Personal Loan for Infosys Employees

Personal Loan for Infosys Employees
Working with one of the leading IT firms always comes with an added advantage. Well, here I am talking about Infosys, a company which is one of the most renowned IT firms. For it, the employees are its biggest asset, and the Infosys company has left no stone unturned to keep Infosys employees happy and maintain a healthy work culture.

Did you know that Infosys is the third largest IT service company as per 2016 revenue report? Infosys has spread its wings in various areas like business consulting, pharma, aerospace , defence services and is now working in the area of Blockchain. Apart from offering innovative services and business solutions, Infosys makes sure that its employees are satisfied and have a proper work-life balance.

Infosys Software for Banks-
Infosys has been rendering innovative IT solutions in various domains and Banking is one such sector where we can find a popular software named Finacle being used. This software was developed by Infosys and is currently used in around 85 nations across the globe. This software aims at improving the products and making the banking operations seamless. With the help of this software, the banks can launch their products and services quickly. It becomes easy for the customer to target their customers using this software. The turnaround time for banks gets drastically reduced with the help of this software. Finacle lowers the product deployment time. With the help of this software. The banks can deploy their products in weeks instead of months. It also helps the banks to break their technology silos and cut down on the duplication of applications and thus reducing their cost of operations by making the entire process seamless.

Personal loan for Infosys employees interest rates are a bit low when compared to the market rate.
Personal loan for Infosys employees interest rates are a bit low when compared to the market rate.

Infosys Employees benefits from loans schemes-

  • One of the biggest benefits Infosys employees have at Infosys is that they enjoy work-life balance which is not only reflected in their work culture but at the same time the company also provides them special leverages which add to the employee benefits. One such aspect is a personal loan.

Infosys employees enjoy special personal loan benefits which include:

  • Lower personal loan rate for Infosys employees at 12.99% which is around 2% lesser than the normal market rate.
  • Easy repayment tenure for personal loan for Infosys employees. Loanyantra helps you in managing the repayments and closing the loan on time without paying a penny more.
  • Infosys employees can get finance ranging from 50 thousand to 20 lac
    Personal loan approval within 2 hours. Going through Loanyantra adds more benefits by reducing the interest rate even more and through cahback offers.
  • Lower interest rate who has a salary of Rs.75,000 or their net monthly income is in the similar range.
  • Infosys employees need not run through burdensome paperwork for sanction of loan, a minimal paper work needed and going through Loanyantra helps you with its doorstep facility which needs no roaming around banks.
  • ICICI bank offers a lower interest rate of 11.49% if the employee has a salary account with ICICI Bank.

Tabular Representation of Personal Loan Interest Rates for Infosys Employees – 

Bank Name Personal loan Interest Rates for Infosys Employees
Union Bank of India 13.40% per annum for salaried individuals.
Standard Chartered Bank Starts at 11.99% p.a.
Bajaj Finserv 11.49%  per annum
DENA Bank
  • 13%
Bank of India 12.40% to 14.40% per annum
ICICI Bank 11.49% to 22.00% per annum
Canara Bank MCLR + 5.45% per annum
State Bank of India 12.50% to 16.60% per annum
United Bank of India 14.85%
IndusInd Bank 11.25% to 26.00% per annum
Kotak Mahindra Bank 11.5% to 24% per annum

Special companies offer special leverages to its employees. Infosys offers a seamless process of loan sanction and approval. There is a minimal paperwork and quick approval, but there is some basic criteria that the Infosys employees need to fulfil to get a loan.

Personal Loan for Infosys Employees Documents – 

  • Identity Proof – The Infosys employee needs to produce Identity Card at the time of submission of documents. You can submit either Voter ID, Passport, Driving Licence or Aadhar Card.
  • Address Proof – Address proof can be of any type which shows your present address details like Passport , Electriciy Bills, Water bill, Rent Agreement or Ration Card. Address proof is important as there is a checking done before the loan sanction to confirm the address proof.
  • Income Proof– Salary Slip of last 3 months or Bank Statement of last 6 months. It is easy if you have a salary account with ICICI bank. Also Loanyantra’s expert is with you till your loan disbursement for any doubts and clarifications with your loan process.
  • Tax – Form 16 or last filed ITR

Personal loan for Infosys Employees Eligibility – 

Eligibility criteria varies across lenders depending on the borrower’s profile and relationship with the bank. General requirements for Personal loan for Infosys Employees are outlined below:

 

Particulars Eligibility Infosys Employees Personal Loan
Age 23 years minimum to 58 years maximum
Income Rs.17,000 (Rs.25,000 for tier I cities)
Credit Score Above 750
Minimum Loan Amount Rs.75,000
Maximum Loan Amount Rs.20,00,000

Personal Loan for Infosys Employees – Extra Fees and Charges

The approval of the loan includes various kinds of fees which apply to everyone, even on the Infosys employees.

Here are some of the fees that the Infosys employees are subjected to pay :

Processing fees– This fees are usually charged by the banks to press your application. It may be a bit lower for the IT employees, but they are also subjected to pay processing fees. These fees depends on the loan amount.

Pre-Payment Charges: This amount is usually charged by the lender in case the borrowers wish to prepay the loan before the closings tenure.
Payment Delay Charges: This is the penalty which is charged from the people in case they are not able to pay the loan amount on time.

Here are the details about some of the top banks in India for Personal loan for Infosys employees –

Bank or Financial Institution Name Interest Rate Processing Fees Loan Amount Tenure Pre-Closure Fees
TATA CAPITAL 10.99% – 25%

Fixed

NIL 20 Lac maximum 1-6 years 0
HDFC BANK 10.99% – 21.25%

Fixed

Up to 2.5%( Charged one time) 40 lac 1-5 years Pre-closure fee = 4% of principal outstanding (plus applicable tax) in 2nd year.
ICICI BANK 11.00% – 18.25%

Fixed

From .75% (min. ₹999 + applicable tax)

(Charged one time)

20 lac 1-5 years 5% of principal outstanding
Bank of Baroda 11.35% – 16.35%

Floating

1,000 to ₹10,000

(Charged one time)

1L – 10L 1-4 years Nil pre-closure fee after 6 months
Bank of Maharashtra 12.70%

Floating

1% (min. ₹1,000)

(Charged One Time)

1.5L Max 1-3 years
IDBI Bank 12.55%

Floating

1% + applicable tax

(Charged One Time)

50K – 10L 1-5 years Optional Pre-closure
YES BANK 14%Fixed NIL 20 lac maximum 1-5 years Conditional pre-closure only after 6 months
Axis BANK 15.50% to 24% 1.50% to 2.00% + GST as applicable Min. Rs. 50,000/Max. Rs. 15 lacs Up to 5 years NIL
SBI Personal Loans Scheme (SBI Saral Scheme): 8. 50% above Base Rate floating 2.02%-3.03% of the loan amount. 25 lac 5 years
Bajaj Finserv 13.99% to 18.00% Up to 2.25% of loan amount plus GST 1 lac-18 lac, the upper limit of personal loan can reach up to 25 lac based on applicant income 1-5 years NIL

The lower of the two amounts given below: 1) 5% of principal outstanding or 2) Interest outstanding for the unexpired period of the loan.

