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.

Piramal Housing Finance – Home Loan Types, Interest Rates, EMI Calculator and Eligibility Check

Piramal Housing Finance’s home loan interest rates start from 8.49% per annum.

Reading Time –

What You Will Learn From the Article –

  1. Introduction About Piramal Housing Finance
  2. Key Features of Piramal Housing Finance
  3. Why Piramal Housing for Home Loan
  4. Interest Rate and Method
  5. Eligibility Check
  6. Documents List
  7. Loan Amount, Tenure and LTV Ratio
  8. Other Fees
  9. PMAY Details
  10. Different Home Loan Products Details in Piramal Housing Finance.

Buying a home is the biggest dream of every individual. With the growing number of home loan providers, it has become easy for people to fulfil their dream of buying home. With the rising number of banking and financial institutions providing the home loan, it is easy for people to compare the interest rate provided by them and then choose the one which is the best. Piramal Housing Finance has recently become a popular medium of home loan. The Piramal Group though having its presence in the pharmaceutical sector has now expanded its wings in the financial sector and housing finance vertical of the parent company offers quick and easy home loans to the people. It is important to know more about the group before deciding to get funded from them by locking our documents with them.

About Piramal Housing FinancePiramal Group is a globally spread business corporation. The company has a strong foothold in pharma, IT, real estate, financial services, and glass packaging. It has its operation in over 30 nations of the world and access to more than 100 markets globally.

Piramal expansion in the financial service vertical: Piramal Capital & Housing Finance provides funding opportunities within real estate and non-real estate sectors. Piramal Housing Finance is a completely owned subsidiary of Piramal Finance Limited. The NBFC Piramal Housing Finance, provides various financial products like Loan Against Property (LAP), home loans and construction finance.

Piramal Housing Finance has already collaborated with some of the leading builders nationally like Lodha  World Towers by Lodha, Fairway West  by M3M Group, Global Techies Town by GM Infinite, Lodha Belmondo by Lodha, 25 South by Wadhwa. The company has initially focussed on tier I cities like Delhi/NCR, Mumbai, Bengaluru, and Pune.

Piramal Housing Finance is known to provide tailored home loan solutions that work in the best interest of the customers. If you are looking for a housing loan which is available at a lower interest rate and is hassle-free when it comes to documentation and processing, Piramal Housing Finance is a good choice for you.

Key Features and Benefits of Piramal Housing Finance 

The NBFC, Piramal Housing Finance is known to provide customized home loan solutions to its customers. Some of the key features that segregate Piramal Housing Finance from its contemporaries include the following

  • Piramal Housing Finance provides loan for buying the home directly from the developers for both, under construction and ready-to-move homes.
  • If you are looking loan for buying a resale property, Piramal Housing Finance helps you with the same.
  • The home loan tenure offered by the company is up to 30 years
  • You can choose from both fixed and floating rate of interest
  • Piramal Housing Finance gives you the option of choosing between the floating and fixed interest rates
  • The NBFC charges minimal processing fees
  • You also get the tax benefits on the home loan
  • Piramal Housing Finance gives you the option to choose home loan which is 20% higher than your eligibility. So allows you to buy a bigger home.
  • Top up without additional EMI.
  • Variable rate of interest will be linked to the benchmark rate of PHFL

Why Piramal Housing Finance for Home Loan

If it is about home loan then the biggest concern that holds most of the people back is the tedious paperwork and approval process. Additionally, it may happen sometimes that you might want to buy a bigger house but you might not be eligible to get the home loan. Piramal Housing solutions come as a rescue to all this. Piramal Housing Finance gives you  an easy access to home loan, the entire process of documentation and loan approval is comparatively simpler.

Piramal Housing Finance is known to provide the variable rate of interest, you can opt for a fixed or floating interest rate. Moreover, at Piramal Housing Finance you have the benefit of availing 20% higher loan amount. Thus making it a good choice for those who are looking for home loan.

