institutes.

Home loan for women borrowers
Women Borrowers – Lower Interest Rates

Home loans have become a popular way for the buyers to buy a new house; however, it has been observed that lately there has been a rising inclination of banks/financial institutes to motivate home loan for women. Successive measures by government and banks to encourage women empowerment and including women in all spheres of financial decision is a step in the direction of making women financially secure.

Some basic documents and criteria of loan for women borrowers:  
  • Loan application form
  • Passport size photographs
  • ID proof like voter ID, PAN Card, Adhar Card Driving Licence
  • Residence Proof like utility bills (electricity, telephone, water etc.)
  • Those women who are not salaried employees, they need to submit business address proof
  • Bank statement of last six months
  • Completed loan application
  • Passport size photographs
  • Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
  • Residence proof (photo copies of recent Telephone Bills/ Electricity Bill/
  • Property tax receipt
  • Personal assets and financial liabilities statement
  • Details of other loans if any
  • A woman must be either the sole applicant or a co-applicant.
  • The property for which then loan has to be sanctioned should in the name of the woman applicant or she should be the first owner.

Special bank accounts for women, concessional rates and special loans for women borrowers, all directed in the direction to motivate women home buyers.

Let’s have an understanding about the special privileges that a woman home loan borrower gets from the bank / financial institutes :
  • Lower interest rate – The rate of interest levied on a home loan by banks or financial institutes is lower for women. It is lower by atleast 0.05%. For example : SBI has the scheme of HER GHAR, HDFC has scheme of WOMAN POWER
  • Better probability of home loan application being accepted – Under the guidelines of Pradhan Mantri Awas Yojana, preference is to be given to women. Widows, single working-women, persons belonging to scheduled castes and scheduled tribes, backward classes, differently abled and transgender people will be given preference. Women borrowers are perceived as less risky by banks and HFCs and hence they hold a better chance of getting their loans approved. Banks do consider other factors like credit score and documents before approving the home loan.
  • Lower stamp duty charges – In some states, if a property is bought in the name of a woman, the stamp duty levied is lower compared with what’s applicable for a man. For instance, in New Delhi, a woman has to pay 4% stamp duty compared with 6% for a man. This is also true in case of conversion of a property from leasehold to freehold, and in case of gifts.

One of the conditions as eligibility criteria for many banks for loan approval is presence of home loan co-applicant. Co-applicant is basically a person who acts as a guarantor and shares equal responsibility of repaying loan as the main applicant. Banks nowadays are insisting on having a co-applicant without educating the customer about its repercussion and legal liabilities. In case of women borrowers having a co-applicant increases your eligibility to avail high amount of loan but at the same time this can pose a few risks like:

    • Dispute between husband and wife – In cases where you have your spouse as a co-applicant but not the co-owner, you can face the problem of repayment of EMI. This is applicable vice-versa. Any kind of dispute in the future leaves the co-applicant male or female in a mess.
    • Asset risk of the co-applicant – In case the primary applicant fails to repay the EMIs, the burden falls on the co-applicant. Whether you are the co-owner or not you have to repay the loan.
    • Reduced credit eligibility- Being a co-applicant reduces your credit eligibility up to 50% which may impact your future loan applications.

Although, being a co-applicant poses some disadvantages it has some benefits too like:

  • Eligibility for higher amount – Having a co-applicant makes you eligible to apply for home loan of a bigger amount.
  • Tax Benefits –As per Income tax Act, 1961, you reap the tax benefits. Joint ownership can be beneficial if both the spouses take home loans as each can claim tax deduction for the interest paid on loan.

Note : It depends on the mutual understanding of the applicant and co-applicant; however, there is a legal way out for it. You can sign a document which clearly shows the liability of both and this can be executed on a stamp paper and should be notarized.

Loanyantra special cutter pack of home loan for women borrowers:

There are many companies offering loan for women borrowers but it is important that you are through with the legal aspects of the home loan. Loanyantra is a one stop shop solutions for your entire home loan requirement. You can easily connect with us and we suggest you how you can reap the maximum benefit out of the special home loan schemes for women. Moreover, Loanyantra also offers a discount of 0.01% on the home loan interest rate which is a discount on the bank / financial institutes interest rate.

Plan your home loan well and close it early. Get in touch with us today.

Home Improvement Loan Vs Top-up Loan

Home loan is a crucial one when you go for your dream home.

