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.

Rebuilding Financial Independence After a Divorce

Rebuilding Financial Independence After a Divorce

Despite India still having a relatively low divorce rates, currently standing at 13 per 1000 marriages, particular cities –  Mumbai, Delhi, Bengaluru and Lucknow – have seen divorce applications double and, in some instances, triple. With these figures, putting finances in order should be something to prepare for when facing a divorce. Starting over from a financial point of view can be particularly tough, especially when there are shared assets involved. The process of splitting assets into two households can be both expensive and complicated. Whether you’re looking for a home loan repayment solution for a divorce to help rebuild your financial life or need to reevaluate taxes, the minefield of options worth considering is crucial to claiming financial independence after experiencing a divorce.

Start with a plan

Recommendations by the Law Commission stated that there is a need to recognise the role of women as having an equal share in a marriage and subsequently, all property should be shared equally after a divorce. Although not easy for divorced women in India, one of the first things anyone should do is evaluate living expenses in relation to income. This can include outstanding debts, any child support, mortgage, insurance policies, health care and any other monetary ties you had with a former partner. There will be many different aspects you shared with a previous spouse which you’re now facing alone, but the primary thing to do is work through them until you have set clear, achievable goals.

Be true to your cash flow

Since India’s divorce laws are largely dependant on religious communities and vary accordingly, in many instances, divorce procedures can be lengthy, so it pays to be financially prepared until a settlement is made. One way of avoiding debt after a divorce is to find ways to consolidate your debts through home, personal or divorce loans so that you are be able to minimize your monthly repayments to a more manageable option. Try to actively increase credit by paying bills on time and using a credit score to know where improvements can be made on spending.

Look to the future

Lawyers’ fees often depend upon the financial status of the party fighting the case and whether the divorce is contested or mutual, as well as money to facilitate court proceedings. As a consequence, getting a divorce in India can be an expensive process. If you’re in any doubt, seek help from a financial advisor, who will be able to offer valuable advice to someone in your situation. Your financial goals are likely to fluctuate in the beginning, and you’ll notice that some expenses will come and go, so it’s crucial you don’t take your eye off the bigger picture to keep control of where your money is going. 

Whether you were involved in your marital finances or not, navigating the world of budgeting and planning after a divorce doesn’t need to be achieved overnight. Take your time, and you’ll soon find yourself back in the driver’s seat of your finances.

Can I get a personal loan without salary slips?

Can I get a personal loan without salary slips?

Some lenders who provide a personal loan with no income proof or with no salary slips are HDFC Bank and Fullerton India.

What is a Personal loan?

A personal loan is lending of money by one or more individuals, organisations or entities to other entities, organisations or individuals without usually needing any security or collateral. There is some flexibility by the lender to use these funds. It is a type of unsecured loan that helps to meet current financial needs such as travelling or wedding costs.

Personal loans are generally short-term loans with a tenure ranging from 12 months to 60 months.

These loans have higher risk for the lender; therefore have higher interest rates, generally. However, there are several entities also offering attractive interest rates and flexible payment options. Usually they need 3 to 6 months of bank statements showing salary credits and latest salary slips. However, you can get a personal loan without salary slips. But, you need to submit some documents as proofs of steady income. Other documents that are accepted in place of this are Form 16, salary certificate or bank account statements. Some lenders also provide a personal loan without pay slips if you show a collateral or security. Getting such a loan also depends on every individual lender and the bank’s policies. Some may ask for a clean credit record, while some may ask for a Form 16 of last 2 to 3 years or an employer certificate and a talk with your employer, and so on.

Though the requirements from various lenders differ, these are some general guidelines for availing a personal loan by Finance Buddha:

Eligible Criteria Salaried Self-Employed Professionals
Age(Min-Max) 21-60 25-60
Income ₹3,50,000 ₹4,80,000
City Mumbai, Delhi NCR, Bangalore, Chennai, Kolkata, Hyderabad and Ahmedabad All over India
Co-applicant Not mandatory Mandatory
Employment Fulltime with at least 2 years of experience At least 5 years of earning turnover
Documents Required Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employers letter certifying current mailing address/Passport(Valid)- provided the passport address is present address mentioned in application form / Existing Registered House Lease/ Government I-card with photo Bank Account Statement/ Latest Electricity Bill/ Latest Telephone Bill/ Latest Credit Card Bill/ Employers letter certifying current mailing address/Passport(Valid)
CIBIL Required (750-900) Required

Apart from these documents showing regular income, the minimum required documents are:

  • A signed application form.
  • Identity proof that can comprise of Aadhaar Card, Passport, Driving License, Voter ID or PAN card.
  • Resident proof that can be through a Aadhaar Card, Passport, Driving License, Voter ID or Electricity/ Mobile bill/ bank statement/ Telephone/ (not older than 3 months).

