Loanyantra Customer? Know your Benefits.

The major change this century is going through is e-commerce. Isn’t it surprising at the change we are into now! To purchase an item say a saree or a shirt, earlier was the time when we used to go to different shops, explore and then decide and finally buy it if it is of the right price. Now it is all “online.”  For what not and where not, this convenience has been experienced? 

Yes, home loan sector also takes up this change and makes it convenient to the customers. So is the convenience only till choosing the home loan or suggesting a home loan? No, loanyantra.com goes a little beyond this. Let us see till where loanyantra.com makes its customer convenient and above all risk-free.

Two friends conversing..

Friend 1 : Hi bro, finally I took a home loan from a bank after a lot of research.

Friend 2 : Oh cool. But I didn’t research, I got associated with a company. 

Friend 1 : Company? what company?

Friend 2 : It is loanyantra.com… a website which manages your home loan. 

Friend 1 : But what is the need bro..is it really thaaat advantageous?

Friend 2 : Ok let me explain you. Suppose that both of us are in a home loan entered at a same time. Say loan of Rs.45 lakhs with interest of 9.50% with EMI being Rs.41,946 for 240 months. 

Friend 1 : Ok fine. Say the time to be Jan 2015. So our loan goes till 2035.

Friend 2 : Correct if there is a change in interest rate by 0.5%, the EMI to be paid will increase from 240 months to 271 months.

Friend 1 : Yes, ofcourse. What can anybody do with that.We just have to pay.

Friend 2 : No dear, that is what loanyantra.com does. 

Friend 2 (loanyantra.com customer)                             Friend 1

Home loan : Rs. 45  Lakhs                                                              Rs. 45 Lakhs

(Jan 2015)

Interest :       9.50%                                                                           9.50%

EMI :             Rs. 41,946                                                                    Rs. 41,946

Period :         240 months                                                              240 months

* (June 2015) Increase in interest rate by  0.5%

Period :        Remains at 240 months as he                              271 months

(June 2016–  paid 3 EMIs extra as part payment                     Still paying.

June 2027)    as suggested by loanyantra.

June 2027  :  Loan closed                                       

                     Total paid  – 

                     148 EMIs + 

                           36 EMIs                                                                     Still paying

                  (as partpayment suggested by loanyantra)

                   So,184 EMIs * 41,946 =  Rs.77,18,004

                                                

July 2027 : Started investing Rs.42,000                                      Still paying

                   in SIP till 56 months with 

                   average returns of 15%.

                                     

                                          

Jan 2032 :  Received Rs.34,19,126                                                        Still paying

                  (Left these returns untouched for 5 years)

                                     

June 2037 : Final returns received Rs.68,76,830           Loan closed 

                                                                                                     Total paid – 

                                                                                                     271months *41,946 = Rs.1,13,67,366.

Friend 1 : Those are really big figures!!! So, you say, with  loanyantra managing your home loan, you could finish your home loan faster and also could invest in investments of your preferred choice.

Friend 2 : Yes, dear. Remember that the above situation has change in interest rate only for once. In practice, the interest rate change can be many a times. So, each time researching might not be possible. So, why not leave it to the managing company. It costs you really a minimal. 

Second Home – A Relaxing Option?

With increasing affluence on the one hand and a growing realization that there is a need for a relaxed lifestyle at least on weekends, the concept of second homes appears to be gaining popularity. According to the National Council of Applied Economic Re­search, the number of households de­scribed as rich is expected to reach 11 million by 2013 from 3 million in 2003. Meanwhile, the number of mid­dle class aspirers is predicted to leap even more dramatically, from 46 mil­lion to 124 million. The number of HNW Is in India is growing at 20% YoY, second only to Singapore.

This growing opulence of Indians surely makes the second-home mar­ket pretty hot. According to a study conducted by Kapston.com, a Banga­lore-based E-business consulting firm, second-home sales in India in­creased by 50% from 2002 to 2007. The trend slowed a bit in 2008, most­ly due to the economic woes of the US. Then it picked up in mid-2010 to slow down slightly only in the recent time, although now it’s a normal, reg­ulated market where good stuff sells very quickly.


Motive 

Different people invest in a secondproperty with different motives. For some, second home is to have a re­laxing place away from the hustle and bustle of city life, extreme heat and the stresses of work. There are many who’d like to have a second home to spend the rest of their lives in, post-retirement. Others invest in a second home in order to earn rental income.