Personal Loan for Infosys Employees EMI Calculator – 

EMI calculation is a must for everybody irrespective of how much you earn. It is important to calculate the EMI first for your loan and then to decide for yourself as to how much you can pay from your salary. Loanyantra has every calculator which show you a graphical representation about your EMI once you enter your details. This helps in making your decision clear w.r.t  how many years, how much interest rate, how much EMI and which bank.

Even the minute discount in interest rate reduces the EMI and vice versa the minute increase in Your EMI will reduce the tenure of your loan.

For example, if you want a loan of 5 lakhs, the interest rate for personal loan is 11.5%, the tenure is 5 years, then the emi stands for 10,599.

Loanyantra’s Tip – Increase your EMI to Rs. 11,00o, it reduces your tenure to 54 months from 60 months resulting in Rs.60,000 saving from paying to Bank. Become a customer and manage your loan through Loanyantra’s tips by the experts.

Personal Loan for Infosys Employees Credit Score – 

How to check whether you are eligible for loan or not. Well, whether you are working in Infosys or no, banking and financial institutions have certain set parameters which one must fulfil to avail the personal loan. This involves complete documentation, falling in the eligibility criteria specified by the banks and finally the credit score.

A good credit score is a must for anyone to apply for a loan to get it approved. Credit score showcases your credit health and your financial position to repay the loan on time. Thus, it is always advisable that you must check the credit score before applying for personal or any other type of loan. The minimum credit score for a personal loan for Infosys employee is 750. Always check your credit score before applying for the loan. Otherwise, applying for loan and rejection from bank will again adds for bad credit score. If you have a bad credit score, pay your bills, insurance premiums and other EMIs on time for 6 months. Check the score after 6 months and for sure you find an improvement in your score. Apply for loan to experience a complete process.

Loanyantra’s Tip on Credit Score – Too many times checking your credit score also will reduce your credit score.

Loanyantra matches your credit and demographic profile to the lender’s criteria such that your application gets shortlisted in no time from the suitable lender. Loanyantra also does the pre-screening of the application as per the specifications of the bank.

So, if you are looking for a personal loan and are worried about the entire process, connect with Loanyantra for offers and the best advices ever and solutions. Our range of services covers all aspects of the loan process right from the application, finding the banks providing the lowest interest rate. We also help you with the preparation of entire documents that would be required at the time of loan application. Connect with us today for more information.

Home Loan Insurance Plan Comparison and Benefits

What is Home Loan Insurance Plan or Home Loan Protection Plan?

The primary objective of availing home loan insurance plan is to help the insurer or the home loan borrower settle the outstanding home loan amount in case of unforeseen circumstances. Home Loan Insurance Plan is usually known as Home Loan Protection Plan.

Your home is your private sanctuary and definitely, you would want it to be safe and secure. Buying a house is a major investment that one makes in their life. Moreover, you would also agree with the fact that most of the people take a home loan to buy their dream home. But, it is important to repay this home loan on time irrespective of your financial crisis. What if there are circumstances which forbid you from making the payment, it can be your sudden death as well. Home loan insurance or Home loan protection plan comes into picture then.  Home loan insurance plans are popular products nowadays but offer limited benefits. Remember, a trustworthy home loan insurance protects not only your home but also your memories associated with the home.

Some of the home loan protection plans also provide home loan insurance plans that cover the applicant, house, and all its components. The premium which is paid towards home loan insurance is applicable for tax benefits.

Why do you need home loan insurance and what does it cover?

Well, buying a home is not easy, it involves a considerable amount of investment, and thus there is a need to keep this insurance safe. Nobody would want to pass on the liability to their next generation in case of some unforeseen circumstances. In these situations, home loan insurance comes as a boon.

  1. Home loan insurance plan or home loan protection plan not only protects you from the sudden burden of EMIs but at the same time, it also has tax benefits under section 80(c).
  2. Some lenders cover the home loan borrowers’ home loan outstanding amount as well as illness. You can choose such home loan protection plan products which cover both.
  3. No need of term insurance plan if you opt for home loan protection plan which has benefits to cover your illness expenses and home loan outstanding amount.
  4. You can get your dependants also insured by opting the HLPP.
  5. Some HLPP products cover your home loan, home, contents of the home, illness of the borrower, and dependants. Though the premium you need to pay is a bit higher, you get everything under one roof. Then why pay for different policies in different companies.
  6. You have to pay in single premium. If you cannot pay, the premium is added to your principal loan amount through which you will not know the burden of the premium.
  7. The best of all, when you witch your lender, your home loan protection plan still continues with your new lender. Ensure that it happens.
    If you have taken the home loan, it doesn’t necessarily mean that it’s an end of the financial burden, in case of an eventuality, the load might just come on the family members and hence, it is suggested to go ahead with home loan insurance.

Actually, the term insurance is the much recommended product when you are in home loan and when you want insurance. But, now-a-days, every home loan lender makes it mandatory to take insurance while disbursing the loan amount. Yes, there is a chance as well as choice for not opting for the home loan protection plan by the lender itself, but only if you have insurance premium paid in other company and if it covers your home loan too.

Or choose a bank whose product has home loan amount cover, life cover, illness cover, contents of the house cover. At the same time, the interest of your loan should be low and also the premium should be competitive. If not, it is better to go for a term insurance which can cover everything (for e.g., ICICI Bank). Loanyantra helps you to figure out what  is best in every step. You can enquire from our experts whether you have a product matching your requirement. You can choose from the bazaar of prevailing bank opportunities through Loanyantra.

When can you go for a term insurance instead of home loan insurance ?

The first and foremost thing to compare is premium to be paid and how many times to be paid and what all covered. It’s one of the cheapest form of life insures which is meant to protect the entire family. It also provides better life cover and that too at a lower cost. So, if you have taken a home loan, it is advisable that you must go for term insurance cover.

How does the term insurance help you?

The first and foremost benefit of term insurance is that it reduces risk. The term insurance plans claim that it will help in meeting the home loan liability in case the borrower dies.

