Tips for Young Property Buyers

Getting a foot onto the property ladder is certainly no easy feat, and it’s easy to see why many young people simply give up their dreams of home ownership. But the fact is, the rewards of property investment ultimately outweigh the effort. To help you get started in your property investment journey, here is our advice for young property investors.

Save, save, save

Saving a deposit is probably the biggest hurdle that most first home buyers or young property investors face. Unfortunately, in order to get into the property market, you’ll need money. Here are some ideas to help you save faster:

  • Live at home for as long as you can and avoid paying rent to someone else.
  • Cut back on non-essential spending – even the smallest amounts quickly add up.
  • Consider using Government first home buyer schemes if these are available.

Keep your options open

Once you’ve started saving towards a deposit, the next step is finding a property you can afford. It’s a good idea to look outside the traditional four-bedroom, two-bathroom family home, as it’s highly likely your first home won’t be your forever home.

Instead, think of your first home as a stepping stone – a chance to build up some equity that you can use later on to buy your dream home. You may even need to consider taking in a flatmate or an overseas student to help with the bills initially.

Consider your options

If you’re on a tight budget you can’t afford to be picky. You may need to buy further away from work with a much longer commute, or in an area that isn’t as trendy or as desirable just to get a foot onto the property ladder.

You might even want to consider rent-vesting as an option – renting a property near where you work while owning a property in a more affordable area that you rent out to someone else. There are plenty of opportunities for astute buyers with a little vision.

Keep your finger on the pulse

It’s important you keep up to date with what’s happening in the property market. Read property market reports and property listings, visit open homes or attend auctions, talk to a real estate agent or a mortgage broker to get a real understanding of property pricing, what’s available, and what you can expect to buy for your budget.

If you’d like advice on how you can get onto the property ladder – either buying your first home or investing in a rental property – get in touch with our team of mortgage experts.

Loan to buy a home and rent it

Loan Acquisitions for Buy-to-Let Investors

Being a landlord in India is not for the faint-hearted. The past few years have not been easy for the Indian real estate market thanks to numerous obstacles including new property laws, demonetization, and the Goods and Service Tax. Now, after a prolonged stagnant period, the sector is starting to show improvement and is on a structured path of recovery, giving hope to property investors across the board.  After several home loan interest rate hikes in recent times, however, an increasing number of Indians are opting to live in rental properties. This has created a big opportunity for investors that acquire residential property for the sole purpose of renting it out.  Unfortunately, funds are often tied up in investments and fixed assets in which case a buy-to-let investor will have to apply for a loan to purchase the property of his choice.

Why do landlords need additional finance?

Obtaining a property requires money. The cost of living in India may be in the region of 65% lower than in the USA but a house in a big city such as Mumbai can still cost anywhere between ₹50 and 75 lakh. Even if the sole purpose of the property acquisition is to rent it out, you will still be responsible for mortgage payments even if the house or apartment is vacant. Additional finance is often required to procure a home that can be rented out.

Property improvements don’t come cheap

Vacant properties result in a financial loss which is why it is critical to keep a property well-maintained in order to keep it occupied. Structures such as roofs, gutters, plumbing, walls, and fences lose their integrity over time and can decrease the rental value of a property if not addressed in a timeous manner. With 2.1% of the Indian population believed to be disabled, there is an increased need for accessible homes. A landlord can boost the appeal of his property significantly by making a range of improvements such as wheelchair ramps, wider doorways, lowered counters, and a roll-in shower. As important as regular maintenance is, and as appealing as a state-of-the-art kitchen, bathroom, or a fully-accessible home may be, it all costs a substantial amount of money, often necessitating the investor to take out a loan.

Where can buy-to-let investors seek financial assistance?

Once the need for financial assistance has been identified by a landlord, the next step entails determining which type of financial institution will render the most viable service. Prior to making any pertinent decisions, it is pivotal to conduct some research before applying for a loan from anyone. Depending on your own personal requirements you may opt to make use of a traditional brick-and-mortar institution, an online lender, or an investor-only lender.

Brick-and-mortar lenders

Long before the internet revolutionized the real estate and financial sectors, landlords seeking loans would have to venture into brick-and-mortar institutions such as the State Bank of India or the Canara Bank. These traditional loan providers are ideal for individuals who are seeking finance in a personal capacity from an entity that is very familiar with the Indian real estate market. Banking institutions also often forge close relationships with their high-end clients which results in better service and a speedier application process.

