Personal Loans Apply Online

Loans are important part of modern day personal finance. Most of us rely on loans for funding our higher education, new car or home etc. Though loans boost our purchasing power, over reliance on debt often leads to financial stress. One important question that advisors often face from individuals is “When should I close my loan?” Exit strategy from the existing debts plays an important role in minimizing the interest burden on the individuals. Prioritizing loan repayments ensures that the loans get cleared in a systematic way to boost the available monthly surplus. The loan repayments should be prioritized in the following order:

Priority 1: Personal Loans

Personal Loans top the priority list when it comes to paying off existing debt. Personal Loans are unsecured loans which are advanced on the basis of the borrower’s credit history and ability to repay the loan from the available income sources. Being an unsecured loan, Personal Loans are often offered at a higher interest rate. Higher interest rate necessarily means higher EMI payments. Though the repayment charges for Personal Loans are also on a higher side, it is always advisable to close this high interest debt once an individual has enough surpluses.

Priority 2: Unproductive Loans

The loan instruments like gold loans, Loan Against Property, loan against fixed deposits and insurance policies, loan against PF and auto loan do not attract any tax benefits. Such loans should be paid off based on the interest burden. The interest rate on gold loans and loan against property are dependent on margin between pledged value and loan amount. If an individual opts for 50 per cent of the value of the gold as loan then he or she is expected to get a better rate compared to opting for 80 – 90 per cent of the value as loan. These loans hold a lesser interest rate compared to Personal Loans. Loans against fixed deposits, insurance and PF attract lower interest rate than the gold loans and loans against property.

Priority 3: Educational Loan

The increasing educational expenses have aided in the increased demand for educational loans. Educational Loans should be given second least priority before closing off the existing debts. The reason behind it would be the tax savings one can enjoy on the educational loans. One can claim tax benefit on the interest payments being towards educational loan availed from approved institutions. So essentially the interest payments can be offset by the tax benefit and hence one is advised to pay off educational debt only after paying off other debts.

Priority 4: Home Loan

Home Loans are the most common form of debt among the Indians. One can avail tax benefits on both principal repayment and interest payments on the home loan. This tax advantage makes the home loan the last debt an individual should pay off. The exit strategy for home loan also differs based on the tenure and type of house. Generally in the initial years, majority of the EMI payments account for interest payments and during the last few years of loan tenure they account for principal repayments. It is advisable to consider prepayment during the first half of the loan tenure. If an individual has two existing home loans, only interest payments on second home loan, which is not self-occupied, are tax deductible. However, there is no cap on this deduction. So considering the tax benefits associated with them, home loans should be paid off after servicing all the other existing debts.

Conclusion

Though the above mentioned priority list give an outline of debt servicing, sometimes you may find an investment which pays you higher interest rate than the interest rate being paid on the existing debt. As with any financial decision, make sure you analyze the pros and cons of whether to opt for an investment or to pay off the existing loan. Exiting a loan is an important decision that should be made using the merit based reasoning (ROI, opportunity cost) than emotional reasoning (debt free life).

Our Related Searches:-

Personal Loan, Personal Loan Apply Online, Personal Loan Apply, Apply Instant Personal Loan Online, Apply Personal Loan Online, Apply Personal Loan, Personal Loan Interest Rate, Instant Personal Loan, Personal Loans Online, Personal Loan Eligibility, Low Interest Personal Loans, Instant Loan Online, Instant Personal Loan Online, Personal Loans Online Approval, Loan Apply Online Personal, Personal Loan for Self Employed, Personal Loan Instant Approval, Online Loan Apply Personal Loan, Personal Loan Eligibility Check, Personal Loan Against Property, Apply for Instant Personal Loans Online, Apply Instant Personal Loan, Apply for Instant Personal Loan Online, Apply for Personal Loan Online, Instant Personal Loans, Personal Loan Interest Rates, Personal Loan Eligibility Calculator, Instant Loan Apply Online, Instant Personal Loan Apply Online, Apply Loan Online Instant Approval, Instant Personal Loan Approval, Personal Loan Instant Online, Apply for Instant Personal Loan, Online Personal Loan.