Key Features of Term Insurance-
1. Home Loan Insurance is Affordable- One would never want to shed down their burden on the family members, so, if you have taken a home loan, most of the insurance providers would suggest you avail term insurance. As mentioned above, it is highly affordable and will cover up the cost of the outstanding amount in case of the death of the borrower. You should compare the premium of different companies go for the one which is affordable and easy on your pocket.
2. Change lenders with term plans– It gives you an added benefit of changing the lender without any need to relinquish the insurance premium. For example, you have taken home loan with a bank and you have opted for home loan insurance, after some years, if you wish to transfer your home loan to another bank or lender, your home loan insurance plan will automatically continue and cover the remaining outstanding amount in whichever bank you stay with.
3. Term insurance comes with significant benefits- Apart from being an affordable plan, term insurance provides the nominee full amount irrespective of the time when the claim is made. The nominee can use this amount to settle the outstanding home loan amount. You have the flexibility to choose the period of payment of premium, i.e., you can decide whether it is going o half-yearly, yearly or monthly. Additionally, this insurance also gives you the tax benefit under Section 80C and 80D

Comparative Table of the Popular Term Insurance Plans

Insurance Providers Plan Maximum Maturity Min-Sum Assured Claim Settlement Premium (for coverage up to one crore)
MAX Online term Plus one time lump sum plan 70 years 25 lac 97% Rs. 1073 per month
Ageon Religare iTerm 100 years 25 lac 97% 1286 per month
SBI Poorna Suraksha 60 years NA 96% 2255 per month

IDBI IDBI Federal iSurance Lump Sum Plan 80 years 30 lac 95% 1509 per month
SBI eShield 60 years NA 96% 904 per month
HSBC iSelect Lump Sum 70 years 25 lac 94% 854 per month
TATA AIA Tata Sampoorna Suraksha Lump Sum 70 years 50 lac 96% 865 per month
KOTAK e-term 75 years 25lac 91% 872 per month

 

Why should you not compromise on term insurance?

You would notice that some of the insurance companies would suggest you buy Home Loan Protection plan but it’s always better to go with Term Insurance as these places are more affordable, easy to avail and also comes with series of events, here are few of them :

Loan Protection: The most important aspect of Term insurance is that it protects your family in your absence. The nominee gets the entire amount and can payout the pending home loan amount from the same. In case the money is left, the nominee can keep the whole amount.

Health Protection: This insurance plan gives you the benefit of both life and health insurance. You should contact the insurance provider to discuss the health insurance and diseases it covers as it may vary from one company to another

Saving & Control: Lastly, if you wish you can also continue this plan after repayment of the home loan to protect your family from unforeseen circumstances.

Home Loan Insurance Vs Term Insurance

Premium Payment –

Home Loan Protection Plan Premium payment is a single payment and the premium can be included in loan amount if you cannot afford for the premium.

Term Insurance Plans have payment plans either monthly or quarterly or half yearly or even annually.

Insurance Cover

Home loan protection plans by the home loan lenders like SBI mainly cover the outstanding loan amount.

Term insurance plans can cover loan amount, illness, home, contents of the home.

Value for Money –

Home Loan Protection Plan is surely a good option when you have a premium calculated according to your loan. And guided well.

Term insurance is a must whether you have a home loan or no. Though you pay many premiums according to the plans, the return is very much correct when you get into risk.

No. of people covered

Home loan insurance plan covers the applicant, co-applicant as well.

Term insurance covers only the applicant.

Loanyantra guides you and helps you choose the right home loan and  insurance plan. However, our role is not merely restricted to a selection of insurance plan we also help you decide which plan is better and suitable for. Loanyantra also helps you find the cheapest home loan options and also take care of the complete paperwork to make you task easy and hassle-free.

NOTE – Home loan protection plans are a mandatory now irrespective of where you take loan. 

Mudra Loan – Mudra Yojana by Modi In and Out

Pradhan mantri mudra yojana is started after the success of Pradhan mantri janawas yojana. Pradhan mantri mudra loan yojana scheme is otherwise called as modi loan scheme to support the small business and fund the unfunded.

What is the Purpose of Mudra Loan –

The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016.
All kinds of manufacturing, trading and service sector activities can get MUDRA loan. Loans are categorised according to the growth into Shishu, Kishor and Tarun. These products have been designed to cater to customers operating at the lower end of the enterprise spectrum.

Mudra loan for Small business

Mudra Loan Eligibility – Check if you can avail loan under Mudra Yojana

Mudra bank personal loan is given to the non-corporate small business sector through commercial banks, NBFCs.

Just approach the bank’s branch or search for any bank for pm mudra bank yojana online loan apply and download the form and apply.

You need not pay bribe for mudra yojana loan application form. It is mandatory that all the banks and NBFCs provide mudra loan to the needed. Mudra loan eligibility check mentions all kinds of manufacturing, trading and service sector activities can get MUDRA loan.

Mudra loans are categorised and loan coverage is provided according to the Mudra Yojana eligibility categories based on the growth of the business. Shishu (Rs.50,000), Kishor (Rs.50,000 to Rs. 5 lakh) and Tarun (Rs. 5 lakh to Rs. 10 lakh).

Mudra loan Categories – Shishu, Kishor, Tarun

Mudra Loans Sanction Details – Are you one of them and looking for expansion in your Business?

The Mudra loans are sanctioned to  Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship / partnership firms running as small manufacturing units, service sector units, shopkeepers, fruits / vegetable vendors, truck operators, food-service units, repair shops, machine operators, small industries, artisans, food processors and others, in rural and urban areas. extended through MFIs, NBFCs, Banks etc.

What you should know before approaching Bank for Mudra Loan –

  • No collateral is needed while applying for Mudra Loan. Banks and NBFCs take this as a chance for not providing the loan by mentioning unusual reasons. Hence, apply online for mudra bank loan.
  • The Mudra bank loan interest rate is usually based on the bank’s policies. The interest rates are deregulated and the banks have been advised to charge reasonable interest rates within the overall RBI guidelines.
  • Same is the case with prepayment of Mudra loan.
  • The loan amount will be decided by the requirement of the proposed income generating activity and the repayment terms will be decided by the anticipated cash flow from the activity.

Interest rate is the rate at which you payback the loan to the bank. Each bank has their own way of calculating based on the terms by RBI. Earlier, the calculation method was base rate method. It was in 2016, the RBI changed the Base rate method to MCLR method to reduce the banks play with the interest rates charged on customers.

Repayment of loan is within how many months or years you pay back the loan to the bank. Prepayment is repaying the loan before the tenure ends. According to the RBI rules, prepayment of the loan before the loan tenure does not attract any kind of penalties. No fees or extra charges are to paid for repaying the loan before the tenure.

More details about the Mudra Yojana – Mudra Loan categories – 

Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products / schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to.