Piramal Housing Finance Home Loan types, interest rates, eligibility, tenure, emi calculator, loan amount
Piramal Housing Finance Home Loan types, interest rates, eligibility and many more

Piramal Housing Finance Home Loan Interest Rate and Method Used 

Piramal Housing Finance’s home loan interest rates start from 8.49% per annum.

The calculation of the interest rate is done on basis of RPLR.

However, Loanyantra makes you a customised quote according to your requirements. All it takes to know your rate is just fill in the information in the form or call 040-71011991 and know top lenders different interest rates and get the lowest rate while you are sitting in your place.

Eligibility for Piramal Housing Loan

In order to take home loan from Piramal Housing finance or any other bank or NBFC, it is imperative that you must see whether you are eligible for the home loan or not.

Eligibility criteria specified by Piramal Housing Finance –

  • The applicant must be 21 years of age when he/she has applied for the loan.
  • The applicant must have a recurrent source of income so that they can easily pay the EMI.
  • All salaried and self-employed individuals can apply for the home loan.
  • CREDIT SCORE is the first and foremost step you should check. Without the score reaching 700, no lender can help you in granting the loan.

But be in touch with loanyantra for tips on maintaining good credit score. Which doesn’t allow your application to be rejected.

Co-applicant details- If you are looking for co-applying for the home loan at Piramal Housing Finance then the NBFC has the provision for the same. You can apply for home loan individually or with a co-applicant. Yes, having a co-applicant increase your eligibility for a great amount as compared to when you apply for home loan individually. Also be wise while choosing a home loan co-applicant, as the co-applicant’s credit score affects your loan application approval.

Documents Required for Piramal Housing Loan

Here is the list of documents that an individual seeking the home loan from Piramal Housing Finance needs to provide for quick and hassle-free approval of the home loan.

The documentation for Piramal Housing Loan has been divided under two categories :

  • Salaried individuals
  • Self-Employed individuals
Types of Home Loan Applicant Documents Required for Home Loan
Salaried Individual
  • Any one Identity Proof – Valid ID proof like Voter ID, Driving Licence, Aadhaar Card, PAN Card, Passport.
  • Any one Proof of Residence – Rent agreement, Utility bills of last 3 months like water bill, electricity bill, gas bill, telephone bill.
  • Age Proof –  PAN Card, Passport, Birth Certificate ( issued by the Government)
  • Proof of Employment – Recent  Bank statement reflecting the credited salary, Appointment letter , Form 16 for last two years
Self-Employed Individual
    • Identity Proof –  valid ID proof like Voter ID, Driving Licence, Aadhaar Card, PAN Card, Passport.
    • Proof of Residence – Rent agreement, Utility bills of last 3 months like water bill, electricity bill, gas ill, telephone bill.
    • Age Proof – PAN Card, Passport, Birth Certificate issued by Government authority.
    • Business Proof – Trade licence, SSI registration certificate.
  • The self-employed professionals must provide proof of their professional qualification when they submit the home loan application form.
  • Income Proof – P&L Statements , auditor report certified by a CA, ITR of last 2 years.

 

Minimum and Maximum Loan Amount for Home Loan from Piramal 

Piramal Housing Finance provides loan starting from Rs. 20 lakhs and the maximum loan amount it provides is Rs. 10 crore for a maximum tenure of 30 years.

Loanyantra’s Tip – You can even opt for lower tenure provided if you can pay more EMI. But this is a better plan to reduce your tenure when you have surplus at the end of the month. Get more tips from Loanyantra as a privileged Loanyantra Customer.

Loan To Value Ratio  – This ratio is dependent on loan amount you applied for and the market value of the property. This is also an important factor when you calculate your funds while investing.

