Tips to buy an ‘under construction’ home

Buying a property involves long-term financial commitment, and one has to be in a position to afford the investment. A property under construction would definitely be cheaper than one available for purchase or ready to move houses.

Buying an under construction home is the most popular and preferred mode of buying a home. The initial requirement would be to find a reputed builder and check the track record of the builder or developer. It is always advisable to invest with a known and well-placed builder.

Under this, a builder advertises in newspaper, TV and other Media about a new housing complex coming soon. Agents start going around the companies, markets, malls, and even houses to advertise about the new housing complex coming up in the town. The goal of the builder is to sell as many flats as possible before the housing complex is built. In most of the cases, more than 75% of the flats of known builders are booked even before a single brick is laid.

Advantages of buying an under construction home

Cheaper: Buying an under-construction home is always cheaper as compared to buying the one that is already built. The difference in the cost is very significant. In the Delhi and NCR region, a ready to move flat with 2 bedrooms can costs home buyers about Rs. 40-50 lakhs. However the same can be bought anywhere in the range of Rs. 30-40 lakhs while the flat is under-construction, depending on the location. On an average, the difference is significantly between 20% and 40% and this is a big difference for majority of the home buyers.

Low EMI – The EMI is paid according to the work in progress hence the initial EMIs are very low in the case of an under constructed home.

Beneficial for both buyers and sellers – Buying an under construction home is a win-win situation for both customers as well as builders. The builder gets a ready set of customers even before he starts laying the foundation while home buyers get the cost benefit.

High returns – Since the prices are lower, one might get higher returns on the under-construction home. Such high returns are not possible in a ready to move home. However, with higher returns come with higher risks too. To give an example, people who invested in Noida authority plots earned high returns while people who invested in Samshabaad in Hyderabad are still waiting for the area to pick up.

Drawbacks of buying an under-construction home

High Risk-All the conditions are not favorable for under construction home buying. In many instances, the builders might not complete the housing complex and buyers end up losing their money. Real estate sector is full of such stories where the builders could not complete the property because of higher interest rates, cash crunch and high raw material costs.

False Promises– This is another common complaint that customers come up with. They usually do not get what was promised in the documents before buying the home. Even more distressing is the carpet area that buyers are promised after the home is constructed. The carpet area is usually 70% of the super built area. The swimming pool and golf course may never come up as promised before by the builders.

Important Points for buyers of under construction homes

Buyers should also check the past history of the builder. If the builder has done a good job in the past, chances are very high that the builder will do the same again. However, the builder’s image is not good in the market, on should avoid going for that particular builder.

Hence the track record of the builder is of utmost importance.

Buyers should clarify loan tenure and how the money will be paid to the builder. Mostly some part of the total cost is paid in the starting and the rest amount is only paid after the completion of the project.

How to start building a credit history

There are some simple steps you can take to start building a credit history.

Open and manage a bank account

Setting up and using a current account will help build your credit history if you run it responsibly (e.g. making sure you have enough money in your account to cover your payments each month) because it will demonstrate that you can have a responsible, ongoing relationship with a bank.

Opening and managing a current account responsibly will help your credit rating even if the account doesn’t include an overdraft.

Set up some Direct Debits

Top tip

Always make sure you have enough money in your bank account to pay any bills being paid by Direct Debit.

Set up some regular Direct Debit payments to pay bills such as your gas and electricity or your home insurance or mobile phone.

Not only will this help you to avoid missed payments, buy you’ll probably get a discount for paying by Direct Debit.

Don’t miss payments

Make sure you pay all your bills on time, as a missed or late payment will count against you.

If the company has to go to court to get the money, then it will greatly affect your ability to get credit and it will remain on your file for some years.

Factors that could stop you from getting credit

Beyond your credit history, there are certain other things a lender will check when working out your credit score and deciding whether to lend.

Financial ties with other people?

Top tip

If you close a joint account, request a ‘notice of disassociation’ from the credit reference agency to stop your credit files from being linked.

If you are thinking of having a joint credit agreement (such as a loan or mortgage) with someone else, their credit rating could affect yours.

That’s because your credit file will be ‘linked’ to the other person’s and a lender can check their file as well as your own if you apply for credit.

For example, if they fail to make repayments on credit cards or other loans, it could make your credit rating worse.

That’s why it’s important to end financial links with ex-partners by closing any joint accounts you still have and contacting the credit reference agency to ask for a ‘notice of disassociation’ to stop your credit files from being linked.

Who works out your credit score?

There is not one single, definitive credit score that exists for you. Rather, it’s worked out by each individual lender.

So for example, two different banks might credit score in different ways depending on their policies on lending.

However, when you apply for credit they’ll usually check with one or more of the three main credit reference agencies in INDIA who joined CIBIL services :

  • Experian
  • Equifax
  • High Mark.

These agencies each compile credit information about individuals in INDIA.

Before you apply for credit for the first time, you might want to check your credit report is up to date and correct.

Loanyantra always guides and manages the loan for those who have a good credit score. So you can anytime apply loan via loanyantra to all the top lenders in India. And choose the best-fit product at the lowest ever interest rate with great offers round the clock.

 

 

HDFC Plot Loans in India for Self-employed NRIs

HDFC Plot Loans

What is HDFC Plot Loan for NRIs?

HDFC provides loans to borrowers for the purchase of a plot of land in India to build their dream homes. It is given to both self-employed and salaried people. Borrowers with a good credit score can avail better deals.

Why HDFC Plot Loans?

Loanyantra explains what are the benefits one can enjoy while you opt for HDFC plot loan in India. HDFC provides exclusive services to self-employed NRIs .

