Apply for Loan Online in India and Start Comparing For the Best

Online loan companies are your one-stop solution for hassle-free loans. Just log online and start comparing between different loan companies, and apply the ones, you like! The procedure is simple and extremely helpful. It will save your time and provide you with the best loan packages. For the first step, you have to fill in details of income and the amount of the chosen loan, you are looking for. Once you have filled up the form, start comparing rates from their banks, partners, and NBFCs.

Select the bank, which matches your need, and voila! You have bagged the best online loan packages, matching your requirements. It's really easy to apply loan online in India.

Various Types of Loans

There are different types of important loans, which online companies have in store. Starting with the basic car loan to a home loan, options are limitless. Moreover, you will also receive unsecured personal and unsecured business loan, as some additional points. Some loan packages are available for the property, and others are related to lease rental discounting. If you want to stay connected with these applications, download the mobile app for your convenience! Well, the mobile app is in progress, and will be apt for your needs, on an immediate basis.

Adding Your Salary Slip

Other than comparing between different loan packages, you have more advantages waiting in the queue. If you want, you can add your salary slip if individual salaries are provided. Moreover, the clients can also provide income tax return slips, with the online form, for the better search result. The primary aim of this procedure is to offer clients with faster processing. If you need some serious advice, online experts are ready to help. They will track your application, and chat with you for further assistance. Moreover, they might even advise you to get associated with your selected NBFC or Bank, if any bank-related issues need to be solved.

With the help of personal loans online, you will handle your personal needs. If you have a bad credit score, hardly any bank will provide you with loan packages. However, with online services, you will, at least, find some financial institutions offering a loan, even when you have a bad credit history under your name. Additionally, apply loan online in India through Housing Finance Companies and you will receive a quick quote. Get the personal loan quotations in not more than a few seconds. Just provide the company with some valid and accurate information, and receive the quotes immediately. You can even compare multiple options from these stores, and choose the best-suited one.

Providing some New Offers

Some banks have ongoing offers for their clients. How will you get to know more about these discounted deals? Well, register your name with the online sites, and just like comparing your loans, you will come across valid information about new deals. Eligibility, EMI, and monthly salary are some important points to consider. However, with such deals in front of you, choosing the right package is not a problem anymore. Always remember that these deals are not constant, and likely to change on a daily basis. Therefore, registering with these websites might help.

Applying for Home Loan

Want to know more about the current home loan interest rates, now? Get to know more about the interest ratio after comparing between different banks. Applying for home loans online is an easy procedure. Provide the basic details the bank needs, check for the loan offers, if any, and then apply for the loan online. Get your documents ready near hand, so that you can upload it when asked for. Fast processing and discounted rates on processing fees, work as additional points. Some banks are even offering instant approval on your home loans. You might require e-approval before finalizing the deal.

[Source:http://www.sooperarticles.com/finance-articles/loans-articles/apply-loan-online-india-start-comparing-best-1469190.html?]

Housing Finance Ltd

All You Need To Know About Property Tax

If you have been looking into the market of home loan, you might have come across the term ‘property tax’ more than once. Though property tax varies from state to state and depends on the valuation of your home, you must remember that your home loan depends on the property tax. Each home loan has the provision that in case you fail to pay off the property tax in an “event of default”, the lender could even foreclose on your property even when all your mortgage payments have been done in a punctual manner.

Why should you concern yourself with property tax?

In India, property is a source of income for many and hence, it was only but natural that tax would be levied on any property you purchase, is it a humble shop or godown, flat or a proper residential building, provided you are using it to earn money in any form. The amount of property tax that you need to pay would depend on the value of the property that is being taxed in the first place.

Why is the property tax being charged at all?

The fact that the local municipal authority is the force behind the property tax being levied must tell you a lot about how the money you pay goes to towards the maintenance of the basic civic services in your city. The property tax in India is only charged on the real estate building and not on the plots of land, which don’t have any establishment in its vicinity.

How is the property tax calculated? What is Annual Value?

The property tax you need to pay is decided on the basis of the annual value of the let out or self-occupied property. For the self-occupied properties, the annual value is taken to be zero. However, if that property is rented, the property tax is calculated accordingly.

What are the tax benefits of your Housing Finance?

 Under Section 24, you are empowered to claim up to Rs 200000 or the actual amount of repaid interest. However, you can only make the claim when you are in possession of the house.

 Under Section 80C, you can claim the principal up to the maximum limit of Rs 150000 across all the investments made under the section 80C. However, you might be needed to show the lender’s statement showing the not only the interest and principal components but also the repayment for the year.