Apply For Home Loan in India

Mumbai: Banks can now provide Home Loans up to 90 per cent for properties that cost Rs 30 lakh or below, the Reserve Bank of India (RBI) said on Thursday. Earlier, the facility was available only in cases where the cost was up to Rs 20 lakh.

This will benefit those home seekers who plan to buy properties in the range of Rs 20-30 Lakh.

The RBI’s decision comes in the wake of all major banks reducing interest rate on Home Loans.

The Reserve Bank of India said in a circular that in case of ‘individual housing loans’ falling under the category of up to Rs 30 lakh, the LTV (loan to value) ratio is now up to 90 per cent.

Our Related Searches:-

Home Loan, Home Loan interest Rates, Home Loan Rates, Home Loan Pre approval, Home Interest Rates, House Loans, Home Mortgage Loans, Mortgage Loan, Mortgage Interest Rates, Mortgage Preapproval, Mortgage Loan Rates, Apply for Home Loan, Apply for Mortgage Loan, Apply for Mortgage, Home Loan Online, Apply for Home Loan Online, Apply for Home Loan Pre Approval, Home pre Approval Online, Online Home Loan Application, Online Home Loan Approval, Apply for Mortgage Loan Online, Apply for House Loan Online, Instant Home Loan, Instant Pre Approval Home Loan, Home Loan Instant Approval, Online Home Pre Approval.

Apply Housing Loan Online

New Delhi: A house is the biggest investment most individuals make in their life. Therefore, it is only logical that a lot of research goes into searching for the right property, the right location, the right facilities, and ultimately—and most importantly—the right price.

And only after all these things are taken care of that we look the source of funds. Of course, having adequate savings to completely cover the cost of purchase is an ideal situation, as it gives immediate ownership of the property and saves the several lakhs one pays as Home Loan interest, and also keeps one away from the mental tension of what happens in case one is not able to play the EMIs on time.

However, most property buyers in the country opt for a home loan, and this is one segment which is soaring despite the overall gloom in the economy, as can be corroborated by the quarterly results of India’s largest mortgage lender Housing Development Finance Corporation. The firm saw quarterly profit soar 18.5 per cent at Rs 1,002 crore in the April-June quarter.

NDTV Profit spoke to officials at HDFC and Corporation Bank on the homework you should do:

1. In case you intend to take a home loan, calculate your Home Loan eligibility first. A borrower is eligible for a loan five times his annual income. So be prepared to fund the balance from your own pocket in case the value of the property exceeds this limit. The amount of loan sanctioned also depends on the borrower’s age and whether he has an existing financial liability, such as another home loan or a car loan. In case the applicant is nearing retirement, then the loan amount gets reduced in such a way that the last EMI coincides with the retirement of the borrower. So if two borrowers, one 40-years-old and the other 50, apply for the same amount of loan for the same property, the younger borrower will be disbursed the full loan amount he is eligible for, while the older borrower will get only half the amount. Whether the property meets all legal and regulatory requirements also makes a difference.

2. Banks never finance 100 per cent of the value of the property. Most banks offer loan of up to 80 per cent of the value, while some can even stretch to 85 per cent in case you earn well, have a clean financial record and have no other financial liabilities. In this case too, the balance has to be funded by you. So, in case the property you are interested in costs Rs 40 lakh, the bank will only provide Rs 32 lakh, while you will have to shell out the balance Rs 8 lakh. Of course, whether you get the Rs 32 lakh loan depends on your eligibility. For someone earning Rs 6 lakh per annum, the eligibility comes out to be Rs 30 lakh. Therefore, the remaining Rs 10 lakh has to be funded from other sources.

3. Managing to secure the sources of funds is not the end of your problems. You will have to pay processing fee for the loan, registration charges, stamp duty and brokerage. Banks charge a fixed amount as processing fee, which could be staggered depending on the amount of loan taken. This is usually Rs 8,000 – Rs 10,000 for loans up to Rs 20 lakh, and could go up to Rs 15,000 for loans of larger amount. So be sure to check these details with your bank. Stamp duty is usually between 3 per cent and 7 per cent, and varies from state to state. Registration charges, usually 1 per cent, also vary from state to state. Brokerage costs are again 1-2 per cent of the value of the house.