  • Loans to NRIs, PIOs and OCIs for purchase of a plot in India through direct allotment
  • Loans for purchase of a resale plot in India.
  • Loans for transferring your outstanding loan availed from another bank / Financial Institution in India
  • No hidden charges.
  • There is no pre-payment penalty
  • Offers attractive interest rates that are affordable and easier for your pocket.
  • Customized repayment options to suit your requirement.
  • Lower processing fees compared to various other lenders.
  • Expert counselling in legal and technical aspects for a seamless transaction

Features of HDFC Plot Loans

Loan Term:  The maximum limit for borrowers to distribute their payments of loan is 15 years. The term also depends on the type of scheme chosen and the customer’s profile, age of the customer at the time of loan maturity and age of the plot at the time of loan maturity are also the deciding factors of loan term.

Maximum Loan Amount

Loan Amount Maximum Funding
Up to Rs.20 lakh 90% of the property price
Rs.20.01 lakh to Rs.75 lakh 80% of the property price
Over Rs.75 lakh 75% of the property price

Note: If the property is outside city limits, the maximum funding of the loan can be restricted to 70% of the property cost.

HDFC Plot Loan Documents Required for Self-employed NRIs

These are the documents to be submitted by the applicants and co-applicants along with an application for the approval of loan:

  1. Identity and Residence: Valid Passport, Aadhaar Card, Valid Driving Licence or Voter ID Card.
  2. Proof of income: Income Tax Returns (ITR) of 3 years, Savings account statements of the individual and current account statements of the business entity of last six months or Balance sheet and Profit and Loss account statements with schedules/annexures (all documents to be attested by a CA for points 2 and 3).
  3. Property related: Allotment letter or agreement copy of buyer and Title deeds in case of a resale with previous property documents.
  4. Other documents: Latest Form 26AS, business profile, list of directors and shareholders with their individual shareholding certified by a CS/CA in case of the business entity being a company, Memorandum and Articles of Association of the company, partnership deed if a partnership firm.

Types of HDFC Plot Loans for Self-employed NRIs

  • TruFixed Home Loan – 2/3 Year Fixed Rate Variant

The TruFixed Home Loan gives a fixed rate up to 2 or 3 years, after which the loan will change to an adjustable rate loan automatically, totalling up to a total of a 15-year loan term. It provides customers a part fixed rate term and a part adjustable rate term.

  • Adjustable Rate Loan

The adjustable rate plot loan is linked to HDFC’s Retail Prime Lending Rate (RPLR). The interest rate on the loan is revised once in every three months if there is a change in the RPLR, taking the date of the first disbursement into account. A rise in the interest rate will result an increase in the EMI’s interest component which in turn will reduce the principal component. This will extend the loan term, and vice versa, in cases where the interest rate drops.

Plot Loans for Self-employed NRIs by HDFC Bank
Plot Loans for Self-employed NRIs by HDFC Bank


HDFC Plot Loan Interest Rates for Self-employed 

  • TruFixed Loan – 2 Year Fixed Rate Variant

The Retail Prime Lending Rate (RPLR) is 16.65%

Loan Slab up to Rs.75 lakh
Interest Rate (%  PA) 9.15 to 9.65%
  • Adjustable Home Rate Loan

For self-employed professionals, the Retail Prime Lending Rate stands at 16.65%

Loan Slab Interest Rates (%  PA)
For women (up to 30 lakh) 8.70 to 9.20
For others (up to 30 lakh) 8.75 to 9.25
For women (above 30 lakh) 8.80 to 9.30
For others (above 30 lakh) 8.85 to 9.35

HDFC plot loan interest rates for self-employed non-professionals

  • TruFixed Loan – 2 Year Fixed Rate Variant

For self-employed non-professionals, the Retail Prime Lending Rate stands at 16.65%

Loan Slab Interest Rates (%  PA)
For women (up to 30 lakh) 8.75 to 9.25
For others (up to 30 lakh) 8.80 to 9.30
For women (above 30 lakh) 8.75 to 9.35
For others (above 30 lakh) 8.90 to 9.40
  • Adjustable Rate Home Loan:

    The Retail Prime Lending Rate (RPLR) is 16.65%

 

Loan Slab up to Rs.75 lakh
Interest Rate (%  PA) 9.15 to 9.65%

Note: The above rates by HDFC might be revised at the time of disbursement.

HDFC Plot Loan Charges for Self-employed NRIs

Some charges and fees applied for loan approval are mentioned below:

Processing fees:

For self-employed professionals – Rs. 3,000 or up to 0.50% of the loan amount whichever is higher + other applicable taxes

For self-employed non-professionals – Rs. 4,500 or up to 1.50% of the loan amount whichever is higher + other applicable taxes

HDFC Plot Loans and Loanyantra – 

Get the best interest rates for your plot loan. We understand how important your dream is and hence, we can place ourselves in your shoes. Take the expert’s guidance and get the best-suited product and best-fit offer. Loanyantra took hundreds of customers dreams as its and fulfilled every minute one.  Know every minute detail about each offer about top lenders in India. Just a missed call can get everything to your door step. 040-71011991.

 

NRI Personal Loans Hand Book

NRI Personal Loans are the most common source of finance which helps Indian citizens residing in foreign countries to avail personal loans in India. Almost all the major private and public banks offer NRI personal loans. There are two types of personal loans offered in India-secured loans and unsecured loans. Secured loans are loans wherein it is secured against an asset, be it home, car or any item of high value, whereas unsecured loans are those in which one does not require give in any security or collateral, the lender relies on the borrower’s contractual obligation to repay the loan back.

Nri Personal loans
NRI Personal Loans

If an NRI has to travel urgently or if any personal emergency situation rises up, then a personal loan can be their aid and it can help them to tide over the contingency in the short period of time. Similarly, if one is looking to buy any consumer durable but is in short of cash, a personal loan can help to finance the purchase. All one got to do is choose the right lender and then apply for a loan amount as required.