Other factors determining a personal loan

  • Age proof: Aadhaar Card, Passport, Driving License, Voter ID or PAN card. Age also forms an important determining factor to avail a personal loan. Usually, the age limit is between 22 to 62 years.
  • Income: The income in most of these loans must be above the minimum wage limit. For some instant loans, there is a minimum income limit for salaried and self-employed people. This bracket varies across various financial institutions.
  • Employment: Stability in your employment forms an important factor for getting a personal loan. For a salaried individual an employment record of 2 years and for a self-employed professional, a minimum of 5 years can help in getting instant personal loans.
  • Credit history: A good credit rating always comes handy for getting any kind of loan. A credit report lists down all your financial record making it easier for the lender to verify your credentials.
  • Employer: Having a link with an organisation with a good reputed and high turnover makes it easier to get a personal loan. A good employer with whom the loan applier is working helps in gauging the trust factor of the candidate.

Why someone gets salary without pay slip

Pay slips forms an important part when applying for personal loans, for change of job, etc. Some employees get salary without pay slips because the employers may want to evade labour law levies such as provident fund, medical insurance, gratuity, pension fund, and so on. Employers might also be not providing these to restrict the employees’ change of jobs or if paying salary out of black money. However, things are changing and a more formal structure if coming to take place when employing individuals.

What are the sources to get personal loan without pay slip? Personal loans can be availed from various sources. It is important to study the features and compare the kind of loans as per your objective and needs. Some important lenders offering these kind of loans are:

  1. Banks: There are several commercial as well as non-commercial banks offering the best rates in personal loans. And, most of them have various policies which allow individuals to produce bank statements or other income related documents in place of pay slips. Some top banks include Citibank, Yes Bank, Standard Chartered Bank, IndusInd Bank, and so on.
  2. NBFCs: Banks generally have stringent rules and practices. Though they are beginning to be more flexible, NBFCs come to immediate rescue having a little more flexibility in various aspects. This may ask for a higher interest rate though.
  3. Individual Entities: There are several Fintech companies as well as well-reputed individual organisations that are doing very well in providing almost all financial services similar to banks. Fullerton India is a good example under this category in providing personal loans without a pay slip.
  4. Individuals: This way of getting a loan might be more informal but this also ensures greater flexibility. Individuals include some formal money lenders or can be from your own networks that are ready to provide personal loans without pay slips.

Eligibility checks

What are the important factors to check before applying for a personal loan? Loan applicants must do a thorough research as per their requirement about which kind of loan they wish to apply for.

  • Rate of Interest- This goes a long way and you need to first compare the interest rates by several lenders before applying for a personal loan.
  • Monthly EMI- After being sure of what kind of rate you are willing to pay, check the monthly EMIs and compare the monthly EMIs for the same loan amount.
  • Loan Tenure-Compare this before selecting a personal loan. Sometimes, a low interest rate might be spread across a long tenure that makes the total interest even more than many others.
  • Time Taken for Approval- See the ways of processing of the bank. It usually takes two to three working days to get a loan approval. If it is taking long and is hectic, it’s time to switch lender.
  • Prepayment Charges- Some lenders also charge a lot of prepayment fees. Check these to not run into huge credit losses.
  • Disbursal Time- Similarly, do a check of the disbursal time along with the processing time and compare them with other lenders.
  • Processing Fee- This might seem not-so-significant at the start but, remember to check this. Many lenders try to adjust lower interest rates with a high processing fee. This is generally within 1.5 to 2%.

A mention of top lenders who offer personal loan without pay slip

HDFC Bank: It provides personal loan without income proof if the customer is self-employed, has an operational current account with HDFC and has a business stability of 3-4 years of business stability.