The primary reason for buying a second home is still lifestyle among Indians; however people have start­ed realizing the investment potential, but the investment consideration comes in a strong second place.


Be Wise 

Even if buying a second home in­volves spending a lot more money be­fore retirement, you will be wise to consider it as an investment. If, for ex­ample, you buy a second home five years before you retire, you will be able to earn money by renting out your property for the next five years, and cover a part of the mort­gage costs.


For NRIs

And it’s not only for Indian dwellers. Non-resident Indians are buying this mid-level housing as well. NRIs can easily attain housing in In­dia because they were born there— but they can also buy even if their parents or grandparents were born there.

Many NRIs choose to go back to where they came from; they have dreams of having India as a possible place to retire, where hired maid ser­vants will run their day-to-day tasks while they relax close to friends and family. The home towns where they grew up always have a certain draw on their heart strings.


A second home is not a bad idea. It can serve the purpose of a change from the routine, once in a while, and leave you refreshed and energized. It can also be a wise investment. In fact people in the higher income brackets even opt for more than one second home as part of their long term in­vestment strategy.

The Hidden Costs of Buying A Home

The Hidden Costs of Buying A Home

Everyone knows that buying your first home is an expensive ordeal—just the cost of a down payment alone can be significant for many buyers. But those aren’t the only costs that you have to consider prior to home shopping.

First-time buyers often don’t realize that they will need to pay for more than just the selling price that they negotiate with a seller. Things like interiors, hookup fees for utilities, and appliances are all extra expenses which add to the hidden costs of buying a home.

So what else do you need to budget for as a first-time buyer? Follow along as we take you through the basics.

Step One: Before You Buy

Before you start booking viewings, figuring out a budget, or even broHidden costs of buying a homewsing through furniture stores, you need to figure out what your real costs are going to be. Your down payment is not the only upfront cost that you are going to have to pay, so you need to make sure that you hold enough back to cover all of the extras, such as:

Legal fees

Though mentioned in the cost sheet by the seller. Take care that you are in the safe side wuith the legal charges.

Agent fees

If you are buying a house using a real estate agent, make sure that you have your terms discussed in detail before proceeding further. Usually it is 1% – 2% of the property cost. 

However, the agent is paid a percentage of the sale price upon the completion of the transaction.

Inspection and appraisal

The trend now in India with the sellers is, they mention the cost for the government approval in the price sheet. So be clever and conscious when you calculate the cost of the property. Please do research on the present trend and compare in your price sheet.

Mortgage with interest

So maybe you have a general idea of what you can afford for a mortgage, but did you factor in an interest rate? Will your interest rate change based on your down payment? Will your rate fluctuate, or will it be fixed?

You will need to talk to your bank about this, to see how much you qualify for and what they can offer to you. Your monthly payments can change significantly based on your interest rate, so if you get an offer that seems high, feel free to shop around for one that better suits your bank account.

Note : Feel free to visit our website (www.loanyantra.com) for constant alerts on interest rate changes and also for zero fee balance transfer.

Step Two: After You Pick a House

Don’t put away your calculator yet!  Sure, you made your budget work for the “before” costs, but don’t forget about the “during” hidden costs of buying a home, which include:

Moving expenses

Do you have enough stuff to warrant a moving truck or movers? Is your new place far away from your current one? If you need, or want, to hire movers, you’ll need to figure out the cost. Depending on your preferences, movers can get pricey.

For example, if you just rent a moving truck or trailer, your costs will be moderately low. But if you need people to help pack your things and move your items out of one house and into another, you’re going to have to cough up some extra cash.

Home Insurance

Homes come with all kinds of monthly expenses, and insurance is one of the necessary ones. Depending on the age and condition of your home, your location, your insurance history, and so on, your insurance rates will fluctuate. They’ll also vary drastically by provider.

Be sure to shop around for the best coverage and price for your personal needs.

Interiors and Utilities

We all know that interior designing and buying utilities are going to cost money; that is inevitable. Interior designers will surely cost your pocket. So depending on your financial situation, take a call. There are plenty of options around. Probably, it is time for you now to look up for offers and sale. Now-a-days, shopping online and cash on delivery options make things easier and economical as well. So think wise before you shop either online or outdoor. The idea is to save money and time too.