4. Never go by the cost of the house mentioned on paper. What you see on the brochure is the basic cost of the house, and the actual cost could go up depending on the following—preference of the floor, preference of whether the flat will be garden-facing or swimming pool-facing, whether the flat will be a corner flat with two sides open, whether you want an open parking or a basement parking, whether you want roof rights or not. The list is huge, and securing funds depending on the base price may give you last minute surprises. Gym or club membership and generator for power back-up could also raise the cost of the house. Usually, electricity meters and water connections also attract a one-time cost.

5. Choose your bank carefully after doing ample research on the home loan rates being offered. Most banks offer lower interest rates in the initial years to attract buyers. These rates are then corrected to the existing market levels after 2-3 years. Some banks also offer the option of charging only the interest component of the EMI till the time of possession, while there are some which begin the installments only after the borrower takes possession of the flats. It is also important to clarify what will happen in case the builder delays the delivery of the flat. In most cases, the banks will insist on charging the EMI from the scheduled date, and this will mean that the borrower will end up paying a full EMI as well as the rent of the flat where he is currently residing.

Our Related Searches:-

Know Your Client (KYC) – Overview, Importance and Benefits

Know your customer or commonly known KYC is an important procedure which the bank inculcates for smooth functionalities. As the name suggests KYC enables the bank to know and analyze their customer adequately. This helps in understanding their requirements and serving their needs better.

KYC is a regulatory and legal requirement following the directive by the Reserve Bank of India. As per the guidelines, all banks in India must follow a stringent KYC Procedure while opening new accounts and update the old ones. This procedure has been set up to ensure that there can be effective monitoring of a customer’s transactions against their expected behavior and recorded profile. Also it can further determine the customer’s risk in terms of inclination to commit money laundering, terrorist finance, or identity theft.

KYC is also required for reasons other than opening bank accounts like applying for a credit card, investing in mutual funds, changes in your particulars due to marriage/divorce or any other reason, opening a locker etc. The bank has also been given the right to investigate/verify K.Y.C documents to the point of their satisfaction.

If an individual account holder fails to produce the KYC Documents within the defined period, then the bank has the right to close your account. However, before taking an extreme step of closing the account, the bank may also use ‘partial freezing’ as an option. Partial freezing means initially allowing all credits and disallowing all debits while giving an option to you to close the account and take your money back. Later even all credits also would not be allowed. The ‘partial freezing’ however, would be exercised by the bank after giving you due notice.

For the purpose of the KYC Policy, a Customer is defined as:

A person or entity that maintains an account and/or has a business relationship with the Bank One on whose behalf the account is maintained (i.e. the beneficial owner).
Beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered Accountants, Solicitors, etc. as permitted under the law.
Any person or entity connected with a financial transaction, which can pose significant reputation or other risks to the Bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

KYC Guidelines of RBI mandate banks to collect three types of proofs from their customers. They are Recent Photograph, Proof of identity, and Proof of address.

An interesting question which is often asked by customers is ‘which are the documents that are required for producing proof of identity’? According to the regulation by government 6 documents are official valid.

For individuals:

Passport
Driving License
Voters’ Identity Card
PAN Card
Aadhaar Card issued by UIDAI
NREGA Card

For small bank accounts (balance in such accounts at any point of time should not exceed Rs. 5000, total credits in one year should not exceed Rs.1,00,000 total withdrawal and transfers should not exceed Rs.10,000 in a month)

Identity card issued by Central/State Government Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions
Recent photograph
Identity card with applicant’s photograph letter issued by a gazetted officer, with a duly attested photograph of the person

For NRIs:

Recent photograph
Identity Proof
NRI status proof
Proof of address

Evaluation and verification of a customer’s identification is a crucial process which not only safeguards the customer but also empowers the bank to protect themselves against financial frauds. As per the RBI Guidelines, K.Y.C Documents have to be periodically updated to ensure adequacy and transparency. It is necessary for the banks to have the latest details of their customers.

Our Related Searches:-

KYC, KYC Verification, Know Your Customer, KYC Process, Know Your Customer Requirements, KYC identity Verification, KYC Requirements, KYC Verification Online, KYC Requirements for Banks, KYC Process Steps, KYC Information, KYC Policy, KYC Procedure, Know Your Customer Process, Video KYC, Verify KYC, KYC Verification Process, KYC Validation, KYC Identification.