An NRI personal loan falls under the category of secured loans in which the borrower pledges his/her property or asset as collateral to the lender. Furthermore, the borrower is also expected to submit relevant documents for the application of the loan. The document requirement differs from person-to-person and it mainly depends on the profession of the prospective borrower.

Documents required for NRI Personal Loan

•A copy of your passport and visa.

•Salary certificate in English, specifying name, date of joining, designation and salary details.

•Both domestic (NRE/NRO/FCNR) and international bank statements for the last six months.

•If the applicant is not available in India when the application form is submitted, then a General Power of Attorney duly attested by the Indian consulate in the NRI’s resident country needs to be submitted. If applicant is present in India then the Power of Attorney can be locally notarized.

•A copy of NRI’s appointment letter as well as contract.

•In case the applicant is employed in the Middle East, then they need to submit a copy of their labour card/identity card that is translated in English and countersigned by the respective consulate.

•In case the applicant is employed in the merchant navy, then they need to submit a copy of their CDC as well as their contract slip with Income details.

Few major banks that offer NRI Personal Loans are – 

State Bank of India

ICICI Bank

HDFC Bank

Kotak Mahindra Bank

Punjab National Bank

Axis bank

Citibank

NRI Personal Loan Via Loanyantra –

Loanyantra tries to get the best interest rate in the market by the top lenders in India. Along with that you can also avail prevailing offers by Loanyantra say, cash back offer, referral offer which might save a 0penny for you. Also going through Loanyantra can make you aware of the offers run by different banks viz, processing fee waiver period, etc. In today’s busy world, going to the banks directly and getting information from the banker is really tough. And hence came up Loanyantra, with a mission to create awareness among people about banks offers and savings.

All you need to do is to just give a missed call to our number and our customer relationship manger will call you for more detailed discussion to know your requirement and suggest the best suited product.

How to get the best personal loan deal

Points to be noted before going for a personal loan in India.

  • Don’t just accept the first rate you are offered by your bank or building society.
  • Shop around to see which providers are offering the cheapest interest rate. Compare MCLRs (but remember that you might end up paying more if you have a poor credit history). A comparison website can help you do this.
  • Ask the lender for a quote before you apply. If they have to do a credit reference check, ask if they can do a ‘quotation search’ (which does not leave a mark on your credit record) rather than an application search (which does).
  • Consider peer to peer loans in India, though you are doubtful about your credit rating. These loans might offer lower interest rates and are available for smaller amounts.

Loanyantra is one such platform where you know every detail about the lender and get to know the interest rate calculation method of each lender. Loanyantra’s experts encourage you by making you understand what kind of loan product you can opt for out of thousands of products by hundreds of lenders.

Personal loan best deals in India
Personal Loan BEST Deals for you

Some of the products by top lenders in India Handpicked for you by Loanyantra –

SBI Bank Personal Loan

SBI Bank is one of the best banks for a personal loan. SBI very much known to its offers, offers a low-interest personal loan with interest charge on daily reducing balance. SBI offers three types of personal loansSBI Xpress Credit Loan, SBI Pension Loan, and SBI Saral Personal Loan. SBI offers a personal loan up to 10 Lakh. However, the loan amount will be variable based on your eligibility and income documents.

SBI Xpress Credit Loan

SBI Xpress Credit Loan is for salaried people maintaining salary account with SBI. This includes central state government employee, central PSU employees and few selected corporates.

SBI Pension Loan

SBI Pension Loan is for central or state government pensioner drawing pension via SBI with age less than 76 years.

SBI Saral Personal Loan

SBI Saral Personal Loan is personal loan given for salaried and self-employed engineer, doctor, architect, MBA etc. Details about SBI Saral Personal Loan is given below.

Interest Rate

SBI Bank Personal Loan Interest rate – talk to our experts for a lower interest rate.

Other Charges

  • Loan processing Fees – 2 to 3% of the loan amount + GST
  • Prepayment Charges – 3% on prepaid amount
  • Late Fess – 24% per annum

Key Features

  • Interest charged on a daily reducing balance.
  • Comparatively Less interest rate.
  • No hidden cost/administrative charges.
  • Maximum loan amount can go up to 24 time’s net monthly income.
  • Trustworthy brand with wide network of SBI branches.

Eligibility Criteria –

Salaried –

Factor Requirement
Age 21 years – 58 years
Net Salary Minimum Monthly Rs.15000
Total years in Job 2 years
Salary Account With SBI

 

Self-employed –

Factor Requirement
Age 21 years – 65 years
Minimum Profit After Tax 21 Lakh per year
Business Account with SBI

Documents Required – 

Salaried –

  • ID Proof, Address Proof
  • Latest Salary Slip with Form 16
  • Two passport size photos

Self Employed

  • ID Proof, Address Proof
  • Income Proof, Balance Sheet or Income Tax Returns
  • Two passport size photos

ICICI Bank Personal Loans

ICICI Bank is one of the best private banks for availing personal loan at a low-interest rate. ICICI bank offers fixed interest rate personal loan on monthly reducing basis. ICICI bank offers loan up to 20 Lakhs without any collateral. Personal loan tenure in ICICI bank varies from 1 year to 5 years.

Salaried individual and self-employed both can avail personal loans at ICICI banks. For simplicity personal loan of ICICI bank is divided into five types namely wedding loan, holiday loan, home renovation, top up loan and fresher funding.

Interest Rate

ICICI Bank Personal Loan Interest Rate – Talk to our experts for a better deal.