It is always important to beautify your home to add more happiness. For such kind of necessities, you need to work on your financials again after paying the down payment and after you start your EMI for your home loan. Home Improvement Loan is one such loan to fulfill all your needs.

The interiors of your house reflect your personality and to constantly upgrade it in terms of looks and convenience, all the banks and housing finance companies provide Home Improvement Loan.

Home Improvement Loan covers-

  • Complete renovation of already owned residential property
  • Upgradation
  • Repair of your house/flat
  • External & internal repairs/paint
  • Water-proofing & roofing
  • Tiling and flooring
  • Plumbing & electrical work
  • False ceiling & woodwork (fixed to the building)

What you should know about Home Improvement Loan :

  • The rate of interest usually is same as for home loan.
  • 80% of the property value is the maximum amount valid for home improvement loan.
  • Repayment period is same as for home loan.
  • You can repay the loan even before the tenure but check for repayment fees.
  • You can claim tax deduction when you are in home improvement loan. Both the co-borrowers can claim deduction.
  • Banks do not provide home improvement loan for a property which is older than 35 years.
  • Pay processing fees.

There is also an extensive range of home loan products like Home Purchase Loans, Home Construction Loans, Home Extension Loans, Home Improvement Loans and Plot Loans.

One will always think of top-up loan when in need of money.  Top-up loan is used when there is an immediate financial need. It is always recommended to go for a top-up loan if you are already in a home loan.

Everybody aims for a higher growth. For the steps to go forward in life, you might need a lump-some cash anytime. For such reasons exists, top-up loan on home loan.

Top-up Loan covers :

  • House renovation
  • Medical
  • Marriage
  • Education
  • New investment
  • To repay any other debt

What you should know about top-up loan : 

  • You can avail top-up loan only if you have an existing home loan.
  • The rate of interest usually is 0.5% – 1.00% more than the home loan interest rate.
  • 80% of the property value is the maximum amount valid for top-up loan.
  • The eligibility is based on your credibility and other loans.
  • Repayment period is same as for home loan.
  • You can repay the loan even before the tenure but check for repayment fees.
  • You can claim tax deduction when you are in home improvement loan. Both the co-borrowers can claim deduction.
  • Need to pay processing fees.

Everything is similar when you compare home improvement loan and top-up loan. If you have to choose one, give yourself the ratings for both the loan types based on the interest rate. Also, if you foresee any future financial necessity other than home renovation, it is better go for a home improvement loan when you are in need of any home remodeling.

Loanyantra helps you build the bridge between you and banks/financial institutes. To get a hassle-free guidance and home loan help, we are just a missed call away. Plan your loan well and close it early. Invest more and earn more.

 

Real estate bill 2016 – What you should know.

The real estate sector in India has always been looked upon as an unorganized sector governed by diverse state laws and particularly lacking the transparency and accountability of the promoters/developers to the buyers vis- a- vis the completion of the projects resulting in delays on committed schedules. To protect the interest of the buyers and infuse some uniformity in these diverse state enactments, the Government of India has recently passed the Real Estate Regulatory Act, 2016 (“Act“) which seeks to protect the interest of the buyers of residential and commercial real estate units by promoting transparency, accountability and efficiency in the construction and execution of real estate projects by developers/promoters. The major portions of the Act have been made effective from May 01, 2017 kick-starting the process of making rules as well as putting in place institutional infrastructure to protect the interests of the consumers.

One of the major requirements under the Act is the compulsory registration of every project by developers/promoters with Real Estate Regulatory Authority (RERA) including those that have not got completion or occupancy certificates. The Act contains several provisions to address the lacunae in the real estate sector, largely by way of establishing a disclosure framework and setting strict liabilities for promoter irregularities.

real estate bill
Real estate bill

Set out below are the major changes or introductions envisaged by the Act:

Registration with Real Estate Regulatory Authority: Registration has been made mandatory for all the real estate projects with the RERA, if the total area of land proposed to be developed exceeds 500 square meters or if more than eight apartments are proposed to be developed inclusive of all phases. Projects cannot be advertised, booked or sold in any form prior to registration and obtaining the necessary construction approvals. Real estate agents are also compulsorily required to obtain registration from RERA.  RERAs shall be established within a period of one year and till the time being the Government will be specifying the relevant authorities for the purpose of registration under the Act.