Get Instant Business Loan Online

A Business Loan is borrowed capital which entrepreneurs or companies incur for growth, start-ups, expansion etc. Many financial lenders do a thorough check of the viability of the business before approving a Business Loan. In such cases, presenting long term plans, balance sheets, company vision etc. provide a good base for loan approvals.

Loan eligibility for business varies on several factors. The ability to repay the role needs to be verified with the financial institution through profitability, statements etc.

The secured Business Loan is granted against collateral like property, gold etc. while the unsecured Business Loan requires no such validation, however turns out to be more expensive than the secured Business Loan.

Taking a Business Loan is a good option for self employed persons Finance is available from leading Banks without giving a co-lateral. Purely on the basis of your income, documents & profile. Unsecured loans available to Self Employed Customers.

Loan Amount Ranging From 5 Lacs to 200 Lacs.

Tenure up to 60 months. (Can be used for Business or personal Use)

Loans Based on Profit
Loans Based on Turnover
Loans on EDC Swipes
Loans on Used Cars
Loans on Professional Receipt

Business Loans are usually sanctioned for a fixed tenure of upto 60 months. Sometimes, it may involve a revolving line of credit or in the form of an overdraft. Another type, is a top up on your existing loan to get an additional amount /for an easy EMI.

As a standard practice a fee up to 2.50% is charged of the total loan amount.

Dully filled and complaint Application form
Self-attested copy of KYC Documents (Pan Card, proof of identity, residential proof etc.)
Bank Statements for the past 6 months
Financials – Balance sheet of the company
Proof of continuation (ITR/Trade license /Establishment /Sales Tax certificate)
Latest ITR along with computation of income, Balance sheet and Profit & Loss a/c for the last 2 years. Financial should be CA Certified /Audited.
Other Mandatory Documents (Sole Prop. Declaration Or Certified Copy of Partnership Deed, Certified true copy of Memorandum & Articles of Association (certified by Director) & Board resolution (Original).

Our Related Searches:-

Start up Business Loans, Business Loans for Women, Startup Business Loans, Quick Business Loans, Small Business Loans for Women, Business Loans for Small Business, Apply for Business Loan, New Business Loans, Business Loans for New Businesses, Business Line of Credit, Small Business Loans for Startups, Instant Business Loan, Commercial Mortgage, Online Business Loans, Apply for Small Business Loan, Personal Business Loans.

Apply for Instant Personal Loan Online

Are you facing a Personal Loan rejection? A rejection can be disappointing, especially if there is an urgent need for funds.

However do not feel disheartened. There is an option of applying again as long as you know and understand the steps you need to take to turn your rejection into an approval.

There could a number of reasons for the same an analysis could help you to deal with the situation. Since the Economic Meltdown of 2008 most Banks / Financial Institutions have become extremely conservative creating systems to keep defaults under check. The personal loan being an unsecure loan strict guidelines have been put in place as a result.

Hence before reapplying, or even applying for the first time, It is important to consider the following steps carefully

Firstly get the facts of why your loan was rejected from the agency. If the reason is not a valid one, you could ask for a relook or a reassessment of your loan application.
A healthy credit score of over 720 points or more is needed for an approval.
Check your credit score for any errors; at times there could be a wrong entry under your profile causing your score to decrease (Persons with similar names & date of birth could cause a wrong entry).
A Credit /Loan transaction has not been reported to CIBIL by the concerned Bank.
Another major reason for rejection could be a verification issue. Hence all contact numbers & address provided should be valid & operational.
To be safe, give additional contact numbers (for yourself/workplace). Be careful to give a correct email id that is updated as per record.
Documents provided to the Bank should be clear & authentic.

In case you find your credit Score is below the mark, the following steps can be taken to improve your score:

Pay all Credit Card bills by the due date.
There must be enough balance in your account before your Loan installment is due to avoid the payment to bounce.
In case there is a bounce, even if the money is credited thereafter a it will show in your credit history. So take your payments seriously.
Use your Credit Cards carefully. Maintaining a 30% usage is ideal.
Do not make in discrete applications for Credit cards or Loans.