The financial limit for the mudra schemes are :-
a. Shishu : covering loans upto 50,000/- Interest Rate is 10-12%
b. Kishor : covering loans above 50,000/- and upto 5 lakh –  Interest rate  is  14-17%
c. Tarun : covering loans above 5 lakh to 10 lakh – Interest Rate starts from 16%.

How do you get Mudra Loan under Mudra Yojana Scheme?

MUDRA’s delivery channel is conceived to be through the route of refinance primarily to Banks/NBFCs/MFIs.

Pradhan Mantri Mudra Yojana is a Government of India scheme, which enables a small borrower to borrow from banks, MFIs, NBFCs for loans upto 10 lakh for non farm income generating activities. Generally, loans upto 10 lakh issued by banks under Micro Small Enterprises is given without collaterals.

Any individual including women, proprietary concern, partnership firm, private limited company or any other entity are eligible applicant under PMMY loans.

Mudra Loan Documents –

Loan documents are usually same as any other loan. But here are more details about documents required for each type of Mudra loan category

  • Identity Proof
  • Address Proof
  • Passport size photographs
  • Your Company’s address proof, id proof.
  • Bank statement for the past 6 months.
  • Quotation of machinery or items or vehicle to be purchased
  • Name of the supplier of the machinery or vehicle and details of the machinery

Under Mudra yojana, for Working capital loan / revamping the business space /  loan for plant and machinery, you should carry your business proof documents like..

  • Business address proof (copies of relevant licences)
  • Business registration proof (registration certificate)
  • Proof of continuity of business
  • Trade references
  • Last 2 years income tax returns
  • Last 12 months bank statements.
  • Business vintage proof

NOTE – While carrying your documents, don’t forget to carry your duly filled Pradhan Mantri Mudra Yojana Loan application form if you had applied online.

Mudra Loan Application Details –

  • Find out which bank is nearby and approach the bank for application of Mudra Yojana Scheme.
  • Mention which loan you want and take the application for that.
  • Or you can also download from any bank’s website and fill it and take print out while you go to bank.
  • Fill the application with all the details.
  • Carry the application and documents as mentioned in the application to the bank.
  • Submit them with the business idea you have.

Mudra Loan Procedure –

Though you fill the application, you need to have a solid business idea or an existing business to avail your Mudra loan.

Mudra yojana is purely small business friendly scheme and banks truly trust the borrowers alone without asking for a collateral.

So, since it is a risky move, the banks try to delay the procedure of Mudra loans. But, you as a borrower can demand for the mudra loan under mudra scheme.

The procedure for Mudra loan is simple…borrower goes to the bank, apply, show your business ideas along with proofs, gets loan approval and wait for mudra loan disbursal in the borrower’s account.

NOTE – Check the interest rates of various banks and repayment methods too. Some banks offer more repayment period, atleast 5 years more than the usual. Compare the interest rates of all your nearest branches of different banks. Even the smallest decrease in the interest rate helps you save a penny.

What are the banks that provide Mudra Loan –

The banks that are currently offering business loans under the Pradhan Mantri MUDRA Yojana have interest rates ranging from 11% to 37%. Some of the more popular banks that are offering MUDRA loans are as follows –

  1. Oriental Bank of Commerce
  2. ICICI Bank
  3. Kotak Mahindra Bank
  4. Standard Chartered Bank
  5. Indian Bank
  6. State Bank of Patiala
  7. Bank of India
  8. Central Bank of India
  9. IDBI Bank
  10. Citibank
  11. HDFC Bank
  12. IndusInd Bank
  13. Dena Bank
  14. State Bank of Bikaner and Jaipur
  15. State Bank of Travancore
  16. Canara Bank
  17. Allahabad Bank
  18. Vijaya Bank
  19. Karur Vysya Bank
  20. UCO Bank
  21. Bank of Baroda
  22. Union Bank of India
  23. Tamil nad Mercantile Bank
  24. Indian Overseas Bank
  25. South Indian Bank
  26. Bank of Maharashtra
  27. State Bank of Hyderabad
  28. HDFC Bank
  29. State Bank of India

Mudra Loan Process Time  –

For Shishu loans, normally 7 to 10 days is the turn around time for processing the loan proposals on receipt of complete information. So, the loan doesn’t have processing fees, the bank does not ask for collateral for your loan and never pay bribe for the application and not even for the sanction of loan. The whole idea is to provide the poor and tribal with funds to make them self reliant.

Any complaint can be complained to the toll free The numbers are 1800 180 1111 and 1800 11 0001.

Mudra Loan and Personal Loan Which is better –

Maximum loan amount – Same for both

Repayment Tenure – Mudra Loan is given more tenure when compared to personal loans

Interest Rate – It is almost similar for both the loans

Collateral – Required for Personal loan and not required for Mudra loan

Reason – A solid reason is required for Mudra loan but no reason is required for Personal Loan

Loan Process – Easy for personal loan and a bit tough in real for Mudra loan.

However, if you are in the category of getting a mudra loan, it is recommended to opt for it. Loanyantra’s services are coming soon to meet your needs for Mudra Loan. Nevertheless, Personal loan is also a good option for your immediate needs and Loanyantra is the best one to go with as you get cashback and also low interest rate from many top banks in India.  All you need to do is just give a missed call to us for personal loan and our experts will take care of everything.

 

 

 

5 Questions To Ask To Figure Out Whether To Rent Or Buy A Home

A home is one of the biggest financial commitments most of us will ever make – so it’s understandable that we might get a little stressed over what seems like a straightforward question:

Should I rent or buy a home?

To try and ease that anxiety, we spoke with a financial expert and a certified financial planner to get their take on when buying a home is in your best interest.

While there’s no universal “right” answer, start your decision process by asking yourself these five questions:

1. Can you afford it?

Having the money for a down payment is only the first step. Next, you need to make sure you can afford to pay your home loan … and costs like utilities, maintenance, furniture, taxes, and inevitable surprise costs like emergency replacement of the broken boiler.

“Understand what you’re getting into,” says certified financial planner. “You have to be able to afford to purchase and maintain the property, and expect that your bills will change on a monthly basis.”

Plus, she points out, you’ll need to be able to pay all of the fees during the buying process. “The best thing you can do is educate yourself,” she advises. “If you don’t do your research, making the wrong decision to buy could really set you back financially.”

Rent if: You don’t have the money saved to buy and carry a home.

Buy if: You’ll have the cash to cover the initial transaction, plus the ongoing costs of home ownership.

2. Are you financially secure?

To be in a financial position that’s secure enough to responsibly to buy a home, you need:

  • Decent credit (“You don’t need perfect credit or even good credit,” he says, “but generally  CIBIL score above 650 you can qualify for a conventional loan.”)
  • A stable income
  • Moderate liabilities
  • Enough cash on hand to cover down payment and closing costs
  • Liquid assets as financial reserves

When expert says “financial reserves,” he’s talking about an emergency fund. It’s not a good idea to scrounge every paisa from each of your accounts for a down payment, leaving yourself without a safety net for an emergency or hobbling your retirement savings.