Particulars Details
Interest Rate 11.25% – 21.50%
Loan Amount Upto ₹15 Lakh
Tenure Up to 5 Years
Processing Fees 0.99%-2.50% of the loan amount (minimum being ₹1,999)
Foreclosure Charges Nil-Up to 4% on the principal outstanding + GST
Part- payment Charges 2%-4%
Repayment Mode ECS, AD or PDC

Fullerton India: Similarly, Fullerton India needs self-employed individuals to have a current account with it and show 3 years of ITR to get the personal loan.

It provides loans to borrowers within the age group of 21 and 58 years with a loan amount of minimum Rs. 1 Lakh to Rs. 20 Lakh and loan tenure as 12 to 48 months. It generally charges a rate of interest in the range of 17.25% to 33.00%.

The lowest EMI of Rs. 2,898 per lakh is available and the processing fees are up to 2.00%. Pre-closure of Fullerton India personal loan is allowed with 3 – 7% and is nil after 36 months and part payment charges are not allowed here. Other charges include late EMI bounce charges, EMI payment charges and loan cancellation charges.

 

Home Loan Insurance – Compare and Decide

What is Home loan Insurance?

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 becomes necessary to repay this loan on time. What if there are circumstances which forbid you from making the payment, it can be critical illness to the borrower, job loss or even the sudden death of the borrower. To avoid difficulty in such situations, it is advisable to opt for the home loan protection plan.

It is a popular product nowadays but offers limited benefits. Hence most of the companies today suggest term insurance. Remember, a trustworthy home loan insurance protects not only your home but also your memories associated with the home.

The primary objective of availing home loan insurance plan is to help the insurer settle the outstanding home loan amount in case of unforeseen circumstances. Some of the home loan insurance providers 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. It not only protects you from the sudden burden of EMIs but at the same time, it also has tax benefits.

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.

In case of early death of the loan borrower, the burden of EMIs falls on the family members. One can get rid of this by opting for a term insurance plan. Term Insurance is a popular home loan insurance product.

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. It’s 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.

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
DHFL DHFL LIFE 75 years 25 lac 90% 903 per month
BAJAJ eTouch Lump Sum 70 years 50 lac 91% 1266 per month
AVIVA iTotal Protect 75 years 50 lac 90% 1114 per month
Ageon Religare Life Plus 80 years 30 lac 97% 903 per month
DHFL DHFL Life 75 years 25 lac 90% 903 per month
Birla Sun Life Birla Protect @ Ease Lump Sum 70 years 30 lac 94% 1070 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.

Our Role: Loanyantra act as a mediator to help you choose the right term 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, we also help you find the cheapest home loan options and also take care of the complete paperwork to make you task easy and hassle-free.

 

Home Loan Takeover

Home loan takeover

Home loans are a good way to buy a home especially these days when banks and HFCs are offering enticing policies and luring interest rates. Amidst all this, now banks are also offering you a new way to reduce the burden of EMIs and home loan tenure, I am talking about home loan takeover.

What is home loan takeover?

Home loan takeover is similar to home loan transfer wherein you transfer you home loan to another bank or financial institution which is offering you better interest rates that will be helpful in lowering the EMI.

A home loan can be taken over from any of the following financial institutions:

  • Private and foreign banks
  • HFCs or Housing Finance Companies
  • SCBs or Scheduled Commercial Banks

Home loan takeover is an easy procedure but there are certain eligibility criteria that need to be fulfilled before applying for home loan takeover:

  • The borrower should fulfil the eligibility criteria to avail home loan, every bank has different parameters to approve the home loan; a similar set of criteria has been defined for home loan takeover.
  • As a borrower make sure that you have paid your monthly EMIs regularly, this creates a good credit history and increase your probability of getting approval for home loan takeover.
  • Valid documents supporting your ID proof, address proof, purchase of property, regular payment of EMIs and other documents which your bank or HFC will ask for .