Loan Amount Applied Loan amount upto 30 lakhs Rs. 30 lacs to Rs. 75 lakhs Loan amount more than Rs. 75 lakhs
Percentage Granted Upto 90% 80% 75%

Extra Fees To be calculated before proceeding further

Detailed tabular representation of the other charges charged by Piramal Housing Finance:

Particulars Amount
Processing fees Up to 3% of loan amount + applicable taxes
Part prepayment For those who have taken home loan at floating rate of interest, Piramal Housing Finance doesn’t charge fees.

For those who have taken home loan at fixed rate of interest, it is 2% of principal o/s on balance transfer + applicable taxes

NOC certificate issuance charges For the first time it is free and then it is Rs.500 plus taxes
CERSAI charges Rs. 500 + applicable taxes
Swap charges 0.50% of the loan outstanding + applicable taxes

Loanyantra’s Tip – If you belong to a gated community and all of you are looking for a home loan new, or balance transfer or resale, let one person represent your group to Loanyantra and rest all Loanyantra takes care for any discount on interest rate or processing fee waiver. Above all, you all get a discount subjected to then offers.

Home loan Insurance

Piramal Housing Finance is tied up with HDFC Ergo for Home Loan Insurance. It is always better to go for home loan insurance. Even you are out of funds, you can include that amount to the principal and pay the scheme premium through EMI.

It is made mandatory by all the lenders to the applicants for the safety of both parties to the applicants family as well as to the lender as well.

But make sure with what product you are going and how the home loan insurance is covered.

Pradhan Mantri Awas Yojna by Piramal Housing Finance

The most promising and futuristic dream of our PM, the Pradhan Mantri Awas Yojna, aims at providing a home to every individual. As per PMAY, the government aims to provide housing solutions, extensions, improvement, construction and improvement of a home to Lower Income Group People, Economically Weaker Section, Middle Income Group.

In alliance with this objective, Piramal Housing Finance provides the home loan to such people, however, they need to fall in the eligibility parameter specified by Piramal Housing Finance:

  • The family applying for this loan must not have a pucca house under his/her name
  • For the married couple, either of or both will be eligible for a single subsidy
  • The family must have not availed central assistance under any housing scheme form Government of India.
  • The beneficiary family must have not availed any benefit under any scheme of Pradhan Mantri Awas Yojna.
Type of House Eligibility Household Income Maximum Carpet Area Subsidized Interest Rate Purpose of Loan
LIG &EWS Upto Rs. 6 lac 60 square meter 6.50% For purchasing new home or constructing home
MIG1 Rs. 6,00,001- Rs. 12,00,000 90 sq. meter 4% For purchasing new home or constructing home
MIG2 Rs. 12,00,001 – Rs. 18,00,000 110 sq meter 3% For purchasing new home or constructing home

Loanyantra’s Precautionary Points – 

  • The beneficiary gets the interest subsidy upfront into your loan account.
  • The NPV or Net Present Value of interest subsidy is calibrated at 9% discount rate.
  • In case the applicant wants an additional loan, that extra amount will not be given at the subsidized interest rate.

Types of Piramal Home Loans

Apart from providing home loan for buying new house, Piramal Housing Finance offers varied types of loans.

Extension and Renovation of home

Purpose – If you want to renovate your house and are looking for financial assistance, then you can apply for the loan for Extension and renovation of home from Piramal Housing Finance.

Loan Tenure Maximum of 30 years or the age of retirement.

Eligibility

  1.    Salaried individuals
  2.    Self-employed individuals
  3.    Self-employed non-individuals

Rate of Interest Offered by Piramal Housing Finance– it starts from 8.40% and the RPLR or Retail Prime Lending Rate is 15.50%

 

Loan for self-construction

Purpose – If you are the believer of the fact that you must build your house and want to have financial assistance for the same, then you can contact Piramal Housing Finance which provides loan for self-construction. You can use this amount to build your dream house.

Loan Tenure Maximum of 30 years or the age of retirement.