Other Charges

  • Loan Processing Charges – Up to 2.25% per annum plus GST
  • Prepayment Charges – 5% per annum of principal outstanding plus GST
  • Late Payment Interest – 24% per annum
  • EMI Bounce Charges – Rs.400 per bounce plus GST

Key Features

  • Selection of Loan tenure from 12 to 60 months.
  • Fixed interest loan. Interest will be charged on monthly reducing basis.
  • Auto Debit ECS facility for repayment of EMI.
  • All-purpose loan with faster approval.

Eligibility Criteria

Salaried –

Factor Requirement
Age 23 years – 58 years
Net Salary Minimum Monthly Rs.17500
Total years in Job 2 years
Years in Current Residence 1 year

Self-employed

Factor Requirement
Age 28 years – 65 years
Minimum Turnover Rs.40 Lakh for non-professional & Rs.15 Lakh for Professional
Minimum Profit After Tax Rs.2 Lakh for Proprietorship Firm / Self Employed
Business Stability In current business for at least 5 years

Documents Required

Salaried –

  • Proof of Identity – Passport / Driving License / PAN card
  • Proof of Residence – Utility Bill / Leave and License agreement
  • Salary Slip of last 3 months
  • Last 3 month bank statement
  • Two Passport size photos

Self Employed –

  • Proof of Identity – Passport / Driving License / PAN card
  • Proof of Residence – Utility Bill / Leave and License agreement
  • Income Proof (Audited financial for last two years)
  • Last 6 months bank statement
  • Proof of continuity of business

HDFC Bank Personal Loan

HDFC Bank Personal loans are quick and convenient. HDFC Bank personal loan is given for multiple purposes including wedding, travel, home renovation, medical expenses. Flexible tenure and competitive interest rate are additional advantages of HDFC personal loan.

Interest Rate

HDFC Bank Personal Loan Interest rate – Talk to our expert for a detailed pricing and for better deal.

Other Charges

  • Loan Processing Charges – 2.5% of loan amount
  • Prepayment Charges – 2-4% of Principal Outstanding
  • Late Payment Charges – 2% per month on EMI

Key Features

  • Instant Loan approval and processing in 4 hours.
  • Personal Accidental Coverage benefit.
  • Personal Loan Security Benefit.
  • Loan Amount up to 40 Lakh.

Eligibility Criteria – 

Factor Requirement
Age 21 years – 60 years
Income Minimum Monthly Rs.15000
Total years in Job 2 years

Documents Required

  • Identity Proof
  • Address Proof
  • Bank Statement of 3 months
  • Latest Salary Slip along with form 16 
  1. Axis Bank Personal Loan

Axis Bank offers a personal loan up to 15 Lakh with a minimum document and quick approval. A unique feature of Axis bank personal loan is zero charges on foreclosure and repayment. If you are sure that you will be able to close the loan quickly Axis Bank personal loan is a good option.

Interest Rate

Axis Bank Personal Loan Interest Rate – Talk to our experts for a lower rate.

Other Charges

  • Loan Processing Charges – 1.5% to 2% plus GST
  • Prepayment/Foreclosure Charges – NIL
  • Default Interest Rate – 24% per annum

Key Features

  • No prepayment or foreclosure charges.
  • Facility to earn additional reward via Axis eDGE Reward point program.
  • Loan Transfer facility

Eligibility Criteria

Factor Requirement
Age 21 years – 60 years
Income Minimum Monthly Rs.15000

Documents Required

  • ID Proof
  • Income Proof
  • Bank Statement
  • Residence Proof
  • Photograph
  • Signature verification proof

Though personal loans have become very common source of funding for immediate expenses. You should never mix it with emotion. Loanyantra helps you figure out what is best for you by giving you out of the box ideas and showing you the better deals. 

What to Consider When Choosing a Loan Officer

What to Consider When Choosing a Loan Officer

When you’re ready to look for a new home, which should come first: finding the right real estate agent, loan officer or lender? Some people look for a house first, either online or in an area where they would like to live, and then they call the agent who listed the house. There’s no wrong way to do it, but the chances are good that you could save both time and money by finding a loan officer first, who could also help you find a realtor with listings that match your financial limits.

Choosing a loan officer is one of the most important decisions you make when buying a home. Loanyantra’s experts proved to be the best in guiding you about the best suitable lender to you. Most people know they want to find a realtor they are comfortable working with. Some of the same considerations should go into your choice of a loan officer, because the process of getting a loan can take a month – sometimes longer. Your loan officer will be working closely with you and examining a lot of your personal information, so you want to find someone who you feel is knowledgeable about loan options, trustworthy and responsive to you and your needs. We at Loanyantra train our relation ship managers and executives to understand that and hence excel the loan management solutions.

Reasons to choose a loan officer before you choose a realtor:

  • It will help you know how much you can spend, even before you start looking for a home.
  • A loan officer will know the best realtors in the area where you want to live.
  • Because they aren’t trying to sell you a particular home, you will get “honest” information about the differences between various parts of town.

Once you are done with the search get along with our expert and finish the home loan process hassle-free, fast and with lowest interest rate.

loan agents in hyderabad,bangalore,pune
Choose your home through a reliable and informative loan officer

Make sure the loan officer is working with a well-known, reputable lender.

A good loan officer will be working for a lender who is proficient in all types of loans and has competitive mortgage rates and closing costs. A lender could assign a loan officer to you, but your loan officer also can lead you to a lender who meets your needs.

Loanyantra is the only online portal, which deals with 20 top lenders in India, giving you the best rate in one click, according to your needs. Each Loanyantra’s expert can understand your situation and customise the loan product for you.

The first step in finding your loan officer is determining what type of mortgage you need.

