A few reasons why you should apply for home loan online.

Life is full of ups and downs and thus, every individual saves a sum of money that he could make use of in his or her times of need. This need could be to take care of any future unprecedented financial setback or to make a huge investment. Purchasing a house is considered as one of the biggest financial investment that a person can make. However, people often struggle, even after saving every dime and penny to raise the required funds to purchase a good property. However, at such times, rather than giving up on their dreams, people can now apply for home loan online.

There are a number of banks and NBFCs (non-banking financial companies) that offer online home loans at way lower interest rates than the ones given out by loan sharks and traditional financiers. Also, there is even a discount of 0.05% on interest rates given out for women borrowers and co-applicants.

There are numerous reasons why you should apply for a home loan online in India, and a few of those reasons are here as follows:

• ·   You can make use of a home loan amount to purchase a new property or refurbish any of your existing ones. You can even make use of financial assistance from a housing loan for home extension purposes. A home loan in India is given by financial institutions for both residents as well as NRIs (non-Indian residents).
  ·      The biggest reason why you should apply for home loan online is that you save yourself from the hassles of visiting a bank or an NBFC (non-banking financial company) in person and wasting countless hours. All you need to obtain an online loan is have a sturdy internet connection and an appropriate electronic device. This device can be any of your computers, laptops, smartphones, etc. If you have these things then you can obtain a home from the comfort of your home or office.
  ·        The repayment of a home loan in India is done in the flexible form of EMIs (equated monthly installments); for you to plan out your future and current repayments easily. You can even make use of an EMI calculator for free by simply opting to apply for home loan online. This calculator will help you to calculate your EMIs on the basis of the principal borrowed amount, interest rates charged by the financial institutions and the repayment tenure chosen by you.
  ·       A home loan generally has longer repayment tenure than any other form of a loan. The maximum tenure for the repayment of a home loan is around 30 years. Therefore, you don’t have to put a strain on your pocket in order to make any repayments to the banks and NBFCs (non-banking financial companies).

However, there are set eligibility criteria given out by the financial institutions that you need to fulfill before you apply for home loan online. These eligibility criteria are as follows:

·        You need to have a stable source of income.

·        Make sure that you have a good credit score and history.

                 ·     The financial institutions also scrutinize your previous and current debts; if any.

EMI Calculator: An efficient way to calculate your monthly instalment

Home loan is one of the biggest liabilities in an individual's life and a slight misjudgment can burn a big hole in your pockets. While availing a home loan people are often worried about its impact on their finances, the EMI, charges incurred, interest rates levied, etc. In prior days, people used to visit an expert and sit manually to do the calculation. Not only was the job tedious but it was not guaranteed that the EMI would be constant through the tenure.

This would lead to errors in calculation. Thanks to the technology, today leading players have introduced website and EMI Calculator pages wherein you can calculate the monthly installment with just a few clicks on your laptops or smartphones. An EMI Calculator is a great tool that gives an exact idea of your monthly and yearly installments that you have to pay for your home loan. It allows you to assess the mortgage payment options. There are a lot of websites from various leading banks, non-banking finance companies; aggregator sites that offer easy EMI Calculator to understand how your loan does actually work.

When a consumer visits this page he or she can just key few details like principal amount required, interest rate preferred tenure and other expenses. The EMI Calculator would then provide the monthly installment amount that you would be paying through the loan tenure.

If you wish to know the maximum housing loan amount based on your annual income and ability to repay it, you will have to choose from home loan calculators determine the affordability basically termed as "affordability calculators. For this you need to input the monthly salary, interest rate preferred whether fixed or floating basis, desired loan tenure and maximum money that you can afford to spend for repayment (including spouse). Once you put this information in these calculators they will tell you the maximum loan that you can be qualified for and the monthly installment that you would have to pay.  The interest might vary across lenders as different lenders have different rates.

You can make the changes in the principal amount and interest rates as well within the given bracket to make the loan EMI more affordable for your pockets. If you're an investor, you can look at EMI Calculator housing loan that gives you the potential earning on investments.

