Home Buying Tips for Women

Buying a home today takes a certain confidence – in the market and in your own financial strength. A lot of single, female homebuyers are taking that bold step in high heels, with no one at their side.

By educating and empowering themselves, single women have acquired a sense of  home-buying confidence, making the dream of home ownership a reality. It’s a process that doesn’t necessarily begin with love first—unless it’s for her dream house. She just needs a good real estate agent, an educated understanding of navigating the home-buying process, and a happy and pleasant mood to celebrate after signing on the 50,000 dotted lines at closing.

Not just the single woman, a married woman too, apart from being an earning member, also has a complete grasp of the family’s current and future financial abilities. Developers are aware that they play a role in a family’s homwomen tips _ loanyantrae purchase decisions. A woman has a better perspective about what should be included or excluded. Still, buying a home is not just a matter of instincts and good taste, but also one for adequate planning and foresight.

For women who are investigating the market for suitable properties, either for themselves or for their family, here are some points to consider.

  • Be realistic, stay focused

Home ownership is a great move for a woman and a step towards independence in her retirement years. But your first home is not necessarily the only home you will ever buy. Remember that you can always upgrade in the future if required, so there is absolutely no need to buy the biggest-possible flat now. So try not to compromise your current financial viability by buying a needlessly expensive home.

The home you live in today does not have to be the one you will be living in when you retire. When it comes to real estate, it is always a good thing to upgrade as financial ability improves, but this process can and should be planned out over the entire course of one’s working life. For a woman who is at the outset of her career, nothing is more important than financial stability on every front.

To plan for upgrading to a bigger and better home further down the line, it is advisable to invest (and stay invested) in good mutual funds which deliver more women home buying_loanyantrareturns than savings accounts. Direct stock market speculation into single company stocks and bonds as a potential source of real estate funding should be avoided; as such investments are not sufficiently diversified to offer a safety net in case a company experiences a downturn.

  • Shop aggressively for financing

The home loan market in India is currently very competitive, and banks are falling over themselves to attract customers. Make specific inquiries about special interest rates and other incentives that a bank is offering women borrowers (usually 0.05% lesser than the prevailing interest rate). Never take the first thing that is offered to you — most banks have a considerable margin of flexibility to accommodate borrowers who know what they want and are determined to get it.

Check rates with several mortgage lenders, and don’t simply select a lender based on a recommendation from a friend or a realtor.

  • Don’t stretch your budget too far

First figure out the monthly mortgage and whether they will be able to afford it. Online mortgage calculators can be helpful, but they tell you the value of the principal and associated interests. There are other monthly expenses involved in home ownership, and these include insurances, taxes, maintenance charges and utilities charges.

For working, single women, it is important that all these amounts put together do not exceed 35-40 per cent of their net income. Keep in mind that property is not the only investment you should make towards your ongoing financial security. You should also set aside at least 10 per cent of your monthly income into a retirement plan.

When it comes to home purchase, every financial angle must be examined well in advance. It is advisable to use the services of an experienced financial planner. The process of buying a dream home should not turn into an unexpected nightmare at any point.

Those who are just starting out in their careers should not allow themselves to fall too deep into a credit trap. It is always best to use free and clear capital as far as possible.

Make sure the developer has a strong reputation in the market by doing multiple checks. It is highly advisable to patronise only established developers with a readily verifiable track record for timely completions and 100 per cent adherence to the agreements they make with their customers.

e-Filing of Income Tax – Forms, Methods and Types

The below are three options to file Income Tax Returns electronically:

Option 1: e-File without Digital Signature Certificate. In this case an ITR-V Form is generated. The Form should be printed, signed and submitted to CPC, Bangalore, using Ordinary Post or Speed Post ONLY within 120 days from the date of e-Filing. There is no further action needed, if ITR-V Form is submitted.

Option 2: e-File the Income Tax Return (ITR-V) through an e-Return Intermediary (ERI) with or without Digital Signature Certificate (DSC).

Option 3: Use Digital Signature Certificate (DSC) / EVC to e-File. There is no further action needed, if filed with a DSC / EVC.

Note: The Digital Signature Certificate (DSC) used in e-Filing the Income Tax Return/Forms should be registered on e-Filing application.

types_eFiling

Pre-requisite for registration in e-Filing application

A user must register at www.incometaxindiaefiling.gov.in

Pre-requisites to register

1) PAN (Permanent Account Number)

2) TAN (Tax Deduction Account Number)

3) Membership with ICAI – For Chartered Accountant

Registration process

1) Provide PAN / TAN, Password details, Personal details as per PAN / TAN, Contact details and Digital signature (if available and applicable)

2) Submit request

3) On success, Activation link is sent to user through e-mail and a mobile PIN to mobile number. Click on the activation link and provide Mobile PIN to activate e-Filing account.