Online lenders

The internet has revolutionized the real estate industry in countless ways.  Making use of the services of online lenders is often far more convenient than dealing with a conventional service provider. An impressive amount of time is saved as there is no need to go into the bank or office of a loan provider to fill in any documentation as the entire application is done from the comfort of your PC or smartphone.  Online loan providers typically benefit first-class lenders the most as they typically have the funds available for the somewhat steep down payment.  Loanyantra is a perfect example of an online home loan provider that prides itself on its sought-after, reputable online presence.

Investor-only lenders

Investor-only lenders specialize in supplying finance to business organizations to allow them to invest in properties of a residential nature. If your organization fits this brief you may benefit substantially from making use this type of lender. Due to the clientele of investor-only lenders being so limited, the application process is streamlined significantly, saving you a hefty chunk of precious time.  An IO lender can be of great benefit to a business who is investing in a number of rental properties through a legal establishment as well as if your long-term plans involve more than straightforward residential properties, including things such as fix & flips and properties with a multi-purpose appeal.

Acquiring a loan with the purpose of investing in a buy-to-rent property is not uncommon and may result in lucrative financial gains. At Loanyantra you can expect not only to find fast and efficient service but also the best repayment rates available that will help you secure the property of your dreams.

 

SBI Home Loan Products

State Bank of India Home Loan Products

State Bank of India is one of the most popular choices when it comes to getting the home loan. It offers myriads of home loan products to cater to the various segments of customers. The bank offers affordable home loans at attractive interest rates starting from 8.35% per annum. The bank also offers home loan for Pradhan Mantri Awas Yojna scheme where the customer can avail subsidy up to Rs. 2.67 lakh.

Why you should choose SBI as your Home loan partner?

Well, SBI is one of the most trusted names when it comes to financial products. The bank offers a gamut of choices to cater to the variegated needs of the client. It also offers a number of benefits like lucrative interest rates, lower or nil processing fees, customer-centric approach that makes it one of the most popular choices when it comes to home loan. Here are the key features of SBI home loans:

  • Attractive interest rates
  • Lower or nil processing fees
  • No hidden charges
  • Easy repayment period
  • No pre-closure charges
  • The bank has its presence in all the cities
  • SBI calculates interest rates on the daily reducing basis which lowers the overall interest paid.

Eligibility criteria-

Home loans or any other type of loan demand that the individual should match the eligibility criteria so that the bank approves the loan. If you want to apply for the home loan from SBI, you need to match the following eligibility criteria:

  • The age of the individual should be between 18 years and 70 years
  • The annual income should be at least Rs.1.2 lakh per annum Salaried
  • Good CIBIL score and credit report

Documentation for home loan approval from SBI:

To get the loan approved, you must submit the following documents with the bank:

  • Filled and signed application form
  • 3 passport size photograph
  • ID proof like Adhaar card, passport, Driving License, Pan Card
  • Address Proof like Ration Card, Adhaar Card, Utility bills or as demanded by the bank
  • Last six month’s bank statement
  • Proof of property
  • ITR
  • Form 16 and the self-employed individuals, needs to submit the ITR of last two years, last two years’ income computation which must be certified by a CA.

CIBIL Score- CIBIL score represents the likelihood of the borrower to repay the loan. It reflects the creditworthiness of the applicant. All the banks take into consideration the credit score before approving the loan. It is always advisable that one must maintain a good credit score to get the loan approved. For SBI Bank, one needs to have a credit rating between 650-750.

SBI Home Loan Overview –

Interest Rate Starting from 8.30 % for women up to 8.60% and for others it is 8.35% up to 8.65%
Processing fees .30 % of the loan amount which can be a minimum of Rs. 2000 to maximum of Rs. 10,000/-
Loan Tenure Up to 30 years
Pre-closure charges No pre-closure charges

Home Loan Products Offered by State Bank of India:

SBI NRI Home Loan-  This home loan has been developed for NRIs who want to have home in India or want to make an investment here.

  • Minimum Loan Amount – Rs. 3 lacs
  • Maximum Loan Amount – No upper limit
  • Eligibility – All the Non-resident Indians can apply for this loan.
  • Pre-closure Charges – Nil
  • Processing fess- 0.35% of the loan amount which can be a minimum of Rs. 2,000/- and maximum of Rs. 10,000/-
  • Interest Rate – Floating 10.15%

SBI Flexipay Home Loan– This loan is perfect for salaried individuals who want to be eligible for higher home loan amount. The borrower can pay interest during moratorium period or pre-EMI period and then pay moderated EMIs.