Eligibility

  1.    Salaried individuals
  2.    Self-employed individuals
  3.    Self-employed non-individuals

Rate of Interest Offered by Piramal Housing Finance – Starts from 8.40% and the RPLR or Retail Prime Lending Rate is 15.50%

Super Loans

Purpose – There is yet another type of loan provided by Piramal Housing Finance which is known as Super Loans. Who doesn’t want a big house but sometimes one might not be eligible to get such a huge loan, for all such people and for those who are looking to buy a bigger house, Piramal Housing Finance provides Super Loan. In simple words, Super Loans gives you 20% higher loan eligibility or you can opt for 15% lower EMI than the existing loan.

Loan Tenure Maximum of 30 years or the age of retirement.

Eligibility

  1.    Salaried individuals
  2.    Self-employed individuals
  3.    Self-employed non-individuals

Rate of Interest Offered by Piramal Housing Finance – Starts from 8.40% and the RPLR or Retail Prime Lending Rate is 15.50%.

Loanyantra’s Role: Loanyantra gives you an easy access to various loan providers. You not only get the details of the different types of loan providers and their interest rates but at the same time, we also provide you SPOC that helps you with the complete modus operandi of loan application and approval. From completing paperwork to submission, Loanyantra will help you in each step. Not only this, but we also help you find out the best home loan provider. You can also check the EMI using our EMI calculator. With the help of this calculator, you get to know the details of the EMI that you would be paying to different lenders. All-in-all we are a one stop solution to all your home loan related queries. To explore more you can contact us online or call us to 040-71011991.

 

 

 

 

Loanyantra.com – Vision, Mission and Facts

LoanYantra.com, first time ever home loan management company, in India. Loanyantra.com proudly introduces to the Indian home loan market, organic home loans which take care of your future financial health. It is an online marketplace that gives instant customised rate quotes on home loan products.

If you are looking for the right home loan, then you are in the right place, with us. Our Mission is to go Organic with home loans and ensure you the best financial health with regards to home loan, not just till disbursal but till the closure of your home loan.

We make the process of finding your new home loan as simple and straightforward as possible. We help by comparing home loans, explaining and assisting with the overall process and negotiating rates on your behalf.

Explore our end-to-end, comprehensive, hassle free, quality driven and one stop home loan solutions.
We are one of the home loan solution providers, with a blend of technical and business expertise that caters to the needs of our clients. We offer comprehensive, quality driven cost effective solutions .

It is our conviction that quality and personalized services are pre-requisites for our business and we value them in all our client interactions.

Our Vision is to improve our clients ‘Home loan process experience as simple as single click process with personalized service and end to end solutions and Yes, WE AIM FOR IT.

Our exclusive home loan services to customers include:
1. Unique and state of the art platform that dynamically reduce the cycle time in loan process
2. Tailor-made solutions as per the needs of the customer
3. Expert advice in pre and post disbursement process
4. Loanyantra pro- A dynamic method which picks the best deal amongst the available loan products in the market.
5. Range of services that caters to all type of customers