How can a new homeowner avoid property tax traps?

Every homeowner should go to the pains of confirming the tax rate before signing on the dotted line to save himself from the reassessment and hikes of rate of interest. The estimate of a real estate broker of the approximate tax bill might prove to be helpful but even then you might be required to pay more tax in the subsequent years. You can potentially open up an escrow account in order to set apart the funds that would be drained to provide for the taxes.

[Source: http://loanyantra.com/blog/]

Factors to Be Considered For Home Loan Comparison

Home Loan comparison is very vital when you decide to take up a home loan. Buying your dream house is possible by making a wise choice of the home loan. Most of us choose the home loan based on the interest rates, but there are various other points that come into play when you make a home loan comparison. A detailed study of the various financial institutions and their terms and conditions is the first and the foremost step. You need to gather information regarding the eligibility criteria, interest rate, EMI, other charges, and so on.

Every bank will have their own criteria for deciding on the eligibility. When you do a home loan comparison, it's very important to get the maximum eligibility so that your cash down payment can be reduced to a greater extent. The eligibility depends on your income level and also the credibility. If you work in a listed company, you could manage to get higher eligibility. This is because your job is considered much secure in a listed company. The banks will analyze your credit standing to ensure timely repayment of the loan. You could club your spouse's income, if any, to increase the eligibility amount.

The most important factor that any common man would look for is the interest rates. Along with the rates, it's also important to select the type of interest, that is, fixed or floating. For this you need to study the market conditions. Fixed rate is the one where the rates are fixed during the duration of the loan. In case of floating rate, it is dependent on the base rate of the banks. If the base rate increases, the loan interest will also increase and vice versa. If you expect a future decline in the interest rates, you could choose floating rates. But if you are a kind who doesn't want to take up any risks, fixed rates will be a safer option. Analyze the table of EMI to ensure that it fits into your monthly budget. You must be confident enough to save the required EMI every month and beside leave out some money for any kind of personal commitments too.

Housing Finance comparison will be incomplete if processing fees are not taken into consideration. This is the charge by the bank for getting the approval for your loan. This does not guarantee that your loan will be sanctioned. To get the approval and complete the formalities, the bank will charge a small percentage of the loan amount as processing fees. This is not refunded to you even if your loan is not sanctioned.

There may be times when you get an appraisal in your income and you are capable of repaying the loan principal amount. Under such cases, if the prepayment is done to close the loan, the bank will charge a percentage as prepayment fees. This differs from banks to banks. Some may not even charge such fees, whereas others do as a policy decision. This also has to be considered during the home loan comparison.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/factors-considered-home-loan-comparison-491580.html?]

How to Borrow large sum despite low net take home income

Almost all the times we find lenders doing loan on basis of your actual net income, which is the safest option. However, given the high levels of cash transactions in many businesses, it becomes a bit difficult for many businessmen and professionals to report high net income regularly. Low net income does not necessarily mean that such businessmen are bad borrowers. Over a period of time, banks have realized this. They have developed loan products that enable a businessman or a professional to borrow for his home buying or to raise money against his property (loan against property -LAP) without having much to show in papers. These loan products are for those who have proven track record of other loan repayment and/or sustainable business for many years in specific industry and also a reasonably healthy bank balance.

Here are a few of those loan products discussed hereunder: Other loan track: There are many businessmen, who have accessed big loans such as such as, equipment loan, mortgage, commercial vehicle loan. They have been repaying the existing loans without any default. In such circumstances, a bank may look at such a borrower as a promising customer. A bank may want to lend to such a borrower a sum equal to or less than his previous loan. For example, a businessman borrowed Rs 50 lakh for machinery from Bank A three year back. For last three years, he has been sticking to his loan repayment schedule.

In such a scenario, bank B may consider lending him a sum of Rs 50 lakh or lower. Typically bank B may offer him a sum equal to a fraction of his earlier loan, say 80%, which makes it Rs 40 lakh in the aforesaid case. However, the catch is, the other loan should not have been closed or paid-off more than six months ago. Bank balance: If the borrower has a healthy bank balance and the average monthly balance can well-substantiate the new EMI for the Housing Finance /LAP he wants to take, this could be accepted by the lender.

EMI equalizer: Depending upon the total other loan EMI-s, a borrower is already servicing, the new home loan/LAP can get approved. A market average of 1.5 times of the current EMI is allowed as the total exposure.

For example, if someone is already paying Rs 2 lakh as his all other EMI-s put together, and then he can be allowed another Rs 1 lakh as additional EMI for the new loan, which will be an approximately Rs 1 crore borrowing. Same loan track: During a home loan transfer, if the borrower doesn't want to go through the hassle of doing the paperwork again, then basis the previous track on the same loan, the transfer can happen. 