“I wouldn’t recommend that someone without an emergency fund buy a house,” cautions most of the experts. “It really sets you up for trouble when you wipe out your savings to reach this goal and don’t have any money set aside.”

Rent if: You can’t check off one or more of the above bullet points, or if buying would completely wipe out your savings.

Buy if: You’re financially secure outside of your home savings.

rent or buy a home
Rent or Buy a home. Which road to take when

3. What are your other financial goals?

While buying a home is a major financial accomplishment, it’s unlikely that it’s the only one you ever intend to make. I remember a client and her husband who were “really gung-ho on buying their first home.” But after getting a financial plan and seeing exactly how much money they would need to lay out, they decided to postpone their purchase for another few years in order to finance their other financial goals, like starting a business.

“It’s all about breaking it down into steps, and getting clear on the numbers,” says experts. “If you have any major life transitions coming up, you may want to hold off and see what happens.” How will your home purchase affect your pursuit of your other financial goals?

Rent if: You’re currently prioritizing other financial goals above homeownership.

Buy if: Homeownership is your primary financial goal, and you’re both aware of and comfortable with how the cost will affect your progress towards your other goals.

4. Are you willing to be the super?

This isn’t a financial question, but a lifestyle one: If the sink springs a leak, the yard needs to be mowed, the door handle breaks, who deals with it? It won’t be your landlord or super, experts points out, so either you’ll need to DIY or find the cash to hire someone.

Rent if: You want someone else to step in when things get complicated around the house.

Buy if: You don’t mind dealing with the increased chores that come with being your own landlord.

5. Where do you see yourself in the near future?

Different experts have different estimates, but generally, it’s recommended that a home buyer spend at least four to five years in a home to offset the costs of buying.

But aside from the numbers, “buying a home is as much an emotional decision as it is a financial one,” says experts. “Of course, you must crunch the numbers to determine whether buying makes financial sense, but it’s just as important to feel that you’re in a place in your life where buying just makes sense. It’s no coincidence that most people seriously start considering buying a home when they get married and are comfortable with the idea of settling down and raising a family.”

Rent if: You’re unsure where you’ll be in the near future.

Buy if: You expect to be in the same place for a few years and want to own your home.

Love Break-up!!! Because of Savings!!! Are you saving to buy a new home?

Naveen and Neha are a perfect match and an understanding couple. Naveen has a plan for everything in life. Neha is a cheerful and practical woman. Both of them discuss and get things done. So what made their ways apart? I should tell this.

Neha wants to visit a good restaurant and have great food. Naveen says ‘no’.

Neha wants to get away from her daily schedule and go for a vacation. Naveen says ‘no’.

Neha’s birthday time!!, Naveen got a card for her. She is happy, he had given her a card atleast. 

 Finally, Neha asks Naveen. “We earn well. We can spend though not for a luxurious life but for a relaxing and comfortable life. But why do you always say ‘no’ for anything that makes me feel happy?”

Naveen  now opens up. He has a dream house and he wants to buy it. 

So what is he doing? Yes. Saving saving saving.

Saving, forgoing the comforts and the feel good factors too??

with and without home loan savings example and loan calculator
With and Without homeloan. Know more with real example and calculations
Yes. He wants to save not just for the down payment of the home, but for the whole value of the property. So how does he save?
Let us see how it works without a homeloan

Age : 26 years

Salary : Rs.40,000

Expenditure : Rs.15,000

Savings : Rs.25,000

His dream home value : Rs. 40 lakhs.

On an average per year he saves : Rs. 3 lakhs

No. of years he should save : 14 years.

In the mean time the property’s value increases which means he has to save even he reaches his limit. Ofcourse, his salary increases and he can save more. If you observe in the example, he saves more than half of his salary. Without even fulfilling smallest of his desires. When will he explore life if not at the age of 20s and 30s.

So, Neha asks him to go for a home loan. He rejects. She tries to explain.

So, is it that you should not go for saving at all if you buy a home? No, save for the down payment and for the rest go for a home loan.

Let’s see how it works with a homeloan.

Age : 26 years

Salary : Rs. 40,000

Expenditure : Rs. 18,000

Savings : Rs. 22,000

His dream home value : Rs. 40 Lakhs

No.of years he saved : 2 years

Amount saved : Rs. 8 lakhs. (used for down payment) 

Home loan amount : Rs. 32 Lakhs

Salary after 2 years : Rs. 60,000

EMI Fixed : Rs. 32,000

Now, at the age of 28 years, he is enjoying in his own dream home. Since, EMI is fixed, he need not think of saving for a home when his salary increases. He can invest and diversify his extra income, where he gets more returns.

Is that the end? No, you rather have to, monitor your homeloan via loanyantra, the synonym for loan management services. This helps you to put an end to your home loan faster.

Experts help will always work. So, seek help to pay your home loan faster. That is what exactly Loanyantra does for your homeloan

Ohh!! the love story above!! They didn’t breakup 🙂 Naveen understood Neha’s ideas and followed her. They lived happily ever after in their own home. 😉 

How can you have a break up if you listen to her?  😉

Puravankara’s MRIP Offer

A very interesting concept –  You get assured rent for fixed years once you invest in such property. Let’s dive in to the topic.

Puravankara’s Provident Housing came up with an innovative method to grow their business and give value to our investment.

Managed Residences Investment Plan (MRIP)

 Puravankara, one of the top most real estate developers in India, believes in “We cannot really depend on our job alone if we want to achieve financial freedom. Creating and having multiple source of income is one of the best ways to step up the ladder and achieve our financial goals”.

Hence, came up with the solution, buy the ready-to-move in apartment with assured rent for seven years along with appreciation in rent.

purvankara-assured-rent_loanyantra-com

Here are some quick points for more information.