Once registered, LOGIN using User ID (PAN/TAN), Password, Date of Birth/ Incorporation and Captcha code.

Methods of e-Filing of Income Tax

1) Preparing the Income Tax return off-line using return preparation software, available free of cost at the Income Tax Department e-Filing website and Uploading the Income Tax Return data.

A taxpayer can e-File Income Tax Return from ITR 1 to ITR 7.

2) Submit ITR-1/ITR4S Online– An Individual taxpayer can prepare and submit Income Tax Return- ITR 1/ITR4S-Online.

e-Filing of Income Tax Returns (Offline)

e-Filing_of_Income_Tax_Returns_(Offline)

Steps to download utility and generate XML

Excel Utility – 

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Click on the “ITR” under “Downloads”
3) Click on “Download” link and save the ZIP file (Excel or JAVA utility)
4) Extract the downloaded ZIP File
5) Open the utility, Click on “Import Personal / Tax details from XML” –>Browse and attached the downloaded Prefill XML file to populate the personal information and TDS details.
6)  Enter all the Mandatory Fields –> Validate all the sheets –> Calculate Tax –> Generate XML.
7) Login using e-Filing user credentials
8) Navigate to “e-File” Tab –> Click on“Upload Return”
9) 
Select “ITR Form Name” and “Assessment Year” from the dropdown provided.
10) Browse and attach XML file.
11) Select “Do you want to digitally sign?”–>
12) On successful submit taxpayer will get an option to e-verify return.

JAVA Utility –

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Click on the “ITR” under “Downloads”
3) Click on “Download” link and save the ZIP file (Excel or JAVA utility)
4) Extract the downloaded ZIP File
5) Open the utility, Click on “Prefill” –>Enter “UserId”, Password, “DOB/DOI” and select “Prefill Address”(From PAN Details, From previous ITR Form Filed, None) –> click Prefill
6) Enter all the Mandatory Fields –> Calculate Tax –> save XML.
7) Click on “Submit” –>Enter “Password” and select “Do you want to digitally sign?” –>Submit

Process and Submission of ITR1/ITR 4S Online

The taxpayer has the option of submitting ITR 1/ITR 4S by way of Uploading XML OR by Online submission

e-Filing_of_Income_Tax_Returns_(Offline)2

Steps to e-File Online ITR (ITR 1 and ITR 4S) – 

1)  www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Login using e-Filing user credentials
3) Navigate to “e-File” Tab –> Click on “Prepare and Submit Online ITR”
4) Select “ITR Form Name” from the drop down (ITR-1 or ITR-4S)
5) Select “Assessment Year” –> Select the Radio button “Prefill Address with” to auto populate the address –> Select the Radio button if DSC is applicable –> Click on “Submit”
6) 
Enter the mandatory details in the online form –> Click on “Submit”

Note:
1) 
To e-File using DSC, it should be registered in the e-Filing application.
2) If the Income Tax Return is digitally signed or electronically verified, on generation of “Acknowledgement” the Return Filing process is complete. The return will be further processed and the Assessee will be notified accordingly. Please check your emails on these notifications
3) If the return is not e-Filed with a DSC (digitally signed) or EVC (electronically verified), an ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly verified ITR-V form should be signed and submitted to CPC, Post Bag No. 1, Electronic City Post Office, Bangalore – 560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing.
4) On receipt of the ITR-V at CPC, the return will be further processed and the Assessee will be notified accordingly.

Register Digital Signature Certificate (DSC):

Follow the below steps to register DSC in e-Filing of income tax

1) www.incometaxindiaefiling.gov.in e-Filing Home Page
2) Login with e-Filing user id and credentials
3) Navigate to “Profile Setting” Tab –> Click on “Register Digital Signature Certificate”
4) 
Download “ITD e-Filing DSC Management Utility” from the link provided in e-Filing website Extract the downloaded DSC Utility –> Open the Executable Jar File (DSC Utility)
5) “Register/Reset Password using DSC” – tab
6) Enter e-Filing User ID, Enter PAN of the DSC, Select the type of DSC
7) DSC using .pfx file
8) Select the Type of DSC .pfx file
9) 
Browse and attach the Keystore file (.pfx File)
10) Enter the password for your private key
11) Click on “Generate Signature file”
12) DSC using USB token
13) Select the Type of DSC (.pfx file or USB token) USB Token
14) Select USB Token Certificate –> Click on “Generate Signature File”
15) Browse and attach the signature file using the browse option –> “Submit”,