Look for someone who is cooperative and willing to listen and work with you to understand your needs and financial situation. There are many loan officers available and a good loan officer will offer you a choice of ways to finance your home purchase. Are you a first-time homebuyer? Do you need a mortgage with a low down payment? Are you looking for a jumbo mortgage? Do you have a low credit score? Loanyantra can give you the loan officers who are experienced in handling your type of situation.

Consider the answers you get to these important questions:

  • What are your fees? Ask about document preparation fees, paying points up front, detailed closing costs, appraisal costs, adjustment schedule (if you are considering an ARM – adjustable rate mortgage) and prepayment penalties. The loan officer should be patient and willing to explain all potential fees and their relationship to available interest rates.
  • Do you deal with more than one lender? A mortgage broker typically works for a single brokerage company, while a loan officer could work with several lenders, giving you more options.
  • What are your areas of expertise? Look for a loan officer with experience and contacts with the type of loan you are looking for. Self-employed borrowers may face more difficulties in verifying their income, so a loan officer with experience in this area could help if you are in this situation.
  • What is the current processing time for your type mortgage? How many of these type mortgages have you done? Ask for an experience.
  • What is your technical background? Much of originating a mortgage requires using complex software programs. If one is not skilled in this area, their time will be spent trying to navigate this process, and they will have less time to meet your other needs.

The most crucial questions are the ones you ask yourself after talking to loan officers: Do I feel comfortable with this person? Do I trust them to answer my calls promptly and act in my best interest? Are they trying to put pressure on me for a fast decision?

Ask All Your Questions

A good loan officer will get you good rates and get you to the closing in a timely manner. They will communicate with you throughout the process. Mortgages are complex financial agreements, and your loan officer should be willing and able to answer any question at any time. They will anticipate your questions and volunteer information. Don’t stop asking questions until you find a loan officer you trust and who will help you every step of the way.

Advantages of Homeownership

Is owning a home right for you?

Becoming a homeowner comes with a lot of responsibility, but also a lot of rewards. To help you decide if owning a home makes the most sense for you, here are some of the main reasons people choose homeownership over renting.

It’s a Good Investment

While home prices move in cycles over the short-term, if you stay in your home for a long time, it could increase in value and give you a substantial return on your investment.

If you are currently renting a home or apartment, emi calculator helps determine which option provides the most economic benefits for you over the time you plan to be in your residence. When using the calculator, be sure to include some assumption about future increases in your rent, as most landlords periodically raise rents.

advantages of home  buying
Advantages of home ownership

You Build Equity

When you subtract the amount you owe on your home loan from the total value of your house, the amount left over is your home equity-the “rupee” value of your home that actually belongs to you.

There are two ways to build equity :

  1. With each monthly mortgage payment you make, a portion goes toward reducing the amount you owe on your loan, which increases your equity. In a sense, paying your mortgage is a form of savings, as it increases the equity in your home.
  2. As your home increases in the value, it creates more equity for you

In a sense, paying your mortgage is a form of savings, since it increases your home equity which you can tap into if you need money in the future.

When necessary, you can borrow against your home equity to meet a variety of financial needs, including home improvements, education or medical expenses. A home equity loan or line of credit can also be used to pay off high interest credit card debt, since the interest rate is generally lower and the interest payments are tax deductible.

You Enjoy Significant Tax Deductions

Owning a home can reduce the amount you pay in income taxes each year. In the early years of your mortgage, when interest represents the bulk of your monthly mortgage payment, these tax deductions can put a significant amount of money back in your pocket.

You Build a Strong Credit History

When you buy a home and consistently make your monthly loan payments on time, it demonstrates to other lenders that you are a good borrower and the risk of you defaulting on a loan is low. This strong credit history will be helpful in the future when you need other loans for buying a car, making improvements to your home, or paying other major expenses.

You’re Free to Create the Home You Want

Homeownership offers tremendous freedom to create the living environment that you have always wanted. You can own pets, paint rooms whatever color you like, make changes to floors and carpeting and do all the things that make a house your home – all without having to get approval from a landlord.

Loanyantra is by your side for all the efforts you need to do while home loan process. Go with Loanyantra if you think you belong to the circle of availing the loan management solutions till you close loan.

Do Your Home Work Before Approaching The Bank For A Home Loan

The objective of this article is to ensure that your home loan becomes a hassle-free experience through Loanyantra. Getting a home loan is a lengthy procedure. However simple it might look in the bank’s advertisement, the fact remains that there are a lot of hiccups in the entire process. Here are the 7 most common problems faced by home loan borrowers in India. Each problem is discussed in detail and appropriate case studies are mentioned along with it.

1. Rejection at the first stage

Strange but true, many of the home loan applications do not pass even the first test. They are out rightly rejected due to incompatibility between the borrower’s qualifications and lenders requirements. It could be the age criteria, income criteria, proper documents not being submitted, the bank not being able to verify your details properly, not passing the field investigations conducted by the bank and many more. The best way to avoid being rejected in this way is to check the eligibility requirements of lending banks carefully and apply only to that bank which matches your profile. Keeping proper documents ready and providing accurate, verifiable details to the banks will ensure that you sail through the preliminary verification process.

Loanyantra is an online platform to know about all banks in one click and to know if you are eligible for how many lenders’ requirement through filling a form or talking to our expert (040-71011991) and hence, helps you in decision making about the toughest step.