  • Minimum Loan Amount – 20 lacs
  • Maximum Loan Amount – No upper limit
  • Eligibility – Salaried Individuals
  • Processing Fees – 0.35% of the loan amount which can be a minimum of Rs. 2,000/- and maximum of Rs. 10,000/-
  • Interest Rate – 8.45-8.55  % p.a.

SBI Shaurya Home Loan- This home loan has been developed for defence personnel. This is a special home loan for defence employees. SBI Sharuya home loan comes at a lower interest rate and additional benefits. The defence personally also get an extended home loan repayment period.

  • Minimum Loan Amount – Rs. 10 lac
  • Eligibility – All the defence professionals
  • Processing Fees – 0.35% of the loan amount which can be a minimum of Rs. 2,000/- and maximum of Rs. 10,000/ and no processing fees for central and state government employees
  • Interest Rate –  8.75% for women employee & 8.80% for General or Male Borrowers.

SBI Privilege Home Loan- This home loan is exclusively for government employees. The central and state government employees can apply for this loan. The loan amount is decided based on the borrower’s salary, repaying capacity, assets, age etc.

  • Minimum Loan Amount – 10 lacs
  • Maximum Loan Amount – Up to 50 crores
  • Eligibility – All the resident Indians are eligible to avail SBI Privilege home loan
  • Processing Fees- .30% of the loan amount plus tax. Zero processing fees for all central and state government employees.
  • Interest Rate – Starting from 8.30 %

SBI Pre-Approved Home Loan– or PAL grants home loan limits to the customer before finalizing the property. SBI Pre-Approved home loan has a non-refundable processing fee and will be taken at the time of sanction. The income of the borrower decides the loan eligibility.

  • Eligibility – Depends on the annual income of the applicant
  • Tenure – Pre-Approved Letter of arrangement is valid for a period of 4 months
  • Min Loan Amount – 10 Lacs
  • Max Loan Amount – No upper limit
  • Pre-closure Charges – Nil
  • Interest Rate – Floating 10.15%

Pradhan Mantri Awas Yojana by State Bank of India-

Keeping abreast with the Government of India initiative to provide the home to everyone by 2022, SBI has come forward with its home loan for PMAY or Pradhan Mantri Awas Yojna. The bank offers lower interest rates and easy repayment options so that one can fulfil their dream of buying home.

All the loan amount which is less than 30 lac fall under this scheme. The male borrowers can get a home loan at the interest rate of 8.40% and can avail a reduction on approximately 20 basis points, for female borrowers, the reduction is of around 25 basis points.

The best part about PMAY scheme is the lower interest rate and no processing fees. Furthermore, the individual who is eligible for this scheme will get a subsidy of 3%, 4% or 6.5% based on their economic condition.

FAQs

  1. Is a self-employed individual eligible to apply for SBI Privilege Home loan?

No, only state and central government employees can apply for SBI Privilege Home Loan.

  1. Is there any benefit for women borrowers?

Yes, the women borrowers get the benefit interest rate.

  1. What is the maximum age limit for SBI Privilege Home Loan?

The maximum age limit is up to 75 years.

  1. Is there any processing fees charged by SBI on the home loan?

Yes, the bank charges a processing fee of .30% plus taxes on the loan amount. But, the central and state government employees don’t need to pay this fees.

  1. Does SBI home loan require a guarantor?

Yes, most of the SBI loan require a guarantor.

  1. What is the maximum repayment period?

SBI grants the maximum repayment period of 30 years.

  1. Does SBI Bank allow balance transfer?

Yes, you can transfer your existing home loan to SBI.

  1. What tax benefit does SBI Home Loan offer?

Availing home loan gives you the tax benefit under Section 80C of the Income Tax Act, 1961.

Why choose Loanyantra as your helping partner?

Today, you may find a number of online portals rendering home loan services and help. But, if you are looking for a platform where you can get all the help related to home loan, its processing and approval then Loanyantra is the right place for. Started with an intent to provide one-stop banking solutions to the customer, LoanYantra brings all the bank details, loan services on your screen and everything at the click of a button. Irrespective of the kind of help you want regarding home loan, we help you find the best options and help you complete the modus-operandi so that your loan gets approved faster and easier. For more information on how we can help you, contact us today.

 

Engaged! What you need to know about wedding loan

wedding loans and home loan
Engaged! So, time to know about marriage loan

It’s important to remember that it’s possible to have an amazing wedding on any budget. The keys are saving, setting priorities and sticking to the number you start with—but we’re not saying it’s always easy to do. No matter where you live, though, saving and paying for a wedding is an important part of the planning process.