Modes of e-Verification

The below are the options provided to electronically verify the returns
Option 1: e-Verification using e-Filing OTP (only available if Total Income is less than or equal to Rupees 5 Lakhs and Refund or Tax payable upto 100 Rupees.
Option 2: e-Verification using NetBanking login
Option 3: e-Verification using Aadhaar OTP validation.
Option 4: e-Verification using Bank ATM (SBI)
Option 5: e-Verification using Bank Account Number (PNB)
Option 6: e-Verification using Demat Account

Note: No Further actions required by the taxpayer post e-Verifying the Return

Upload of Income Tax Form (Other than Income Tax Returns) by Tax Professional

Steps to e-file Audit Form(CA):
1) The taxpayer (Client) has to add a particular CA for upload of particular audit form. Post which, the CA has to login into his account and download required Audit Form. After updating, the CA has to upload the Audit form using CA login.

Add CA functionality:
1) www.incometaxindiaefiling.gov.in
– e-Filing Home Page
2) Login with efiling user credential.
3) Navigate to “My Account” –> “Add CA” –> Enter “Membership Number”, “Name of the CA”, select “Form Name” ,“Assessment Year” –> click “Submit” to add CA.

efiling-of-income-tax_loanyantraE-file Audit Form:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with CA credential.
3) Navigate to “e-File” –> “Upload Form”
4) 
Enter “PAN/TAN” of the Taxpayer, “PAN of the CA”, Form Name, “Assessment Year”, Filing Type, “Attach the XML” , “Attach Signature File” and click on submit.

A request will be sent to Taxpayer of such upload done by the CA. The taxpayer can view the same under “Work List” option after login with taxpayer’s login credentials.

Approve Audit Form:
1) www.incometaxindiaefiling.gov.in – e-Filing Home Page
2) Login with user Credential.
3) Navigate to “Worklist” –> “For your Action” –> “Click on “Click Here” for view Uploaded Form Details
4) Click on “View Form” –> select “Approve/Reject” –> enter “Rejection comment” –> click on “Submit”

Once assesse approves the audit form it will be considered for processing. In case of rejection, CA has to upload the audit form again after making necessary changes.

Submit Online Form:
1) www.incometaxindiaefiling.gov.in
– e-Filing Home Page
2) Login with e-Filing User credential.
3) Navigate to “e-file” –> “Prepare submit Online Form (Other than ITR)” –> Select the “Form Name” and “Assessment Year”
4) 
Click on “Continue” to proceed further.

Stay digitalised and connected. Happy Tax Saving Month.

Snippets On Home Loan Tax Benefits!

Must know things about home loan tax benefits!

home loan tax benefits
Home loan tax  benefit classes 🙂
  • Home loan borrowers are entitled to tax benefits under Section 80C and Section 24 of the Income Tax Act. These can be claimed by the property’s owner.
  • In the case of co-owners, all are entitled to tax benefits provided they are co-borrowers for the home loan too. The limit applies to each co-owner.
  • A co-owner, who is not a co-borrower, is not entitled to tax benefits. Similarly, a co-borrower, who is not a co-owner, cannot claim benefits. Which means, to claim tax on property, the person should be both co-borrower and co-owner.
  • The tax benefit is shared by each joint owner in proportion to his share in the home loan. It’s important to establish the share for each co-borrower to claim tax benefits. 
  • The certificate issued by the housing loan company, showing the split between principal and interest for the EMIs paid, is required for claiming tax benefits. 

If You Work for a company –

  • Submit your home loan interest certificate to your employer for him to adjust tax deductions at source accordingly. This document contains information on your ownership share, borrower details and EMI payments split into interest and principal.

If You Are Self-employed and a Freelancer –

  • You don’t have to submit these documents anywhere, not even to the I-T Department. You’ll need them to calculate your advance tax liability for every quarter. You must keep them safely to answer queries that may arise from the I-T Department and for your own records.

If you have another property along with your self-occupied house, and if you let-out that property, you can claim tax deduction for the entire interest amount on the let-out home’s loan. So, the income from that property is calculated from deducting the property tax, standard tax deduction (30%), interest on the let-out property home loan from the annual rental value of the let-out property.

For the first time home buyers, the government provides up to Rs 50,000 tax benefit on loan up to Rs 35 lakh taken for residential house.