Detailed work on solving problems on home loan
Detailed work on solving problems on home loan
2. Processing fee not refunded
 
With every application form for home loans, banks require about 0.25% to 1% of the loan amount to be submitted as the processing fees. This processing fees is generally NOT REFUNDABLE. In simple words this means that for whatever reasons, if the bank finds that you don’t deserve the home loan, this fees won’t be returned. This is the cost of applying for home loans. If in any case, the bank you have applied to states that it will refund the processing fees in case the bank doesn’t sanction you the home loan, it is better to get any such declaration in writing and make sure that the clause is enforceable. A verbal statement by bank authorities won’t be of any use unless it is properly and legally documented.
Loanyantra’s Tip – Before even you walk down to the lender’s branch, have a word with Loanyantra’s experts. Which will help you in knowing about every detail of the lender without paying the upfront fees. Also on call will allow you to know different lenders’ processing fees, fees waiver if any.
If you are a group looking for home loan, Loanyantra can help you waive off the processing fee to every one in the group provided if all the group members opt for the same lender. Talk to our executive and we can deal it like a cake walk.
3.Desired loan not sanctioned
 
The loan amount sanctioned is based mostly on repayment capacity of the borrower. Many things come into picture, when the bank decides how much home loan a person can get. The monthly income, financial history, other unpaid loans with the borrower, past repayment record, credit card usage history if any, bounced checks, average balance with the banks, continuity in present employment, total years in employment, nature of employment etc. These factors all clubbed together help the bank to decide whether it will be able to recover its money satisfactorily or not. If you get rejected due to any such criteria, you can increase your eligibility by clubbing together your spouse’s, father’s, son’s, relative’s income and make them a co-borrower. In addition to it, if you have sufficient funds in NSC’s, provident funds, LIC policies etc. you can keep them as collateral and ask the bank to finance your home loan.
Loanyantra’s Tip – Check out Loanyantra’s  eligibility calculator before applying for a home loan. You can even add your co-applicant details and check the combined eligibility. This helps you categorize the allotment of  amount from self and from bank.
4.The interest rate dilemma
 
Whether to go for a fixed rate or floating rate interest for home loans is a dilemma which almost every home loan borrower faces. Even after deciding on a particular loan regime, the home loan terms and condition fine prints can create havoc with your interest rates. For example even if a borrower has opted for fixed rate home loan and the bank has promised him a rate which he feels is good, the catch is in the fine prints which authorizes the bank to vary this fixed rate every 2 years, things can go worse for the fixed rate borrower. Similarly if the bank doesn’t pass you the benefit of lowered interest rates in floating interest rate regime, it will be of a little value. Avoiding such a situation essentially means that you study the terms and conditions of home loan carefully and clearly ask the bank about such things. In case of floating interest rates the facts can be verified by checking how the interest rates on home loan dropped during low interest periods. Check the bank’s websites for some historic floating rate changes. For example, SBI provides ten years history of interest rates.
Loanyantra’s Tip – Fixed rate is always a bit higher than the market interest rate. But people opt for fixed rate to avoid the risk of frequent interest rate fluctuations. But each lender has varied products with respect to interest rates. Be clear as to why do you opt for fixed rate and calculate how beneficial it is to go with a specific interest rate. Loanyantra can get the lowest interest rate for one year which saves you a penny more than estimated.

5. Difference in property valuation

The bank has its own experts for legal, technical and financial appraisal of the property in question. It evaluates the property on its own established parameters and assigns a value to it. This value can be significantly lower than the price you quoted for the property. Thus the bank will only lend you up to the amount it valued. This can cause a significant gap between what you need and what the bank is willing to lend. To avoid this situation the borrower can get the property valued before applying for home loan from a bank approved valuator.

Loanyantra’s TipPre-approved home loans are the best solution if you are in a dilemma about the loan amount. Or sometimes, though the documents are perfect, if the loan amount needed is more than 75% or 80%, it is necessary to shift the kind of lender you look for. Usually, public banks offer lesser value than the financial institutes and private banks. The interest rate offered by the financial institutes is leaving the public and private banks in tough competition.

6. The down payment

Banks require the borrower to fund at least 10% to 20% (varying from bank to bank) of the entire loan amount as the down payment for the home loan. This amount has to be deposited before the disbursal of the home loan. In the absence of such down payment the bank will refuse home loan to the borrower. For a home loan of 10 lacs this could mean anything between 1 to 2 lacs. This amount must be readily available with the borrower. In a scenario where the valuation of the property by bank is considerably lower than the market price of the property, the balance will also have to be paid by the borrower. This effectively increases the down payment. The obvious remedy to this tricky situation is to get the property valued beforehand and have the down payment ready. Some banks also allow NSC’s, provident funds, LIC policies etc for down payment. It is generally a good procedure to check the down payment requirement of various banks and choose the one which requires the lowest amount to be deposited initially or fits your budget well.

Loanyantra’s Tip – Let us know if the down payment you can pay is a way lesser than actually needed. If your credit history is good and if you have good documentation, Loanyantra is a reliable source for a solution to get loan from top lenders in India. Only thing you need to do is compromise on the dream lender. However, while you are in home loan, Loanyantra can help you get loan in your favourite bank at lower interest rate.

  1. Title deeds and NOC Documentation Problems

The title deeds and NOC documents have to be furnished in the bank’s format. Borrowers who don’t provide such documents in proper format, will ruin the entire exercise and won’t get any home loan. To avoid falling into such uncomfortable situation, enquire about all the documents required by banks beforehand and take necessary steps to get them ready within the stipulated time frame.

Loanyantra’s Tip –  Before our executive comes to collect the documents to you, we make sure, you have all of them in place exactly what the lender needs.

Buying a home is one of the major decisions a person has to take during his life. It is rare to find someone who pays the entire cost of home at one go. A home loan is an essential part of any home buying endeavor. Taking a home loan is a long journey, which involves many stages. The key to getting your home loan in a smooth way is being familiar with the entire home loan process.

4 ways to prepare for a home loan interest rate rise

The quarter financial rates left everyone awe struck as the general consensus was that there can be further raise in the rate like the two preceding quarters’. But RBI left no traces of rate change in this quarter.