These calculators are quite customer friendly and easy to use. You don’t have to pay money to use them or subscribe them. All you need is a smartphone or a laptop, a computer, and a good internet connection. Different leading firms have different types of EMI Calculator to come up with a suitable consensus for you. You can do these calculators any time of the day or night and right from the cozy corners of your rental homes or offices.

Once you calculate your preferred interest rates, EMI to be paid, processing fee and other charges, you can visit the banks or finance companies online, fill up the application form with no errors, attached the scanned copy of documents and hit the  SUBMIT button. Within a couple of minutes or in a day or two you would be able to know your loan status.

Calculate your EMIs with ease using EMI Calculator and opt for a home loan online, now!

What is the right time to avail home loans!

Purchasing your dream home gives ultimate joy and happiness. It gives secure shelters wherein you don't have to waste lakhs of rupees on rent and keep on migrate for your living. Many people fulfill their dream of buying a home by taking a house loan. Home Loans are the stepping stones to buy your dream home. Other than low-interest rates several things have to be taken care off when taking home loans such as processing fee, penalty charges, pre or post-closure charge, type of interest rates, repayment amount, etc. It's obvious we all look for lower interest rates as it proves lighter on our wallet. The competition amongst the market players is getting stiff day-by-day and it's the consumer who is getting the benefit in the form of low-interest rates.

Let's go through the things you need to take a note of while availing home loans:

Higher Eligibility

A drop in base points of home loan interest rates would mean there is better loan eligibility for housing loan borrowers. For example, A person earning 10,000 is eligible for a loan of Rs 6 lakh then in the revised home loan interest rate case it would mean the loan you get qualified for would be around 6.2 lakhs. Thus, you get higher loan amount eligibility when there is a drop in base points and don’t even have to give up on your home at favorite location and amenities. Something that you always wanted to but you couldn’t afford because of financial strain.

Save More

Buying home needs a hefty amount of finance. Therefore, it’s better to look for means wherever you can cut down the cost to own a home. It starts with hunting for a home in place or locality which has cheaper home rates, cut the cost of interiors, take home with amenities’ nearby like grocery shop, malls, schools, station, etc. With a drastic drop in housing loan interest rates, you now have to ease alternatives to save more money. Thus, when you start saving more when calculated over the complete home loan period of 20-25 years it results in a substantial sum.

Home loan interest rates depend on many factors like government policies, property value, BPLR - benchmark prime lending rates, so you cannot guarantee that existing rates home loan companies that offer today will be stable tomorrow or not. Thus, as the old age saying goes "You should strike the iron when it’s hot” it is best to implement it to decide your housing finance. Although it's not wise to rush every minute or second, however, it would be better to stay vigilant and lock your deal with good rates whenever companies are willing to offer customers.

Experts say lenders are flexible in keeping a lower monthly installment structure in the initial phase. When you have sufficient liquidity you can opt for more aggressive monthly installment payments. Online websites these days help you figure out the right home loan amount and interest rates you wish to afford with the help of home loan EMI calculator. You can key in details based on your income source, risk appetite, and future financial goals. If you ask when is the right time to take home loans? Well, it’s never too early or late! Start searching for the best home loan deals, negotiate for interest rates with the lenders in the best possible way, talk to your financial expert and lock a suitable home loan deal, now!

Features and benefits of home loan for renovation of your house.

Finally, the day has come when you will after some months live in a newly done up home. You have decided to redecorate your humble abode using a home loan. 

A home loan is of various types:

1.     Home Loan for buying a house.

2.     Home Improvement Loan to innovate your existing house.

3.     Home Extension Loan to add extra space to your home.

4.     Plot Loan to buy a land plot.

5.     Short-Term Bridge Loan for buying a new home till your existing home is sold.

6.     Reach Loan for customers in the unorganized sector.

7.     Rural Housing Finance offers funds to farmers, agriculturists, etc.

Below are the main features of home improvement loans:

1.     Flexible usage of funds

The home loan for improvement of your house does not restrict you for using it for particular refurbishing purposes only. You can use it for renovating, repairing, flooring, extension, painting, etc. You can only use the funds to improve or change the structure of your house and not to repair or redecorate movable objects such as furniture.