There are more tax planning benefits by different investment opportunities. Explore and take expert’s advice for the best decision and for saving more.

Tax Planning On Loans

 

taxsavingtips_loanyantraMake some great tax deals on your loans!

Yes, Tax planning month is here. Take the expert advice for tax planning before you pay the late fees. 

Let us dive in for the perks when you are in different loans.

Tax Planning On Home Loans

Owning a home is a coveted dream. However, the ever-rising real estate prices make it difficult for many to buy a home, or even a piece of land, with just his/her savings. Home loans are meant for bridging this gap. Home loans come with a lot of fringe benefits in the form of tax breaks.

How do you benefit?

Anyone with home loan can avail tax benefits in two ways. The amount paid towards the principal repayment qualifies for deduction from income under Section 80C of Income Tax Act.

Another benefit comes in the form of deduction for the amount paid as interest on the home loan. The maximum amount you can claim as interest deduction from your income for a self occupied property is Rs 2 lakhs.

If you buy more than one property, only one house can be counted as a self-occupied property, and the others are deemed to be let out (even if they are not let out).

In case the loan is jointly availed between you and your spouse, the deduction of Rs 2 lakhs can be claimed by both of you.

taxplanning_loanyantraIn case of properties that are deemed to be let out or are actually let out, the entire amount (no ceiling of 2lakhs here) paid as interest is admissible as deduction under Section 24B of IT Act, while the rent received gets added to your income. In spite of that, it turns out to be a good bargain.

Tax payable Tax payable when availing home loan Tax payable when availing two home loans
Total income 8,00,000 8,00,000 8,00,000
Rent income Nil Nil     80,000
Deduction under Section 80 C 50,000 50,000 50,000
Principal amt deductible under Section 80 C Nil 15,000 15,000
Deduction under Sec 24B (Interest)    Nil   1,05,000   2,10,000
Total income on which tax  is payable 7,50,000   6,30,000   6,05,000
Tax paid   75,000      51,000       46,000

Tax Planning on Educational Loans

Education loans pave the way to your future.  Education loans could be availed for studying in India or abroad. But to get tax benefits from an education loan, the loan should be availed from any scheduled bank or notified financial institution.

Education loans can also be availed for self, spouse or children.  The legal guardian of any student can also avail this loan. Hence parents or spouses can also claim deduction for payment of interest.

How do you benefit?

Section 80E of Income Tax Act offers tax benefit for those availing educational loans for higher education.

However, as against home loan, only interest paid towards the repayment of loan earns deduction and not the principal. Also, there is no upper limit fixed for interest repayment. 

Tax benefit can be availed for a maximum of 8 years or on the loan repayment term, whichever is applicable. For example, if the entire loan is repaid in 6 years, then the tax benefit is also limited to that term.

Tax Planning On Car Loans

Not many know that car loans come with tax advantages. However, all car loans do not come with tax benefit. A car loan is a good tool for the self-employed to claim some tax deduction. If used right, offsets the interest paid over a depreciating asset.

How do you benefit?

Deductions from payable tax through a car loan can be availed only if you are a business man and declare the profit or capital gains earned from your business.

Another condition attached to this is that the vehicle has to be purchased in the name of your business. In that case, you get exemption on the interest as well as depreciation of the vehicle.

Under these conditions, you can include the interest paid for your car loan for tax exemption.

Besides this, businessmen can avail deductions on personal loans too under certain conditions, like the loan being taken as a business loan or for capital investment in business.

Loans taken wisely and within our limits would save us from a never ending debt spiral, which many fear. While loans affect your monthly as well as annual finances for other expenditures, the beneficial side of it in the form of tax saving, reduces their overall impact considerably.

 

 

 

 

ISRO Achievement and Learning From Them

ISRO (Indian Space Research Organization), one of the most esteemed organisations of our country has made India shine on the global platform.

In the last one year, ISRO has given us many reasons to feel proud and the latest addition to it, is the PSLV – C37 launch in Feb 2017.

02_loanyantra_isro-1Here’s throwback at some of the proudest moments of ISRO:

  • Mangalyan – I guess most of you would remember this. Mangalyan, Mars Orbitrar Mission, made ISRO achieve heights of popularity when it successfully entered the Red Planet’s orbit on September 24, 2014, after a 666-million-km journey from Earth. It is the first venture into the  interplanetary space.
  • The launch of PSLV or the 4th navigational satellite: On March 28, 2015, ISRO yet again achieved launch of navigation satellite or PSLV (Polar Satellite Launch Vehicle). This helps India have its own GPS.
  • The launch of 104 satellites in one go (PSLV – C37)– This latest achievement of ISRO has made it gain global recognition. In Feb 2017, ISRO successfully launched 104 satellites in one go. This is the biggest achievement and one of its own kind.