Remember that you need to be realistic. Check your eligibility & do your homework before applying for a loan.
If you need further guidance about applying for a loan, reapplying, to check eligibility or even if you have any query, feel free to reach us at yourloanadvisors.com.

Our Related Searches:-

Personal Loan, Personal Loan Apply Online, Personal Loan Apply, Apply Instant Personal Loan Online, Apply Personal Loan Online, Apply Personal Loan, Personal Loan Interest Rate, Instant Personal Loan, Personal Loans Online, Personal Loan Eligibility, Low Interest Personal loans, Instant Loan Online, Instant Personal Loan Online, Personal Loans Online Approval, Loan Apply Online Personal, Personal Loan for Self Employed, Personal Loan Instant Approval, Online Loan Apply Personal Loan, Personal Loan Eligibility Check, Personal Loan Against Property, Apply for Instant Personal Loans Online, Apply Instant Personal Loan, Apply for Instant Personal Loan Online, Apply for Personal Loan Online, Instant Personal Loans, Personal Loan Interest Rates.

Credit Score

In an earlier blog we covered extensively about the Credit Information Bureau (India) Limited which collects and maintains records of an individual’s payments pertaining to loans and credit cards.

Your Loan Application is heavily dependent on the Credit Score. A lower score will result in a higher probability of Your Loan Application being rejected. An applicant should access your score at least once a year to understand your position and further redeem your Credit Score, if it’s not satisfactory.

While there are many factors which impact your CIBIL Score directly or indirectly, the most important factor remains your payment history. On time payments result in a good score while defaulters results in your score significantly dropping. Other factors include your credit utilization history which should be below 30% at all times. History of loan rejections also plays an important emulating tool.

Some Ways of Redeeming Your Credit Score Are:

On Time Payments: Since this result in making up 35% of your credit score, it is important not to be a defaulter and ensuring all dues are cleared within the set timelines.

Mix of Secured and Unsecured Loans: A factor that helps you attain a high CIBIL Score is a good balance of secured and unsecured credit. Unsecured credits are not secured by collateral. This means they are not directly connected to property that a lender can seize if the individual fails to pay. Even having only credit cards and Personal Loans is considered a definite score dropper.

Number of Inquiries: Avoid too many inquires as it catches attention of the lender. Each inquiry results in a drop of 5-10 points from your overall score.

Credit Age Limit: If you have been servicing debt for a longer period of time and handling it responsibly, it is going to have a positive impact on your score.

In case you have been a defaulter with your payments, then chalk out a plan. Study your finances immediately and ensure you start paying your dues on time. On the other hand, if you have an impeccable record with your payments and loan history then you need to examine the records carefully and address the dispute with immediate effect. Sometimes records are not updated by lenders and need to be brought to their notice.

While the mentioned above factors are by large common, it is important to remember that every profile is different and showcases different patterns and behavior. The score is calculated based on the person’s credit profile parameters at that point in time. Keeping a healthy score of above 750-800 is vital to ensure that your loan will be sanctioned. Another word of caution is, having low credit utilization is good for your credit score, but having no credit utilization is bad for your Credit Score.

Our Related Searches:-

Cibil Score, Cibil Score Check Online, Low Cibil Score Personal Loan, Cibil Score For Personal Loan, Credit Card Cibil Score Eligibility, HDFC Bank Personal Loan Cibil Score, ICICI Bank Personal Loan Cibil Score, Axis Bank Personal Loan Cibil Score, Yes Bank Personal Loan Cibil Score, ICICI Credit Card Eligibility Cibil Score, ICICI Bank Personal Loan Cibil Score, HDFC Bank Personal Loan Cibil Score, Axis Bank Personal Loan Cibil Score, Minimum Cibil for Credit Card, Minimum Cibil Score for ICICI Credit Card, Minimum Cibil Score for HDFC Personal Loan, Minimum Cibil Score for ICICI Personal Loan, Minimum Cibil Score for Axis Personal Loan, Minimum Cibil Score for Loan Against Property, Minimum Cibil Score for Personal Loan in Axis Bank, Minimum Cibil Score for Personal Loan in HDFC Bank, Minimum Cibil Score for Personal Loan in ICICI Bank, Personal Loan Minimum Cibil Score, Updated Cibil Score Check, Yes Bank Cibil Score Check, ICICI Bank Cibil Score Check, HDFC Bank Cibil Score Check, Axis Bank Cibil Score Check.