Home Loan Factors Comparison – Different Top Lenders

Comparison of different parameters with different banks.
Buying a home through a home loan, though it is common, but not a simple issue to let the things go as they come. All it needs is getting correct information, hitting the correct lender, getting the exact amount what we need, depending on a reliable source before handing over the signed cheques.
Before I take you to a tour about different lenders’ information, I want to jot down the most important points to be noted before I handover the PDCs to the home loan lender which play an important role through out the tenure.
However big your house may be, or in whatever prime location your house is, the top lender or even the new lender in the market doesn’t care if your CIBIL score is less than 750. Yes, your application is rejected. The best performing loan agents also cannot help you if you carry a bad credit history along with you.
Repayment tenure is similar with every lender which is 30 years maximum and of course it depends on your age though.
Calculation method depends on the type of lender. Banks use MCLR and NBFCs use RPLR. Over that rate, the lenders add their spread or substract the their spread rate.
Spread rate varies from lender to lender which is the cause for the slight variation in the interest rates.
Choose home loan overdraft facility lender if you want no risk investment for your idled money. Provided if you are fine with the slight rise in the interest rate for the home loan overdraft product.
The Loan to value (LTV) ratio is the major decision making point as it decides loan amount and your pocket amount. The more the loan amount the lesser the sanctioned amount. Say 90% of loan amount is sanctioned if loan amount is 30 lakhs and 80% of loan amount for 30 to 75 lakhs and 75% of loan amount if the loan amount is more than 75 lakhs. But there are lenders,  mostly all the NBFCs,who include registration fees too in the property value amount and then calculate the ratio of loan amount which enables the borrower to get more loan amount.
Insurance for your home loan is made mandatory by all the lenders. Check with the lender for the insurance plans, insurance partner and if premium included in the loan amount. Actually, you need not run through all the websites as Loanyantra experts can assist you about all the lenders in one call.
Offers with processing fees, legal charges are a part of promotional activities by the lenders. Call Loanyantra to know seasonal offers going on exactly the time you apply for loan. Also calculate whether you really benefit from that offer.
The average time taken for your loan process depends on how many times you follow up with the lenders by missing your office and attending the bank. Loanyantra’s experts can give you an estimate of how many days it will take depending on the property you choose. The needed can be served by our executives keeping them on top in the priority list.
Salary account benefits are available if you go for loan with the same salary account. Like HDFC offers salary account overdraft upto 1 lakh and ICICI Bank offers home loan overdraft to customers holding salary account. Let Loanyantra know your salary account bank name too which makes your decision easy with the information you get from experts.
Home Loan processing fees, interest rate, loan to value Comparison by Loanyantra
Home Loan Factors Comparison by Loanyantra
Here I go with the details about each top home loan lender in India. Your requirement lets you choose the right one.

Bank or NBFC

ROI

Method

LTV

Processing Fees

Home Loan Advantage Product

Tenure

Piramal Housing

8.40%

RPLR-15.5%

90%

3% +Taxes

No

30 Yrs

SBI

8.70%

MCLR-8.5%

90%

0.35% or 2,000-10,000/-

Yes at 8.75%

30 Yrs

ICICI

8.85%

MCLR-8.5%

90%

0.50 -1.00% + taxes

Yes for salary account holders

30 Yrs

HDFC

8.70%

MCLR-8.5%

90%

0.5% or 11,500

No

30 Yrs

BOB

8.55%

MCLR-8.5%

90%

0

Yes

30 Yrs

LIC

9.20%

Call us

85%

NIL

No

30 Yrs

Axis Bank

8.70%

MCLR-8.5%

90%

1.00% or 10,000

Yes at 9.10%

30 Yrs

Super Saver Scheme – 20 Yrs

Indiabulls

8.75%

IMLR

90%

0.50 to 1.00% or 10,000/-

No

30 years

HSBC

8.70%

APR

80%

1% Or 10,000/-

Yes at 8.96%

25 Yrs

DHFL

8.70%

RPLR-18.82%

90%

2,500

No

30 Yrs

IDBI

8.85%

MCLR

80%

Nil

Yes

30 Yrs

PNB

8.75%

MCLR

80%

0.35% or 2,000 to 15,000/-

Yes at 8.95%

30 Yrs

PNB Housing Finance

8.90%

Sole Discretion

90%

0.5% (min. ₹5,900)

One time fee

30 Yrs

Loanyantra is always a great source of help for a hassle-free process. Manage your loan process by sitting wherever you are through Loanyantra.

Home Improvement Loan Vs Top-up Loan

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

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

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

Home Improvement Loan covers-

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

What you should know about Home Improvement Loan :

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

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

Home Improvement Loan vs Top up Loan. Which is better?
Home Improvement Loan vs Top up Loan. Which is better?

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

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

Top-up Loan covers :

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

What you should know about top-up loan : 

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

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

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