2.     Who is eligible?

Any self-employed or salaried individual is eligible for this loan. You should be an Indian resident of above 21 years of age. Also, your age shouldn’t reach beyond 65 years when the loan tenure matures.

In order to not be burdened under the debt of the loan, it is good to calculate your eligibility for the loan amount you take. You can do this by using a home loan eligibility calculator. It will help you find out whether you can afford the loan amount you want to take and, if not, apply for an amount which is perfect for your financial capability.

3.     What are the documents required?

Documentation process of home improvement loan is quite simple and hassle-free. You are required to submit the following documents:

1.     Loan application form.

2.     Proof of identity, income, employment, and residence.

3.     Bank statement of last 6 months.

4.     Photos.

5.     Cheque declaring payment of processing fees.

6.     Your home’s original title deed.

7.     No-encumbrance certificate.

8.     Estimate of architect or engineer regarding your house’s improvement work.

There are many advantages to a home improvement loan, which are highlighted below:

1.     Competitive interest rates

When you take a home loan for refurbishing your old house, you will enjoy fantastic interest rates. A home improvement loan is available in the same rates as a home loan and thus, is a much better option than a personal loan which charges high-interest rate.

2.     Tax benefit

You can avail a tax benefit of Rs. 30,000 per annum on the interest you pay on your home loan. This deduction is on the overall limit of Rs. 2 lakh that is available on loan interest payment of self-occupied homes. Thus, this deduction of 30,000 could save you up to Rs. 10,300. This means the overall cost of borrowing will be very less.

3.     Fast processing

As mentioned earlier, the documentation process of the home improvement loan is hassle free and smooth. Not just that, the lenders also fasten the process of approving your application and disbursing the loan amount to you. This fast processing means you can immediately start on the renovation of your home without waiting for long.

Thus a home improvement loan helps you give the touch of reality to the re-imagined interiors of your house.

4 things you should do before looking for home loans.

Home Loans are a blessing for anyone with homeownership on their mind. These financial aids help you purchase your dream home even if you do not have all the funds upfront. However, going in for a home loan is a huge financial decision and requires an umpteen amount of planning, research, and preparation.

There are a number of things you need to make sure of before you apply for a loan, without which, your experience of a housing loan can become a hassled one. To keep this from happening to you and to help ensure you make a well-informed decision, this article will highlight 4 things you should before you start looking for financial offerings.

1. Save for a good down payment.
If you have time on your hands, it makes sense to beef-up your down payment amount. This will allow you to borrow less and also help you pay less interest. This is because the interest you pay is calculated based on the loan amount you borrow. Therefore, a lower loan amount will result in lower interest payments as well.

2. Work on your credit score.
Many things about home loans depend heavily on your credit score; the interest rate applicable and the loan amount you are provided included. Better credit scores are sure to get your better interest rates and they’ll for sure help you get higher loan amounts. So, if you’re going to set aside time to save for a larger down payment, it’s worth it to work on your credit score too!

Make it a point to pay any existing loan EMIs on time, the same goes for your credit card payments. Whilst on the topic of credit cards, staying within your credit limit & sticking to your oldest card will also help you increase your credit score. Though a good score is around 750, the closer you are to 900, the better!

3. Use calculators.
Before you start looking for home loans and go into debt, it’s vital that you have all the calculation in place to help you get out of debt. That’s why it’s so important to use one of the many online home calculators. One of them is the EMI calculator that helps you with the entire break-up of your repayment schedule, right from the first EMI amount to the last. Knowing this can help you create full-proof repayment plans and budgets.

Another vital tool is the eligibility calculator. It will tell you how much of a loan amount the bank is most likely to provide you keeping in mind your monthly income and outgo.

4. Life insurance.
As long as you keep paying the EMIs, the house you live in is safe and after the loan is complete the home will complete yours. However, if something were to happen to you, your loved ones would have to shoulder the cost of the home loan. In such cases, a life insurance plan will provide you complete peace of mind and help your loved ones cover the cost of the loan with ease.

Doing these 4 things before applying for home loans is vital. They will ensure your borrowing and repaying experience is a smooth one. Good luck and all the best.

Insurance on home loans: 4 things you need to know.