The series of achievement which this organization has achieved is remarkable and stands unparalleled. The efforts of scientist and minds of engineers who successfully managed this project and were able to execute it, is something which can teach us how to plan and work on it.

The achievements of ISRO are not only commendable but also learning for every individual and company. The recent development by ISRO is a clear reflection of hard work; persistence and patience which has made it achieve what it wanted.

What to learn from this?

If you are wondering that these achievements are merely restricted to ISRO then you are absolutely mistaking, these achievements are an example to show how every individual and company can attain its goals. Any kind of business or individual who is striving for success needs three basic qualities:

  • Patience
  • Perseverance
  • And Hard work

These qualities are not only important to achieve a company’s goals but also equally important to attain personal goals. Whether you are working in a company or running your own firm, if you have mastered these qualities you will definitely be able to achieve what you want and succeed at personal and professional front.

What Loanyantra Learnt From ISRO

Loanyantra is an organisation that was started an year back and is a revolution in the service industry. We have always wanted to simplify the house buying process and streamline the home loan process. In our tenure of work we have tasted the elixir of success and at the same time faced certain hiccups but that has never deterred us from working persistently towards our goal. Wisro-postere have always wanted to and will continue to work arduously towards improving our service and setting a new benchmark of success. Our arsenal of committed individuals has made sure that we are always able to deliver our best and have helped in improving the home buying process.

We are proud to witness the  ISRO’s performance and taking a cue from its success we are continuously trying to imbibe the same spirit, dedication and achievement. You are our inspiration for Make In INDIA concept.

 

Real time FAQs by Home Loan Customers

Home loan is with us half of our life time. We understand that. We take a little of your time to clear all your doubts.

Here are the FAQs regarding home loan which make you understand the concept better.

questions-regarding-home-loan_loanyantra1. What is KYC?

KYC means “Know Your Customer”. As the name suggests, banks or institutes collect the identity of the customers to know the uniqueness. Usually the financial institutes, collect these only to ensure they don’t give way for the fraud.

2. Why is a co applicant needed? And who can be a co applicant ?

Though a co applicant is not mandatory with any home loan, it is needed to increase the eligibility of the applicant. Anyone with direct blood relation can be a co applicant. For example, spouse, brother, son, daughter, father, mother.

3. How to transfer your property without being in the place in person?

If you are not in a position to do it yourself due to various reasons, you can give the Special powers to the person by making a deed of Special Power of Attorney.

Firstly, you should draft the deed with grantor (your) details, attorney details, reasons for giving power, the act to be performed, date and signatures of grantor and two witnesses.

The deed should be made on a Stamp paper of appropriate value according to the Rules of the State where it is to be registered.

The person to whom you send the deed should get it registered in the appropriate Government office as per the State rules. It can be either the Sub-Registrar office or the Sub -Divisional Magistrate office.

4. Can I send soft copies of my documents ?

Actually, all the documents need to be attested by the applicant and co applicant, if any. So, sending soft copies cannot be a good idea. If NRIs want to apply for home loan without coming to India, then the NRIs need to visit the embassy or notarized authorities to verify the documents and get the stamping done.

5. What is Processing Fee cheque ? Why do we need to pay ?

Processing Fee is paid to the bank before the loan application is approved. Which means, the fee for all the needs to verify the authenticity. Processing fee can be paid by cheque. The processing fee usually covers the legal verification charges, property and document verification charges.

Sometimes, there will be a zero processing fee period by the banks. So, during that period, the legal charges are charged separately.

6. What kinds of verification is carried while processing home loan ?

Initially, when the customer approaches the lender for a loan and provides his information, the lender to check the accuracy of information, conducts FI check. To make FI report, FI agents come to your office, resident and property for the basic confirmation.

After this, the detailed verification continues in two ways. Legal and technical. Legal check involves verifying Title Deeds, No Objection Certificates of authorities and other ownership papers of the lender’s property.

And technical check is important to estimate the market value of the property. So, the technical valuation is done to know the maintenance, the age of property, level of construction, square feet and built up area, quality of construction, required legal clearances, the locality and special comments and the market value of the property.

However, days have changed and the things have become simpler. If your property is listed in the bank’s approved project’s list, then the above process becomes simpler.