However, when interest rates are compared over the past two years, the home loan interest rates are taking the upward path from 8.3% to 9%.

no change in repo rate but expected hike needs some correction in your home loan interest rate
4 Points to prepare for home loan rate hike

Here are the most important points to be prepared with before the raise of the home loan interest rates.

1. Run a Rate Rise Road Test – Make minute adjustments to your daily expenses and see how you can coup up with the flexible interest rates. Simply use the home loan emi calculator to understand the influence of the rate rise say 0.25%, 0.5%, 0.75%, might have on your emi or tenure of your home loan. Also calculate if you can make some additional repayments with your current home loan to reduce the rate rise influence.

2. Stack More Savings – There is a good range of good value savings in the market. The fixed deposit interest rates have been comparatively at its best. Save so that your rainy day fund is primed and ready to go when needed.

Or have an offset account to deposit your extra pennies into it, which will count against the principal amount of your loan amount which means pay less interest over the life of loan.

3. Review or Refinance – Reviewing your home loan is a great way to find out if you are paying lesser in the market. If no, deal with your lender for a better rate. Or refinance from another lender which has a better rate in the market. Learn about the best lender in the market through Loanyantra’s experts.

4. Home Saver Plans – If you have a clear family budget and if your budget allows you to have surplus funds, then enjoy the home saver plans by different lenders in the market. Home loan overdraft facility is a great option to save now on interest paid on the loan over lifetime. Though the interest rate is comparatively high, it is worth opting a home saver plan instead of making the surplus funds lay idle in the account.

 

Immediate Personal Loan for Critical Illness

Credit Score is important for Personal Loan for Critical Illness

For any kind of loan approval, it is mandatory to have a good CIBIL score. It is mark of your financial health, in case of the personal loan for critical illness or other medical expense, the credit score required by the bank’s ranges between 750-900. If you belong to that category then go ahead for immediate personal loan approval. Loanyantra can get the disbursal of the personal loan within one day.

What is a critical illness? Is personal loan granted for medical expenses? Eligibility check for the personal loan for critical illness treatment.

Having a medical emergency is a nightmare for anyone. Some diseases which were not so prevalent in earlier times have become common nowadays. In order to meet the medical expenses in case of such diseases, it is important to take insurance. Well, health insurance does provide the necessary help but it covers only a limited amount. The sad reality is that the health insurance covers only some of the critical disease but not all, there might be a case where a person can develop hereditary diseases, under such emergency condition, you would need money to meet the medical expenses.  Chronic diseases like cancer if diagnosed in a person can ruin someone life but having insurance to take care of the medical expenditure will help you fight the illness.

Thus, having health insurance becomes mandatory for a person, however, the normal health insurance that we have, cover health-checkups, cashless medical treatment. But when it comes to critical illness then it involves a lot of complication which the normal health insurance might not able to provide. Under such circumstances, what you would need is the instant personal loan can be a boon. If you take an instant personal loan through a proper source and with good planning, you can easily meet your medical expenses without affecting your pocket too much.

You can avail instant personal loan for critical illness for various purposes like :

  • Surgery
  • Treating long-term illness
  • Conducting a therapy
  • Operations etc.

The best part about this personal loan for critical illness is that the amount gets directly credited in your account thus making sure that you can get the money in an emergency. Another important point to note here is that personal loan for critical illness requires minimum documentation and hence, you can easily get this loan. Irrespective of the lender you opt for, Loanyantra’s executives help you keep the documents together before the collection agent comes to your home.

Many of the banks and financial institutions like ICICI Bank, KOTAK bank, Axis Bank, HDFC Bank, Bajaj Finance etc. provide an instant personal loan to cater to the medical expenses. These financial institutions have a very simple process of personal loan application and approval. They have defined eligibility criteria and parameters, once you meet these parameters, you will get the loan. The borrower is required to have a minimum monthly income of Rs. 5,000. Once you meet these criteria, you will get the amount in your bank within 24 hours of application. Thus, in the case of medical emergency you will easily get the money.

Critical illness or diseases like myasthenia gravis, cancer, permanent or partial disability to any of the member can be a matter of concern. Instant personal loan for critical illness can be a great way to handle the cost of treatment.

The banks and NBFCs have a well-defined but simple eligibility criteria for personal loan for critical illness, here is a quick view of the same:

  • Identity card– just like other loans, if you want a personal loan for critical illness, you need to submit your ID card like driving licence, voter ID, Adhaar card, passport etc.
  • Address proof- the borrower needs to submit address proof, utility bills like telephone bill electricity bill, rental agreement, gas connection etc.
  • Last three months’ bank statement
  • Salary slip of last 3 months
  • The age of the applicant must be between 25 years to 58 years

You can physically visit the bank and submit it or else banks have now digitized the entire process, you can submit the document online.  Once the bank processes the application, you will get the amount in your account within 24-72 hours of application. But lessen the burden of going to bank again and again to meet the executives and finding out the process. All you need to know is give a missed call to 040-71011991 to get assistance from Loanyantra. Even in that hustle of roaming around hospitals, get assured low interest rates and best product through just a phone call from wherever you are. 

Banks and NBFCs usually charge the personal loan interest rate between 12 to 25% per annum.

The loan tenure is flexible and varied from 1 to 5 years based on your requirement.

Is treatment for the critical illness covered in your insurance policy with your employer? What is the illness covered under insurance policies by employers?

Most of the employers in India offer health insurance to their employees. Well, it’s a great way to cover the cost of medical checkups, operations and other health expenses, but, when it comes to critical illness, you must run through your company’s insurance policy. Most of the companies take the group insurance plans which may not cover certain critical illness diseases.

Your company’s health insurance policy might have :

No Customization – many times the employer negotiate all aspects of group cover (which may include a number of critical illness, inclusion of the dependents, maximum and minimum sum). It means that there is no guarantee that your company’s insurance policy will consider the critical illnesses, surgeries and thus, you might need to take a speared insurance plan that covers it all.