Home Loans are a significant form of debt to handle. They involve large amounts of money and require you to devote sizeable parts of your monthly income towards repayments for as many as thirty years; that’s 812 months. However, the fact that your lender has provided you the loan indicates that you currently able to repay the amount; a process that will only get easier as you benefit from appraisals, bonuses & other windfall gains during the course of your working life.

In other words, as long as you’re around, everything will be just fine. You’ll pay the EMIs, and eventually repay the entire debt too. However, life is very uncertain and if something unfortunate was to happen to you, the responsibility of repaying the home loan falls on the shoulders of your family members; family members who might not be financially capable of handling this debt.

This is where an insurance policy can come in and provide you peace of mind, even from such uncertainties. They ensure your loved ones do not have to pay the EMIs or see the house go up for auction. However, before you go out into the market and look for an insurance policy, keep these 4 things in mind.

1. The insurance that comes with home loans.
Most lenders will offer an insurance policy with their home loans. Whether you opt for this insurance depends on a number of things. Some lenders have tie-ups with an insurance company and provide one of their plans as the default and only option. Some have the same setup but they allow you to choose a policy besides the one they are offering, so you are free to go with the one you like. It is better you opt for a lender that doesn’t force anything on you, including the insurance policy.

2. Look out for single premium payments.
These policies function normally; the only thing is that you pay one single premium upfront instead if small amounts over time. This adds to the other up-front costs such as the down payment, the processing fee, stamp duty, etc.

3. Payment methods
There are many ways the payments can be made. Firstly, you might be able to pay for insurance yourself, either upfront in a single premium form or in monthly, quarterly, half yearly or yearly premiums. On the other hand, some lenders insist on making the payment in your behalf and add the total cost to the loan value. This will lead to higher EMI amounts. If you pay the premium yourself, you can claim the amount as deductions up to Rs. 1, 50,000 under section 80C of the Income Tax Act.

4. Coverage.
The cover offered by some policies gradually comes down as the outstanding amount decreases. For example, a plan with a 25 lakh cover could reduce to as much 13.5 lakh after the tenure of the loan. The drawback with this is that if you were to extend your tenure the outstanding amount would increase. In which case, your family members would have to arrange the difference.

Keep these 4 things in mind when looking for insurance on home loans.

Good luck and all the best!

4 things to keep mind when in the market for home loans.

Home Loans are one of the biggest blessings for people with homeownership plans on their mind. They provide a majority chunk of the funds required & help you enjoy complete peace of mind from property prices today! They also help you buy into one of the best investment opportunities in India, property and help you save a considerable amount of money through tax benefits under section 80C and 24 of the Indian Income Tax Act.

However, before you find a financial offering and sign your name across the dotted line, this article will highlight 4 things you need to keep in mind to ensure you are not blinded sided by any unforeseen complication later on.

1. The loan offering provided.
The first thing you want to keep in mind is the financial product on offer. You need to bear in mind the amount of funding being provided, the interest rates applicable and the length of the tenure on offer. Most lenders will provide you up to 90% of the property’s value as the amount of funding at interest rates ranging between 8.35% & 9.65% per annum with tenures as long as 30 years.

2. Check the down payment you need to arrange.
As mentioned earlier, the lender will mostly only provide a major chunk of the funds required and you will have to arrange the rest. So check with the lender how much they are willing to provide for the property of interest and how much of a down payment you will need to provide. If possible, provide a higher down payment then required as this will reduce the loan amount you have to borrow and cut down the amount upon which the interest on your loan is calculated.

3. The processing fee of home loans.
Besides for the interest rate, you’ll also want to pay close attention to the processing fee being levied on your application. You need to pay this amount for applying for the loan and it is not refundable, even if the application is rejected. Some lenders charge as much as 2% of the loan amount which can turn out be a huge amount, another charge 1% of the same which is still a sizeable amount of money while others offer to waive this cost off if they see you as a promising borrower.

4. Keep in mind your home loan eligibility.
Everyone has a different eligibility level when it comes to home loans. What the lender offers you might much higher or lower than what it offers to the next applicant. Your eligibility depends on a number of factors such as your credit score, your incomes, your monthly obligations, your financial capacity, etc.