Legal & Commercial Restrictions on the Promoters/ Developers:

  • Any transfer or assignment of majority rights and liabilities by the promoter to a third party is subject to prior written consent from two-thirds of the allotees and RERA.
  • The promoter is prohibited from creating any charge or encumbrance on any apartment after executing an agreement for the same.
  • The promoter is responsible for structural defects or other deficiencies for a period of 5 years from the date of delivery of possession.
  • The promoter cannot make any addition or alteration in the approved and sanctioned plans, structural designs, specifications and amenities of the apartment, plot or building without the previous consent of the allottee and 2/3 rd of the allotees in case of common areas/amenities.
  • Prior to execution and registration of a sale agreement, a cap of 10% of the cost of the apartment, plot, or building has been imposed as an advance payment or an application fee .

Delay in Handover:  Delay in handing over the developed property and failure to achieve the committed schedules by the promoters was seen as the major problem faced by the buyers. The Act now prescribes that in case the promoter is unable to hand over possession of the apartment, plot or building to the allottee in accordance with the terms of the agreement of sale or for any other reason, then (i) the promoter will be liable, on demand, to return the amount received by him from the allottee with interest and compensation; or (ii) in case the allottee does not want to withdraw, then he will be entitled for the interest amount for the delayed period.

Change in Pricing Norms:  In order to protect the buyers from the abuse of any ambiguous sale tactics, the requirement of sale of units on the basis of carpet area criterion has been imposed. Carpet area essentially means the net usable floor area of an apartment and excludes the area covered by the external walls, areas under services shafts, exclusive balcony or veranda area and exclusive open terrace area, but includes the area covered by the internal partition walls of the apartment.

Warranties on the legal title: In an attempt to protect the buyers from any dispute or adverse claims on the authenticity of the title over the land or the project, the promoter is now required to declare and authenticate the legal title to the project land.

Legal Recourse: No civil court has a jurisdiction to entertain any suit or proceeding (including injunction proceeding) in respect of any matter which RERA or the adjudicating officer or the appellate tribunal is empowered by or under the Act. The Act provides for time bound resolution of complaints and disputes by the RERAs and the real estate appellate tribunals.

Stringent Penalties: Till now only buyers were the sufferers in case of any delay in the completion of project. But now as a deterrent measure to ensure the compliance of the Act and timely completion of all the obligations of the promoters, stringent penal provisions including penalty may be up to 10% of the estimated cost of the project in case of defaults by the promoters; up to 5% of the estimated cost of the project in case of any default in disclosures and/ imprisonment of up to three years with or without fine have been prescribed under the Act. Additionally, the penal provisions have also been prescribed for any contravention or violation committed by the real estate agent or the buyer in certain cases.

Shortcomings: Few missing aspects still need to be looked into and supplemented to the Act like (i) the adequate measures to curb the black money usage in real estate transactions and (ii) the accountability of Governmental officers in relation to delay in providing approvals and permissions.

It is required that once  implemented, the upshot of the requirement of maintaining a separate account for depositing 70% of the receivables should be closely monitored so that the same does not result in promoters opting for bank or other mode of finances and thereby ultimately raising the price!

Is Your Property Eligible For Home Loan?

Searching for a home loan is as important as you search for a perfect house. It is also important to know if the property you choose is eligible for home loan.

Getting home loan has become simple these days, with many banks and financial institutes providing lower interest rates. But it is always important for the banks to consider if the property is eligible for home loan.

Hence, the first step by the banks when you apply for a home loan is, informing whether the property is eligible for home loan. In India, financial institutes are relatively flexible than nationalized banks.

However, the banks as well as financial institutes, in their websites mention the builder’s name list or property’s name list. It is easier for those who want to self-check before even applying for home loan. The list is maintained for all those properties which are already legally checked and which are already under home loan.

All the nationalized banks or private banks are particular with the government certificates and also the technical and legal issues of the property. If there is a deviation in the property, it is always better to opt for a financial institute or NBFC for a home loan.

It so happens at times with the under construction properties, the builder recommends a bank for home loan. Though the property is under violation, the builder might manage to get a tie-up with a bank.

Loanyantra recommends to go for a thorough check before even applying for a home loan and before even looking forward to get that home.

Searching for a home loan is always made easy with us. Just give us a missed call to 040-71011991. We do it right for everything you need for a home loan.