Another question that pops up in the mind of the borrower is whether they can take a higher loan amount in case of home loan take over and whether the repayment period can be extended? The answer to this question is simple, many banks and other financial institutions offer this facility. But this is done on a case to case basis. For example, if as a borrower you have regularly paid your EMIs.  Have a good credit score your bank may allow you to take a higher loan amount over the existing home loan amount take from other bank or HFC. In the same way, your loan period may be extended

Procedure for home loan takeover:

  • The borrower should submit an application to his/her bank asking for recipes of the home loan amount, title deeds and other securities directly to your lending bank.
  • The borrower must also submit the information. Regarding the outstanding loan amount the financing Bank that they have created an equitable mortgage over the property.
  • Apart from the above-mentioned documents, the statement of account for the entire period of repayment of the loan amount or for the last 10-12 months as demanded  by the bank has to be submitted.
  • A confirmation letter from the financing bank that they are offering the takeover loan amount.

The above guidelines are generic; there may be some alterations in terms of eligibility criteria and documentation which varies from bank to bank.

Our Role: Loanyantra is an online portal for those who are looking for hassle-free home loan approval, we also understand other allied services of home loan like home loan takeover, top-up home loan, refinancing etc. Our able staff and our association with various financial institutions across the nation will help you find the best match for your home loan. To know more about it connects with us today.

 

Axis Bank Home Loan Products and Interest Rates

Axis Bank Home Loan Products

It’s a known fact that home loans have made buying home a simplified task. Banks and Financial institutions offer myriads of home loan products that have made the dream of buying home come true. Axis Bank is one the popular choices when it comes to availing home loan. The Axis bank offers its customers an array of banking solutions and Axis Bank home loan is one of them. In fact, Axis bank offers different types of home loans. Based upon your requirement, you can choose the one that you want.

axis bank home loan interest rates
Axis bank home loan interest rates of different products

Why should you choose Axis Bank as your home loan provider?

When it comes to choosing a bank for home loan, there are various factors that one must take into consideration like the interest rate offered by the bank, the loan application and approval process, whether there are any pre-payment closure charges, how much time does it take for loan processing, does the bank offers the balance transfer facility and much more. Taking all these parameters into consideration, Axis Bank emerges as a popular choice.

Here are notable features of Axis Bank:

  • It offers affordable interest rates
  • Axis bank offers 8 different home loan products to match the varied needs of the customers
  • Fast and easy loan processing
  • The bank offers flexibility of home loan tenure
  • Balance transfer facility
  • No prepayment charges in case the customer wishes to pay the loan amount in advance
  • Axis Bank offers doorstep services to its customers

Axis Bank Home Loan Details:

Axis Bank is a renowned bank that offers the home loan as one of the banking solutions to its customers. Home loan by Axis Bank is easy to access and avail. The bank offers home loan to salaried individuals who are employed with Government or working in the organization of repute. It also offers home loan to professionals like architects, doctors, dentists, cost accountants etc. Self-employed individuals can also take home loan from Axis Bank.

Axis bank home loan eligibility

Taking the home loan from Axis Bank would require to fulfil certain eligibility criteria. The bank has defined certain parameter which the individual must match if they want to take the home loan.

Here is the table showcasing the eligibility criteria for Axis Bank home loan :

Eligibility Criteria Axis Bank Home Loan
Age 24 – 60 years
Salaried professional work experience 2 years with their current organization
Self Employed- business stability 5 years
Loan Amount Eligibility Rs. 15 lac to Rs. 5 Crore
Maximum loan as percent of property value Up to 85%
Maximum EMI as percent of income Up to 65%

Documentation required for Axis bank home loan

Applicants are required to submit the following documents to the bank at the time of applying for a home loan then you must submit all the documents that help the bank analyse your credibility as a borrower and whether you can repay the loan or not. Here is the detailed overview on the various documents that the applicant needs to submit along with the home loan application form:

  • Identity Proof- You can submit either passport, Adhaar card, Driving Licence, Pan Card, Voter ID.
  • Address Proof- Axis bank accepts the following as your address proof, ration card, Adhaar card, Passport, voter ID, Utility bills like electricity bill, gas connection, telephone bill.
  • Proof of Income- The Salaried individuals needs to submit the salary statement of the last 3 months, Form 16. In case of self-employed individuals, one needs to submit the ITR of last two years, last two years’ income computation certified by a CA.
  • Axis Bank would also ask you to submit the last 6 months’ bank statement
  • The bank doesn’t require a guarantor.
  • CIBIL Score- One of the key factors that influence your home loan approval from the bank is your credit score or CIBIL score. It is a measure of your financial health and how good you have been in repaying the loans. Based on this score the bank approves your loan. Well, the credit score may vary from bank to bank but its advisable to maintain a good credit score to ensure that there is no hassle while home loan application processing. Axis Bank demands the CIBIL score between 650-750.