7. What is Personal Discussion (PD)?

Personal Discussion (PD) is a detailed and personal discussion held for checking the credibility of business officials.

Usually, the credit officer meets the business official in his office to have a detailed discussion about the ways of repayment of loan and methods of repayment by proving his business income.

8. How many days will it take to sanction the loan?

Usually, the loan sanction period varies from lender to lender. Nationalized banks take around a month minimum for disbursal. Whereas the private banks and the financial institutes might take a month maximum.

9. What is a sanction letter?

Once, the loan application is verified, the lender sends a sanction letter, accepting for the loan disbursal. Which shows all the details about the applicant and the loan applied for and for which property and what kind of loan, what is the tenure and the EMI. Suggest a complete check of all the details before the disbursement.

10. What is the validity of the sanction letter?

The validity of the home loan sanction letter varies from three to six months.

Once the sanction letter is expired, the borrower should again start with the initial step for borrowing the loan.

faqs-by-home-loan-customers_loanyantra
11. What is loan documentation?

Loan documentation varies from lender to lender, from property to property and from borrower to borrower. The usual documents required are personal documents say address proof, identity proof, pay slips, bank account statements, passport size photographs. The property documents say property’s title deed, no objection certificate, etc.  With these documents, the verification is processed before the sanction of home loan.

12. What are security cheques?

The security cheques are taken from the customer in the form of blank cheques (without signature on the cheque). The bank takes it and uses it only the EMIs are not payed. And these will be returned to you along with home documents, when you totally payback the loan.

13. What is home loan insurance and how it will cover?

The home loan insurance secures your home loan pay and in case of unseen emergencies the home loan pay is not stopped, instead it is covered and the dream home remains to your family.

The lenders either have exclusive schemes or tie-ups with insurance companies.

Usually, the insurance plans include cover for the home, properties in the home and cover for the life of the borrower too. It depends on the scheme the borrower opts.

14. What is EMI and P-EMI ?

EMI is Equated Monthly Installment.  The repayment of loan every month after the loan amount disbursal is EMI. For under construction properties, the loan amount is partially disbursed according to the construction progress. If the EMI is paid on that loan amount, then it is called PEMI.

Full EMI Vs Pre EMI

15. What is the cycle for EMI or PEMI?

EMIs and PEMIs are paid every month. The date can be fixed by the loan applicant, either the starting days or ending days of month. Usually, bank asks for a date in the first week of the month. This is the cycle for every month and every year till the repayment of loan.

16. How many times I can pay part payments?

Part payments can be paid either quarterly, half-yearly or annually.

17. Is there any penalty for part payments?

No, there is no penalty for part payments.

18. Can I pay part payments through online?

It depends on the bank. But many accept the part payment through NEFT (National Electronic Funds Transfer). In case you want to make part payment on your Home Loan Account through NEFT, you need to visit your bank’s nearest branch.

The Service Request number received during branch visit must be mentioned in the remarks column in the NEFT form while making part prepayment through NEFT.

The transactions with invalid request numbers will be rejected. NEFT is a nation-wide payment system facilitating one-to-one funds transfer. Individuals can electronically transfer funds across the country from one bank to another bank participating in the Scheme.

19. How to get my amortization schedule ?

Visit your nearest branch and ask for amortization schedule. The banks usually charge a minimal amount. Though there are many amortization calculators online, once you should tally the bank’s schedule and the online calculator’s schedule. It is good to know how the amount is divided between the two components interest and principal.

 

No Processing Fees Period

Post demonetization has left the home loan sector in true benefits!!!

After the decrease of interest rates came subsidy for the home loan for the amount 12 lakh. The nationalized banks reduced the home loan interest rates making really competitive and tough to choose from. SBI stands as a pioneer to reduce the interest rates.

Yet another step by SBI which gave rise to further competition, no processing fees period. LIC Housing, Kotak Mahindra Bank are some of the followers in nullifying the processing fees.

This is the best time to avail the home loan or to opt for a balance transfer. Because, you can skip the charges as they usually go upto a maximum amount of Rs. 10,000.

no-processing-fees_loanyantraHow Does No Processing Fees Work?

Processing fee is charged by the institutes or banks which includes the charges for the document check, legal check and property check.

So, what happens during no processing fees period is, you have to  pay the legal charges separately. Whatever may be the extra cost, it doesn’t reach the usual processing charge limit.

But, always ask for the other additional charges while opting a loan during this season.

How Loanyantra Works on No Processing Fees?