The reduced EMI in the new bank can also make for some room to borrow an additional amount as 'top-up' loan (cash in hand) without any additional documentation.

Gross profit method: For an industry where the turnover is very high but the profit margin is always low (trading business), the lenders do approve of the calculation basis the gross profit and not the net. Turnover based on industry margin: If the borrower is in a manufacturing or trading business then a standard profit margin has been internally set by the borrower. For example, a manufacturing unit with Rs 2 crore of turnover is expected to make a 10% profit and thus the income can be considered as Rs 20 lakh and basis this the loan application can be granted, even if it is not shown. For example, if someone has a business of stationery-shop or saree-sales or sending truckload of sands from one destination to another, it is not very sure how much of documentation is in place. Most transactions are done without proper bill and challan and sometimes are multiple transactions without a receipt. However, these could be quite profitable business and safe to lend

[Source: http://www.moneycontrol.com/news/loans/how-to-borrow-large-sum-despite-low-net-take-home-income_4399801.html]

Plan Your EMIs for Home Loan

Buying a Housing Property is a very big financial commitment on the personal front. Attractive and aggressive home loan schemes coupled with tax incentives has made it easier for younger people to invest in housing properties. Buying a Housing property and financing it through home loan has many benefits; however it requires a certain amount of financial planning on the individual's part in order to make the process easier throughout the easy loan tenure. Before choosing the home loan you can compare online home loan rates and also check eligibility for Home loan through Home Loan Eligibility Calculator.

Trends of Interest Rates

The interest rates cycles have shrunk over the past couple of decades. We are seeing a lot of volatility and cyclic trends in the interest rates. Real estate, especially the home property market has seen a major shift in the last few years. The globalization has brought in many factors that influence the macro economy conditions in general which impacts the interest rates. Since home loan is a long term commitment, it is important to mentally prepare for cyclic trends in the lending rates and do financial planning to be able to pay higher interest rate during certain period of entire loan tenure based on market conditions.

Planning for Financial Commitments

A home loan is a very long term commitment with a payment tenure being more than 10 years in most cases. Therefore, it is important to think about other personal and financial commitments and chalk out a strategy to manage personal finances accordingly. People should also be careful while signing for attractive looking teaser home loan rates schemes which promise a lower interest rate during first few years and higher floating rates after a couple of years. These are some of the important aspects that borrowers should keep in mind while planning their financial aspects for purchasing a housing property from Housing Finance Companies.

It is important to create a financial cushion which can be utilized to fund any extra financial burden during certain periods. People can invest in equity or debt based investments based on their risk appetite. This accumulated fund can be used for the financial requirement to reduce the EMI burden in case of high interest rates periods.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/plan-your-emis-home-loan-55978.html?]

Budgeting Your EMI in Your Income

Did you ever wonder why your EMI is generally restricted to 30% or 40% of your monthly income? Here is why. Salary details, qualifications, employer/business, years of experience, growth prospects, alternate employment prospects and sources of other income, if any, all are aspects that determine the amount of loan you are eligible for.

Generally, the repayment schedule is worked out in a manner that allows not more than about 40% of your monthly gross income to be repaid as EMI. It is restricted to 30 % or 40% keeping the following factors in mind:

10% of your income is spent on other loans, if you have any or if you avail one in the future.

25% of your income gets deducted by way of statutory deductions and for investment purposes.

25% of your income is generally spent to meet your monthly expenses.

This leaves back 40%, which is taken as your repayment capacity for this loan.

For self-employed applicants, profit is the benchmark that determines loan value. 

The longer the time frame for repaying the loan the lower the EMI and this also means you can opt for a larger loan amount. The loan amount you are eligible for is also dependent on other factors like the company you are employed with, the location of your residence and your credit history.

A long term loan like a home loan from Housing Finance Companies is a debt that is part of your budget every month. If you invest too much into it, there might not be adequate funds to manage a huge list of other expenses that will tend to accumulate with time. For e.g. You need to make allowances for future expenses like education expenses for children, emergency funds for a job loss or the loss of one income in a situation where two people have taken a joint loan.

The might be spikes in interest rates. In such a scenario usually banks will increase the loan tenure in order not to put the loan taker in a tight spot by increasing his EMI. In such a scenario if you have adequate funds in hand you could prepay at intervals, allowing scope for closing your loan early.

[Source: http://www.sooperarticles.com/finance-articles/investing-articles/budgeting-your-emi-your-income-303924.html?]