AXIS Bank Interest Rate-

Axis Bank offers home loan at floating and fixed interest rate to both the salaried individuals and self-employed. Here is the tabular representation of the same :

For Salaried Individuals :

Interest Rate Type Loan Amount Rate of Interest
Floating Loan Amount up to Rs. 30 lac 8.80 %
Loan Amount up to Rs. 75 lac 8.95 %
Loan Amount more than 75 lac 9 %
Fixed Any Loan Amount 12 %

Self-Employed Individuals:

Interest Rate Type Loan Amount Rate of Interest
Floating Loan Amount up to Rs. 30 lac 8.85 %
Loan Amount up to Rs. 75 lac 9 %
Loan Amount more than 75 lac 9.05 %
Fixed Any Loan Amount 12 %

What are the different fees charged by Axis Bank in case of the home loan :

  • Processing Fees- the bank charges up to 1 % of the loan amount on a minimum of Rs. 10,000
  • Cheque return charges- Rs. 500
  • Switching fees from floating to fixed – 1% on the outstanding principal with a minimum of 10,000/-
  • Switching Fees (Fixed Rate to Floating Rate) –   2% on the outstanding principal amount.

How does Axis Bank calculate home loan?

The FOIR or Fixed Obligation to Income Ratio is an important parameter which the Axis Bank uses to determine home loan eligibility.  The bank takes into account all the fixed obligations like current EMIs, rent etc. and based on it, the bank calculates your eligibility.

Axis Bank has kept the minimum FOIR:0.65.

Different Types of Axis Bank Home Loan and Its Interest Rates and Key Features:

 

Axis Bank Home Loan Product Name Description Key Features Purpose
Axis Bank Home Loan This is a popular home loan product offered by the bank to those who are looking to buy home. Minimum and Maximum Loan Amount- Rs. 3 lac- Rs. 10 crore

Loan Tenure- 30 years

Buying home
Fast Forward Home Loan The Fast Forward Home loan offers special waiver to the borrower. Under this scheme 12 EMIs are waived off at no extra cost but only when you have paid the EMIs regularly.6 months are waived off when you complete 10 years and another 6 months after completion of 15 years from the time the loan amount was disbursed. Minimum Loan Amount- 3 lac

Loan Tenure – 30 years

You can avail this loan to buy home which is under construction or resale house or plot or for self-construction.
Shubh Aarambh Home Loan Planning to buy a new home, you can opt for Shubh Aarambh Home Loan which also gives you a 12 months waiver if you have made the payment of EMIs on time Minimum and Maximum Loan Amount-  Rs. 1 lac- Rs. 30 lac

Loan Tenure- 30 years

You can avail this loan to buy home which is under construction or resale house or plot or for self-construction
Asha Home Loan The Asha Home Loan by Axis bank will make your dream of buying home come true at the interest rate of 9.75% Minimum and Maximum Loan Amount-  Rs. 1 lac- Rs. 28 lac

Loan Tenure- 30 years

Buy ready-made home, property under construction, self-constructed house or buy a plot using the Asha Home Loan by Axis Bank
Axis Bank Super Saver Home Loan As the name suggests the Super Saver Home Loan by Axis Bank allows you to save on the interest by depositing the surplus to their Super Saver Account. It helps in reducing the outstanding principal amount. Minimum and Maximum Loan Amount-  Rs. 50 lac- Depends on the combined income

Loan Tenure- 20 years incase the loan is fully disbursed and 22 years for partially disbursed case

You can avail this loan to buy a home which is under construction or resale house or plot or for self-construction
Axis Bank’s Empower Home Loan Axis Bank makes buying home easy with Empower Home Loan available at an attractive interest rate of 9.25%. It also reduces the 3 home loan rate reduction. Minimum and Maximum Loan Amount-  Rs. 10 lac- Rs. 1.50 crore

