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]

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?]

How to Get Best Home Loans in India

One's house is where his heart lies. Hence, owning a house is one of the biggest dreams and goals for many people. Years ago, buying a home was a daunting task for common masses with the huge rates of property. However, today you can get best home loan from several schemes available in India which enables even common masses to buy their dream homes easily!

Process of approval of such schemes in India is very simple. Also home loans are available for different interest rates. One can also get a scheme which depends on one's ability to repay. Apart from this, one can easily select for an EMI scheme as per his/her budget & affordability.

You can avail housing schemes as per different options & flat rates & floating rates of interest thus providing various choices to the borrower.

The borrower can mortgage his property or land against the scheme. If you're a salaried individual then you need to show your documents as a proof of your earnings to the bank. Other related identification documents and proofs vary across lenders.

Today there's intense competition in the mortgage market. As a result, one can obtain home loans at high competitive rates. There are lots of companies who show various offers to lure potential borrowers. Therefore, one needs to be prudent while selecting home loan schemes and select the best home loan after studying the loan provider and related documents carefully.

Another way to get best home loan is online from Housing Finance Companies. Selecting schemes online and comparing loan offers from different lenders and banks becomes so easy. Instead of visiting lenders physically, you can get the best home loan deal by simply navigating various websites online. Also applying for online home loan, one gets the benefit of minimal paperwork and just need to follow simple one-time procedure. There are various premier banks which offer housing schemes in India. One can get best home loan at favorable interest rates. The rates can range from 7.5 per cent to 16 per cent. However, further negotiation can get you further discount in rates.

These schemes are available at different interest rates which depend on the repayment tenure. Also one can easily avail EMI options as per her own budget & affordability. These schemes are available as per different requirements. One can get best schemes at flat rates & floating rate of interests thus providing huge range of choices to the borrower for favorability.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/how-get-best-home-loans-india-1352288.html?]

How Much Cheaper Can Your Loan Get After The Repo Rate Cut?

Most home buyers, irrespective of how much they earn, feel the pinch when they have to shell out money every month to pay for EMIs on Home Loans. Any drop in the EMI amount would bring cheer to existing and new Home Loan borrowers.

With the Reserve Bank of India cutting repo rates by 25 basis points from 6.5% to 6.25%, which is the lowest in six years, loan borrowers are hopeful about a decline in interest rates, which would translate into a reduction in EMI amounts.

Additional Reading: 6 Common Mistakes Made By First-Time Home Buyers

The relation between repo rates and loan EMIs

Repo rate is the rate at which the Reserve Bank of India lends money to commercial banks. As a lower repo rate would mean paying less to the RBI for the banks, it would mean paying back loans at a lower interest rate for the borrowers. The fall in interest rate would see the number of borrowers go up, thereby, increasing profits for the banks?

However, a repo rate cut does not always lead to a decline in interest rates. Only if the banks reduce the base lending rate, the loan EMI comes down. Also, the banks need to check if they are able to have enough margins by compensating for loan defaults and NPAs before passing on the benefits to borrowers.

Current Home Loan rates and interest rates once banks pass on rate cut benefits

Will a mere 0.25% decline result in adequate savings?

A 0.25% decline in interest rate may appear too small to make a substantial difference in a short period of time, but it could help you save in the long run.

For example, if you have a Home Loan of Rs. 50 lakh to be paid back over a tenure of 20 years with an interest rate of 9.5%, your loan EMI would come down to Rs. 46,607 with a total payable interest of Rs. 61,85,574. So, at the end of the loan tenure, you would end up paying a total amount of Rs. 1, 11, 85,574 including principal and interest.

If your bank cuts down the interest rate to 9.25%, the loan EMI would be down to Rs. 45,793, translating to a total payable amount of Rs. 1, 09, 90,402 at the end of the loan tenure.

Thus, you would end up saving up to Rs. 1.95 lakh on the total payment of your Home Loan.

Drop in repo rate: Ideal time to consider home loan refinance?

If you’re not happy with the rates being offered by your current financer on your Housing Finance, you have the option of moving to the MCLR regime within the same bank or to an MCLR-linked loan at another bank. Even a 0.25% difference between the two interest rates could potentially save you lakhs of rupees in the long run.

All you need to do is pay a processing fee along with a legal fee to your new lender which amounts to a small percent of your due loan amount.

Additional Reading: When Is Home Loan Refinancing A Good Idea?

If your Home Loan is nearing completion, the rate cut would not impact you much. So, if you have an existing loan, do keep an eye on the total interest saved either by reducing the tenure or EMI or moving your loan to another bank.

[Source: https://blog.bankbazaar.com/how-cheaper-can-your-loan-get-after-the-repo-rate-cut/]

The Quickest Way to Find Out How Much Home Loan Can You Afford

When people buy homes, their primary focus tends to shift from affordability to dreams. Though, with the easing cost of houses and housing finance in India, it is impossible to stay in a surreal stage for a long time. However, it is possible to dream within your means. That's why the housing companies in India have created such amazing and useful online tools to help you along the way. So, if you are a first-time borrower, here is how you find out the home and home loan you can afford.

Step 1: Use home loan eligibility calculator

This is the most basic form of home loan calculations. But, it is a useful way to identify the suitable principal amount for your housing loan. But, as you may not know it is just the first step. You are far away from identifying the home loan you can actually afford. There is another step you must take. Then you can estimate the home loan you can afford.

Step 2: Use home loan EMI calculator

You know the rough amount of home loan you can get. However, you will need to have the repayment ability to pay the applicable EMI of that loan each month. This repayment ability is measured in two vital factors. Firstly, you must be able to set aside sufficient amount to pay the housing loan EMI each month. So check out the home loan EMI calculator to calculate the approximate EMI you will need to pay. You will need to run several housing loan EMI calculations to ensure that it fits well into other monthly expenses. For example, credit card bill, utility bills, insurance premiums, etc. So, after making these calculations, you will have a decent idea about the home loan you can afford.

Step 3: Check your credit history

This is not a mandatory step. But, things can go wrong without it too. You need to know your credit score and basic credit history. This plays a crucial role in home loan approval. In simple terms, online tools are really helpful. But it does not account for the realistic state of your finances. Any Housing Finance Companies

Will check your credit history once you submit a housing loan application. So, it is best to find it out yourself. It will allow you to eliminate the housing finance companies that will not accept your application. Most banks and housing finance companies state their eligibility criteria on websites. Their representatives answer questions regarding the expected credit score. So, you must take a simple online credit report for s clear understanding of your finances.

[Source: http://www.sooperarticles.com/finance-articles/loans-articles/quickest-way-find-out-how-much-home-loan-can-you-afford-1378285.html?]