While you may be considering taking out a personal loan or using credit to pay for your wedding, there are plenty of other ways to save on wedding costs. That said, there’s a ton of information out there about paying for the wedding with personal loans or using a credit card. It shouldn’t be your go-to method, but if you’re considering those options, use this as a starting point.

What are “wedding loans”?

First things first: There’s no such thing as a “wedding loan.” You can’t just walk into a bank and request a wedding loan. What we’re talking about here is using a personal loan for the purpose of funding your wedding. Most financial advisers would tell you to stop here and not pursue wedding loans. “Taking out a personal loan is kind of a last-ditch effort,” says Lauren Lyons Cole, certified financial planner and personal finance contributor for financial-planning website Mainstreet.com. “The problem with personal loans is that most often people are taking them out because they’re trying to spend cash they don’t have. I would also lump in credit card spending here, because I think a lot of people pay for wedding-related things with a credit card and they may or may not have the cash to pay it off in full.” Personal loans are good to avoid spiralling into credit card debt, but maybe not as a quick fix for a down payment on your venue. That being said, taking out wedding loans isn’t unheard of, and there are a few ways to go about getting a personal loan to help cover wedding costs.

Should you get a wedding loan?

This means you’d be covering your wedding costs with money you don’t have, be it from a personal loan or a credit card. This is a decision to make with your partner, because it’ll affect financial decisions on your marriage later. It’s important to talk about whether or not that financial burden is something you want to deal with when you get back from the honeymoon.

Below is a list of the ways to cover the costs of a wedding with loans. (Again, this is just to inform you on how it’s done—we don’t recommend it!)

What are other ways to cover wedding costs?

 

Taking Out a Home Equity Line of Credit to Pay for the Wedding

This one is only for homeowners and usually for parents paying for their children’s nuptials. The idea behind a home equity line of credit is that you borrow against the mortgage on your home. Again, though, it’s not a good idea. Neither the financial experts nor we would recommend doing such a thing. “I’ve seen parents take out a home equity line of credit, which is basically borrowing against the value of your home,” says Lyons Cole. “Especially for a lot of parents, if you’re throwing a wedding, you’re probably mid-40s to 50s, you’re not that far away from retirement, you probably just put your kid through college—there are so many expenses and pressures put on a parent, and chances are you need that money for something else.”

Using a Credit Card to Pay for the Wedding

We should warn you that most financial advisers are wary of credit cards and lines of credit when it comes to alternative ways to pay for your wedding. For Lyons Cole, this is one of the fastest ways to get into deep debt. “Obviously, as a financial planner, my advice would always be to create a budget and only pay for things you can afford,” says Lyons Cole. “Don’t go into credit card debt for a wedding.”

That said, if (and only if) you have the cash to pay for your wedding, a credit card can be a good option. Here’s why: Using credit can protect your money from fraud and earn you points for flights and even hotels (hello, honeymoon!). Just try not to pay for wedding things with money you don’t have yet, and you’ll be fine.

Extending Your Engagement and Saving Up for the Wedding

Ding, ding! This is the way to go. Avoid wedding loans and take some time to create a wedding budget and truly save up for the things you want. There’s no harm in a long engagement. Many times, venues are already booked more than a year in advance anyway. Having one will allow you to have enough time to truly plan the wedding and save up for the items that are nonnegotiable, and even splurge on a few things you’ve always hoped to have. “I would rather have you postpone your engagement six months to a year to save money,” says Lyons Cole. “Paying forward by saving is much better than paying backwards with debt.”

How much money can you get with a wedding loan?

Personal loans can range till Rs. 25,00,000 for three and five year loans, with no prepayment penalty. You can decide what amount and term length you and your partner are most comfortable with.

How do you get a wedding loan?

At the risk of sounding like a broken record, getting a wedding loan may not be the best idea out there. But if you’re still reading and you’ve made up your mind, here’s everything you’ll need to get a personal loan to cover wedding costs.

Make Sure You Have Good Credit

If you’re looking to get a wedding loan, you’ll have to ensure your financials are order. The biggest factor, traditionally, is your credit score. Anything above 700 is usually considered a good credit score. However, you can still get a loan with a lower bracket but at a higher interest rate. To figure out your credit score, there are a number of free credit score sites.