Loan Tenure- 15 years

You can avail this loan to buy home which is under construction or resale house or plot or for self-construction
Pradhan Mantri Awas Yojna or PMAY In order to promote the Government of India’s dream to provide house to every individual in the nation, Axis Bank offers home loan to the economically weaker section under the PMAY scheme. The loan comes at an attractive interest and hassle-free loan application and approval. For the Economically Weaker Section and Lower Income Group the bank offers loan up to Rs. 6 lac at interest rate of 6.50% for the maximum tenure of 20 years. Buying homes or constructing new homes
Top-Up Home Loan This is an additional finance facility for home loan borrowers Maximum Loan – Rs. 50 lac

Interest rate- Up to 30% of original sanction amount of home loan

Loan tenure- Same as outstanding home loan amount

AXIS BANK HOME LOAN FAQs:

Does Axis Bank levy the prepayment charges on floating and fixed interest rate?

No, the prepayment charges are levied only on fixed interest rate.

Can the home loan be used for renovation and extension of home?

Yes, you can use the home loan for repair, renovation, improvement and extension of the home.

What is the late EMI payment charges levied by Axis Bank ?

The charges of the EMI late payment fees which are 2% per month on the outstanding monthly EMI.

ASHA HOME LOAN FAQs-

What is Asha Home Loan?

It is a loan for customers who are buying the home for the first time. It is tailored the home loan for the first time buyers and comes at an attractive interest rate.

Asha Home Loan can be used for which purpose?

You can avail this home loan for buying a ready-made home, property under construction, self-constructed house or buy a plot using the Asha Home Loan by Axis Bank.

Can I get Asha Home Loan under fixed interest rate?

No, the Asha Home Loan is available only under fixed interest rate.

What is the maximum home loan amount under Asha Home Loan?

Asha Home Loan grants the maximum loan up to Rs. 28 lac if the property is located in the area with the population more than 10 lac and Rs. 20 lac if the property is located in an area where the population is up to Rs. 10 lac.

Is there any processing fees that the borrower needs to pay while applying for Asha Home Loan?

Yes, the applicant needs to pay the processing fees of 1% on the outstanding principal amount with a minimum of Rs. 10,000 plus the GST.

EMPOWER HOME LOAN FAQs

Can anyone apply for the empower home loan?

Salaried individuals cannot apply for empowering home loan. It is only for resident self-employed people.

What all-purpose can be solved using the Empower Home Loan?

With Empower Home Loan you can buy a ready-made home, property under construction, self-constructed house or buy a plot, you can also use this loan for home improvement and extension.

Can I avail Empower Home Loan under fixed interest rate?

No, the Empower Home Loan is available only under the floating rate of interest.

Can an NRI avail the Empower Home Loan?

No, only the self-employed resident of India can avail the Empower Home Loan.

FAST FORWARD HOME LOAN FAQs

What all-purpose can be solved using the Fast Forward Home Loan?

With Empower Home Loan you can buy a ready-made home, property under construction, self-constructed house or buy a plot, you can also use this loan for home improvement and extension.

Can I avail Fast Forward Home Loan under fixed interest rate?

No, it is available only under the floating rate of interest.

Can the Fast Forward Home Loan be clubbed with a subvention scheme or any other scheme offered by the builder?

No, you cannot club the subvention scheme with the Fast Forward Home Loan.

Can I make part prepayment under the Fast Forward Home Loan?

Yes, you can do the same. But first, your loan must be live with us for a minimum of 120 months from the time loan was disbursed.

In case I want to increase my EMIs under the Fast Forward Home loan, can I do so?

Yes, you can do the same but, it will disqualify the loan from the EMI waiver benefit offered under this scheme.

SHUBH ARAMBH HOME LOAN FAQs

What all-purposes can be solved using the Shubh Arambh  Home Loan?

With Empower Home Loan you can buy a ready-made home, property under construction, self-constructed house or buy a plot, you can also use this loan for home improvement and extension.

Can I avail Fast Forward Home Loan under fixed interest rate?

No, it is available only under the floating rate of interest.

I have completed 48 months from the date of the first-month disbursement. Now only 4 EMIs are left, will I get the benefit of this scheme?

If the residual EMIs is less than 4 then the residual tenure will be waived off but no other dues should be pending.