Apply Home Loan Online

We at Oasis aspire to make your experience easy & comfortable. Having a tie up with all leading Banks & NBFC companies we do doorstep delivery of your home loan.

Choose a Home Loan which is Flexible & easy on your finances.

Fresh Home Loan
Ready to move in
Home Loan Balance Transfer
Balance Transfer Plus Top-up
Plot Loan
Construction Loan

Home Loans are generally granted to individuals who are looking at buying an under constructed, new or resale residential property, actual construction of the house including interiors, purchase a plot, renovation etc.

Being a resident/non-resident Indian, over 21 years of age, your profile could be:

Salaried
Self employed
Consultant

Your eligibility criteria will depend on the following factors:

Your monthly income (Includes the gross salary. Regular Bonus Incentive & any other side income)

Income of your parents, spouse and siblings can be clubbed to increase your eligibility.

Total value of the property

Loan Tenure
1. Current Age
2. Up to retirement age of 60 years
3. Pension time will be taken into account.

As a general practice, the lender finances 80-90% of the total amount of the residential property. However exceptions do apply to the above stated rule. The net loan amount is dependent on several factors like monthly income, previous/existing loans, track record etc. Please note- As per the RBI ruling, financial institutions do not fund registration and stamp duty fee as part of the net loan amount. This is an ambiguous area as the amount can be refinanced.

The rate of Interest of Home Loans can be fixed/floating.

All Banks & NBFC’S have to follow guidelines of the Reserve Bank of India as per the margin money in the case of Banks & discount in case of NBFC.

The Home Loan floating rate fluctuates as per the PLR of the RBI, which in turn is dictated by the market economy.

Customers wanting to opt for a fixed rate of Interest can avail of our expertise to Find out the options best suited to their need.

Fixed ROI are offered for tenure of 5 to 10 years. (At the current rate or with an additional margin.)

Currently, it is uncommon for financial institutions to provide a fixed rate of interest which remains common throughout the loan tenure. Many prefer dual rate of interest which remains fixed only for certain duration. Processing time could be up to 15 days to a month, the approval can be divided into personal details & eligibility, approvals with reference to the Property.

Normally lenders offer an upper limit of 30 years however this may vary keeping in account several deciding factors like age etc.

A cheque in the name of the Bank or NBFC needs to be included with the Home Loan application. All Banks & NBFC’s have varied processing fees which depends on the loan amount & property in question.

As per their rules 7 regulations some Banks allow a token amount to be charged at the time of Log in .Whilst others could take an advance cheque for the total amount ,which could range from 10000/-plus service tax upto 0.25%.

Passport-size photographs
Latest three months’ Salary Slips (indicating break up of Gross salary, i.e Basic Pay, House rent and Net Salary after deductions)
Six months’ bank statement, reflecting salary credits updated within the 15 days before the loan application
Identity Proof (Any One ): Pan Card, Passport, Driving License or Voter’s ID card, employee identity card as identity proof and signature proof in case of government employees
Residential proof
If you are a self-employed professional or businessperson, you need to provide documents proving the existence of your business (for businesspersons) and academic qualifications (for professionals) and financial statements for both.

Our Related Searches:-

Home Loan For Construction

Owning of a House is a Dream come true for most people. A home of ones own gives as sense of security and stability to a family. And it takes away the stress of finding rented houses and increasing monthly rents. But the downside is the un affordable real estate prices. They always seem exorbitant and manage to be way above your budget each time you think of investing in your dream.

The answer to these woes is a HOME LOAN. It is actually an easy and fairly simple method Especially since help you achieve you dream most Banks & NBFC’s (Non Banking financial concerns) are aggressively marketing Home Loans as a major part of their portfolio.