Property tax

Property taxes are something that every homeowner has to pay, and they vary by location. And this is one of the taxes the government is strictly probing. So to avoid paying lump-sum, plan well in advance. 

Step Three: Once You Move

So, you figured out a budget and selected a house. Since you’ve probably put a lot of your cash into the process so far, it might be difficult for you to consider parting with any more of your money, but chances are you still need a few things to turn your new house into a home.

Take a deep breath and remember:

  • There will be unexpected costs. Maybe something gets damaged in the move, or maybe you need to change the locks to your new house. Don’t beat yourself up for not thinking about every single cost involved.
  • Your first grocery trip is going to be expensive. Why? Because, chances are you need to stock up on groceries, spices, canned goods, and other staples. Don’t worry, you’ll only need to do a move-in shop once. The rest of the time you’ll just buy what you need, when you need it.
  • All of the money that you were saving isn’t gone. It’s finally gone towards what you were saving for in the first place.

Setting up House and Settling in

You won’t often hear that buying a house is easy, but you won’t hear too many regrets about doing it either. It’s a big purchase, and it’s bound to be a bit complicated, but don’t let that keep you from building equity and making a home of your own.

Spend wisely, save for a rainy day, and cover your most important costs before anything else and you’ll have a happy and financially healthy home to call your very own.

Home Loan – Apply online; know the present interest rates! – Loanyantra

Now-a-days, competition for home loans has outgrown competition for homes. This rose a requirement of applying online for a home loan.

When you can search for your home online, then why not search for a home loan online. So after searching and applying online, we take our services a step forward. This idea is in action only to take the home loan and the related services to our customers customized. 

Loanyantra

What makes us different from others.

As we are, our service starts where many others’ end.

Once you apply online, we take you through the process, which is simple and transparent. Check your eligibility and we guide you to the customized interest rates. If you find us your true beneficiary, associate with us. You will get a call within no time. Get home loan approval from the required bank.

So now, you experience our efforts. Retire from your home loan thoughts. You are into our loan rate shield process. We send you alerts on changing interest rates and suggest you for a balance transfer when needed. 

Infact, we are managing your loan. Each step, from the time you enter your details, apply online, getting customized rates, getting required bank approvals, and timely alerts, we try to save your valuable time, make it economical and most important keep you away from stress.

For details, visit, Loanyantra .

Thinking of financing your first home? Know these things!

Financing your first home

For most people, buying a home is the biggest purchase they will ever make, and the majority of first-time buyers need to obtain financing in order to do so. With such a large number on the table, it’s important to choose financing that works for you in both the short- and long-term.

financing your first home

From down payments, to mortgage brokers and traditional lenders such as banks, we’ll explore what options are best for financing your first home.

Should I Use a Mortgage Broker?

A mortgage broker is someone who provides you, the borrower, with financing options from various lenders. Think of them as a sort of mortgage middleman.

You provide them with financial details about yourself, such as your job history, credit report, down payment amount, etc., and they take your information to various private lenders to see what they can offer you for an interest rate and mortgage term.

There are many potential pros to using mortgage brokers, such as:

  • Communicating between you and a lender.
  • Lower interest rates.
  • Flexibility for a typical borrowers.

As well as cons, that can include:

  • Inability to service your loan.

Mortgage brokers are able to present your information to multiple lenders, allowing for flexibility if you don’t meet the strict standards usually required by banks. Often, mortgage brokers are able to find options for those who are self-employed, who have poor credit history, or a short job history. But remember that those options may come with penalties, such as a higher interest rate or a larger down payment.

If you do choose to go with a broker, make sure that you choose someone who has a good reputation and a lot of experience.

Should I Use a Traditional Lender?

Traditional lenders, namely banks, provide mortgages to clients, allowing both parties to communicate directly. Often, first-time homebuyers with good credit, a down payment, and at least a year’s worth of job history will contact their bank first when seeking a mortgage.

Banks tend to have pre-designed mortgage options, which includes interest rates, terms, and so on.

The benefits of choosing a bank can include:

  • Reliability, trust, and security.
  • Potential savings for clients with multiple accounts.
  • Faster approval.

While some negatives are:

  • Less flexibility for buyers who are self-employed, or who have poor or little credit history.
  • More rigorous requirements.
  • Limited choices in terms of rates, length, and more.