  • An innovative, low risk real estate investment to help you build a long term rental income.
  • Investment structure – Buy & Sale back with a contracted lease term of 7 years.
  • Puravankara’s MRIP offer provides long term lease management services from JLL, the leading international property consultant.
  • Multi-city residential assets across Chennai, Bangalore, Coimbatore & Kochi.
  • Investments across 3 Price buckets –   approx. 35 to 55 lakhs ;  75 to 125 lakhs &  2.5 to  4 cr.
  • Benefit from committed monthly rentals with annual rent escalations, long term capital appreciation, zero maintenance & hassle free process.
  • All apartments offered under Puravankara’s MRIP offer are ready to move in apartments and are completed apartments/ completed projects.
Pros and Cons of Puravankara’s MRIP Offer :
  • As the company believes, it is always better to have multiple investments and multiple sources of income. And hence, this is a best source of second income.
  • Buying a home for rental purpose is a very common practice in India. Finding a tenant and getting assured income is most challenging. This offer encourages a hassle-free maintenance process for seven years by not only paying the rent but also  maintenance charges.
  • You just have to pay the property tax every year.
  • Be careful while buying as the price under Puravankara’s MRIP offer is slightly higher than the price for the units with no offer.
  • But if you are an NRI or retired employee or low risk taker, it is always best to invest.
  • Go for Purvankara’s MRIP Offer, only if you can self-invest. Since, under this offer, the pricing of the unit is relatively higher, it doesn’t make the best option if you have to pay more interest to banks under home loan.

How Loanyantra Works :

Investing in a property is no small issue. And we understand it. So your search for home ends here. Think home loan and think loanyantra.

As we discussed above about managing homes, we, in loanyantra, manage your home loan. Call us for further queries about free services on home loan management.

Personal loan for Infosys Employees ICICI Bank

Personal loan for Infosys employees ICICI Bank comes with personalised features and discounted interest rate. With extended offers of personal loan, Infosys employees can enjoy special features like quick and simple personal loan process, fixed rate of interest where interest is charged in monthly reducing basis on personal loans. No security or collateral required for Infosys employees. Attractive personal loan interest rate for Infosys employees.

Infosys employees Personal Loan Documents ICICI Bank for instant approval –

  • Personal Loan Application form.
  • Photograph
  • Age proof
  • ID proof
  • Income proof
  • Bank statement
  • Residence proof
  • Signature verification proof.

Infosys Employees Eligibility check for Personal Loan from ICICI Bank –

  • Minimum age of applicant: 21 years
  • Maximum age of applicant at loan maturity: 60 years
  • Minimum Net Monthly Income: Rs 15,000
  • Maximum loan available: Rs 15 lacs.

Infosys personal loan is specially designed for the Infosys employees and Infosys bpo employees in ICICI bank. Zero Balance salary account can be maintained by Infosys employees with ICICI bank.

If you are an Infosys employee, get different deals on different loan products. ICICI personal loan offer for Infosys employee includes not only discounted interest rates but also rewards for paying loans through EMIs. Your minimum average salary per month should be minimum Rs. 15,000 in ICICI salary account for ICICI personal loan as an Infosys employee.

Before 2013, Infosys had special offers and schemes for its employees on different loans. Earlier it was tough to get loans from different lenders. Now Infosys had stopped schemes on loans for its employees. But personal loan and car loan schemes are still existing for Infosys employees.

Get the work done even smoother without even to wait as Loanyantra can assist you in every step by the loan experts. As an Infosys employee either in consultation or BPO, you can avail varied offers. So, get to know everything.

Personal Loan for Infosys Employees

Working with one of the leading IT firms always comes with an added advantage. Well, here I am talking about Infosys, a company which is one of the most renowned IT firms. For it, the employees are its biggest asset, and the company has left no stone unturned to keep its employees happy and maintain a healthy work culture. Did you know that it is the third largest IT service company as per 2016 revenue report? Infosys has spread its wings in various areas like business consulting, pharma, aerospace , defence services and is now working in the area of Blockchain. Apart from offering innovative services and business solutions, Infosys makes sure that its employees are satisfied and have a proper work-life balance.

Infosys Software for Banks

Infosys has been rendering innovative IT solutions in various domains and Banking is one such sector where we can find a popular software named Finacle being used. This software was developed by Infosys and is currently used in around 85 nations across the globe. This software aims at improving the products and making the banking operations seamless. With the help of this software, the banks can launch their products and services quickly.  It becomes easy for the customer to target their customers using this software. The turnaround time for banks gets drastically reduced with the help of this software, Finacle lowers the product deployment time, with the help of this software, the banks can deploy their products in weeks instead of months. It also helps the banks to break their technology silos and cut down on the duplication of applications, thus reducing their cost of operations by making the entire process seamless.

Personal Loans for Infosys Employees by ICICI Bank
Personal Loans for Infosys Employees by ICICI Bank

Infosys Employees benefits from loans schemes-

One of the biggest benefits employees have at Infosys is that they enjoy work-life balance which is not only reflected in their work culture but at the same time the company also provides them special leverages which add to the employee benefits. One such aspect is a personal loan.

Infosys employees enjoy special loan benefits which include:

  • Lower personal loan rate at 12.99% which is around 2% lesser than the normal market rate.
  • Easy repayment tenure
  • Infosys employees can get finance ranging from 50 thousand to 20 lac
  • Loan approval for Infosys employees for personal loan is done within 2 hours
  • Lower interest rate who have a salary of Rs.75,000 or their net monthly income is in the similar range
  • No need to run through burdensome paperwork, just some necessary paperwork and you will have your personal loan approved if you are working at Infosys
  • ICICI banks offer a lower interest rate of 11.49% if the employee has a salary account with ICICI

Tabular Representation of Personal Loan Interest Rates for Infosys Employees from other banks

Bank Name Rate of Interest Offered for Infosys Employees
Union Bank of India 13.40% per annum for salaried individuals.
Standard Chartered Bank Starts at 11.99% p.a.
Bajaj Finserv 11.49%  per annum
DENA Bank
  • 13%
Bank of India 12.40% to 14.40% per annum
ICICI Bank 11.49% to 22.00% per annum
Canara Bank MCLR + 5.45% per annum
State Bank of India 12.50% to 16.60% per annum
United Bank of India 14.85%
IndusInd Bank 11.25% to 26.00% per annum
Kotak Mahindra Bank 11.5% to 24% per annum

 

Special companies offer special leverages to its employees, Infosys offers a seamless process of loan sanction and approval. There is minimal paperwork and quick approval , but there are some basic criteria that they need to fulfil to get a loan.

Documents for personal loan for Infosys employees –

  1. Photograph
  2. ID proof
  3. Age proof
  4. Bank Statement
  5. Residence proof
  6. Income proof

Eligibility criteria:

  1. The applicant must be 21 years of age (minimum)
  2. The maximum age of the applicant at the time of loan maturity should be 60 years

Different fees charged by the banks :

The approval of the loan includes various kinds of fees which apply to everyone, even on the Infosys employees. Here are some of the fees that the Infosys employees are subjected to pay :

  • Processing fees- This fees are usually charged by the banks to press your application. It may be a bit lower for the IT employees, but they are also subjected to pay processing fees. These fees depend on the loan amount.
  • Pre-Payment Charges: This amount is usually charged by the lender in case the borrowers wish to prepay the loan before the closings tenure.
  • Payment Delay Charges: This is the penalty which is changed from the people in case they are not able to pay the loan amount on time.