A Home Loan Can Be Granted For The Following Entities:

- - A previously Constructed House or a dwelling Unit
  - A Fresh Construction
  - A project under construction
  - Purchase of a Plot of Land
  - A construction Loan for constructing a House thereafter

Furthermore there are various schemes that have been launched to suit variable needs of diverse Income groups and their unique loan requirements. For your understanding of plans that are popularly available, we have described them henceforth.

The Down Payment Plan

This plan is most suitable when the Property to be purchased is “Ready to move” into or is nearing completion. In such cases, up to 80%-90% of the property value is funded by the bank. Before the bank releases funds, the buyer of the housing unit is required to pay an advance of 5% to the seller along with signing an agreement to sell between the buyer & seller. This consists of details of the transaction. The balance amount (the remaining 5% – 10%) of the cost is paid at the time of possession. This remaining amount, together with registration cost, can be additionally funded as a top up after the registration process.

The Down Payment Plan Under 80:20 /70:30 / 90:10

With the upswing of construction in most metro cities, Lenders & Builders have come up with various innovative schemes under the Down Payment Plan. These schemes seem attractive to customers as they can book a dwelling unit under the current market prices, they can pay in Installments after possession of the property via a Home Loan.
For example in the 80:20 schemes the buyer of the pays 20% to the seller/builder & the balance 80% is funded by the Bank as a Home Loan. The Bank gives an ADF (Advance Disbursal Facility) to the Builder where in total funds are released in advance without any linkage to the construction process.

This transaction involves the signing of a tri party agreement between the builder buyer & seller. This gives an advantage to the builder as through such proxy lending, banks fund builders at much lower rates of interest. The builder also gains from the fact that paying back the Loan is entirely the responsibility of the borrower.

The RBI has frowned upon such schemes, especially taking into account that 70% of the construction projects are delayed. Furthermore the Penalty clauses or Cancel options in the Buyer–Seller agreement between the customer & builder may not be sufficient to protect the customer, as he will be burdened with the regular EMI which he has to pay to the Bank.

THE PRE EMI SCHEME

To combat problems arising due to delays in construction, the ‘pre Emi scheme’ has been introduced. Under this scheme only the ‘interest ‘portion of the EMI is paid to the Bank till construction of the Unit is complete and possession is handed over to the buyer. Widely advertised as no EMI till possession, it works differently for Loan borrowers. As per this scheme the builder for a designated period of time will pay the complete or part of the interest portion of the EMI thereafter it will be paid by the buyer. To further attract customers, builders have come up with EMI sharing options. Downside of this plan being that the EMI will only factor the interest portion. Once the Loan amount has been disbursed, the interest portion paid already will not give any discount in the Emi schedule calculated.

CONSTRUCTION LINKED PLAN

Home Loan under this plan is directly linked to the construction process This Plan is ideal for Housing projects to be constructed by Builders or for construction of a private property, an individual house.

The Building Could Be

Under construction /plans have been finalized for construction.

Planning is complete but construction has yet to start. Builders after the acquisition of Land give a projected shape to the buildings & start advertising salient features. Customers can book their flats by giving a token amount of 5%.

80% to 90% of the cost of the flat is processed as a Home Loan Payments to the builder under this plan are directly linked to construction example 20% of the loan amount being disbursed on completion of each Floor.

The Final payment is made to the builder at the time of possession. This plan suits both the buyer & the builder as the builder is able to collect finance for his project & the buyer is able to get a good price. As disbursals to the builder are as per the progress of construction the builder will be keen to complete the construction on time. For construction of an individual house, An Estimate of the cost of construction needs to be submitted to get a Loan. Funds are released by the Bank as per the progress of construction.

FLEXI PAYMENT PLAN

This plan is a combination of the above plans for projects under construction. Under this plan 1/3rd of the Loan amount is disbursed to the builder at the time of booking. 1/3 rd is linked to construction milestones and the balance is paid at the time of possession.

Construction linked plans are less risky as they are connected to the progress of construction. The builder is also bound to complete construction on time, to keep the cash flow running.

TIME LINKED REPAYMENT PLANS

These plans work according to a pre decided schedule. Funds are released by the Bank as per a pre decided time & date. 10% of the value of the housing unit is paid by the buyer to the seller at the time of the agreement. Loan amount which is sanctioned by the Bank is released as per schedule. Construction delays are not accounted for, whereas in case there is a delay in payments the builder can levy heavy penalties.