When exploring the option of using a bank as your lender, remember that you don’t have to stick to the bank that you have other accounts with. Feel free to explore what other banks are offering. Some may offer bonuses for having checking or savings accounts with them, or based on the down payment that you will make.

If you do choose to go with a bank, be sure that it is a bank that you feel comfortable with and that you have them walk you through the terms of your mortgage so that you understand the ins and outs.

Should I Save for a Cash Sale?

Cash sales are probably the most desirable types of home purchases, since the buyer forgoes interest rates, mortgage terms, and the stress of finding a lender, but not many buyers are able to purchase a home using cash alone.

In smaller towns or less desirable areas, homes can go for reasonably low prices, which may allow you to save enough to buy one, but in areas with higher demand or in cities, home prices aren’t quite as affordable.

In order to save for a cheaper home it can take years to put away enough to make the purchase, but for even a moderately priced home it can take even longer, depending on your income and expenses.

Often, buyers who are able to purchase using cash benefited from an inheritance or something similar, but just because you have the cash to cover your house entirely doesn’t mean that you should use it all.

Before choosing to use all of your cash to secure a home, consider the following:

  • If I use all of my savings to purchase a home, will I be left cash poor?
  • What will the cost of renovations, repairs, or other fees outside of the mortgage be?
  • Am I borrowing money from someone I will need to pay back?
  • How long will it take me to save for a home, based on both my expenses and inflation?

How Should I Finance My Mortgage?

How you finance your mortgage, whether through a broker or a bank, using just enough cash to cover the down payment, or paying for your home entirely, depends on your financial situation, the property, and your goals not just for now, but down the road.

Not every lender is suitable for every buyer, and only you can decide which avenue makes you feel the most confident and comfortable. Take your time, shop around, and explore what is available to you. In educating yourself about your options, you can make the best choice for you and your finances.

Note : Our (loanyantra.com) customers can always find us as a reliable source in managing the home loan as we suggest you the best home loan option that suits your financial situation, and always alert you with the changes in interest rates. 

Visit www.loanyantra.com for details.

Happy to Announce – Loanyantra.com is selected for t-hub

What is t-hub?

T-Hub is designed for technology-related start-ups. Its mission is to catalyse the creation of one of the tightest and most vibrant entrepreneur communities in the world in order to encourage and fuel more start-up success stories in India.

A technology incubator, with collaborative efforts from the Indian School of Business (ISB), the International Institute of Information Technology (IIIT-Hyderabad) and NALSAR University of Law, besides various other organisations. 

The Telangana state government has put in Rs.40 Crore on the 70,000 sq ft facility constructed on the IIT-H campus. 

By giving access to top mentors, investors and academia, the T-Hub building will help every entrepreneur realize their dream. 

Loanyantra.com is one among other start-ups to be placed in t-hub

We are proud to announce that loanyantra.com has been selected among 500 start-ups. This gives us more confidence and more focus to achieve our goal. 

Thanks to the existing customers, happy to quote you, we achieved it because of you.

Looking forward to serve our customers better.

 12651250_1758674764348732_1889095681786214261_n

You can find us now on :

1st Floor,

t-hub Hyderabad,

IIT Campus,

Gachibowli,

Hyderabad.

Investing in Luxury Homes – 7 Reasons

With the reviving economy having infused a renewed sense of confidence among High Net worth Individuals (HNI) home buyers, there has been a significant surge in demand for luxury homes asset class in the metropolitan cities of India.

They want more than just four walls and a parking slot. 

investing in luxury homesIndian luxury home buyers have sound reasons for why they want to live in premium rather than ‘normal’ homes.

Perfect View –

The 270 degree or 360 degree window view  from an apartment is one of the important aspects.  The view of  swimming pool, various sports courts, play area and excellent landscaping soothes the eyes and sensibilities of the occupants. This takes the luxurious living experience to another world.

Aspiration For Status – 

Buying a luxury home is a matter of prestige – and why not? After all, most luxury home owners have bought their pride and joy with hard-earned money. They want to live in homes that announce their arrival, and offer a higher lifestyle rather than just a postal address.   