Personal Loan for Infosys Employees and Credit Score Check –

Well, whether you are working in Infosys, or any other company, banking and financial institutions have certain set parameters which one must fulfil to avail the loan. This involves complete documentation, falling in the eligibility criteria specified by the banks and finally the credit score. A good credit score for all the employees is a must for anyone to apply for a personal loan and gets it approved. Credit score showcases your credit health and your financial position to repay the loan on time. Thus, it’s always advisable that you must check the credit score before applying for personal or any other type of loan. For all this you have Loanyantra. We are a company that matches your credit and demographic profile to the lender’s criteria such that your application gets shortlisted in no time. We also do the pre-screening of the application as per the specifications of the bank.

So, if you are looking for a personal loan and are worried about the entire process, connect with Loanyantra. We will offer you the best advice and solutions. Our range of services covers all aspects of the loan process right from the application, finding the banks providing the lowest interest rate. We also help you with the preparation of entire documents that would be required at the time of loan application. Connect with us today for more information.

 

 

 

 

Who can be a home loan co-applicant ? Is it mandatory?

In the present day, when the cost of living is going up and usually both spouses work, having a home loan co-applicant becomes more of a necessity than a requirement. There is no legal requirement to have a home loan co-applicant.

home loan co-applicant


In order to enhance the loan eligibility, a borrower has an option to resort to by having a home loan co-applicant. This way, the total eligible income for the purpose of computing the housing loan increases, thereby resulting in higher loan eligibility.


Home loan co-applicant is a person who shares the equal responsibility towards the repayment of the home loan. Such type of home loans are called Joint home loans. Whereas a co-owner is the person who has a share in the property and rights on the property too. A co-owner of a property can be the co-applicant in home loan. But it is not necessary that the co-applicant of the home loan is the co-owner of the property.

home loan coapplicant
Home loan co-applicant adds value to your home loan


Who can be a home loan co-applicant 


A bank does not permit friends or relatives who are not blood relatives to take a loan jointly. Only if the co-applicant receives income from a regular source will that income be considered for determining the loan eligibility.


In most cases, spouse is the most common and preferred combination.



In case of parents and children , these rules will apply:

  • Father/ Mother and son

If the applicant is the only son, he can jointly apply with his father with both the incomes being considered. The property should be in their names jointly and it does not matter who the main owner is. This is because in any case the son is the legal heir of the father’s property.

  • Father/ Mother and sons

In case a person has two or more sons and if he wants to apply jointly with one of them, he should not be the main owner of the property. This is because, on his death, his children should inherit the property jointly and may cause an inheritance dispute.

The father may only be taken as co-applicant and his income may be considered for the loan. He may be a co-owner or not own the property at all. Under no condition should he be the main owner of the property.

  • Unmarried daughter and Father/ Mother

An unmarried daughter can apply jointly with their father. However, the property should only be in the name of the daughter and the income of the father should not be considered . This is to avoid any legal complications on the subsequent marriage of the applicant .

Where applicant is the owner and has a son and a daughter, an affidavit may be obtained from the daughter that she has no claim on the property.


In case of Brother and brother/sister 

Home loan co-applicant approval is subject to certain terms and conditions like address of both should be same which means a joint family and intent to stay together in joint family in future. It is at the sole discretion of the bank.


Who cannot be a home loan co-applicant :

  • Father / Mother and Married Daughter 
  • Brother and Sister 
  • Sister and Sister

Documents Needed : Documents are needed from both the applicant and co-applicant. 


General home loan documents needed are :

  1. Identity proof
  2. Address proof
  3. Salary slips
  4. Bank statements

Loan Eligibility

A common doubt is – ‘Will the home loan eligibility amount increase if we opt for a joint home loan?’  Yes, it will. Banks will be ready to offer you higher loan amounts if you opt for a joint home loan. The reason for it is that your repayment capacity increases as there are now two people who repay this loan. How much it would increase depends on the income of co-applicant. Apart from income, organization reputation is also considered. Be sure that you compare multiple loan offers before deciding on loan eligibility.

Benefits of being a Home Loan Co-Applicant 

  • Increase Home Loan Eligibility :

If you are not the co-owner of property but would like to help your spouse or relative to increase their Home Loan eligibility. In this case, you may consider being home loan co-applicant. It is absolutely necessary that you should be aware of all the risks and legal liabilities.

  • Taxation Benefits :

From a taxation point of view, a joint home loan is also beneficial as all co-borrowers can claim tax deductions under section 24 (upto Rs. 1.5 lakh) of the Income Tax Act against interest paid and under Section 80C (up to Rs. 1 lakh ) against principal repaid. 


The tax benefits that can be claimed would be in proportion of the share that the individuals have in the loan.

Dis-advantages of being a Co-applicant 

  • CIBIL score of the co-applicant will be impacted.
  • Reduced credit eligibility : Being a co-applicant will reduce the credit eligibility to the extent of 50% of home loan value. It may impact approval of any future credit requirement of co-applicant.
  • Operational Hassle : It is an operational nightmare  for home loan co-applicant at the time of availing or closing the home loan.

Repayment Options 
The repayment process for joint home loan is similar to that of a regular home loan. The payment, however, has to be made through one cheque. 


Renu Sud Karnad, manging director, HDFC, explains, “Payments can be from a single or joint account by way of cheques or Electronic Clearing System (ECS).” 


“Another way of repayment could be that the co-borrowers share the number of EMIs between them such that a specific number of cheques can be issued by one borrower and the balance by the other,”  says Suvrat Saigal of Barclays Corporate India.


What if Dispute Arises
home loan co-applicantThe problem arises when one of the co-borrowers refuses to repay the loan. Be warned that  each party would be liable for part of repayment or up to as much as all of the repayments.


Renu Sud Karnad of HDFC says, “It does not matter whether the payment is made in the normal course by only one of the joint borrowers as long as the full EMI is paid as per schedule”.


In the event of default, the lender will proceed with the normal recovery process  which may include a legal recourse against all joint borrowers.

Solution 


home loan co-applicant

  • Agreement between all Home Loan Applicants  – 

To avoid any legal dispute in future, it is advisable to all home loan applicants to sign a separate legal liability agreement on a stamp paper. And get the paper notarized. This agreement will clearly segregate the liability of each party. 

  • Online Term insurance Plan – 

What if bank insists on a co-applicant. If the bank insists only to hedge risk against home loan repayment, then a simple solution is that the primary borrower can buy an online term insurance plan and can submit a copy of a that policy assuring bank that bank that he is insured against home loan.


Conclusion


Joint home loans are definitely beneficial as compared to normal home loans. In case you are looking for a home loan and you can speak to your blood relatives to get a joint home loan, be sure that the EMIs are paid as per schedule.