Have Your Financial Documents in Order

Beyond the credit score, your institution will want to take a look at your proof of income, bank statements and any other debt you might have (student loans, mortgages, etc.). You’ll have to check with your institution to find out what specific documents and qualifications you’ll need. In other words, online wedding loans require many of the same types of documentation as any other loan. At loanyantra.com, we’ve worked hard to automate much of our process. This makes applying for a loan incredibly simple and fast. Our customer service team is also available to help every step of the way.

But again, don’t feel like you have to turn to a wedding loan to pay for your big day. There are lots of ways to save and cut wedding costs. We know budgeting for the wedding can be arduous, and there are just some things out there that are too cool not to have, but we simply have to impress upon you that starting your future in debt is not a good way to kick off your marriage.

Yet Loanyantra.com can make it memorable by showcasing the best wedding loans in India. Pay the low interest ever and the fastest. Get instant loan in a day. So, decide even before a day for your wedding and Loanyantra is by your side to make it happen.

Repaying Student Loan? Are you eligible for Home Loan?

How Can Students Best Manage their Money After Graduation?

There has been a substantial increase in the numbers of first-generation and low-income students in India,with many relying on student loans to obtain their degrees. If you have recently graduated and you are healthily employed, paying off your debt regularly, and thinking of investing in property or buying your first home, you may have asked yourself the question: ‘Would I qualify for a mortgage’?

The truth is that you aren’t the only adult who has an existing loan when applying for a mortgage. Provided you have the required ingredients to successfully meet your monthly payments, there is no reason why you cannot take on additional financial obligations. There are many steps involved in making the decision to buy a home. Take LOANYANTRA’s online eligibility test, which well let you know (in less than a minute!) whether or not the timing is right. Speak to their professionals and find out about how you can shield yourself from unexpected rises in interest rates.

It’s a Good Time to Buy a Home

According to the Economic Times, there has never been a better time for the housing sector in India than right now. New government programmes such as Flagship government schemes like the Pradhan Mantri Awas Yojana (PMAY) and the granting of infrastructure status to affordable housing, they note, plus attractive subsidies for first time home buyers are creating both supply and demand. Interest rates are also low, standing at HDFC 8.55% (8.50% for women). Therefore, although you may have student loans to pay off, not buying a home now could end up costing you considerably more in the long run, since your mortgage loan will be for a much higher amount than your student loan, and you will have to pay it off for considerably longer.

How Can LOANYANTRA’s Organic Home Loan Help You?

An organic home loan takes plenty of the work off your hands. For starters, it removes the necessity of having to go from bank to bank to compare their products and make the right choice. LOANYANTRA lets you know which banks are interest in you, providing you with a knowledgeable Relationship Manager, who will guide you and answer all your questions regarding payment terms and times. Once your loan is approved, you will obtain a .10% discount on your first year from the LOANYANTRA.

Get eligible for mortgage loan while repaying student loan
Get eligible for a home loan while repaying student loan

Additional Benefits from LOANYANTRA

With LOANYANTRA, you also enjoy a wide array of benefits, including loan rate monitoring, part payment alerts, and a comparison of bank offers. When you apply for a home loan, you shield your home loan from periodic rises in interest rates. This is especially important if you are a new graduate, as you need to ensure that no nasty surprises will stop you from fulfilling all your financial obligations. The one proviso is that you do have to be over 22 and you must be earning a steady income.

What Factors Will Affect Your Eligibility?

To work out whether or not you are eligible for a loan. LOANYANTRA uses a formula which works out whether or not your current income covers your monthly mortgage payment, taking into account factors such as your student loan, plus the costs of your principal, insurance, the interest rates of the mortgage, etc. There are other important factors that may be influential in deciding whether or not you are a good candidate for a mortgage. These include your salary, the amount you can put towards a downpayment (which can potentially reduce the amount you actually need to borrow), and the length of time you have been employed/the time you have worked at your present company,

Student Loans Aren’t Everything

The fact that you have a student loan will not in itself disqualify you for a mortgage. You may have read shock stories about students in countries like the U.S. being denied mortgages, but it is important to remember that in the U.S., the average student graduates with a loan of over $37,000. In India, the maximum loan recommended by RBI/IBA for study in India is Rs.10 lakh, and Rs.20 lakh for study abroad. As such, loans are normally paid in 15 years maximum (compared to a 25-30-year maximum in the U.S.).

If you are interested in buying a home, you are over 22 and you are employed, LOANYANTRA’s services can help you pay your loan at a predetermined rate and enjoy additional services, such as part payment alerts and more. You can pay off your mortgage and your student loan, as long as you are earning enough income to make more than one major financial obligation feasible.