Loanyantra, the first ever online home loan management company, suggests you which option is better. It makes you aware what kind of institute you can opt and what are the hidden charges by them. Be the first to know when there are promotions or offers by your favorite bank or institute.

Know more and avail more cash back offers on home loan. Happy Home loans.

When Can You Go For A Home Loan Transfer

Home Loans have become the most popular tool to achieve one’s dream of buying a home. With so many banks and HFCs offering tailored home loan solutions, people are now more inclined towards home buying. Banks and HFCs have home loan eligibility calculator that will help you assess how much loan banks will give you and what will be your EMI. 

Home Loan Transfer 

Balance transfer, home loan refinancing are interchangeably used with Home Loan Transfer. It helps the borrower to avoid higher interest rates by transferring to another lender which offers lower interest rates. Borrowers usually prefer this option to reduce the burden of interest rate and EMI. The good news is that all the banks and many HFCs in India offer the facility of home loan transfer.

Do You Know!

Although Home Loan Transfer appears to be a lucrative scheme yet one needs to try cost-benefit analysis before opting for a balance transfer.

Firstly, to avail the option of Home Loan Transfer, you need to be in the good books of the bank, make sure that you pay your EMIs regularly.

Secondly, balance transfer decision depends on the difference between interest rate offered by the two banks (one from where you have taken the loan and second from the bank where you wish to transfer your home loan).

Last but not the least, the outstanding amount of the home loan and the tenure left is also an important factor to consider before going for a Home Loan Transfer. Because, it is not a good deal if unpaid loan amount and tenure both are low. Though there are no prepayment charges levied, but while transferring the loan, calculate for the processing fees. It is calculated on the outstanding loan amount, usually, the maximum is Rs. 8,000.

home-loan-transfer_loanyantra-com
Calculate Before You Go For A Home Loan Transfer

Always calculate. For example, if 50 lac is outstanding loan amount and calculate-homeloan-transfer_loanyantra-comyour bank charges interest rate of 12 % then you have to pay a total of Rs 58, 01,513 as interest and you choose home loan transfer option to another bank offering interest rate of 11.5% for a time period of 15 years then the interest that you have to pay comes to be 55, 13,708 which means you save 2.87 lac.

This is a substantial amount and even if your bank levies a processing fee for home loan transfer, your saving is on a higher side. So,you can go ahead with balance transfer option.  

An important note which banks consider before lending is your credit score. Always check your credit score before applying for a balance transfer. It is important that your credit health score is good and you have all your bills cleared. 

Banks usually charge 0.5% of the loan amount or flat fees of Rs. 5000-10,000 as processing fee for home loan transfer.

How does home loan balance transfer help you?

Advantages of balance transfer includes the following :

  • It lowers the monthly installment
  • You can save on your interest and use for an important reason.
  • Makes your home loan more affordable
  • Banks and HFCs also offer customized solution that will match your requirement
Home Loan Transfer Process
  • Submit a request form to your current bank. The application also asks for the name of the new bank where you will be transferring the loan.
  • After this, the bank will look into your application and will issue an NOC (No Objection Certificate) that mentions outstanding loan amount.
  • This NOC is then submitted to the new lender and the new bank will study your credit history.
  • CIBIL score should be 700 points to get a loan. Once bank approves your application, all the property documents and other documents like ID proof, ITR etc. are transferred to the new bank.
  • Voila!!! You now have your home loan at a better interest rate and you are ready to smile even bigger now.

Our Role: LoanYantra is an unbiased platform where we offer you the best options pertaining to a home loan. Our home loan transfer service will help you find the right financial institution which will lessen your burden of home loan repayment. Moreover, we have up-to-the-minute information related to lenders and interest rate changes in particular.

Not only availing home loan transfer through loanyantra will make the process easier, but also we will keep a track of your interest rate till you close the loan and help you reduce it whenever possible which helps in saving on the home loan.

Talk to us and let us know your requirement about home loan transfer to serve you better.

State Bank of India cuts the processing fee till 31-March-2017

SBI Home Loans no processing fee for New Home Loans and for Balance Transfer till 31st March 2017.

State Bank of India to boost the volumes of Home Loan business for the last quarter of the 2017 financial year, SBI had launched a special campaign for Home Loans. Under the Home Loan campaign, Processing Fees on all Home Loan proposals(both takeover and new) sanctioned and partially/fully disbursed upto 31-Mar-2017 will be filly waived. The waiver of the processing fee will also be made available to proposals sourced upto 31st March 2017, provided the loans are partially/fully disbursed latest by 30th April 2017.