SUPER SAVER HOME LOAN FAQs

What is the interest rate offered by Super Saver Home Loan?

This home loan is available at 10.25%.

What all-purpose can be solved using the Super Saver Home Loan?

With Super Saver Home Loan you can buy a ready-made home, property under construction, self-constructed house or buy a plot, you can also use this loan for home improvement and extension.

Can I avail Super Saver Home Loan under fixed interest rate?

No, it is available only under the floating rate of interest.

Is there any processing fees that the borrower needs to pay while applying for Super Saver Home Loan?

Yes, the applicant needs to pay the processing fees of 1% on the outstanding principal amount with a minimum of Rs. 10,000 plus the GST.

Why choose Loanyantra as your helping partner?

If you are looking for a platform which can help you in deciding the right place for applying for home loan, then Loanyantra will offer all the necessary help. Our portal gives you an access to all the information related to banks and financial institutions offering the home loan. Whether its home loan interest rate, eligibility check, paperwork, calculation of EMI or anything related to the home loan, you can get access to all this on Loanyantra. Moreover, you can easily compare the home loan rates of different banks and interest rates. There are no extra fees that we charge, we also believe in rendering hassle-free home loan processing. Moreover, with us, you don’t have to worry about your information security. Loanyantra believes in providing complete security of data, we do not share your information with the third party. Also, we are the one-stop solution for everything related to home loan and home loan assistance. For more information, contact us today and let us help you buy your dream home.

 

Home Loan Vs Land Loan

Home Loan versus Land Loan

The banking system has transformed itself a lot in recent times. It offers myriads of financial products which makes it easy for people to fulfil their desire. One of the biggest boons that the banking system has given to individuals is the provision of loans for different purposes. Buying home is the dream of every person and banks offer home loan for the same. These loans are available at attractive interest rates. Another type of loan that you can use for constructing a new home is, land loan or plot loan. The land loan or construction loan make it easy for people to buy lands or plots and construct the house.

What are plot loan, or land loan and home loan?

Home Loan- This loan is provided by the banks and NBFCs to purchase homes. Home loans can be used for buying  constructed home , project under construction or home approved for construction. Home loans are available for all the approved properties.

Plot loan for Land Purchase – As the name indicates; these loans are granted by banks for buying plots or land. This loan can be availed by all the residents of India and should be more than 21 years of age. People take plot loan for buying lands or plots as an investment for future or to construct home. This loan is available to both salaried and self-employed individuals.

Purpose of Plot Loan:

  1.    You can use this loan for direct allotments in a housing society or developer project
  2.    You can also use this loan in development authority project.

Leading Banks providing Plot/Land Loans-Plot loans, home loans– The banks have become very common and most of the banks provide this loan. Here is the list of banks and financial institutions that provide a home loan, plot Loan and land loan:

  1.    ICICI Bank
  2.    Punjab National Bank or PNB
  3.    State Bank of India
  4.    DHFL
  5.    IDBI
  6.    Axis Bank
  7.    HDFC Bank
  8.    Federal Bank etc.

The application procedure and documentation for all these banks remain the same, however, the interest rates may vary from one bank to another.

Plot loan and home loan
Home Loan vs Plot Loan

How does home loan differ from a land loan or plot loan?

When it comes to the home loan or land loans then people mostly opt for this loan when they wish to construct a house or buy a house. However, there is a line of difference between the two, home loans are available for all the approved properties irrespective of their size or location. Whereas the land loan can be used to purchase vacant plot which is:

  • Non-agricultural land
  • Residential
  • Lies in the municipal corporation limits
  • Non-commercial
  • The land is not an industrial area
  • The land is not located in the village

Banks are a bit stringent towards land loans as compare to a home loan. Banks and NBFCs only grant a land loan to the individual who has a definite plan to construct a home in the given frame of time. Once the borrowers complete the house construction then a completion certificate must be submitted to the bank. After this, the land loan can be converted into a home loan and the borrower can avail applicable tax benefits. As per the present regulation system, the land loans don’t offer tax benefits.

The NRIs or Non-Residents find it very difficult to get land loans. There are various government regulations that make land loan for NRIs a challenging affair. Even if they get the loan when it comes at a higher interest rate.