Home Loan Schemes and Home Loan Interest Rate for Women

Home Loan Interest Rate for Women are softened in India

A sharp rise has been noticed in the number of women property buyers in India of late. These days, women play a crucial role in taking a key decision like home buying. About 30% of the property buyers in urban India comprise of women buyers. Financial institutes and banks are often known to offer certain privileges to women home buyers when it comes to providing Home loans for women. That’s why it’s more important for the women borrowers to acquire more knowledge on home loans and the new housing market.

women buyers home loan interest rateand stamp duty prices discounted
Women Power – Dream Big and Invest in Real Estate
Here are some of the advantages female homebuyers have in India:
  • Women home buyers can avail home loans at cheaper rates from some of the leading Indian banks and financial organizations. Banks are keen to lend funds to women as they don’t miss out on the due dates and repay loans more punctually. However, the banks tend to run a check on the Adhaar Card, PAN Card, Driving License, and Voter ID prior to issuing home loans to women borrowers. Certain utility bills are also sought as residence proof e.g. telephone bills and electricity bills.
  • Housing-for-All Mission of the Indian Government has set the norm for women to be either sole owners or co-owners of new homes at cheaper rates. This is a direct effort of our central government towards empowering women belonging to underprivileged and low-income groups. It even has a direct impact on shaping the new housing market.
  • A lower stamp duty is accepted from women across a number of Indian states. The women borrowers are expected to pay 2% lesser on stamp duty in states like Haryana and Delhi. That’s one reason why some of the couples tend to get their properties registered jointly in the name of the female partner. A lower stamp duty is met even when the female partner receives the property in the form of a gift.
  • Women home buyers can even enjoy a tax deduction worth 2,00,000 INR on the amount of their home loan interest. While letting out your property, the rate of interest to be met by you and your husband are subject to tax deductions if you sign up as co-applicants to your home loans.
  • While letting out homes, women are even allowed to offset the net rental value by deducting the rate of interest to be met against their mortgage loans.

All key home buying tips for women suggest that the SBI is not just one bank that softened the rate of home loan interest for women.

‘Woman Power’ was another scheme launched  in 2015 by the HDFC bank for motivating the woman home buyers. This scheme enabled women buyers to achieve home loans with a lower interest rate 5 bps below the normal applicable home loan interest rate. The Mahila Awas Loan was yet another financial scheme that enabled women to achieve an amount of up to 12 Lakhs; this scheme was launched by the Aspire Home Finance, known as MALA (Mahila Awas Loan from Aspire) Scheme. The rate of interest for this loan is much higher and is directly proportional to the risk borne by the applicants as they often fail to produce proper identity proofs.

Women belonging to low-income groups are even endowed with other financial schemes like that of the MALA scheme. This scheme assists women belonging to the unorganized sector like those that are working as domestic help and daily-wage earners to be able to pull out of their financial crisis.

According to the Narendra Modi government’s Housing for All Mission, women should be either co-owners or sole owners of affordable houses. The government decided that this should be so to empower women from low-income households. In poverty alleviation schemes in Indian states like West Bengal, women’s names are included in the land titles of the plots that the government allocates to low-income households.

Women home buyers are also eligible for stamp duty concessions under certain state governments. The men in Delhi need to bear a stamp duty worth 5% of their property price while women have to bear only 3%.

In India, home ownership, which has been dominated by males for ages, is all set to undergo a radical change in favor of our women. Thanks to a large section of developers and financial institutions for all their efforts.

Author Bio:

Ron Johnson has worked as a financial strategist for a few eminent business houses based in India. Ron is still attached with many such organizations that boast a strong presence throughout the web. Currently, he’s involved in shaping the roadmap for a few resourceful global websites that expedite corporate financial solutions for fortune 500 clients.

 

RBI Hikes Repo Rate. Will EMIs also Increase?

First time in Modi’s regime, RBI had back-to-back increased the Repo rate by 25 basis points which is gone to 6.50 from 6.25. Since 2014, till the recent Budget 2018, RBI either reduced the repo rate or maintained status quo. Let us know more details from Loanyantra about how the Repo rate, home loan, personal loan interest rates are interlinked.

What is Repo Rate?

Repo rate is the rate at which the RBI lends money to the banks. As we pay interest to the bank s when we take loan, the same way the banks pay interest to the RBI when the banks take loan. So, that interest rate at which the banks pay to the RBI is called Repo rate.

Impact of Repo rate hike on banks and banks rates – Understanding through Loanyantra.com

So, the repo rate increase means, the banks need to pay more interest to the RBI. So, for the banks it is time to increase the revenue. The source of revenue to banks is Public. So, banks calculate their earnings, profits and then increase their source of income from lending (home loan, personal loan, etc) by increasing the lending rates.

Repo rate hike and the Banks Home loan, auto and other personal loan interest rate hike – 

The leading banks like State Bank of India (SBI), Punjab National Bank (PNB), HDFC and ICICI Bank increased their benchmark lending rates or MCLR by up to 10 basis points, making loans a little costlier for consumers in the last quarter one week before the RBI rate hike.

Every time there is a repo rate cut, SBI is the first bank to pass on the benefits to the customers by reducing the lending rates. Which is followed by other major banks like ICICI and HDFC.

That was the first time we have seen these major banks increasing the lending rates before the increase in the RBI repo rate. Hence, it is anticipated that within near period, there will not be any increase in the lending rates by the major banks like SBI, ICICI, HDFC, AXIS Bank. And truly there were no increase in the home loan interest rate.

RBI repo rate hike, loan interest rates and EMI hike
RBI Repo rate Vs Loan Interest Rates Vs EMI hike

While there is a back-to-back hike of repo rate by RBI for two times this year, 2018, it is natural for the borrowers to estimate a hike in the lending interest rates. However, the lending leaders are yet to react. This is the question of total system liquidity as RBI also hiked reverse repo rate to 25 basis points. If liquidity is tight, banks may react on the hike by increasing the lending interest rates. We may have to wait for the news from the banks before even we calculate our EMIs.

The home loan interest rates were never below 9% before 2014. In the near recent times, the home loan interest rates have reached to the maximum of 8.7%.

So, it is still advantageous, for all those who want to buy home, go for home loans and get the best one that suits you better via loanyantra.com. as, though the repo rate has increased, the lending rates remain the same, atleast for a while.

Hurry and fix your loan, home, auto or any other personal loan at the best interest rates ever. Do your research with Loanyantra.com., know the interest rate trends, and the market trend. Get the best fit loan from your favourite lender. All you need to do is just give a missed call to 040-71011991. Our relationship manager calls you and you can discuss in detail and get the best product with low interest rate.