No guarantee of continuation of the plan– Another key factor that you must note is that your insurance is restricted to the continuation of your job in the company. In simple words, your health insurance is only available till the time you are a part of the organization. Once you leave the company, the policy also terminates. Moreover, the employer always has the option to choose to discontinue the plan.

Other issues– Apart from the above-mentioned bottlenecks of the company’s health insurance, these plans lack customization of the policies based on the family history. Perfunctory coverage for surgeries and critical illnesses and sometimes high out of pocket expenses during hospitalization.

As per the Pan-India survey covering more than 3000 employers, it was found that only 39% got the benefit of a group plan. Around 31% of people want inclusion of diagnostic services as a part of their group health plan, unfortunately, only 20% of the employers offer the same.

Forgot to take insurance policy for your dependents? Does the insurance policy you hold cover your dependents? If no, then the Personal loan is the solution.

The good news about the new age employment policies is that it is farmed to keep the workforce motivated and secure. One of the best ways to achieve the same is by offering them health insurance which can assure them of taking care of medical expenses in case of emergencies. Most of the companies offer health insurance coverage to the employees, their spouses and children. In some cases, this leverage is extended to the parents of the employee.

You may have to pay an extra premium, but the benefits are worth it all. You will have all the medical expenses covered, the premium offered to Group Health Insurance plan is 30-35% lesser than the other health plans in the market, the coverage starts from day one and much more. With all this the Group Health Insurance plan offered by the employer is great. But when it comes to critical illness diseases like kidney failure, heart problems, surgeries, cancer treatment etc. it might not be covered in the plan. Under such cases, you can opt for a personal loan.

How many days does it take to grant a personal loan for critical illness?

When it comes personal loan for critical illness banks and NBFCs are very spontaneous. Become a loanyantra customer by just a missed call and get the best and fastest product for your emergency needs. Our executives come to your doorstep to make things work out in your way. Immediate approval and disbursal is arranged and at lowest interest rates. Choose a reliable source before you step in to a loan.

What is a Personal loan insurance cover? Is it necessary? Names of personal loan cover products from different banks / NBFCs.

An important point to note here is that personal loan comes at a huge interest rate because the banks need to bear the risk for unseen circumstances. Same way, you would definitely do not want the burden of repayment to fall on your family members, so it is advisable to take the personal loan insurance cover. Infact, every bank has made it mandatory to pay premium for personal loan insurance while availing personal loan. Know what kind of policy you need to opt for and how much is to be paid extra and what are the options available. Loanyantra can assist you if you want to include the premium also in your personal loan amount and pay the EMI for the whole.

This insurance policy protects a borrower’s monthly loan payments in case of unfortunate circumstances. There are many banks in India that offer loan insurance to help borrowers repay their car loans, personal loans, home loans etc.

Advantages of Personal Loan Insurance Policy-

  • It will take care of the repayment of the loan in case of unfortunate events like accidental death, temporary disability, job loss etc.
  • With this plan, you protect your family from the burden of financial obligation.
  • Some of the loan insurance plans give the borrower the tax benefit under Section 80C

 

Personal loan Quick View

The table represents the requirements of the top banks Personal Loan in India

Bank Name Rate of Interest Processing Fees Amount Loan Tenure Min. Salary Age
SBI 12.75% – 14.75% 1% + applicable tax 25K – 15L 5 years Rs.5,000 pm 21-58 Years
HDFC 10.99% – 21.25%Fixed Up to 2.5% 40L 1 – 5 years Rs. 20,000 pm 21-60 years
ICICI 11.00% – 18.25% From 0.75% (min. ₹999 + applicable tax) 20L 5 years Rs.15,000 pm 23-65 years
Bank of Baroda 11.35% – 16.35% 1,000 to ₹10,000 1L – 10L 4 years Call 21-60 years
Bank of India 12.90% – 13.90% 1,000 to ₹10,000 + applicable tax 10K – 5L 1 year- 3 years The borrower must have regular income 21-57 Years
IDBI 12.55% 1% + applicable tax 50K – 10L 1 year-5 years The borrower must have regular income 22-60 Years
Union Bank of India 14.40% 0.5% (min. ₹500) 5L 1 year- 5 years Call 21 – 57 Years
Dena Bank 13.00% – 14.00%Fixed 1% 15K – 1L 1 year- 3 years Call 24 – 54 Years
Bajaj Finserv 11.99%- 14.00% Starting from 1.50%, Up to 3% Rs. 1 Lakh to Rs. 25 Lakh 24 months to 60 months
HSBC 11.29% p.a. to 17.50% p.a Upto 2.5% of the disbursed loan amount Rs.75000-Rs.200000. 6 Months to 5 years Rs.75,000 p.a. 21 -58 years

FAQs about Personal Loan Critical Illness

  • Is balance transfer possible in personal loan?

Yes, if you are paying the EMI at a higher interest rate, you can opt for balance transfer. So, for immediate purpose of funds, it is better to take loan from the fastest disbursal bank. Once you have favourable situations, you can transfer your loan to the best suited lender. Since, you become loanyantra customer, you can avail the services again and get cash back too.

  • Can pensioners also get the personal loan?

Usually, banks are reluctant to give the personal loan to pensioners, but in the recent years, there has been a huge transformation in the banking products and now, even the pensioners can avail the personal loan.

We understand that you cannot go visit the banks for every small reason. Apply through Loanyantra and reduce the loan stress. Loanyantra is a fintech start-up which had given trusted and reliable loan management services to 300 customers within two years. Keep your head and heart free and go ahead with loanyantra for the immediate approval and disbursal.