However , the processing Fee at the applicable rate will be recovered upfront in respect of all Pre-Approved Loans(PAL) and the same will be refunded to the customers by way of credit to the loan account in respect of all PAL proposals source during the campaign period upto 31-Mar-2017 and partly/fully disbursed on or before 30th April 2017

SBI Home Loan
SBI Home Loan

With the decrease in the MCLR for 1-year to 8.00% was itself a big boost to the Home Loan customers. But increase of the margins from 0.10% to 0.60% has added heavy burden to the home loan seekers. Most of the customers are still seeing the fall in the Home Loan rates from 9.10% to 8.60% which is like a mirage which is a short term profit and long term loss compare to the customer who had taken loan in Dec-2016.

Let me explain in detail,  Before I tell you, why customer who had taken home loan in Dec-2016 is better rate then present. I would like to explain, how the interest rate is set. Interest rate consist of 2 components.

 

Interest Rate = 1-Year MCLR  Rate + Margin Rate

Recent announcement was :  1-year MCLR Rate : 8.00 %

Margin Rate  was : 0.60 %

So effectively the Interest rate was set to  8.60 %  = 8.00 % + 0.60 %

What is 1-year MCLR ?

When we avail a loan with 1-year MCLR,  it’s 1-year Fixed loan. Which means any changes in  MCLR during that 12 months, your home loan will not be affected. For example if you availed home loan in Dec-2016 your interest rate change will be only in Dec-2017. So any change , decrease of MCLR or increase of MCLR, your home loan rate will not change during this 12 months. In Dec-2017 your home loan rate will get updated based on the 1-year MCLR during Dec-2017. Again next change will be next year Dec-2018 and this would continue till closure.

What is the Margin Rate ?

Margin Rate is what Banks take as the operational costs. It gets fixed when you have taken.  For example if you had availed home loan in Dec-2017 your home loan should have been 9.00% (8.90 + 0.10) your margin should be only 0.10 %. So your Interest rate would be 1-year MCLR + 0.10% for ever.

Now let’s compare your home loan with the new rates

Year 1-Year MCLR Customer who had taken in Dec-2016 time frame. Customer who had taken in Jan-2017 time frame.
Dec-2016 8.90 % 9.00 % (8.90+0.10)
Jan-2017 8.00 % 8.60 % (8.00+0.60)
Jan-2018 If 7.50 % in Dec & Jan 7.60 %(7.50 + 0.10) 8.30 %(7.70 +0.60)
Jan-2019 If 8.60 % in Dec & Jan 8.70% (8.60 + 0.20) 9.05% (8.60 + 0.45)
Sep-2019 If 9.25 % in Sep & Jan 9.35 %(9.25 + 0.10) 9.85%(9.25 + 0.60)

It would continue till the closure of the loan.  What we are seeing right now is, Short term profit and long term loss. People who convert to new rate without the long calculation they would start to pay every year 0.50% more than December rate.

1-year-MCLR had decreased drastically only due to demonetisation. Hopefully we need not stand in long Queues every year. Mostly its once in lifetime event.

Instead of banks making profits due to demonetisation drive they should have passed on the benefits to the end customers.

Hope to see cut in the Margins in coming days. Happy home Loans.

This complex calculations and to understand what is long term profit & short term loss versus short term profit with long term loss is better to be left to the professionals. http://loanyantra.com is best at this. We will wait for the margins to come down, then we would recommend the right change that would ensure you save the most on your home loans…

Happy Home Loaning…

Team

Loanyantra.com

Silver 90 Offer on Home Loan

“Silver 90 Offer “

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T&C

  1. Offer from Loanyantra .com(Formally Renaud Financial Consultancy Services P Ltd, Regd Off @ Address.)
  2. Max Reward  is 1 Kg silver for 4 Cr home loan.  Multiplies with 2.5 Grams for each Lakh. Ex: 1 Crore : 250 Grms, 50 Lacs: 125 Grams..
  3. Home loan sanction and disbursement should be happen between Jan 1st 2017 and March 31st 2017
  4. Minimum  70% of the sanction amount must be disbursed before 31st March to avail offer. (Exempted for SBI and HDFC. There is no minimum disbursement required for these banks).
  5. Rewards will be handed over within 45  days of first disbursement.
  6. We reserve to determine all rights to finalize the eligibility of the offer to the user.
  7. Cash refund not allowed. We will issue silver only as mentioned in the offer.
  8. Without above offer also user can avail Home Loan.
  9. Subjected to Hyderabad Jurisdiction.