 

Parameter Land Loan Home Loan
Eligibility Criteria Resident Indian and NRIs with some conditions who are above the age of 21 All the residents of India can apply for home loan . They should be more than 21 years of age
Interest Rate 12%-14%* 8.3%-9%
Tax Benefit You can only get tax benefit if you do the construction on the land and submit completion certificate . Then the land loan gets converted into home loan and you can avail tax benefit, otherwise land loans have no tax benefit Home loan offer tax benefit to it borrowers
Tenure 10-15 years Up to 30 years
LTV Maximum limit of up to 50% to 70% of the cost of plot. Up to 90% of cost of land and construction
Pre-payment Charges In case of land loan, the pre-payment charges is 2%-4% In case of home loan, if an individual has taken home loan on floating interest rate then there is no foreclosure charges
Co-applicant Yes, there can be a co-applicant for land loan. Having a co-applicant enhances the loan amount and also reduces the burden of EMI. While applying for home loan you can have a co-applicant . Having a co-applicant enhances your loan taking capacity.

Documentation for Land Loan or Home Loan –

Whether you are buying a home loan or land loan, you need to submit the documents for the same. Here is the complete list of documents that banks would ask you to submit while applying for a loan :

  1.    Application form
  2.    Photograph of the applicant
  3.    ID proof like Aadhaar Card, Voter ID, Passport etc.
  4.    Address Proof like Utility bills, phone bills, electricity bills.
  5.    Bank statement of last six months
  6.    Form 16
  7.    The salaried individuals need to submit the bank statement of last six months showcasing salary credited
  8.    In case the borrower is self-employed individuals, then they need to submit IT returns along with sales receipt.
  9. In case of plot loan or land loan, the borrower needs to submit site ownership documents in the name of the seller. These documents include the following:
  • No Encumbrance certificate for the land
  • Revenue receipt
  • Original ownership documents
  • Land records
  • Approved plot layouts
  • Tax receipts for taxes paid by the land owner

Interest Rates- Once you have completed the formalities and have decided to take the desired loan, it is important that you must run through the interest rates offered by the banks and NBFCs. The land loan interest rates are higher than a home loan. Thus, it’s advisable to compare the interest rates before finalizing the bank.

Land Loan Interest Rates by Top lenders in India – 

Bank Name / Top Lenders in India Land Loan Interest Rates
SBI Floating – 8.30% – 8.65%
HDFC 8.45% – 8.70%Floating
ICICI 8.50% – 8.85%Floating
Axis 8.35% – 11.75%Fixed/Floating
DBS 8.5% – 8.5%Floating
CANARA BANK 8.35% – 8.55%Floating
DHFL 9% – 9.75%

Home Loan Interest Rates by Top Lenders in India – 

 

Bank or NBFC/Top Lenders in India Home Loan Interest Rates
SBI 8.65% onwards
ICICI The Home loan starts from 8.85%
HDFC
8.70% to 8.95%
BOB 8.30% – 9.35%
LIC 8.50% onwards
Axis Bank 8.35% – 11.75%
Fixed/Floating
Indiabulls Starting from 8.70%
HSBC Starting from 8.50%
DHFL 8.70% onwards
IDBI 8.35% – 8.65%
PNB 8.35%

Tenure of Home Loan Vs Plot Loan – The tenure for home loan is usually 30 years or 20 years. Also with land loan or plot loan for land purchase, the tenure is same as home loan.

Our Role: Loanyantra is a transparent medium that connects the buyers with the right financial institutions. We also help in completing the paperwork related to home loans and other types of loan, thus making the entire process hassle-free for you. For more information on different types of loan and features, connect with us today. 040-71011991.

 

Tips to buy an ‘under construction’ home

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

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

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

Advantages of buying an under construction home

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

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

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

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

Drawbacks of buying an under-construction home

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

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

Important Points for buyers of under construction homes

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

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

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

How to start building a credit history

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

Open and manage a bank account

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

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

Set up some Direct Debits

Top tip

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

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

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

Don’t miss payments

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

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

Factors that could stop you from getting credit

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

Financial ties with other people?

Top tip

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

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

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

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

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

Who works out your credit score?

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

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

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

  • Experian
  • Equifax
  • High Mark.

These agencies each compile credit information about individuals in INDIA.

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

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