Comfort – 

The very latest of today’s luxury homes provide all the modern comforts – and an ideal environment for living and raising a happy family. These homes are built to take care of the needs of a comfortable lifestyle. Features like swimming pools, themed, landscaped gardens, gyms, meditation centers, manicured lawns, electronic security, touch-button responsive fixtures, and entertainment and shopping available at close hand all contribute towards making the living experience more comfortable and enjoyable.   

Security – 

One important feature of luxury homes is that they have very high security. They have top-of-the-line security, both in terms of trained security personnel and security installation that guarantee safety. Further, accidents and medical emergencies can be quickly taken care of with immediate response triggered by technology, and the availability of hospitals and emergency rooms close at hand.  

Technological Enablement –

Technology and IT innovation have gone a long way to make the living experience in high-end luxury homes extraordinary. From solar generators to remote controlled window shutters, everything is directed towards meeting the demands of homebuyers looking for an ultra-modern lifestyle.   

Better Neighbours –

The benefits of housing one’s family in a luxury apartment do not only extend to conveniences. Luxury housing projects are also seen as the perfect environment for one’s children to grow up in and the adults to socialize in. After all, such projects basically form a society with a certain degree of culture, education and beliefs – in short, better neighbours. 

Investment Value –

The increasing demand for properties in India rivals that of gold. Real estate and gold are the most traditional forms of investment in India. However, properties present the advantage of being an asset that rises in value at every instance – and it is also a ‘performing asset’, meaning that it serves a practical purpose even as it gains in value. 

Given the fact that luxury homes are always in demand even on the secondary market, HNIs correctly see them as the perfect investment opportunity that guarantees multiplied returns in the future. 

What do you prefer, single family home or multi family home?

Are you looking for a good investment? Do you want to invest in a house? Are you in a dilemma whether you should go for single family home or multi family home? Here we are to help you.

single family homeWhen you consider single family home (1 or 2 bhk) and small multi family home (3 or more bhk), for investment purpose, though you can afford for a bigger house, it is always better to go with a single family home.

Here are some facts why a new investor should go for 1 bhk or 2 bhk. 

1. Expenses :

A house to maintain it neat, it needs some extra attention. This ofcourse charges your wallet. When you buy only for investing, it is better to go for a small house as the expenses on repairs and replacements are minimum. Advantage is that for a smaller house, tenants usually take interest and initiative on these small works.

2. Vacancy :

Tenants usually stay for longer in small homes than in bigger homes. Also, single family homes rent more quickly than multifamily ones. This means, fewer days actually your house is sitting vacant.

3. Tenant Interaction :
This may not seem like a big deal, but it can be. In a single family home, you don’t have to worry about the tenants getting along. In a small multi family, it is tough to have understanding and cooperation. This might affect your home and might result in more repair works or association problems and discipline problems aswell.


4. Pride of ownership :
We know that our tenants love the fact that they have a home. It may not be theirs, but they treat it as their own. They keep it clean. They love to stay in it as they hold on many memories. Ofcourse, we have some who don’t. But the ratio is on lower side. But taking the ownership and maintaining the house well, leaves us happy and tension-free


5. Sale of the property :
The best thing about single family home buyers is that, it appeals to the largest amount of buyers. Apart from retail buyers, investors would be interested in the property as well. 

It is always, the demand for 1 bhk and 2 bhk is relatively more when compared to a 3 bhk and a 4 bhk, irrespective of the area and the luxury. 


Hence, as a new investor, you will have fewer headaches with a smaller home and more profit in future.

Part payment of home loan Vs Interest reduction penalty

It is very common for a home loan payer to do the part payment of home loan to reduce the principal amount or a penalty for reducing the present interest rate. Both the options are the best if you want to close your home loan fast. But the question arises which option to take when. Here is a brief description about part payment of home loan and interest reduction penalty.

Part payment of home loan Vs Interest reduction penalty


1. What is part payment of home loan? What is Interest reduction penalty?


Part payment of home loan-  Payment made to reduce the principal of your loan. For suppose, every now and then in an year, if you save, say, minimum of Rs. 50,000 or say Rs. 1 Lakh. You can pay that amount to the bank against your home loan. This amount will be added to the principal. Inturn, this will reduce your loan tenure.


Interest Reduction Penalty – A minimal fees to be paid, to the bank, if you want to change your home loan interest rate to the present home loan interest rate.