PRE EMI V/S FULL EMI

If Buying a Home under construction choose a builder with a good track record of timely deliveries. Monthly Installments or EMI paid to the Bank normally factor a quotient of the Loan Principal & Interest factor. For a Home Loan projects which are under construction the customer is required to pay the only the Interest part of the Loan till the total Loan amount is disbursed possession of the property. Under this scheme the Principal part of the loan remains the same till possession. It is only after getting possession of the Unit, which the Payment of the full EMI starts as per the schedule of the Bank.

Some Banks also allow the Payment of the full EMI from the time the disbursal starts in such cases interest will be charged only on the amount disbursed the rest of the EMI will comprise of the Principal. This is advantageous as the loan gets paid off faster.

A Home Loan is a convenient way of buying a house for your loved ones but it is important that you understand all the terms & conditions prior to signing up for the Loan. Understand all the complexities of your Payment Plan, so that you can get maximum advantage.

At the time of borrowing a home loan you should remember that you can avail tax benefits until the tenure of repayment.

Our Related Searches:-

Home Loan, Home Loan interest Rates, Home Loan Rates, Home Loan Pre approval, Home Interest Rates, House Loans, Home Mortgage Loans, Mortgage Loan, Mortgage Interest Rates, Mortgage Preapproval, Mortgage Loan Rates, Apply for Home Loan, Apply for Mortgage Loan, Apply for Mortgage, House Loan Application, Apply for Home Mortgage Online, Apply for House Loan Online, Apply for Mortgage Loan Online, Apply for Mortgage Online, House Loan.

Best Bank for Home Loan

The foremost thing to be kept in mind is that one should never finalize a lender on the basis of interest rates. Most of us choose Home Loan Lender on the basis of interest rates, cheapest the best. But actually, there are various other things that should be kept in mind while finalizing Home Loans.

Check Your Home Loan Eligibility With Various Banks:-

Various banks have their own methods ad standards for calculating eligibility. You should do some shopping to check which bank is offering you higher loan eligibility. Adding up your spouse income may also be a good option to increase your Home Loan eligibility.

Fixed or Floating Interest Rate:-

A fixed interest rate means that you will have to pay same EMI over a period of time (it may be fixed for entire tenure or it may be reset at fixed interval). Floating interest rates may change at any given point of time, which may result increase or decrease in either your Home Loan EMI or your tenure.

Processing Fees:-

This fee is charged by the bank for processing the Home Loan and is not refundable. In case you decide not to take the loan from the bank, then the entire amount you have paid towards processing fees is lost. This generally varies in the range of 0.5 to 1% of the total Home Loan amount. Also payment of processing fees doesn’t means that your loan is passed. It may happen that you pay the processing fees but still your loan is not sanctioned due to various other reasons. Thus before paying the processing fees, you should bargain on the same and get it confirmed from the bank in writing.

Prepayment Fees:-

Prepayment fees come in to picture in case one wants to prepay his Home Loan from various sources. It may be from his personal savings or if he is planning to switch the loan to a different lender. Few of the banks offer no prepayment charges in case the prepayment is done from own sources. But in case the person is shifting the loan to a different lender then most of the banks ask to pay a fee in the range of 1% to 2% of the outstanding loan amount.

All the charges should be always be taken down in written from the bank and the written document should be preserved in case the bank asks the person to pay up some different amount after sometime.

Once you are satisfied with the above clauses and the interest rate offered by the particular lender, you should go ahead and buy your dream home.

Along with that it is always said that you can get the best Home Loan deal only after your property is finalized. So before you start with your loan hunting, we would suggest you to finalize the property.

Our Related Searches:-

Home Loan, Home Loan interest Rates, Home Loan Rates, Home Loan Pre approval, Home Interest Rates, House Loans, Home Mortgage Loans, Mortgage Loan, Mortgage Interest Rates, Mortgage Preapproval, Mortgage Loan Rates, Apply for Home Loan, Apply for Mortgage Loan, Apply for Mortgage, Home Loan Apply Online, Apply for Housing Loan Online, Home Loan Application, Apply for House Loan Online, Apply Home Mortgage Online, House Loan Application.