Knowing your eligibility helps you apply for an apt loan amount and ensures your application isn’t rejected because you’ve applied for a loan amount that’s above your reach. It will also ensure you do not lose your processing fee. To find out your loan legibility, you can use one of the many home loan eligibility calculators that are available on most lenders’ websites and on aggregator pages as well.

Knowing these 4 things will help you a good experience with home loans and ensure you get a financial offering that suits all your needs and requirements. We hope this article has further your knowledge and will help you make an informed decision.

Good luck and all the best!

Parameters to consider while applying for home loans.

We are sure you’ll agree that buying your own house is one of the greatest achievements in life.  Thanks to the continuous efforts of government and private finance companies who have reduced the rate of interest as low as 8.50 to 9.50% to avail a home loan and has fulfilled the dreams of millions across the nation.

Under the PMAY-Credit linked subsidy schemes the rates have further dropped down to around 6.50% to 7% which makes home loans a viable product for many middle-class applicants in the society.

However, when it comes to sanctioning the home loans banks and non-banking finance companies (NBFCs) are quite strict towards having a background verification of borrowers. They give check various qualify parameters such as income source, age, property location, job or business stability, nature of work, credit history, etc. and then suggest a suitable loan amount.

Of these, the most helpful and promising one is the joint income source. Many times an individual might be looking for higher loan amount but due to a low-income source, he or she is unable to get higher loan limits. At such point of time, adding an income from your parents or spouse can help you get higher eligibility and fulfill your dream.

 Joint income source assures a stable source of money towards your monthly installments for the bankers and non-banking finance companies.  With a joint income source and good credit history you can negotiate for low-interest rates, and waiver of processing fees.

Apart from joint income source few other parameters that need to be addressed carefully before applying for home loans are as follows:

Existing Debt: Any existing debt you hold will bound to affect your credit score. It means you’ll get low loan amount against the required financial needs. Banks and firms consider your debt to income ratio when you apply for a housing loan so you need to make sure you clear off as many debts as possible in order to favor your housing loan lenders.

Savings: Ideally, the lender agrees to offer finance up to 80% of the agreement value of the home. Every bank or non-banking finance company will have its own eligibility criteria under which you need to show the margin money of 10-15% handy before you apply for home loans.

So, it is advisable to save at least 20% of the down payment and have little extra to cover few monthly installment on your loan.  Problems like a recession, health issues or other perils might grapple you anytime with no source of income for a while so it's better to be prepared to cover your expenses for a couple of months. This shows your well preparedness towards your housing finance.

Employment history: When a person is working in particular firm or job for more than 2 years it shows better stability for your income source and lenders will be willing to have quick loan sanction.

In case you’re applying for a loan then don’t consider to quite, change your job. Instead, hold on your horses until your loan gets approved.  Alternatively, if it’s a business then they will check your IT- papers and other required documents to prove its stability.

In India, there are various types of customized home loans to choose from. Always choosing the first one is not an intelligent option. Instead, there are online sites that will help you compare the interest rates, pre & post penalty charges, EMI delay charges, interest rates and flexible repayment options. So, visit online and compare your loan. Also, you need to know how much you can afford it.

It would be best, to check online through housing loan eligibility calculators what amount you get pre-qualified for a loan. It helps you understand how much you can afford a home and about the mortgage payments would come up to. With internet-based services, time is spinning across compared to an age-old process of visiting banks, filling up forms, getting copies attested and submitting them. With online service, you can fill the relevant form, attach a scanned copy of relevant documents and submit the same online for approvals.

Expense-to-income Ratio: The expenses of the borrower should not shoot up higher than 50% of his or her income. Else it’s become difficult to avail a loan. Lender's assessed’ borrower’s repayment capacity with factors like income, asset, liabilities and job stability.

Credit Score: It plays a crucial rule in measuring the borrower’s creditworthiness. It builds a trust factor in lenders that you’re a regular payer and pays all your dues’ on time. A lending firm may not consider an applicant whose credit score is below 750.

It’s simple the closer you get to the loan eligibility parameters, better are the chances of availing higher loan limits. Visit online, compare and apply for home loans, now!

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