2. When do you opt for either of the options?


Part Payment of home loan – Don’t wait to pool up your savings for part payment of home loan. Paying a minimal amount also can reduce your principal which will reduce the loan tenure. No extra fees to be paid. But be careful with your bank’s terms. Though there is no extra fees, there is a limit on the no. of times you go for part payment in an year.


Interest Reduction Penalty – If your interest rate is higher than the present interest rate and makes a much difference on your EMI, mark it in your to-do list to change your interest rate.  For example, if you are on 12 % interest and the present rate is 9%. You are paying 3% extra on your home loan which is merely a waste. Instead, pay the penalty and change to the present rate, and plan for a holiday on your monthly savings.


3. Which one to choose?


This question is valid when you are almost at the end of the home loan tenure. Or, if you plan for a balance transfer. If you are in any of these situations, then paying penalty for interest reduction is a no no. This would charge your pocket an extra than reducing the burden. If you have savings, it is better to opt for part payment of home loan which will help reduce your tenure and if you want, can also reduce the EMI.


Hence, remember that both the options are the best. But what is important is how well you choose.

Steps for NRIs on how to sell a property in India!

Are you an NRI and inherit a property? Did you buy a home in India and got settled in other country. Are you planning to sell off that home. Here are the details. 

Steps for NRIs to Sell a Property in India

For expats, selling a property in India from abroad is a challenging process, especially if they left the country years back. There are rules for an NRI in selling his/her inherited property in India and it requires legal help. Here is the step wise procedure on how NRIs can sell a property (their inherited land or property) legally without any litigation:

tips for  NRIs on how to sell a property in India

The process is quite similar for residential Indians and non residential Indians except for the latter have tax implications and repatriation policies.

1. Title Transfer for Inherited Property

If the property is inherited, then the title should be changed to the seller’s name by the process of mutation of revenue records. This transfer requires a will or a succession certificate. If one cannot procure a copy of the will, then the local court can issue a succession certificate. With this certificate, one can apply for a title change in the mutation of revenue records office.

This procedure is time consuming and it is advisable to have them changed earlier.

2. Checklist of Documents Required for Selling

It is necessary to procure all the documents required for selling the property in India. Some of the documents include:

  • The title deed or mother deed of the property
  • No objection certificate to show the clearance of litigation and debts.
  • Occupation certificate issued by the municipal corporation
  • Plan approval/sanction certificate
  • Cooperative share certificate if the property is a part of a society building
  • Lawyer certificate, if any of the original documents were lost

Apart from these documents, the seller should have a PAN card number to sell properties that involve big amount transfers. The NRI can apply PAN to sell the properties or he/she can submit form 60 at the registrar office for the same.

3. Finding a Right Brokerage Firm

If there are no close friends or relatives to trust with the transaction, it is wise to consult a brokerage firm to assist in the selling process. However, if the seller has realty market sense and people to support then he/she can go ahead with the selling process on their own.

The brokerage firm can help you in suggesting the market situation, finding suitable buyers, price trends and risks involved. They can assist in fixing the selling price, applying for PAN and attorney service to obtain legal documents and tax implications. Although they provide end-to-end solutions, brokerage in India has no legal license and it could be troublesome if the brokerage fee is not fixed properly. It is advisable to find the right brokerage firm and fix the fee before initiating the selling process.

4. Sales Registration

It is essential to grant the power of attorney for the transaction to a PoA holder. There is no need to grant a complete power of attorney; instead the seller can give ‘Admit PoA’ rights to the PoA holder who will merely represent the owner in the registrar office. According to this, the seller should duly sign all the documents and the PoA holder will represent him in the sale registration.

However, issuing the PoA process differs from time to time and each firm will have a different process. Once the registration is complete, the seller should also concentrate on the tax implications.

5. Focus on Tax and Repatriation Issues

The NRIs have long term capital gains if the property was sold after 3+ years of purchase, the tax for which comes to 20.6%. Further, the basic exemption of Rs. 2 lakh is not applicable for NRIs. There are other tax exemptions available for the NRIs while selling the property.

The sale money can be repatriated through official dealers but it should not be more than US $1 million per year. If the property is inherited from one NRI to another NRI, then you need to get a special permission from the Reserve Bank of India. However, the brokerage firms will guide you through this process.


Do opt for a legal help. They act as best resort and pull you out from the property issues.